Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | SAFEGUARD SCIENTIFICS INC | |
Entity Central Index Key | 0000086115 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 20,576,575 | |
Trading Symbol | SFE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 44,592 | $ 7,703 |
Restricted cash | 525 | 500 |
Marketable securities | 32,905 | 37,955 |
Trading securities | 306 | 0 |
Prepaid expenses and other current assets | 3,380 | 2,669 |
Total current assets | 81,708 | 48,827 |
Property and equipment, net | 2,430 | 808 |
Ownership interests in and advances to partner companies | 85,603 | 95,585 |
Other assets | 712 | 517 |
Total Assets | 170,453 | 145,737 |
Current Liabilities: | ||
Accounts payable | 110 | 165 |
Accrued compensation and benefits | 1,652 | 3,433 |
Accrued expenses and other current liabilities | 2,170 | 2,182 |
Credit facility - current | 65,687 | 22,100 |
Credit facility repayment feature | 7,069 | 5,060 |
Lease liability - current | 250 | |
Total current liabilities | 76,938 | 32,940 |
Credit facility - non-current | 0 | 43,014 |
Lease liability - non-current | 2,597 | |
Other long-term liabilities | 2,039 | 2,804 |
Total Liabilities | 81,574 | 78,758 |
Commitments and contingencies (Note 10) | ||
Equity: | ||
Preferred stock, $0.10 par value; 1,000 shares authorized | 0 | 0 |
Common stock, $0.10 par value; 83,333 shares authorized; 21,573 shares issued at March 31, 2019 and December 31, 2018 | 2,157 | 2,157 |
Additional paid-in capital | 811,352 | 810,928 |
Treasury stock, at cost; 998 and 914 shares at March 31, 2019 and December 31, 2018, respectively | (15,157) | (15,001) |
Accumulated deficit | (709,442) | (731,105) |
Accumulated other comprehensive loss | (31) | 0 |
Total Equity | 88,879 | 66,979 |
Total Liabilities and Equity | $ 170,453 | $ 145,737 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 83,333 | 83,333 |
Common stock, shares issued | 21,573 | 21,573 |
Treasury stock, at cost; 998 and 914 shares at March 31, 2019 and December 31, 2018, respectively | 998 | 914 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
General and administrative expense | $ 3,057 | $ 5,589 |
Operating loss | (3,057) | (5,589) |
Other loss, net | (1,885) | (1,435) |
Interest income | 873 | 798 |
Interest expense | (2,535) | (2,690) |
Equity income, net | 28,267 | 2,746 |
Net income (loss) before income taxes | 21,663 | (6,170) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | $ 21,663 | $ (6,170) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 1.05 | $ (0.30) |
Diluted (in dollars per share) | $ 1.05 | $ (0.30) |
Weighted average shares used in computing income (loss) per share: | ||
Basic (in shares) | 20,585 | 20,506 |
Diluted (in shares) | 20,585 | 20,506 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net cash used in operating activities | $ (5,782) | $ (6,774) |
Cash Flows from Investing Activities: | ||
Proceeds from sales of and distributions from companies | 41,778 | 3,257 |
Advances and loans to companies | (3,925) | (4,036) |
Repayment of advances and loans to companies | 0 | 10,500 |
Purchases of marketable securities | (57,243) | 0 |
Proceeds from sales and maturities in marketable securities | 62,235 | 1,410 |
Net cash provided by investing activities | 42,845 | 11,131 |
Cash Flows from Financing Activities: | ||
Tax withholdings related to equity-based awards | (149) | (150) |
Net cash used in financing activities | (149) | (150) |
Net change in cash, cash equivalents and restricted cash | 36,914 | 4,207 |
Cash, cash equivalents and restricted cash at beginning of period | 8,203 | 27,087 |
Cash, cash equivalents and restricted cash at end of period | $ 45,117 | $ 31,294 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Accumulated Deficit | AOCI Attributable to Parent | Common Stock | Additional Paid-in Capital | Treasury Stock |
Balance at Dec. 31, 2017 | $ 81,796 | $ (715,476) | $ (113) | $ 2,157 | $ 812,536 | $ (17,308) |
Balance (in shares) at Dec. 31, 2017 | 21,573 | |||||
Balance (in shares) at Dec. 31, 2017 | 999 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (6,170) | (6,170) | ||||
Cancellations of and restricted stock withheld for taxes | (150) | (17) | $ (133) | |||
Issuance of restricted stock, net of tax withholdings (in shares) | 13 | |||||
Stock-based compensation expense | 277 | 277 | ||||
Other comprehensive loss | 82 | 82 | ||||
Balance at Mar. 31, 2018 | 75,835 | (721,646) | (31) | $ 2,157 | 812,796 | $ (17,441) |
Balance (in shares) at Mar. 31, 2018 | 21,573 | |||||
Balance (in shares) at Mar. 31, 2018 | 1,012 | |||||
Balance at Dec. 31, 2018 | 66,979 | (731,105) | 0 | $ 2,157 | 810,928 | $ (15,001) |
Balance (in shares) at Dec. 31, 2018 | 21,573 | |||||
Balance (in shares) at Dec. 31, 2018 | 914 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,663 | 21,663 | ||||
Stock options exercised, net of tax withholdings | 0 | 0 | $ 0 | |||
Stock options exercised, net of tax withholdings (in shares) | 1 | |||||
Cancellations of and restricted stock withheld for taxes | (149) | 7 | $ (156) | |||
