Heritage Global (HGBL) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Trading Symbol	HGBL
Security Exchange Name	NASDAQ
Entity Registrant Name	HERITAGE GLOBAL INC.
Entity Central Index Key	0000849145
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Document Transition Report	false
Title of 12(b) Security	Common stock, $0.01 par value
Entity Incorporation, State or Country Code	FL
Document Quarterly Report	true
Entity Common Stock, Shares Outstanding		37,341,185
Entity Current Reporting Status	Yes
Entity Shell Company	false
Securities Act File Number	001-39471
Entity Tax Identification Number	59-2291344
Entity Address, Address Line One	12625 High Bluff Drive
Entity Address, Address Line Two	Suite 305
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	847-0659

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 26,571	$ 12,279
Accounts receivable (net of allowance for credit losses of $130 in 2024 and $132 in 2023)	877	1,910
Current portion of notes receivable (net of allowance for credit losses of $422 in 2024 and $650 in 2023)	3,959	6,581
Inventory – equipment	4,721	5,074
Other current assets	833	448
Total current assets	36,961	26,292
Non-current portion of notes receivable, net	7,337	10,890
Equity method investments	21,447	21,361
Right-of-use assets	2,381	2,539
Property and equipment, net	1,692	1,705
Intangible assets, net	3,460	3,753
Goodwill	7,446	7,446
Deferred tax assets	7,740	9,115
Other assets	64	67
Total assets	88,528	83,168
Current liabilities:
Accounts payable and accrued liabilities	6,268	7,237
Payables to sellers	13,125	4,975
Current portion of third party debt	525	1,733
Current portion of lease liabilities	802	789
Total current liabilities	20,720	14,734
Non-current portion of third party debt	0	5,495
Non-current portion of lease liabilities	1,681	1,859
Total liabilities	22,401	22,088
Stockholders’ equity:
Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 563 of Series N as of September 30, 2024 and December 31, 2023; 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 37,341,185 and 37,157,616 shares as of September 30, 2024 and December 31, 2023, respectively; and outstanding 36,343,561 and 36,761,441 shares as of September 30, 2024 and December 31, 2023, respectively	373	372
Additional paid-in capital	295,241	294,522
Accumulated deficit	(227,641)	(233,026)
Treasury stock at cost, 997,624 and 396,175 shares as of September 30, 2024 and December 31, 2023, respectively	(1,852)	(794)
Total stockholders’ equity	66,127	61,080
Total liabilities and stockholders’ equity	$ 88,528	$ 83,168

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 130	$ 132
Notes receivable, net of allowance for credit losses	$ 422	$ 650
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	563	563
Preferred stock, shares outstanding	563	563
Preferred Stock, Liquidation Preference Per Share	$ 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	37,341,185	37,157,616
Common stock, shares outstanding	36,343,561	36,761,441
Treasury Stock, Common, Shares	997,624	396,175

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Total revenues	$ 10,410	$ 15,551	$ 34,594	$ 45,261
Operating costs and expenses:
Selling, general and administrative	5,686	6,806	18,390	19,546
Depreciation and amortization	152	132	440	373
Total operating costs and expenses	9,031	12,774	29,635	36,172
Earnings of equity method investments	100	(8)	2,622	675
Operating income	1,479	2,769	7,581	9,764
Interest income (expense), net	17	(56)	(183)	(225)
Income before income tax expense	1,496	2,713	7,398	9,539
Income tax expense	407	736	2,013	1,954
Net income	$ 1,089	$ 1,977	$ 5,385	$ 7,585
Weighted average common shares outstanding – basic	36,576,931	36,742,018	36,641,820	36,675,838
Weighted average common shares outstanding – diluted	37,189,029	37,647,321	37,292,200	37,605,363
Net income per share – basic	$ 0.03	$ 0.05	$ 0.15	$ 0.21
Net income per share – diluted	$ 0.03	$ 0.05	$ 0.14	$ 0.2
Services Revenue [Member]
Revenues:
Total revenues	$ 8,063	$ 9,985	$ 25,527	$ 30,040
Operating costs and expenses:
Cost of services revenue and assets sales	1,735	2,423	4,665	6,570
Asset Sales [Member]
Revenues:
Total revenues	2,347	5,566	9,067	15,221
Operating costs and expenses:
Cost of services revenue and assets sales	$ 1,458	$ 3,413	$ 6,140	$ 9,683

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Treasury Stock, Common [Member]
Beginning Balance at Dec. 31, 2022	$ 48,299	$ 6	$ 369	$ 293,589	$ (245,270)	$ (395)
Begining Balance (in shares) at Dec. 31, 2022		565	36,932,177			243,468
Cumulative change in accounting principle (Note 2)	(231)				(231)
Balance as of January 1, 2023 (as adjusted for change in accounting principle)	48,068	$ 6	$ 369	293,589	(245,501)	$ (395)
Balance as of January 1, 2023 (as adjusted for change in accounting principle), shares		565	36,932,177			243,468
Issuance of common stock from stock option awards	5			5
Issuance of common stock from stock options awards, shares			31,191
Issuance of restricted common stock	152		$ 2	150
Issuance of restricted common stock, shares			134,592
Stock-based compensation expense	179			179
Net Income (Loss)	2,829				2,829
Ending Balance at Mar. 31, 2023	51,233	$ 6	$ 371	293,923	(242,672)	$ (395)
Ending Balance (in shares) at Mar. 31, 2023		565	37,097,960			243,468
Beginning Balance at Dec. 31, 2022	48,299	$ 6	$ 369	293,589	(245,270)	$ (395)
Begining Balance (in shares) at Dec. 31, 2022		565	36,932,177			243,468
Net Income (Loss)	7,585
Ending Balance at Sep. 30, 2023	56,398	$ 6	$ 372	294,331	(237,916)	$ (395)
Ending Balance (in shares) at Sep. 30, 2023		563	37,151,924			243,468
Beginning Balance at Mar. 31, 2023	51,233	$ 6	$ 371	293,923	(242,672)	$ (395)
Begining Balance (in shares) at Mar. 31, 2023		565	37,097,960			243,468
Issuance of common stock from stock option awards	5			5
Issuance of common stock from stock options awards, shares			32,111
Issuance of common stock due to conversion of Series N Preferred stock, shares		(2)	80
Issuance of restricted common stock, shares			15,000
Stock-based compensation expense	228			228
Net Income (Loss)	2,779				2,779
Ending Balance at Jun. 30, 2023	54,245	$ 6	$ 371	294,156	(239,893)	$ (395)
Ending Balance (in shares) at Jun. 30, 2023		563	37,145,151			243,468
Issuance of common stock from stock option awards	1		$ 1
Issuance of common stock from stock options awards, shares			6,773
Stock-based compensation expense	175			175
Net Income (Loss)	1,977				1,977
Ending Balance at Sep. 30, 2023	56,398	$ 6	$ 372	294,331	(237,916)	$ (395)
Ending Balance (in shares) at Sep. 30, 2023		563	37,151,924			243,468
Beginning Balance at Dec. 31, 2023	61,080	$ 6	$ 372	294,522	(233,026)	$ (794)
Begining Balance (in shares) at Dec. 31, 2023		563	37,157,616			396,175
Issuance of common stock from stock options awards, shares			1,200
Issuance of restricted common stock	(75)		$ 1	(76)
Issuance of restricted common stock, shares			177,576
Stock-based compensation expense	228			228
Net Income (Loss)	1,799				1,799
Ending Balance at Mar. 31, 2024	63,032	$ 6	$ 373	294,674	(231,227)	$ (794)
Ending Balance (in shares) at Mar. 31, 2024		563	37,336,392			396,175
Beginning Balance at Dec. 31, 2023	$ 61,080	$ 6	$ 372	294,522	(233,026)	$ (794)
Begining Balance (in shares) at Dec. 31, 2023		563	37,157,616			396,175
Issuance of common stock from stock options awards, shares	13,750
Net Income (Loss)	$ 5,385
Ending Balance at Sep. 30, 2024	66,127	$ 6	$ 373	295,241	(227,641)	$ (1,852)
Ending Balance (in shares) at Sep. 30, 2024		563	37,341,185			997,624
Beginning Balance at Mar. 31, 2024	63,032	$ 6	$ 373	294,674	(231,227)	$ (794)
Begining Balance (in shares) at Mar. 31, 2024		563	37,336,392			396,175
Issuance of common stock from stock option awards	(6)			(6)
Issuance of common stock from stock options awards, shares			4,793
Stock-based compensation expense	290			290
Net Income (Loss)	2,497				2,497
Ending Balance at Jun. 30, 2024	65,813	$ 6	$ 373	294,958	(228,730)	$ (794)
Ending Balance (in shares) at Jun. 30, 2024		563	37,341,185			396,175
Stock-based compensation expense	283			283
Repurchase of common stock, Shares						601,449
Repurchase of common stock, Value	(1,058)					$ (1,058)
Net Income (Loss)	1,089				1,089
Ending Balance at Sep. 30, 2024	$ 66,127	$ 6	$ 373	$ 295,241	$ (227,641)	$ (1,852)
Ending Balance (in shares) at Sep. 30, 2024		563	37,341,185			997,624