Issuance of restricted stock, net of tax withholdings (in shares) | 83 | |||||
Stock-based compensation expense | 417 | 417 | ||||
Other comprehensive loss | (31) | (31) | ||||
Balance at Mar. 31, 2019 | $ 88,879 | $ (709,442) | $ (31) | $ 2,157 | $ 811,352 | $ (15,157) |
Balance (in shares) at Mar. 31, 2019 | 21,573 | |||||
Balance (in shares) at Mar. 31, 2019 | 998 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21,663 | $ (6,170) |
Share of other comprehensive income (loss) of equity method investments | (31) | 0 |
Reclassification adjustment for sale of equity method investments | 0 | 82 |
Total comprehensive income (loss) | $ 21,632 | $ (6,088) |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited interim Consolidated Financial Statements of Safeguard Scientifics, Inc. (“Safeguard” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America and the interim financial statement rules and regulations of the SEC. In the opinion of management, these statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Consolidated Financial Statements. The interim operating results are not necessarily indicative of the results for a full year or for any interim period. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The Consolidated Financial Statements included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-Q and with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s 2018 Annual Report on Form 10-K. Liquidity As of March 31, 2019 , the Company had $44.6 million of cash and cash equivalents and $33.2 million of marketable securities and trading securities for a total of $77.8 million . As of March 31, 2019, the Company had $68.6 million of debt outstanding, due in May 2020. In January 2018, Safeguard announced that, from that date forward, the Company will not deploy any capital into new partner company opportunities and will focus on supporting our existing partner companies and maximizing monetization opportunities to return value to shareholders. In that context, we have, are and will consider initiatives including, among others: the sale of individual partner companies, the sale of certain partner company interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize shareholder value. We anticipate returning value to shareholders after satisfying our debt obligations and providing for working capital needs. As of March 31, 2019, the Company had $68.6 million of principal outstanding on the Credit Facility due in May 2020. The Credit Facility requires the Company to maintain (i) a liquidity threshold of at least $20 million of unrestricted cash; (ii) a minimum aggregate appraised value of ownership interests in its partner companies, plus unrestricted cash in excess of the liquidity threshold, of at least $350 million less the aggregate amount of all prepayments, and (iii) limit certain expenses (which shall exclude severance payments, interest expense, depreciation and stock-based compensation) incurred or paid to no more than $11.5 million in any twelve-month period after the date of the amendment (or such shorter period as has elapsed since the date of the amendment). Additionally, the Company is restricted from repurchasing shares of its outstanding common stock and/or issuing dividends until such time as the Credit Facility is repaid in full. As of the date these condensed consolidated financial statements were issued, the Company was in compliance with all of these covenants. Repayment terms under the Credit Facility include a make-whole interest provision equal to the interest that would have been payable had the principal amount subject to repayment been outstanding through the maturity date. If the aggregated amount of the Company’s qualified cash at any quarter end date exceeds $50.0 million , the Company is required to prepay outstanding principal amounts under the Amended Credit Facility, plus any applicable accrued and make-whole interest, in an amount equal to such excess. The Company exceeded the qualified cash threshold at March 31, 2019 and the Company made the applicable required prepayment, as required, on April 15, 2019. The Company believes that its cash, cash equivalents and marketable securities at March 31, 2019 will be sufficient to fund operations past one year from the issuance of these financial statements. Significant Accounting Policies Property and Equipment Property and equipment represents a right-of-use asset resulting from the adoption of Accounting Standards Update ("ASU") 2016-02, Leases , and other previously existing leasehold improvements. The leasehold improvements are amortized over the shorter of the estimated useful lives or the expected remaining term of the lease. The right-of-use asset is reduced over the remaining term of the lease (April 2026) in a manner that results in a straight-line lease expense, when combined with the interest factor on the lease liability. Lease liability The initial lease liability represents the present value of the fixed escalating