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows provided by operating activities:
Net income	$ 5,385	$ 7,585
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred issuance costs and fees	(77)	76
Earnings of equity method investments	(2,622)	(675)
Noncash credit loss expense	(228)	632
Noncash lease expense	484	483
Depreciation and amortization	440	373
Deferred taxes	1,375	1,170
Stock-based compensation expense	801	582
Changes in operating assets and liabilities:
Accounts receivable	1,032	(1,910)
Inventory – equipment	353	173
Other current assets	(382)	428
Accounts payable and accrued liabilities	(965)	(2,869)
Payables to sellers	8,150	6,996
Lease liabilities	(492)	(469)
Net cash provided by operating activities	13,254	12,575
Cash flows from investing activities:
Investment in notes receivable	(5,047)	(27,636)
Payments received on notes receivable	9,039	6,147
Cash received on transfer of notes receivable to partners	0	8,851
Investment in equity method investments	(343)	(6,465)
Return of investment in equity method investments	2,744	4,124
Cash distributions from equity method investments	2,622	675
Purchase of property and equipment	(134)	(237)
Net cash provided by (used in) investing activities	8,881	(14,541)
Cash flows from financing activities:
Proceeds from debt payable to third parties	0	13,000
Repayment of debt payable to third parties	(6,704)	(8,039)
Proceeds from issuance of common stock from stock option awards	0	36
Payments of tax withholdings related to issuance of restricted common stock and stock option awards	(81)	(120)
Repurchase of common stock	(1,058)	0
Net cash (used in) provided by financing activities	(7,843)	4,877
Net increase in cash and cash equivalents	14,292	2,911
Cash and cash equivalents as of beginning of period	12,279	12,667
Cash and cash equivalents as of end of period	26,571	15,578
Supplemental cash flow information:
Cash paid for taxes, net	682	547
Cash paid for interest	326	323
Noncash transfer of notes receivable to equity method investments	2,487	0
Noncash change in lease liabilities and right-of-use assets	$ 327	$ 405

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,089	$ 2,497	$ 1,799	$ 1,977	$ 2,779	$ 2,829	$ 5,385	$ 7,585

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Item 5. Other Information. Rule 10b5-1 Trading Plans of Directors and Section 16 Officers On August 14, 2024 , David Ludwig , President of Financial Assets division , adopted a written arrangement that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c) (the "Trading Plan"). The Trading Plan provides for the sale of 137,000 shares of our common stock and will terminate on March 15, 2025 , unless terminated earlier in accordance with the Trading Plan's terms. Rule 10b5-1 Trading Plans of the Company In connection with our Repurchase Program, on September 13, 2024 , the Company's Board of Directors adopted a written arrangement that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c) (the "Repurchase Trading Plan"). The Repurchase Trading Plan provides for the Company to repurchase of up to $6.0 million in shares of our common stock and will terminate on March 15, 2025 , unless terminated earlier in accordance with the Repurchase Trading Plan's terms. During the three months ended September 30, 2024, 24,180 shares of common stock were repurchased under the Repurchase Trading Plan. Future repurchases may be made as open market transactions, privately negotiated transactions or through a series of forward purchase agreements, option contracts or similar agreements, including the Repurchase Trading Plan as described above. The Company has no obligation to repurchase stock under this program and may suspend or terminate the Repurchase Program at any time.
David Ludwig [Member]
Trading Arrangements, by Individual
Name	David Ludwig
Title	President of Financial Assets division
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 14, 2024
Rule 10b5-1 Arrangement Terminated	true
Termination Date	March 15, 2025
Aggregate Available	137,000
Board of Director [Member]
Trading Arrangements, by Individual
Title	Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 13, 2024
Rule 10b5-1 Arrangement Terminated	true
Termination Date	March 15, 2025
Aggregate Available	24,180

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 –Basis of Presentation These unaudited condensed consolidated interim financial statements include the accounts of Heritage Global Inc. ("HG") 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 "the Company,” "us" “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 HGP, Refurbishment & Resale, through ALT, Brokerage, through NLEX and Specialty Lending, through HGC. The Company prepared the unaudited condensed consolidated interim financial statements included herein pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of management, these condensed financial statements reflect all adjustments that are necessary to present fairly the results for the interim periods included herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are appropriate. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 14, 2024 (the “Form 10-K”). The results of operations for the nine-month period ended September 30, 2024 are not necessarily indicative of those operating results to be expected for any subsequent interim period or for the entire year ending December 31, 2024. The accompanying condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited consolidated balance sheet as of December 31, 2023, contained in the Company’s Form 10-K. Repurchase Program The Company’s Board of Directors authorized a share repurchase program on May 5, 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 2025. On September 13, 2024 the Company's Board of Directors approved an amendment to the Repurchase Program which increased the authorized aggregate amount of common shares the Company may repurchase to an aggregate of $ 6.0 million in common shares. The Company repurchased 601,449 shares in the open market for a purchase price of approximately $ 1.1 million during the three and nine months ended September 30, 2024. As of September 30, 2024, the Company had approximately $ 4.1 million in remaining aggregate dollar value of shares that may be purchased under the Repurchase Program.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Use of estimates The preparation of the Company’s unaudited condensed consolidated interim 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 condensed consolidated interim 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. Reven ue 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 nine months ended September 30, 2024 and 2023), 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”. The deferred revenue balance was approximately $ 0.5 million as of both September 30, 2024 and December 31, 2023 and is reflected in accounts payable and accrued liabilities on the condensed consolidated balance sheets. 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 condensed consolidated balance sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods. The amount of cash held on behalf of the sellers is recorded as payables to sellers in the accompanying condensed consolidated balance sheets. The Company evaluates revenue from 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 , 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 include 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. Through our Refurbishment and Resale segment, the Company offers financing on its standard laboratory equipment sales. The Company recognizes revenue upon shipment of its financed products in accordance with ASC 606. The Company records a loan receivable for the unpaid balance of the order. A loan amortization table is created upon shipment outlining the principal and interest income portion of each future payment. These loans are classified as held-for-investment and accounted for under the guidelines of ASC 310. Direct loan origination fees are offset by the expenses incurred and the net amount is amortized over the life of the related loan using the interest method described in ASC 835. Nonaccrual Loans The Company determines a loan to be in a default status when the minimum payment amount has not been received within the grace period of the payment due date. The status of default does not solely trigger nonaccrual loan status. The Company considers quantitative and qualitative factors when evaluating a loan in default status to determine the likelihood of recovering the outstanding principal balance and contractual interest payments. The Company also monitors its borrowers’ financial standing and performance on an ongoing basis and regularly updates the collection forecasts for the underlying charged off or nonperforming receivable portfolios related to each outstanding loan. If management determines (1) it is not probable that the projected cash flows expected from the borrower’s collection efforts on the underlying charged off or nonperforming receivable portfolio will be sufficient to satisfy all of the outstanding principal balance and contractual interest payments, and (2) it is not probable that the borrower will be able to meet the minimum required principal and interest payments through other operational cash flows, the Company will place the loans on nonaccrual status. If, based on its analysis, the Company elects to maintain accrual status after initial payment default, the loan will generally be placed on nonaccrual status if principal or interest payments become 90 days past due. The accrual of interest is generally discontinued when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery or the cash-basis method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest payments received by the creditor are recorded as interest income provided the amount does not exceed the amount that would have been earned at the loan’s original effective interest rate. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and all remaining principal and interest payments are deemed probable. In November 2023, the Company and its affiliated joint ventures restructured loans with its largest borrower by restructuring certain outstanding loans (the "Restructured Loans") with an amortized cost basis of $ 51.6 million or 59 % of the amortized cost basis of the total charged-off asset portfolio loans of HGC and its affiliated joint ventures. The Company’s share of the Restructured Loans amortized cost basis was $ 22.2 million, or 57 % of HGC’s share of the loan book. All Restructured Loans were restructured by term extension, adding a weighted average of 1.5 years to the life of the Restructured Loans, which reduced the monthly payments for the borrower. As of September 30, 2023, the Company increased its allowance for credit losses related to its largest borrower experiencing financial difficulties. This resulted in an allowance for credit losses on the loans later restructured of $ 1.0 million as of September 30, 2023. As of September 30, 2024, the Company’s allowance for credit losses related to the Restructured Loans was $ 1.1 million, of which $ 0.3 million was classified as notes receivable and $ 0.8 million was recorded within equity method investments. The Company's largest borrower continues to collect on the underlying charged off and nonperforming consumer loan portfolios and remit net collections to the Company and senior lenders, however this borrower's June remittance did not meet the minimum required payment amount. The Company has determined (1) it is not probable that the projected cash flows expected from the borrower’s collection efforts on the underlying charged off or nonperforming receivable portfolio will be sufficient to satisfy all of the outstanding principal balance and contractual interest payments, and (2) it is not probable that the borrower will be able to meet the minimum required principal and interest payments through other operational cash flows. While the Company continues to work closely with the borrower and its senior lenders in an effort to mitigate the default in an efficient and effective manner, the impacted loans were placed in nonaccrual status in June 2024. In addition, there was a balance of $ 1.5 million from the Company’s share of other loans within its affiliated joint ventures that are impacted by the default with the largest borrower and were placed in nonaccrual status in June 2024. The Company's share of payments received from the nonaccrual loans, including interest, will be applied against the outstanding loan balance. As of September 30, 2024, the amortized cost basis of loans in nonaccrual status was $ 24.0 million, of which $ 5.4 million is recorded within notes receivable and $ 18.6 million is recorded within equity method investments. There were no loans in nonaccrual status as of December 31, 2023. Specialty Lending - Concentration and credit risk As of September 30, 2024, the Company held a gross balance of investments in notes receivable of $ 32.0 million, recorded in both notes receivable and equity method investments, and consisting of one borrower’s note balance of approximately $ 22.5 million, or 70 % as of September 30, 2024, as compared to 62 % as of December 31, 2023. The Company does not intend to hold highly concentrated balances due from one borrower as part of its long-term strategy but may, in the short term, have concentration risk on its path to an established and diversified portfolio. The Company does not evaluate concentration risk solely based on balance due from specific borrowers, but also considers the number of portfolio purchases, type of charged off accounts within the portfolio, and the seller of the portfolio when determining the overall risk. Of the balance due from one borrower of $ 22.5 million, there are 11 distinct loan agreements. The underlying portfolio of accounts are diversified throughout FinTech loans, installment loans and credit card accounts, and further diversified amongst six separate sellers of these charged off portfolios. The Company mitigates this concentration risk by requiring, and monitoring, security from each borrower consisting of their charged off and nonperforming receivable portfolios. The Company engages in a due diligence process that leverages its valuation expertise and knowledge in the underlying nonperforming receivable portfolios marketplace. In the event of default, the Company is entitled to call the unpaid interest and principal balances and receive all net collections directly. The Company may also recover its investment by engaging a third party to collect on the underlying charged off or nonperforming receivable portfolio or the underlying portfolio can be sold through the Company's Brokerage segment. In certain cases, the Company’s recovery options may be subject to concurrence of the originator or other prior holder of the assets. Accounts receivable The Company carries accounts receivable at the face amounts less an allowance for estimated credit losses. The Company estimates its reserve for credit losses using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. The Company only extends credit to entities and institutions of significance, such as well-known academic and financial institutions and U.S. government agencies. Consequently, historical accounts receivable credit losses are nearly zero, which provides the starting point for management’s assessment of the reserve for credit losses for its accounts receivable. The Company estimates its expected credit losses for accounts receivable based on historical credit loss experience, its assessment of current conditions, and other relevant available information from internal and external sources on a quarterly basis. As of both September 30, 2024 and December 31, 2023, the reserve for credit losses related to accounts receivable was approximately $ 0.1 million. Notes receivable Under ASC 326, the Company evaluates notes receivable as a single pool, for individual notes receivable and borrowers with similar risk characteristics. Notes receivable and borrowers that do not share risk characteristics are evaluated on an individual basis. Management evaluates the Company's notes receivables related to financing laboratory equipment sales within the notes receivable pool. Management estimates the reserve balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience typically provides the basis for an estimation of expected credit losses; however, the Company lacks sufficient data upon which to base a historical estimation. Additionally, since the Company began recording notes receivable on the condensed consolidated balance sheets, the Company has recorded no actual credit losses to notes receivable. Lacking historical internal data upon which to base a reserve for credit losses to notes receivable, the Company, under ASC 326, estimates its reserve using external credit loss experience data. Management observes that the Company's notes receivable are similar in character to transactions undertaken by smaller banking institutions. The Company estimates its expected credit losses based on the Scaled Current Expected Credit Loss (CECL) Allowance Loss Estimator ("SCALE rate") available from the Federal Reserve. The SCALE rate methodology is endorsed by the FASB and the Conference of State Bank Supervisors. Management determined under ASC 326 that the SCALE rate, a generally applicable rate, may be appropriately adjusted by its assessment of observable facts and relevant circumstances indicating that the factors analyzed in the determination of the SCALE rate may not conform to the Company's operations and borrower assessments. As of September 30, 2024, the SCALE rate was 1.3834 % and the Company's credit loss allowance rate specific to notes receivable was 3.6 %. The increase over the SCALE rate was due to both the above mentioned risks presented by a concentrated balance with a single borrower and declining collections industry-wide. As of September 30, 2024 and December 31, 2023, the Company's allowance for credit losses related to notes receivable outstanding was $ 0.4 million and $ 0.7 million, respectively. 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 and assess the credit quality of the loan receivables. This review includes monthly and cumulative key performance indicators for each loan and borrower, as well as evaluation of borrower's financial condition. Equity method investments Similar to notes receivable, the loans held by the joint ventures are evaluated on a quarterly basis to determine if an adjustment to the allowance for credit losses is needed. As of September 30, 2024, the SCALE rate was 1.3834 % and the credit loss allowance rate specific to equity method investments was 4.8 %. The increase over the SCALE rate was due to both the above mentioned risks presented by a concentrated balance with a single borrower and declining collections industry-wide. As of September 30, 2024 and December 31, 2023, the Company's allowance for credit losses related to its equity method investments was $ 1.0 million and $ 0.9 million, respectively. Future accounting pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company anticipates that ASU 2023-07 will have no accounting impact, but will require additional disclosure for each of its reportable segments. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company anticipates that ASU 2023-09 will have no accounting impact but will require additional disclosure related to certain income tax calculations.

Accounts Receivable, net

Accounts Receivable, net	9 Months Ended
	Sep. 30, 2024
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivable, net	Note 3 – Accounts Receivable, net The Company’s accounts receivable, net consists of accounts receivables recorded in the ordinary course of business associated with the recognition of revenue from contracts with customers. In accordance with ASC 326, the Company performs a review of accounts receivables on a quarterly basis. During the nine months ended September 30, 2024, the Company recorded no material adjustments for credit losses in selling, general and administrative expense on the consolidated statement of income related to accounts receivable. As of both September 30, 2024 and December 31, 2023, the reserve for credit losses was approximately $ 0.1 million.

Notes Receivable, Net

Notes Receivable, Net	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Notes Receivable, net	Note 4 – Notes Receivable, net The Company’s notes receivable, net consists of investments in loans to buyers of charged-off and nonperforming receivable portfolios through HGC and financing of laboratory equipment sales through ALT. As of September 30, 2024 and December 31, 2023, the Company’s outstanding notes receivables related to loans to buyers of charged-off and nonperforming receivable portfolios, net of unamortized deferred fees and costs on originated loans, and adjusted for the reserve for credit losses was $ 10.9 million and $ 17.5 million, respectively. The activity during the nine months ended September 30, 2024 includes the additional investment in notes receivable of approximately $ 4.5 million, which was offset by principal payments made by borrowers of approximately $ 8.8 million and noncash transfer of notes receivable to equity method investments of approximately $ 2.5 million. As of September 30, 2024, the Company’s outstanding notes receivables related to financing of laboratory equipment sales, net of unamortized deferred fees and costs on originated loans and adjusted for the reserve for credit losses was $ 0.4 million. There was no notes receivable balance related to financing of laboratory equipment sales as of December 31, 2023. The activity during the nine months ended September 30, 2024 includes the investment in notes receivable of approximately $ 0.6 million, which was offset by principal payments made by purchasers of $ 0.2 million and immaterial deferred financing fees, and allowance for credit losses. The table below shows the Company’s lending activity as of September 30, 2024 (in thousands): September 30, 2024 Notes receivable as of December 31, 2023 $ 18,262 Investment in notes receivable 5,047 Noncash transfer of notes receivable to equity method investments ( 2,487 ) Principal repayments ( 9,039 ) Notes receivable, as of September 30, 2024 11,783 Deferred financing fees and costs, net ( 65 ) Allowance for credit losses ( 422 ) Notes receivable, net, September 30, 2024 $ 11,296 In accordance with ASC 326, the Company performs a review of notes receivable on a quarterly basis. During the nine months ended September 30, 2024, the Company recorded a credit of $ 0.3 million to the provision for credit losses in selling, general and administrative expense on the consolidated statement of income, which was primarily due to the decrease in balance of notes receivables. As of September 30, 2024 and December 31, 2023, the allowance for credit losses was approximately $ 0.4 million and $ 0.7 million, respectively. As of September 30, 2024, the amortized cost basis of notes receivable in nonaccrual status was $ 5.4 million.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Note 5 – Stock-based Compensation As of September 30, 2024, the Company had four stock-based compensation plans, which are described more fully in Note 16 – Stockholders' Equity - Stock-Based Compensation Plans of the Company's audited consolidated financial statements for the year ended December 31, 2023 contained in the Company’s Form 10-K. Stock Options During the nine months ended September 30, 2024, the Company issued options to purch ase 35,000 shares of com mon stock to certain of the Company’s employees. During the same period, the Company canceled 12,750 options to purchase common stock as a result of employee resignations. The following summarizes the changes in common stock options for the nine months ended September 30, 2024: Options Weighted Weighted Aggregate Intrinsic Value (In thousands) Outstanding as of December 31, 2023 2,265,350 $ 1.71 6.8 $ 907 Granted 35,000 $ 2.70 Exercised ( 13,750 ) $ 1.02 Forfeited ( 12,750 ) $ 1.87 Outstanding as of September 30, 2024 2,273,850 $ 1.73 6.1 $ 897 Options exercisable as of September 30, 2024 1,626,600 $ 1.42 5.3 $ 879 The Company recognized stock-based compensation expense related to common stock optio ns of $ 0.4 million for the nine months ended September 30, 2024 and $ 0.6 million for the nine months ended September 30, 2023. As of September 30, 2024, there was appr oximately $ 1.0 million o f unrecognized stock-based compensation expense related to unvested common stock options outstanding, which is expected to be recognized over a weighted average period of 1.6 years. 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 March 7, 2024, the Company granted 128,044 shares of Company restricted common stock to employees under the 2022 Heritage Global Inc. Equity Incentive Plan. The restricted stock shares vest on March 7, 2025. On March 7, 2024, the Company granted 75,000 shares of Company restricted common stock to non-executive directors under the 2022 Heritage Global Inc. Equity Incentive Plan. The restricted stock shares vest on March 7, 2025. The Company 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 was approximately $ 0.4 million for the nine months ended September 30, 2024 and $ 0.1 million for the nine months ended September 30, 2023. The unrecognized stock-based compensation expense as of September 30, 2024 was approximately $ 0.3 million, which is expected to be recognized over a weighted average period of 0.4 years.