lease payments through April 2026 associated with the Company's corporate headquarters operating office lease. The discount rate used to calculate the lease liability is based on the Company's incremental borrowing rate, approximately 12% , at the transition to the guidance of ASU 2016-02, Leases . Subsequent values of the lease liability will reflect the reduction in the lease liability for operating lease payments less an amount representing interest, which is included in the straight-line lease expense. There is no residual value guarantee associated with this operating lease arrangement. The Company has incurred operating lease expenses, and operating cash outflows of $0.1 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively. In March 2019, the Company entered into a sublease of its existing corporate headquarters office space beginning in June 2019. The term of the sublease is through April 2026, the same as the Company's underlying existing lease. Fixed sublease payments to the Company are escalating over the term of the lease and aggregate to $3.7 million . A summary of the Company's operating lease at March 31, 2019 follows: Operating lease payments Sublease income (Unaudited - In thousands) 2019 (nine months ending December 31) $ 434 $ 166 2020 587 509 2021 595 525 2022 601 540 2023 607 556 2024 613 573 Thereafter 826 789 Total future minimum lease payments 4,263 $ 3,658 Less imputed interest (1,416 ) Total operating lease liabilities $ 2,847 Valuation of Credit Facility repayment feature The fair value of the Credit Facility repayment feature (a Level 3 measurement) is determined quarterly based on the present value of make-whole interest payments that are expected to be paid based on cash flow estimates that include a probability weighted estimate of exit transactions, estimated follow-on deployments, estimated quarterly operating cash flows and other cash commitments that would result in qualified cash exceeding the $50 million threshold specified in the Credit facility. Principles of Accounting for Ownership Interests in Companies The Company accounts for its interests in its partner companies using one of the following methods: Equity or Other. The accounting method applied is generally determined by the degree of the Company's influence over the entity, primarily determined by our voting interest in the entity. In addition to holding voting and non-voting equity, the Company also periodically makes advances to its partner companies in the form of promissory notes which are included in the Ownership interests in and advances to partner companies line item in the Consolidated Balance Sheets. Equity Method. The Company accounts for partner companies whose results are not consolidated, but over which it exercises significant influence, under the equity method of accounting. Whether or not the Company exercises significant influence with respect to a partner company depends on an evaluation of several factors including, among others, representation of the Company on the partner company’s board of directors and the Company’s ownership level, which is generally a 20% to 50% interest in the voting securities of a partner company, including voting rights associated with the Company’s holdings in common, preferred and other convertible instruments in the company. Under the equity method of accounting, the Company does not reflect a partner company’s financial statements within the Company’s Consolidated Financial Statements; however, the Company’s share of the income or loss of such partner company is reflected in Equity income (loss) in the Consolidated Statements of Operations. The Company includes the carrying value of equity method partner companies in Ownership interests in and advances to partner companies on the Consolidated Balance Sheets. Any excess of the Company’s cost over its underlying interest in the net assets of equity method partner companies that is allocated to intangible assets is amortized over the estimated useful lives of the related intangible assets. The Company reflects its share of the income or loss of the equity method partner companies on a one quarter lag. This reporting lag could result in a delay in recognition of the impact of changes in the business or operations of these partner companies. When the Company’s carrying value in an equity method partner company is reduced to zero, the Company records no further losses in its Consolidated Statements of Operations unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method partner company. When such equity method partner company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of the Company’s share of losses not previously recognized. Other Method. We account for our equity interests in companies which are not accounted for under the equity method as equity securities without readily determinable fair values. We estimate the fair value of these securities based on our original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under this method, our share of the income or losses of such companies is not included in our Consolidated Statements of Operations. We include the carrying value of these investments in Ownership interests in and advances to partner companies on the Consolidated Balance Sheets. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 and related subsequent amendments outline a single comprehensive model to use to account for revenue arising from contracts with customers and supersede most current revenue recognition guidance. For public companies, the guidance is effective for annual periods beginning after December 15, 2017 and any interim periods that fall within that reporting period. For nonpublic companies, the guidance was effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019 with early adoption permitted. As the new standard superseded most existing revenue guidance, it could impact revenue and cost recognition for partner companies. Any change in revenue or cost recognition for partner companies could affect the Company's recognition of its share of the results of its equity method partner companies. On July 20, 2017, the SEC staff observer at the FASB’s Emerging Issues Task Force ("EITF") meeting announced that the SEC staff will not object if a private company equity method investee meeting the definition of a public business entity that otherwise would not meet the definition of a public business entity except for the inclusion of its financial statements or financial information in another entity’s filings with the SEC, uses private company adoption dates for the new revenue standard. As a result, the Company's private, calendar year partner companies will adopt the new revenue standard for the year ending December 31, 2019. The impact of adoption of the new revenue standard will be reflected in the Company’s financial results for the interim and annual reporting periods beginning in 2020 on a one quarter-lag basis. In February 2016, the FASB issued ASU 2016-02, Leases . The guidance in ASU 2016-02 requires that a lessee recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. As with previous guidance, there continues to be a differentiation between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. Lease assets and liabilities arising from both finance and operating leases will be recognized in the statement of financial position. The transitional guidance for adopting the requirements of ASU 2016-02 calls for a modified retrospective approach that includes a number of optional practical expedients that entities may elect to apply. The guidance in ASU 2016-02 became effective for the Company on January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company to carry forward its historical lease classification. In addition, the Company has elected to exempt short term leases that qualify from recognizing right of use assets or lease liabilities, and has elected to not separate lease and non-lease components for all leases of which it is the lessee. The Company’s non-lease components are primarily related to utility and maintenance costs, which are typically variable in nature and are expensed in the period incurred. As of January 1, 2019, the Company's only material long-term lease was for its corporate headquarters in Radnor, PA under a lease expiring in 2026. The Company also has immaterial office equipment leases expiring at various dates through 2020. The Company recorded an initial lease liability of $2.9 million , a right-of-use asset of $2.2 million included in property and equipment and eliminated the deferred rent liability of $0.7 million that was previously included in other long-term liabilities. |
Ownership Interests in and Adva
Ownership Interests in and Advances to Partner Companies and Funds | 3 Months Ended |
Mar. 31, 2019 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Ownership Interests in and Advances to Partner Companies | Ownership Interests in and Advances to Partner Companies The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies. March 31, 2019 December 31, 2018 (Unaudited - In thousands) Equity Method Companies: Partner companies $ 48,342 $ 64,097 Private equity funds 392 392 48,734 64,489 Other Companies: Partner companies and other holdings 17,585 15,260 Private equity funds 500 511 18,085 15,771 Advances to partner companies 18,784 15,325 $ 85,603 $ 95,585 In January 2019, Propeller was acquired by another entity for cash. The Company received $41.5 million in cash proceeds in connection with the transaction, excluding $0.8 million of holdbacks and escrows that may be substantially released on various dates on or before January 2020. The Company recognized a gain of $34.9 million , which is included in Equity income (loss) in the Consolidated Statements of Operations for the three months ended March 31, 2019 . In January 2019, Brickwork merged into another privately-held company. The Company received a preferred equity interest in the acquiror and accounts for this interest as an equity interest