Equity Method Investments

Equity Method Investments	9 Months Ended
	Sep. 30, 2024
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. In May 2023, HGC MPG Funding LLC, of which the Company holds a 25 % share, was formed as a joint venture with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In December 2023, KNFH II LLC, of which the Company holds a 25 % share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. CPFH LLC, KNFH LLC, DHC8 LLC and KNFH II LLC are joint ventures formed in connection with the Company’s Industrial Assets division, whereas HGC Origination I LLC, HGC Funding I LLC, and HGC MPG Funding LLC were formed in connection with the Financial Assets division. The Company has significant influence over the operations and financial policies of each of its equity method investments. In accordance with ASC 326, the Company performs a review of notes receivable on a quarterly basis for each of its specialty lending investments. During the nine months ended September 30, 2024, the Company recorded a $ 0.1 million adjustment for its share of the joint venture’s increase to the provision for credit losses. As of September 30, 2024, the Company's share of the allowance for credit losses was approximately $ 1.0 million, which was primarily related to HGC Origination I LLC and HGC MPG Funding LLC. As of September 30, 2024, the Company has incurred no actual credit losses through its equity method investments. As of September 30, 2024, the amortized cost basis of the Company's share of loans in nonaccrual status recorded in equity method investments was $ 18.5 million. The tables below details the Company’s joint venture revenues and earnings during the nine months ended September 30, 2024 and 2023 (in thousands): Nine Months Ended September 30, 2024 KNFH LLC DHC8 LLC KNFH II LLC HGC Origination I LLC and HGC Funding I LLC HGC MPG Funding LLC Revenue $ — $ 751 $ 13,249 $ 3,705 $ 3,987 Gross profit — 751 5,213 3,705 3,987 Operating income — 590 5,120 3,656 3,987 Net income $ — $ 590 $ 5,120 $ 3,668 $ 3,987 Nine Months Ended September 30, 2023 KNFH LLC DHC8 LLC KNFH II LLC HGC Origination I LLC and HGC Funding I LLC HGC MPG Funding LLC Revenue $ 303 $ 1,183 $ — $ 3,769 $ 552 Gross profit 303 1,183 — 3,769 552 Operating income (loss) ( 144 ) 1,009 — 2,374 548 Net income (loss) $ ( 144 ) $ 1,009 $ — $ 2,374 $ 548 The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of September 30, 2024 and December 31, 2023 (in thousands): September 30, December 31, 2024 2023 Assets: KNFH LLC $ — $ 292 DHC8 LLC 2,068 7,061 KNFH II LLC 7,966 8,150 HGC Origination I LLC and HGC Funding I LLC 26,113 28,389 HGC MPG Funding LLC 33,066 38,081 Total assets $ 69,213 $ 81,973 Liabilities: KNFH LLC $ — $ 289 DHC8 LLC 1,038 1,102 KNFH II LLC 2,200 4,000 HGC Origination I LLC and HGC Funding I LLC 972 10 HGC MPG Funding LLC — — Total liabilities $ 4,210 $ 5,401

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2024
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 both the three and nine months ended September 30, 2024 and 2023, the earnings allocated to the outstanding preferred shares were not material. In periods in which the Company records 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. As the preferred stock does not participate in losses, the two-class method is not used in periods in which the Company records a net loss. Stock options and other potential common shares are included in the calculation of diluted earnings per share (“diluted EPS”). In calculating diluted EPS, such shares are assumed to be exercised or converted, except when their effect would be anti-dilutive. The table below shows the calculation of the number of shares used in computing diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic weighted average shares outstanding 36,576,931 36,742,018 36,641,820 36,675,838 Treasury stock effect of common stock options and restricted stock awards 612,098 905,303 650,380 929,525 Diluted weighted average common shares outstanding 37,189,029 37,647,321 37,292,200 37,605,363 For the three months ended September 30, 2024 and 2023, there were potential common share s of 0.6 million and 0.9 million, respectively, that were excluded from the computation of diluted EPS, as the inclusion of such common shares would have been anti-dilutive. For the nine months ended September 30, 2024 and 2023, there were potential common share s of 0.7 million and 0.9 million, respectively, that were excluded from the computation of diluted EPS, as the inclusion of such common shares would have been anti-dilutive.

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Leases	Note 8 – Leases The Company leases office and warehouse space in four locations: Del Mar, California, Hayward, California, San Diego, California and Edwardsville, Illinois. The Company determined that all of its lease arrangements are classified as operating leases. On August 12, 2022, the Company entered into an agreement with Liberty Industrial Park, LLC pursuant to which the Company leases 6,627 square feet of industrial space in San Diego, California. The commencement date of the lease was September 1, 2022 and the lease term expires on August 30, 2027 . It 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. On June 1, 2023, the Company amended its Edwardsville office building lease with David Ludwig, extending the term of the agreement to May 31, 2027 and setting rent amounts for the new term. It provides for an initial monthly base rent of $ 9,412 , which increases on an annual basis to $ 9,914 per month in the final year. On September 23, 2024, the Company amended its Del Mar office lease with OF 09 Hacienda, LLC, extending the term of the agreement by 24 months to February 28, 2027 and setting rent amounts for the new term. The amended Del Mar office lease provides for an initial monthly base rent of $ 14,660 beginning March 1, 2025 and increases on an annual basis to $ 15,099 per month in the final year. The right-of-use assets and lease liabilities for each lease location are as follows (in thousands): September 30, December 31, 2024 2023 Right-of-use assets: Del Mar, CA $ 402 $ 186 Hayward, CA 1,310 1,525 San Diego, CA 387 477 Edwardsville, IL 282 351 Total right-of-use assets $ 2,381 $ 2,539 Lease liabilities Del Mar, CA $ 402 $ 203 Hayward, CA 1,384 1,594 San Diego, CA 412 498 Edwardsville, IL 285 353 Total lease liabilities $ 2,483 $ 2,648 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 the same particular economic 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 September 1, 2022, June 1, 2023, and September 23, 2024, the Company’s incremental borrowing rate was 5.50 %, 7.25 %, and 6.25 %, respectively. The weighted average remaining lease term for operating leases is 3.4 years and the weighted average discount rate is 5.51 % as of September 30, 2024. Lease expense is recognized on a straight-line basis over the lease term. For both the nine months ended September 30, 2024 and September 30, 2023, lease expense was approximately $ 0.6 million. As of September 30, 2024, 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): 2024 (remainder of year from October 1, 2024 to December 31, 2024) $ 199 2025 807 2026 829 2027 573 2028 299 Total undiscounted future minimum lease payments 2,707 Less: imputed interest ( 224 ) Present value of lease liabilities $ 2,483

Lessor Arrangement

Lessor Arrangement	9 Months Ended
	Sep. 30, 2024
Lessor Disclosure [Abstract]
Lessor Arrangement	Note 9 – Lessor Arrangement In December 2023, the Company, with certain partners making up the KNFH II LLC joint venture, entered into a purchase and sale agreement for a pharmaceutical plant in Fenton, Missouri, including land, a building, and all machinery and equipment held within with a purchase price of $ 8.0 million. In April 2024, KNFH II LLC entered into a purchase and sale agreement for the machinery and equipment within the pharmaceutical plant with a purchase price of $ 5.0 million. Additionally, KNFH II LLC entered into a lease agreement for the lease of the real estate assets; the building and land. This lease agreement includes a purchase option with a purchase price of $ 8.0 million that is expected to be exercised by the lessee. The lessor arrangement is classified as a sales-type lease, and, therefore, the present value of future lease payments, including the purchase option, has been recognized as revenue and a lease receivable as of the effective date. As of September 30, 2024, the Company recognized approximately $ 1.3 million in earnings from equity method investments, related to the Company’s share of net income attributable to KNFH II LLC. The Company accounts for the transaction 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.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Note 10 – Intangible Assets and Goodwill Intangible assets The Company’s identifiable intangible assets are associated with its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, as shown in the table below (in thousands except for lives), and are amortized using the straight-line method over their remaining estimated useful lives. The Company’s tradename that was acquired as part of the acquisition of NLEX in 2014 has an indefinite life and therefore is not amortized. Remaining Carrying Value Carrying Value Life December 31, September 30, (years) 2023 Amortization 2024 Amortizable intangible assets: Trade Name (HGP) 0.3 $ 128 $ ( 96 ) $ 32 Trade Name (ALT) 16.9 575 ( 24 ) 551 Vendor Relationship (ALT) 1.9 613 ( 173 ) 440 Total amortizable intangible assets 1,316 ( 293 ) 1,023 Indefinite-lived intangible assets: Trade Name (NLEX) N/A 2,437 — 2,437 Total intangible assets $ 3,753 $ ( 293 ) $ 3,460 Amortization expense during both the nine months ended September 30 , 2024 and 2023 was $ 0.3 million. T he Company estimates that the residual value for intangible assets is no t significant. As of September 30, 2024, the estimated amortization expense for the remainder of the current fiscal year and the next five fiscal years and thereafter is shown below (in thousands): Year Amount 2024 (remainder of year from October 1, 2024 to December 31, 2024) $ 98 2025 263 2026 186 2027 32 2028 32 Thereafter 412 Total estimated amortization expense $ 1,023 Goodwill The Company’s goodwill relates to its acquisition of various entities. Goodwill consists of the following at September 30, 2024 and December 31, 2023 (in thousands): September 30, 2024 December 31, 2023 ALT $ 1,861 $ 1,861 HGP 2,041 2,041 NLEX 3,544 3,544 Total goodwill $ 7,446 $ 7,446 There were no additions to goodwill and no impairments recorded to the carrying value of goodwill during the nine months ended September 30 , 2024.