without a readily determinable fair value. The Company did not recognize a gain or loss in 2019 as a result of this transaction. Summarized Financial Information The following table summarizes statement of operations for any partner companies accounted for under the equity method for the three months ended March 31, 2019 and 2018, respectively. These results have been compiled from respective company financial statements, reflect certain historical adjustments, and are reported on a one quarter lag basis. Results of operations of the companies are excluded for periods prior to their acquisition, subsequent to their disposition and subsequent to the discontinuation of equity method of accounting. Historical results are not adjusted when the Company exits, writes-off or discontinues the equity method of accounting. Three months ended March 31, 2019 2018 (Unaudited - In thousands) Results of Operations: Revenue $ 43,868 $ 110,393 Gross profit $ 24,589 $ 78,071 Net loss $ (33,616 ) $ (31,805 ) |
Acquisitions of Ownership Inter
Acquisitions of Ownership Interests in Partner Companies and Funds | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Acquisitions of Ownership Interests in Partner Companies | Acquisitions of Ownership Interests in Partner Companies The Company deployed an aggregate of $0.4 million for additional equity interest in Clutch Holdings. The Company had previously deployed an aggregate of $16.3 million in Clutch. Clutch provides customer intelligence and personalized engagements that empower consumer-focused businesses to identify, understand and motivate each segment of their customer base. The Company accounts for its interest in Clutch Holdings under the equity method. The Company funded an additional $2.0 million of convertible bridge loans to Sonobi, Inc. The Company had previously deployed $11.4 million in Sonobi. Sonobi is an advertising technology developer that designs advertising tools and solutions for the industry's leading media, publishers, brand advertisers, media agencies, DSPs, and media technology providers. The Company accounts for its interest in Sonobi under the equity method. The Company funded an aggregate of $0.7 million of convertible loans to NovaSom, Inc. The Company had previously deployed an aggregate of $26.4 million in NovaSom. NovaSom is a medical device company focused on obstructive sleep apnea, specifically home testing with its FDA-cleared wireless device called AccuSom ® home sleep test. The Company accounts for its interest in NovaSom under the equity method. The Company funded an aggregate of $0.9 million of convertible bridge loans to WebLinc, Inc. The Company had previously deployed an aggregate of $15.0 million in WebLinc. WebLinc is an e-commerce platform and services provider for fast growing online retailers. The Company accounts for its interest in WebLinc under the equity method. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial instruments recorded at fair value on the Company’s Consolidated Balance Sheets are categorized as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 : Carrying Value Fair Value Measurement at March 31, 2019 Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 44,592 $ 44,592 $ — $ — Restricted cash $ 525 $ 525 $ — $ — Trading securities $ 306 $ 306 $ — $ — Marketable securities—held-to-maturity: U.S. Government securities $ 32,905 $ 32,905 $ — $ — Credit facility repayment feature liability $ 7,069 $ — $ — $ 7,069 Carrying Value Fair Value Measurement at December 31, 2018 Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 7,703 $ 7,703 $ — $ — Restricted cash equivalents $ 500 $ 500 $ — $ — Marketable securities—held-to-maturity: U.S. Government securities $ 37,955 $ 37,955 $ — $ — Credit facility repayment feature liability $ 5,060 $ — $ — $ 5,060 As of March 31, 2019 , $32.9 million of marketable securities had contractual maturities which were less than one year. Held-to-maturity securities are carried at amortized cost, which, due to the short-term maturity of these instruments, approximates fair value using quoted prices in active markets for identical assets or liabilities defined as Level 1 inputs under the fair value hierarchy. As of March 31, 2019 , $7.1 million is recorded as a credit facility repayment feature liability, an increase of $2.0 million from December 31, 2018, due to the provision in the Credit Facility that requires prepayments of outstanding principal amounts when the Company’s qualified cash at any quarter end date exceeds $50.0 million . The prepayment feature is an embedded derivative that is accounted for as a liability separate from the Credit Facility. The liability is adjusted to the fair value of required projected future debt prepayments. The liability may change materially based upon management's probability weighted cash forecast at each balance sheet date. Management's cash forecasts are defined as Level 3 inputs under the fair value hierarchy. |
Credit Facility and Convertible
Credit Facility and Convertible Debentures | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility and Convertible Debentures | Credit Facility and Convertible Debentures Credit Facility The Company has a credit facility with HPS Investment Partners, LLC (“Lender”), which was amended in May 2018 ("Credit Facility"). The Credit Facility has a scheduled maturity of May 11, 2020 and bears interest at a rate of either: (A) LIBOR plus 8.5% (subject to a LIBOR floor of 1% ), payable on the last day of the one, two or three month interest period applicable to the LIBOR rate advance, or (B) 7.5% plus the greater of: 2% ; the Federal Funds Rate plus 0.5% ; LIBOR plus 1% ; or the U.S. Prime Rate, payable monthly in arrears. The Credit Facility is secured by all of the Company's assets in accordance with the terms of the Credit Facility. The terms of the Credit Facility include a requirement that if the aggregate amount of the Company’s qualified cash at any quarter end date exceeds $50.0 million , the Company will be required to prepay outstanding principal amounts under the Credit Facility, plus any applicable interest and prepayment fees, in an amount equal to such excess. Based on this requirement, the Company made a principal payment of $24.0 million and a make-whole interest payment of $2.9 million on April 15, 2019 based on the Company's qualified cash at March 31, 2019. The Company is subject to certain debt covenants under the Credit Facility which require the Company to (i) maintain a liquidity threshold of at least $20 million of unrestricted cash; (ii) maintain a minimum aggregate appraised value of the Company’s ownership interests in its partner companies, plus unrestricted cash in excess of the liquidity threshold, of at least $350 million , less the aggregate amount of all prepayments; (iii) limit deployments to only existing partner companies and such deployments may not exceed, when combined with deployments after January 1, 2018, $40.0 million in the aggregate through the maturity date; and (iv) limit certain expenses (which shall exclude severance payments, interest expense, depreciation and stock-based compensation) incurred or paid to no more than $11.5 million in any twelve-month period after the date of the amendment (or such shorter period as has elapsed since the date of the amendment). Additionally, the Company is restricted from repurchasing shares of its outstanding common stock and/or issuing dividends until such time as the Credit Facility is repaid in full. As of the date these consolidated financial statements were issued, the Company was in compliance with all applicable covenants. The Credit Facility provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; non-compliance with debt covenants; defaults in, or failure to pay, certain other indebtedness; the rendering of judgments to pay certain amounts of money; and certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is not cured within the time periods specified (if any), the Lender may declare the outstanding amount under the Credit Facility to be immediately due and payable. At March 31, 2019 , the principal amount outstanding under the Credit Facility was $68.6 million , the unamortized discount and debt issuance costs were $2.9 million and the net carrying value of the credit facility was $65.7 million . The Credit Facility requires prepayments of outstanding principal amounts when the Company’s qualified cash at any quarter end date exceeds $50.0 million . This provision in the Credit Facility is an embedded derivative that is accounted for separately from the credit facility. A liability of $0.5 million was recorded on the amendment date for the fair value of potential future prepayments based upon management's probability weighted cash forecast. This amount is also included in debt issuance costs and will be amortized over the remaining term of the credit facility. The liability is adjusted to fair value at each balance sheet date based upon management's updated probability weighted cash forecast. During the three months ended March 31, 2019 , the Company recorded an increase in the liability of $2.0 million , which is included in Other loss on the Consolidated Statements of Operations. The increase in the fair value of the credit facility repayment feature liability is due to an increase in the probability of debt prepayments based on the Company's current cash position, projected events that will provide cash, and expected uses of cash during 2019. The Company recorded interest expense under the credit facility of $2.5 million and $1.8 million for the three months ended March 31, 2019 and 2018, respectively. The effective interest rate on the Credit Facility is 15.3% . The Company made interest payments under the credit facility of $1.9 million and $1.3 million for the three months ended March 31, 2019 and 2018, respectively. During the three months ended March 31, 2018 the Company also recorded $0.9 million of interest expense and made no interest payments related to convertible debentures that were outstanding during that period. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows: Three months ended March 31, 2019 2018 (Unaudited - In thousands) General and administrative expense $ 417 $ 277 $ 417 $ 277 There were no restricted stock or stock options granted during the three months ended March 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s consolidated income tax benefit (expense) was $0.0 million for the three months ended March 31, 2019 and 2018, respectively. The Company has recorded a valuation allowance to reduce its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the tax provision expense that would have been recognized in the three months ended March 31, 2019 was offset by changes in the valuation allowance. During the three months ended March 31, 2019 , the Company had no material changes in uncertain tax positions. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The calculations of net income (loss) per share were as follows: Three months ended March 31, 2019 2018 (Unaudited - In thousands, except per share data) Basic: Net income (loss) $ 21,663 $ (6,170 ) Weighted average common shares outstanding 20,585 20,506 Net income (loss) per share $ 1.05 $ (0.30 ) Diluted: Net income (loss) for dilutive share computation $ 21,663 $ (6,170 ) Number of shares used in basic per share computation 20,585 20,506 Unvested restricted stock and DSU's — — Employee stock options — — Weighted average common shares outstanding 20,585 20,506 Net income (loss) per dilutive share $ 1.05 $ (0.30 ) Basic and diluted average common shares outstanding for purposes of computing net income (loss) per share includes outstanding common shares and vested deferred stock units (DSUs). If a consolidated or equity method partner company has dilutive stock options, unvested restricted stock, DSUs or warrants, diluted net income (loss) per share is computed by first deducting the income attributable to the potential exercise of the dilutive securities of the partner company from net income (loss). Any impact is shown as an adjustment to net income (loss) for purposes of calculating diluted net income (loss) per share. Diluted earnings per share do not reflect the following potential shares of common stock that would have an anti-dilutive effect or have unsatisfied performance or market conditions: • At March 31, 2019 and 2018, options to purchase 0.3 million and 0.6 million shares of common stock, respectively, at prices ranging from $9.83 to $19.41 and $9.83 to $19.95 , respectively, were excluded from the calculations. • At March 31, 2019 and 2018, unvested restricted stock, performance-based stock units and DSUs convertible into 0.7 million and 1.0 million shares of stock, respectively, were excluded from the calculations. • At March 31, 2018, 2.3 million shares of common stock representing the effect of the assumed conversion of the 2018 Debentures, were excluded from the calculations. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company operates as one operating segment based upon the similar nature of its technology-driven partner companies, the functional alignment of the organizational structure, and the reports that are regularly reviewed by the chief operating decision maker for the purpose of assessing performance and allocating resources. As of March 31, 2019 , the Company held interests in 19 non-consolidated partner companies. The Company’s active partner companies were as follows as of March 31, 2019 : Partner Company Safeguard Primary Ownership as of March 31, 2019 Accounting Method Aktana, Inc. 18.9% Equity Clutch Holdings, Inc. 41.2% Equity Flashtalking 10.1% Other Hoopla Software, Inc. 25.5% Equity InfoBionic, Inc. 25.4% Equity Lumesis, Inc. 43.6% Equity MediaMath, Inc. 13.4% Other meQuilibrium 33.1% Equity Moxe Health Corporation 32.4% Equity NovaSom, Inc. 31.7% Equity Prognos Health Inc. 28.7% Equity QuanticMind, Inc. 24.2% Equity Sonobi, Inc. 21.6% Equity Syapse, Inc. 20.0% Equity T-REX Group, Inc. 17.8% Equity Transactis, Inc. 23.6% Equity Trice Medical, Inc. 16.7% Equity WebLinc, Inc. 38.5% Equity Zipnosis, Inc. 34.7% Equity As of March 31, 2019 and December 31, 2018 , all of the Company’s assets were located in the United States. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its partner companies are involved in various claims and legal actions arising in the ordinary course of business. In the current opinion of the Company, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations, however, no assurance can be given as to the outcome of these actions, and one or more adverse rulings could have a material adverse effect on the Company’s consolidated financial position and results of operations or that of its partner companies. The Company records costs associated with legal fees as such services are rendered. The Company had outstanding guarantees of $3.8 million at March 31, 2019 which related to one of the Company's private equity holdings. Escrow funds to satisfy this guarantee