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Note 11 – Debt Outstanding debt as of September 30, 2024 and December 31, 2023 is summarized as follows (in thousands): September 30, 2024 December 31, 2023 Current: ALT Note $ 525 $ 511 2021 Credit Facility — — 2023 Credit Facility — 1,222 Total third party debt, current 525 1,733 Non-current: ALT Note — 395 2023 Credit Facility — 5,100 Total third party debt, non-current — 5,495 Total third party debt $ 525 $ 7,228 2021 Credit Facility 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 ("Lender") for a $ 10.0 million revolving line of credit. The Company is permitted to use the proceeds of the loan solely for its business operations. 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. On August 23, 2022, the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “2022 Modification Agreement”), effective as of April 1, 2022, by and between the Company and Lender. The 2022 Modification Agreement modified and reaffirmed the 2021 Credit Facility to provide for, among other things, the arrangement of financial covenants, which remained 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. On May 26, 2023, the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “Modification Agreement”), effective as of May 26, 2023, by and between the Company and Lender. The Modification Agreement modifies and reaffirms the 2021 Credit Facility to, among other things, extend the maturity date, modify the applicable interest rate, and further modify the loan covenants. The maturity date was modified to October 27, 2024 . The applicable interest rate spread and floor was modified to be the Wall Street Journal Prime rate plus 1.00 % (such rate not to be less than 6.75 % per annum). Additionally, the Modification Agreement modifies the loan covenants to provide that the Company shall pay the Lender an annual unused line fee, payable on the earlier of (a) bi-annually every six (6) months in arrears, within ten (10) days thereof, commencing on October 27, 2023, or (b) the payment in full of the 2021 Credit Facility, but only if the average balance of the 2021 Credit Facility for the respective six months is below $ 5.0 million. 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 September 30, 2024, there was no outstanding balance on the 2021 Credit Facility. On July 24, 2024 the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “Second Modification Agreement”), effective as of July 24, 2024, to modify certain loan covenants. As of September 30, 2024 the Company was in compliance with all financial and negative covenants. On October 4, 2024 the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “Third Modification Agreement”), effective as of October 4, 2024, to extend the maturity date of the 2021 Credit Facility to December 27, 2024. The Company's weighted average interest rate on short-term borrowings as of September 30, 2024 and December 31, 2023 was 8.75 % and 9.51 %, respectively. ALT Note 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 September 23, 2021 with the final payment due on August 23, 2025. The outstanding balance of the ALT Note as of September 30, 2024 was $ 0.5 million. 2023 Credit Facility On May 26, 2023, the Company entered into a promissory note, a business loan agreement and commercial security agreement (collectively, the “2023 Credit Facility”) with C3 Bank. The 2023 Credit Facility provides for a new $ 7.0 million term loan (the "Term Loan"), which is repayable in monthly installments of principal and interest until the maturity date of April 27, 2028. The Company determines the current portion of the Term Loan to be the amount of principal owed in the next 12 months. The Term Loan sets the interest rate spread and interest rate floor to accrue 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 0.250 %. Additionally, the Term Loan provides that in the event of prepayment the Company shall pay the Lender a prepayment fee during the first year equal to twelve months of interest (less interest actually paid). The Company is the borrower under the Term Loan and is permitted to use the proceeds of the Term Loan solely for its business operations. The Term Loan is secured by a security interest in certain of the Company’s and its certain subsidiaries’ current and future tangible and intangible assets, inventory, chattel paper, accounts, equipment and general intangibles and a pledge of the equity of the direct and indirect subsidiaries of the Company. Specifically, the Term Loan is secured by the building currently used by ALT in East Lyme, CT. On July 24, 2024, the Company paid $ 5.8 million for the full remaining principal balance outstanding of $ 5.7 million on its Term Loan agreement with C3 Bank, in advance of the loan’s April 27, 2028 maturity date, and $ 0.1 million in interest accrued to July 24, 2024.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 – Income Taxes At September 30 , 2024, the Company had aggregate federal net operating loss carry forwards of $ 50.3 million. 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 through December 31, 2023. As of December 31, 2023, all of the Company's restricted net operating loss carry forwards have been fully utilized. The Company has no net operating loss carry forwards limited under Section 382 of the Internal Revenue Code as of September 30, 2024. The reported tax expense varies from the amount that would be provided by applying the statutory U.S. Federal income tax rate to the income from operations before taxes primarily as a result of the impact of state income taxes. The Company records net deferred tax assets to the extent that it believes such assets will more likely than not be realized. As a result of cumulative losses and uncertainty with respect to future taxable income, the Company has provided a partial valuation allowance against its net deferred tax assets. As of both September 30 , 2024 and December 31, 2023, the Company's valuation allowance against its deferred tax assets was approximately $ 2.2 million.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Note 13 – 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 and a member of the board of directors of the Company, David Ludwig. The total amount paid to the related party for both the nine months ended September 30, 2024 and 2023 was approximately $ 85,000 and is included in selling, general and administrative expenses in the unaudited condensed consolidated statements of income.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2024
Segment Reporting Information, Additional Information [Abstract]
Segment Information	Note 14 – Segment Information The following table sets forth certain financial information for the Company's reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Industrial Assets Division: Auction and Liquidation $ 583 $ 1,099 $ 3,500 $ 3,282 Refurbishment & Resale 153 1,001 172 2,838 Total divisional operating income 736 2,100 3,672 6,120 Financial Assets Division: Brokerage 1,655 2,055 5,662 6,217 Specialty Lending 156 ( 344 ) 1,749 739 Total divisional operating income 1,811 1,711 7,411 6,956 Corporate operating expense ( 1,068 ) ( 1,042 ) ( 3,502 ) ( 3,312 ) Consolidated operating income $ 1,479 $ 2,769 $ 7,581 $ 9,764

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Note 15 – Subsequent Events The Company has evaluated events subsequent to September 30, 2024 for potential recognition or disclosure in its condensed consolidated financial statements. There have been no material subsequent events requiring recognition or disclosure in this Quarterly Report on Form 10-Q, other than noted below. On October 4, 2024 the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “Third Modification Agreement”), effective as of October 4, 2024, to extend the maturity date of the 2021 Credit Facility to December 27, 2024. There is no outstanding balance on the 2021 Credit Facility as of September 30, 2024.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Use of Estimates	Use of estimates The preparation of the Company’s unaudited condensed consolidated interim 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 condensed consolidated interim 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.
Revenue Recognition	Reven ue 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 nine months ended September 30, 2024 and 2023), 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”. The deferred revenue balance was approximately $ 0.5 million as of both September 30, 2024 and December 31, 2023 and is reflected in accounts payable and accrued liabilities on the condensed consolidated balance sheets. 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 condensed consolidated balance sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods. The amount of cash held on behalf of the sellers is recorded as payables to sellers in the accompanying condensed consolidated balance sheets. The Company evaluates revenue from 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 , 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 include 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. Through our Refurbishment and Resale segment, the Company offers financing on its standard laboratory equipment sales. The Company recognizes revenue upon shipment of its financed products in accordance with ASC 606. The Company records a loan receivable for the unpaid balance of the order. A loan amortization table is created upon shipment outlining the principal and interest income portion of each future payment. These loans are classified as held-for-investment and accounted for under the guidelines of ASC 310. Direct loan origination fees are offset by the expenses incurred and the net amount is amortized over the life of the related loan using the interest method described in ASC 835.
Nonaccrual Loans	Nonaccrual Loans The Company determines a loan to be in a default status when the minimum payment amount has not been received within the grace period of the payment due date. The status of default does not solely trigger nonaccrual loan status. The Company considers quantitative and qualitative factors when evaluating a loan in default status to determine the likelihood of recovering the outstanding principal balance and contractual interest payments. The Company also monitors its borrowers’ financial standing and performance on an ongoing basis and regularly updates the collection forecasts for the underlying charged off or nonperforming receivable portfolios related to each outstanding loan. If management determines (1) it is not probable that the projected cash flows expected from the borrower’s collection efforts on the underlying charged off or nonperforming receivable portfolio will be sufficient to satisfy all of the outstanding principal balance and contractual interest payments, and (2) it is not probable that the borrower will be able to meet the minimum required principal and interest payments through other operational cash flows, the Company will place the loans on nonaccrual status. If, based on its analysis, the Company elects to maintain accrual status after initial payment default, the loan will generally be placed on nonaccrual status if principal or interest payments become 90 days past due. The accrual of interest is generally discontinued when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery or the cash-basis method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest payments received by the creditor are recorded as interest income provided the amount does not exceed the amount that would have been earned at the loan’s original effective interest rate. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and all remaining principal and interest payments are deemed probable. In November 2023, the Company and its affiliated joint ventures restructured loans with its largest borrower by restructuring certain outstanding loans (the "Restructured Loans") with an amortized cost basis of $ 51.6 million or 59 % of the amortized cost basis of the total charged-off asset portfolio loans of HGC and its affiliated joint ventures. The Company’s share of the Restructured Loans amortized cost basis was $ 22.2 million, or 57 % of HGC’s share of the loan book. All Restructured Loans were restructured by term extension, adding a weighted average of 1.5 years to the life of the Restructured Loans, which reduced the monthly payments for the borrower. As of September 30, 2023, the Company increased its allowance for credit losses related to its largest borrower experiencing financial difficulties. This resulted in an allowance for credit losses on the loans later restructured of $ 1.0 million as of September 30, 2023. As of September 30, 2024, the Company’s allowance for credit losses related to the Restructured Loans was $ 1.1 million, of which $ 0.3 million was classified as notes receivable and $ 0.8 million was recorded within equity method investments. The Company's largest borrower continues to collect on the underlying charged off and nonperforming consumer loan portfolios and remit net collections to the Company and senior lenders, however this borrower's June remittance did not meet the minimum required payment amount. The Company has determined (1) it is not probable that the projected cash flows expected from the borrower’s collection efforts on the underlying charged off or nonperforming receivable portfolio will be sufficient to satisfy all of the outstanding principal balance and contractual interest payments, and (2) it is not probable that the borrower will be able to meet the minimum required principal and interest payments through other operational cash flows. While the Company continues to work closely with the borrower and its senior lenders in an effort to mitigate the default in an efficient and effective manner, the impacted loans were placed in nonaccrual status in June 2024. In addition, there was a balance of $ 1.5 million from the Company’s share of other loans within its affiliated joint ventures that are impacted by the default with the largest borrower and were placed in nonaccrual status in June 2024. The Company's share of payments received from the nonaccrual loans, including interest, will be applied against the outstanding loan balance. As of September 30, 2024, the amortized cost basis of loans in nonaccrual status was $ 24.0 million, of which $ 5.4 million is recorded within notes receivable and $ 18.6 million is recorded within equity method investments. There were no loans in nonaccrual status as of December 31, 2023.
Specialty Lending - Concentration and Credit risk	Specialty Lending - Concentration and credit risk As of September 30, 2024, the Company held a gross balance of investments in notes receivable of $ 32.0 million, recorded in both notes receivable and equity method investments, and consisting of one borrower’s note balance of approximately $ 22.5 million, or 70 % as of September 30, 2024, as compared to 62 % as of December 31, 2023. The Company does not intend to hold highly concentrated balances due from one borrower as part of its long-term strategy but may, in the short term, have concentration risk on its path to an established and diversified portfolio. The Company does not evaluate concentration risk solely based on balance due from specific borrowers, but also considers the number of portfolio purchases, type of charged off accounts within the portfolio, and the seller of the portfolio when determining the overall risk. Of the balance due from one borrower of $ 22.5 million, there are 11 distinct loan agreements. The underlying portfolio of accounts are diversified throughout FinTech loans, installment loans and credit card accounts, and further diversified amongst six separate sellers of these charged off portfolios. The Company mitigates this concentration risk by requiring, and monitoring, security from each borrower consisting of their charged off and nonperforming receivable portfolios. The Company engages in a due diligence process that leverages its valuation expertise and knowledge in the underlying nonperforming receivable portfolios marketplace. In the event of default, the Company is entitled to call the unpaid interest and principal balances and receive all net collections directly. The Company may also recover its investment by engaging a third party to collect on the underlying charged off or nonperforming receivable portfolio or the underlying portfolio can be sold through the Company's Brokerage segment. In certain cases, the Company’s recovery options may be subject to concurrence of the originator or other prior holder of the assets.
Accounts Receivable	Accounts receivable The Company carries accounts receivable at the face amounts less an allowance for estimated credit losses. The Company estimates its reserve for credit losses using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. The Company only extends credit to entities and institutions of significance, such as well-known academic and financial institutions and U.S. government agencies. Consequently, historical accounts receivable credit losses are nearly zero, which provides the starting point for management’s assessment of the reserve for credit losses for its accounts receivable. The Company estimates its expected credit losses for accounts receivable based on historical credit loss experience, its assessment of current conditions, and other relevant available information from internal and external sources on a quarterly basis. As of both September 30, 2024 and December 31, 2023, the reserve for credit losses related to accounts receivable was approximately $ 0.1 million.
Notes Receivable	Notes receivable Under ASC 326, the Company evaluates notes receivable as a single pool, for individual notes receivable and borrowers with similar risk characteristics. Notes receivable and borrowers that do not share risk characteristics are evaluated on an individual basis. Management evaluates the Company's notes receivables related to financing laboratory equipment sales within the notes receivable pool. Management estimates the reserve balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience typically provides the basis for an estimation of expected credit losses; however, the Company lacks sufficient data upon which to base a historical estimation. Additionally, since the Company began recording notes receivable on the condensed consolidated balance sheets, the Company has recorded no actual credit losses to notes receivable. Lacking historical internal data upon which to base a reserve for credit losses to notes receivable, the Company, under ASC 326, estimates its reserve using external credit loss experience data. Management observes that the Company's notes receivable are similar in character to transactions undertaken by smaller banking institutions. The Company estimates its expected credit losses based on the Scaled Current Expected Credit Loss (CECL) Allowance Loss Estimator ("SCALE rate") available from the Federal Reserve. The SCALE rate methodology is endorsed by the FASB and the Conference of State Bank Supervisors. Management determined under ASC 326 that the SCALE rate, a generally applicable rate, may be appropriately adjusted by its assessment of observable facts and relevant circumstances indicating that the factors analyzed in the determination of the SCALE rate may not conform to the Company's operations and borrower assessments. As of September 30, 2024, the SCALE rate was 1.3834 % and the Company's credit loss allowance rate specific to notes receivable was 3.6 %. The increase over the SCALE rate was due to both the above mentioned risks presented by a concentrated balance with a single borrower and declining collections industry-wide. As of September 30, 2024 and December 31, 2023, the Company's allowance for credit losses related to notes receivable outstanding was $ 0.4 million and $ 0.7 million, respectively. 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 and assess the credit quality of the loan receivables. This review includes monthly and cumulative key performance indicators for each loan and borrower, as well as evaluation of borrower's financial condition.
Equity Method Investments	Equity method investments Similar to notes receivable, the loans held by the joint ventures are evaluated on a quarterly basis to determine if an adjustment to the allowance for credit losses is needed. As of September 30, 2024, the SCALE rate was 1.3834 % and the credit loss allowance rate specific to equity method investments was 4.8 %. The increase over the SCALE rate was due to both the above mentioned risks presented by a concentrated balance with a single borrower and declining collections industry-wide. As of September 30, 2024 and December 31, 2023, the Company's allowance for credit losses related to its equity method investments was $ 1.0 million and $ 0.9 million, respectively.
Future Accounting Pronouncements	Future accounting pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company anticipates that ASU 2023-07 will have no accounting impact, but will require additional disclosure for each of its reportable segments. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company anticipates that ASU 2023-09 will have no accounting impact but will require additional disclosure related to certain income tax calculations.

Notes Receivable, net (Tables)

Notes Receivable, net (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Company's Lending Activity	The table below shows the Company’s lending activity as of September 30, 2024 (in thousands): September 30, 2024 Notes receivable as of December 31, 2023 $ 18,262 Investment in notes receivable 5,047 Noncash transfer of notes receivable to equity method investments ( 2,487 ) Principal repayments ( 9,039 ) Notes receivable, as of September 30, 2024 11,783 Deferred financing fees and costs, net ( 65 ) Allowance for credit losses ( 422 ) Notes receivable, net, September 30, 2024 $ 11,296

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Changes in Common Stock Options	The following summarizes the changes in common stock options for the nine months ended September 30, 2024: Options Weighted Weighted Aggregate Intrinsic Value (In thousands) Outstanding as of December 31, 2023 2,265,350 $ 1.71 6.8 $ 907 Granted 35,000 $ 2.70 Exercised ( 13,750 ) $ 1.02 Forfeited ( 12,750 ) $ 1.87 Outstanding as of September 30, 2024 2,273,850 $ 1.73 6.1 $ 897 Options exercisable as of September 30, 2024 1,626,600 $ 1.42 5.3 $ 879

Equity Method Investments (Tabl

Equity Method Investments (Tables)	9 Months Ended
	Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Joint Venture Revenues and Net Income (Loss)	The tables below details the Company’s joint venture revenues and earnings during the nine months ended September 30, 2024 and 2023 (in thousands): Nine Months Ended September 30, 2024 KNFH LLC DHC8 LLC KNFH II LLC HGC Origination I LLC and HGC Funding I LLC HGC MPG Funding LLC Revenue $ — $ 751 $ 13,249 $ 3,705 $ 3,987 Gross profit — 751 5,213 3,705 3,987 Operating income — 590 5,120 3,656 3,987 Net income $ — $ 590 $ 5,120 $ 3,668 $ 3,987 Nine Months Ended September 30, 2023 KNFH LLC DHC8 LLC KNFH II LLC HGC Origination I LLC and HGC Funding I LLC HGC MPG Funding LLC Revenue $ 303 $ 1,183 $ — $ 3,769 $ 552 Gross profit 303 1,183 — 3,769 552 Operating income (loss) ( 144 ) 1,009 — 2,374 548 Net income (loss) $ ( 144 ) $ 1,009 $ — $ 2,374 $ 548
Schedule of the Components of Assets and Liabilities	The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of September 30, 2024 and December 31, 2023 (in thousands): September 30, December 31, 2024 2023 Assets: KNFH LLC $ — $ 292 DHC8 LLC 2,068 7,061 KNFH II LLC 7,966 8,150 HGC Origination I LLC and HGC Funding I LLC 26,113 28,389 HGC MPG Funding LLC 33,066 38,081 Total assets $ 69,213 $ 81,973 Liabilities: KNFH LLC $ — $ 289 DHC8 LLC 1,038 1,102 KNFH II LLC 2,200 4,000 HGC Origination I LLC and HGC Funding I LLC 972 10 HGC MPG Funding LLC — — Total liabilities $ 4,210 $ 5,401

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Calculation of the Shares Used in Computing Diluted EPS	The table below shows the calculation of the number of shares used in computing diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic weighted average shares outstanding 36,576,931 36,742,018 36,641,820 36,675,838 Treasury stock effect of common stock options and restricted stock awards 612,098 905,303 650,380 929,525 Diluted weighted average common shares outstanding 37,189,029 37,647,321 37,292,200 37,605,363

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of Right-of-Use Assets and Lease Liabilities	The right-of-use assets and lease liabilities for each lease location are as follows (in thousands): September 30, December 31, 2024 2023 Right-of-use assets: Del Mar, CA $ 402 $ 186 Hayward, CA 1,310 1,525 San Diego, CA 387 477 Edwardsville, IL 282 351 Total right-of-use assets $ 2,381 $ 2,539 Lease liabilities Del Mar, CA $ 402 $ 203 Hayward, CA 1,384 1,594 San Diego, CA 412 498 Edwardsville, IL 285 353 Total lease liabilities $ 2,483 $ 2,648
Schedule of Undiscounted Future Minimum Lease Commitments	As of September 30, 2024, 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): 2024 (remainder of year from October 1, 2024 to December 31, 2024) $ 199 2025 807 2026 829 2027 573 2028 299 Total undiscounted future minimum lease payments 2,707 Less: imputed interest ( 224 ) Present value of lease liabilities $ 2,483

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The Company’s identifiable intangible assets are associated with its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, as shown in the table below (in thousands except for lives), and are amortized using the straight-line method over their remaining estimated useful lives. The Company’s tradename that was acquired as part of the acquisition of NLEX in 2014 has an indefinite life and therefore is not amortized. Remaining Carrying Value Carrying Value Life December 31, September 30, (years) 2023 Amortization 2024 Amortizable intangible assets: Trade Name (HGP) 0.3 $ 128 $ ( 96 ) $ 32 Trade Name (ALT) 16.9 575 ( 24 ) 551 Vendor Relationship (ALT) 1.9 613 ( 173 ) 440 Total amortizable intangible assets 1,316 ( 293 ) 1,023 Indefinite-lived intangible assets: Trade Name (NLEX) N/A 2,437 — 2,437 Total intangible assets $ 3,753 $ ( 293 ) $ 3,460
Schedule of Estimated Amortization Expense Intangible Assets	As of September 30, 2024, the estimated amortization expense for the remainder of the current fiscal year and the next five fiscal years and thereafter is shown below (in thousands): Year Amount 2024 (remainder of year from October 1, 2024 to December 31, 2024) $ 98 2025 263 2026 186 2027 32 2028 32 Thereafter 412 Total estimated amortization expense $ 1,023
Schedule of Goodwill	The Company’s goodwill relates to its acquisition of various entities. Goodwill consists of the following at September 30, 2024 and December 31, 2023 (in thousands): September 30, 2024 December 31, 2023 ALT $ 1,861 $ 1,861 HGP 2,041 2,041 NLEX 3,544 3,544 Total goodwill $ 7,446 $ 7,446

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule Of Debt	Outstanding debt as of September 30, 2024 and December 31, 2023 is summarized as follows (in thousands): September 30, 2024 December 31, 2023 Current: ALT Note $ 525 $ 511 2021 Credit Facility — — 2023 Credit Facility — 1,222 Total third party debt, current 525 1,733 Non-current: ALT Note — 395 2023 Credit Facility — 5,100 Total third party debt, non-current — 5,495 Total third party debt $ 525 $ 7,228

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting Information, Additional Information [Abstract]
Schedule of Financial Information for the Company's Reportable Segments	The following table sets forth certain financial information for the Company's reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Industrial Assets Division: Auction and Liquidation $ 583 $ 1,099 $ 3,500 $ 3,282 Refurbishment & Resale 153 1,001 172 2,838 Total divisional operating income 736 2,100 3,672 6,120 Financial Assets Division: Brokerage 1,655 2,055 5,662 6,217 Specialty Lending 156 ( 344 ) 1,749 739 Total divisional operating income 1,811 1,711 7,411 6,956 Corporate operating expense ( 1,068 ) ( 1,042 ) ( 3,502 ) ( 3,312 ) Consolidated operating income $ 1,479 $ 2,769 $ 7,581 $ 9,764

Basis of Presentation (Addition

Basis of Presentation (Additional Information) (Details) - Common Stock [Member] - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 13, 2024
Common share purchased, amount	$ 4	$ 4	$ 6
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	601,449	601,449
Remained share purchase amount under the programme	$ 4.1	$ 4.1
Share repurchase price amount	$ 1.1	$ 1.1

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($) Segment Portfolio	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2023 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Allowance for doubtful accounts as of December 31, 2022	$ 130		$ 132
Accumulated deficit	(227,641)		(233,026)
Reserve balance for credit loss	100		100
Deferred revenue	500		500
Nonaccrual loans	24,000		$ 0
Notes receivable, principal amount	32,000
Borrower's note balance	$ 22,500
Borrower's note balance, percentage	70%		62%
Due from borrower	$ 22,500
Number of distinct portfolio purchases and loan agreements | Portfolio	11
Amortization Cost				$ 51,600
Percentage of Amortization Cost				59%
Weighted average of years to the life of the Restructured Loans				1.50%
Allowances for Credit Losses	$ 1,100	$ 1,000
Notes Receivables	300
Equity method investments	21,447		$ 21,361
Other loans placed in nonaccrual status	1,500
Beginning balance of reserve for credit losses as of January 1, 2023	100		100
Allowance for credit loss	(422)
HGC Ltd.[Member]
Summary Of Significant Accounting Policies [Line Items]
Amortization Cost				$ 22,200
Percentage of Amortization Cost				57%
Equity method investments	800
Notes Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Notes Receivables	5,400
Equity Method Investments [Member]
Summary Of Significant Accounting Policies [Line Items]
Equity method investments	$ 18,600
Consolidated [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of reporting segment | Segment	3
Accounting Standards Update 2022-02 [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of service revenue that is recognized over a period of time against total revenue	1.3834%
Note receivable outstanding	$ 400		700
Accounting Standards Update 2022-02 [Member] | Notes Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of service revenue that is recognized over a period of time against total revenue	3.60%
Accounting Standards Update 2022-02 [Member] | Equity Method Investments [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of service revenue that is recognized over a period of time against total revenue	1.3834%
Credit loss rate	4.80%
Allowance for credit loss	$ 1,000		$ 900

Accounts Receivable, net (Addit

Accounts Receivable, net (Additional Information) (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	$ 0.1	$ 0.1

Notes Receivable, Net - (Additi

Notes Receivable, Net - (Additional Information) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Receivables with Imputed Interest [Line Items]
Notes receivables, net of unamortized	$ 10.9	$ 17.5
Provision for credit losses	0.3
Notes issued	4.5
Principal payments received	8.8
Allowance for Credit Losses	0.4	0.7
Net Investment in Lease, Nonaccrual	24	0
Equity method investments	2.5
Outstanding Notes Receivables [Member]
Receivables with Imputed Interest [Line Items]
Notes receivables, net of unamortized	0.4	$ 0
Notes issued	0.6
Principal payments received	0.2
Net Investment in Lease, Nonaccrual	$ 5.4

Notes Receivable, Net - Schedul

Notes Receivable, Net - Schedule of Company's Lending Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Receivables [Abstract]
Notes receivable as of December 31, 2023	$ 18,262
Investment in notes receivable	5,047
Noncash transfer of notes receivable to equity method investments	(2,487)
Principal repayments	(9,039)
Notes receivable, as of September 30, 2024	11,783
Deferred financing fees and costs, net	(65)
Allowance for credit loss	(422)
Notes receivable, net, September 30, 2024	$ 11,296

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands		9 Months Ended
	Mar. 07, 2024	Sep. 30, 2024	Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)		35,000
Options cancelled to purchase common stock		12,750
Stock-based compensation expense		$ 801	$ 582
Common Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		400	600
Unrecognized stock-based compensation		$ 1,000
Unrecognized stock-based compensation, Period for recognition		1 year 7 months 6 days
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 400	$ 100
Unrecognized stock-based compensation		$ 300
Unrecognized stock-based compensation, Period for recognition		4 months 24 days
Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)		35,000
Employees [Member] | Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted	128,044
Non Executive Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted	75,000

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Changes in Common Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Options, Outstanding at the beginning of the period	2,265,350
Options, Granted	35,000
Options, Exercised	(13,750)
Forfeited	(12,750)
Options, Outstanding at the end of the period	2,273,850	2,265,350
Options, Exercisable at the end of the period	1,626,600
Weighted Average Exercise Price, Outstanding at the beginning of the period	$ 1.71
Weighted Average Exercise Price, Granted	2.7
Weighted Average Exercise Price, Exercised	1.02
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	1.87
Weighted Average Exercise Price, Outstanding at the end of the period	1.73	$ 1.71
Weighted Average Exercise Price, Exercisable at the end of the period	$ 1.42
Options Outstanding Weighted Average Contractual Life (years)	6 years 1 month 6 days	6 years 9 months 18 days
Options Exercisable Weighted Average Contractual Life (years)	5 years 3 months 18 days
Aggregate Intrinsic Value, Outstanding	$ 897	$ 907
Aggregate Intrinsic Value, Exercisable	$ 879

Equity Method Investments - Sch

Equity Method Investments - Schedule of Joint Venture Revenues and Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Schedule Of Equity Method Investments [Line Items]
Operating income (loss)	$ 1,479			$ 2,769			$ 7,581	$ 9,764
Net Income (Loss)	$ 1,089	$ 2,497	$ 1,799	$ 1,977	$ 2,779	$ 2,829	5,385	7,585
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenue							0	303
Gross profit							0	303
Operating income (loss)							0	(144)
Net Income (Loss)							0	(144)
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | DHC8 LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenue							751	1,183
Gross profit							751	1,183
Operating income (loss)							590	1,009
Net Income (Loss)							590	1,009
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH II LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenue							13,249	0
Gross profit							5,213	0
Operating income (loss)							5,120	0
Net Income (Loss)							5,120	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]
Revenue							3,705	3,769
Gross profit							3,705	3,769
Operating income (loss)							3,656	2,374
Net Income (Loss)							3,668	2,374
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | HGC MPG Funding LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenue							3,987	552
Gross profit							3,987	552
Operating income (loss)							3,987	548
Net Income (Loss)							$ 3,987	$ 548

Equity Method Investments (Addi

Equity Method Investments (Additional Information) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	May 31, 2023	Dec. 31, 2022	Apr. 30, 2022	Nov. 14, 2018
Schedule of Equity Method Investments [Line Items]
Provision for credit losses	$ 300
Equity method investments	21,447	$ 21,361
HGC Funding I LLC and Origination I LLC [Member]
Schedule of Equity Method Investments [Line Items]
Provision for credit losses	100
Reserve for credit losses	1,000
Equity method investments	$ 18,500
CPFH LLC [Member] | Other Investees Member
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage						25%
KNFH LLC [Member] | Other Investees Member
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage					25%
DHC8 LLC [Member] | Other Investees Member
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage				13.33%
Hgc Mpg Funding Llc Member | Other Investees Member
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage			25%
Knfh Ii Llc Member | Other Investees Member
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage		25%

Equity Method Investments- Sche

Equity Method Investments- Schedule of the Components of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule Of Equity Method Investments [Line Items]
Total assets	$ 88,528	$ 83,168
Total liabilities	22,401	22,088
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule Of Equity Method Investments [Line Items]
Total assets	69,213	81,973
Total liabilities	4,210	5,401
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Total assets	0	292
Total liabilities	0	289
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | DHC8 LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Total assets	2,068	7,061
Total liabilities	1,038	1,102
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH II LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Total assets	7,966	8,150
Total liabilities	2,200	4,000
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]
Total assets	26,113	28,389
Total liabilities	972	10
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | HGC MPG Funding LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Total assets	33,066	38,081
Total liabilities	$ 0	$ 0

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
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.
Anti-dilutive common shares	0.6	0.9	0.7	0.9

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Calculation of the Shares Used in Computing Diluted EPS (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	36,576,931	36,742,018	36,641,820	36,675,838
Treasury stock effect of common stock options and restricted stock awards	612,098	905,303	650,380	929,525
Diluted weighted average common shares outstanding	37,189,029	37,647,321	37,292,200	37,605,363

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Thousands				9 Months Ended
	Sep. 23, 2024 USD ($)	Jun. 01, 2023 USD ($)	Aug. 12, 2022 USD ($) ft²	Sep. 30, 2024 USD ($) Location	Sep. 30, 2023 USD ($)	Sep. 01, 2022	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Number of locations | Location				4
Lessee operating lease, incremental borrowing rate	6.25%	7.25%				5.50%	5.25%
Lease expense				$ 600	$ 600
Weighted average remaining lease term				3 years 4 months 24 days
Weighted average discount rate				5.51%
Liberty industrial park Llc [Member]
Lessee, Lease, Description [Line Items]
Lease term expire period			Aug. 30, 2027
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
Edwardsville office [Member]
Lessee, Lease, Description [Line Items]
Initial monthly base rent		$ 9,412
Edwardsville office [Member] | Maximum [Member]
Lessee, Lease, Description [Line Items]
Initial monthly base rent		$ 9,914
Del mar office [Member]
Lessee, Lease, Description [Line Items]
Initial monthly base rent	$ 14,660
Term of agreement	24 months
Del mar office [Member] | Maximum [Member]
Lessee, Lease, Description [Line Items]
Initial monthly base rent	$ 15,099

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Lessee Lease Description [Line Items]
Right-of-use assets	$ 2,381	$ 2,539
Lease liabilities	2,483	2,648
Del Mar, CA [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	402	186
Lease liabilities	402	203
Hayward, CA [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	1,310	1,525
Lease liabilities	1,384	1,594
San Diego, CA [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	387	477
Lease liabilities	412	498
Edwardsville, IL [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	282	351
Lease liabilities	$ 285	$ 353

Leases - Schedule of Undiscount

Leases - Schedule of Undiscounted Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024 (remainder of year from October 1, 2024 to December 31, 2024)	$ 199
2025	807
2026	829
2027	573
2028	299
Total undiscounted future minimum lease payments	2,707
Less: imputed interest	(224)
Present value of lease liabilities	$ 2,483	$ 2,648

Lessor Arrangement (Additional

Lessor Arrangement (Additional Information) (Details) - KNFH II LLC [Member] - Machinery and Equipment [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Apr. 30, 2024	Dec. 31, 2023
Lessor, Lease, Description [Line Items]
Total purchase price		$ 5	$ 8
Earnings from equity method investments	$ 1.3
Real Estate [Member]
Lessor, Lease, Description [Line Items]
Total purchase price		$ 8

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Additional Information) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 293	$ 300
Acquired Finite-Lived Intangible Asset, Residual Value	0
Goodwill, Impairment Loss	0
Impairment charges	$ 0

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	$ (293)	$ (300)
Total estimated amortization expense	1,023		$ 1,316
Intangible assets, net	3,460		3,753
NLEX [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Indefinite-lived intangible assets	2,437		2,437
ALT [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	(24)
Total estimated amortization expense	551		$ 575
Intangible Assets, Amortizable Period			16 years 10 months 24 days
HGP Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	(96)
Total estimated amortization expense	32		$ 128
Intangible Assets, Amortizable Period			3 months 18 days
Vendor Relationships [Member] | ALT [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	(173)
Total estimated amortization expense	$ 440		$ 613
Intangible Assets, Amortizable Period			1 year 10 months 24 days

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (remainder of year from October 1, 2024 to December 31, 2024)	$ 98
2025	263
2026	186
2027	32
2028	32
Thereafter	412
Total estimated amortization expense	$ 1,023	$ 1,316

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 7,446	$ 7,446
ALT [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	1,861	1,861
H G P
Finite Lived Intangible Assets [Line Items]
Goodwill	2,041	2,041
NLEX [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 3,544	$ 3,544

Schedule of Debt (Details)

Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current:
Third party debt current	$ 525	$ 1,733
Non-current:
Third party debt	0	5,495
Total third party debt	525	7,228
2021 Credit Facility
Current:
Third party debt current	0	0
2023 Credit Facility
Current:
Third party debt current	0	1,222
Non-current:
Third party debt	0	5,100
ALT Note
Current:
Third party debt current	525	511
Non-current:
Third party debt	$ 0	$ 395

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($) $ in Thousands				9 Months Ended
	Jul. 24, 2024	May 26, 2023	Aug. 23, 2021	Sep. 30, 2024	Dec. 31, 2023	May 05, 2021
Heritage Global LLC [Member]
Debt Instrument [Line Items]
Line of credit			$ 2,000
Debt instrument, Maturity date			Aug. 23, 2025
Interest rate per annum			3%
Litigation settlement installments amount due			$ 44,000
Debt outstanding amount				$ 500
2021 Credit Facility
Debt Instrument [Line Items]
Interest rate per annum		1%
Line of Credit Facility, Average Outstanding Amount				5,000
2023 Credit Facility | Heritage Global LLC [Member]
Debt Instrument [Line Items]
Interest rate per annum		0.25%
C3bank [Member]
Debt Instrument [Line Items]
Line of credit						$ 10,000
Debt instrument, Maturity date	Apr. 27, 2028	Oct. 27, 2024
Accrued interest	$ 100
Company paid Full Amount	5,800
Debt outstanding amount	$ 5,700			$ 0
Short-Term Debt, Weighted Average Interest Rate, at Point in Time				8.75%	9.51%
C3bank [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate per annum		6.75%
C3bank [Member] | 2023 Credit Facility
Debt Instrument [Line Items]
Line of credit		$ 7,000

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended	192 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Income Taxes [Line Items]
Operating loss carryforwards	$ 50.3
Operating Loss Carryforward Limitations On Use	$ 1.7	$ 2.5
Operating Loss CarryForwards Expiring Year	2024
Description of Income Tax Credit Carryforwords	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.
Valuation allowance	$ 2.2	$ 2.2
Ownership Percentage [Member]
Income Taxes [Line Items]
Ownership Percentage	5%

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
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	$ 85,000	$ 85,000

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net operating income (loss)	$ 1,479	$ 2,769	$ 7,581	$ 9,764
Industrial Assets Division [Member]
Net operating income (loss)	736	2,100	3,672	6,120
Financial Assets Division [Member]
Net operating income (loss)	1,811	1,711	7,411	6,956
Auction and Liquidation [Member]
Net operating income (loss)	583	1,099	3,500	3,282
Refurbishment & Resale [Member]
Net operating income (loss)	153	1,001	172	2,838
Brokerage [Member]
Net operating income (loss)	1,655	2,055	5,662	6,217
Specialty Lending [Member]
Net operating income (loss)	156	(344)	1,749	739
Corporate and Other [Member]
Net operating income (loss)	(1,068)	(1,042)	(3,502)	(3,312)
Consolidated [Member]
Net operating income (loss)	$ 1,479	$ 2,769	$ 7,581	$ 9,764