are held at the private equity fund. The Company is required to return a portion or all the distributions it received as a general partner of a private equity fund for further distribution to such fund's limited partners (“clawback”). The Company’s ownership in the fund is 19% . The clawback liability is joint and several, such that the Company may be required to fund the clawback for other general partners should they default. The Company was notified by the fund's manager that the fund was being dissolved and $1.0 million of the Company's clawback liability was paid in the first quarter of 2017. The maximum additional clawback liability is $0.3 million which was reflected in Other long-term liabilities on the Consolidated Balance Sheet at March 31, 2019 . In October 2001, the Company entered into an agreement with a former Chairman and Chief Executive Officer of the Company, to provide for annual payments of $0.65 million per year and certain health care and other benefits for life. The related current liability of $0.8 million is included in Accrued expenses and other current liabilities and the long-term portion of $1.2 million is included in Other long-term liabilities on the Consolidated Balance Sheet at March 31, 2019 . In 2018, the Company announced a change in strategy and implemented a series of initiatives to generate annual cost savings. The Company has incurred $3.9 million of severance costs to terminated employees, of which $0.5 million remains to be paid during 2019. The Company has agreements with certain remaining employees that provide for severance payments to the employee in the event the employee is terminated without cause or an employee terminates his employment for “good reason.” The maximum aggregate exposure under employment and severance agreements for remaining employees was approximately $4.8 million at March 31, 2019. In 2018, the Board of Directors (the “Board”) of the Company adopted a long-term incentive plan, which was amended in February 2019, the Amended and Restated Safeguard Scientifics Transaction Bonus Plan, (the “LTIP”). The purpose of the LTIP is to promote the interests of the Company and its shareholders by providing an additional incentive to employees to maximize the value of the Company in connection with the execution of the business strategy that the Company adopted and announced in January 2018. Under the LTIP, participants have received awards that may result in cash payments in connection with sales of the Company’s partner company assets (“Sale Transaction(s)”). The LTIP provides for a bonus pool corresponding to: (i) specified vesting thresholds or (ii) specified events. In the first case, the bonus pool will range from an amount equal to 1% of received proceeds at the first threshold to 1.333% at higher thresholds and no bonus pool will be created if the transaction consideration is less than certain minimum thresholds. In the second case, a minimum pool will be created and paid under specified circumstances. The bonus pool will be allocated and paid to participants in the LTIP based on the product of (i) the participant’s applicable bonus pool percentage and (ii) the bonus pool calculated as of the vesting date, minus any previously paid portion of the bonus pool. Any portion of the bonus pool available as of the applicable vesting date that is reserved will be allocated in connection with each vesting date so that the entire bonus pool available as of such vesting date is allocated and payable to participants. Subject to the terms of the LTIP, payments under the LTIP will be paid in cash not later than March 15th of the calendar year following the calendar year of the applicable vesting date. All current officers and employees of the Company are eligible to participate in the LTIP. The Board, in its sole discretion, will determine the participants to whom awards are granted under the LTIP. There are no amounts accrued or payable under the LTIP as of March 31, 2019. In June 2011, the Company's former partner company, Advanced BioHealing, Inc. (“ABH”) was acquired by Shire plc (“Shire”). Prior to the expiration of the escrow period in March 2012, Shire filed a claim against all amounts held in escrow related to the sale based principally upon a United States Department of Justice (“DOJ”) false claims act investigation relating to ABH (the “Investigation”). In connection with the Investigation, in July 2015 the Company received a Civil Investigation Demand-Documentary Material (“CID”) from the DOJ regarding ABH and Safeguard’s relationship with ABH. Pursuant to the CID, the Company provided the requested materials and information. To the Company’s knowledge, the CID was related to multiple qui tam (“whistleblower”) actions, one of which was filed in 2014 by an ex-employee of ABH that named the Company and one of the Company’s employees along with other entities and individuals as defendants. At this time, the DOJ has declined to pursue the qui tam action as it relates to the Company and such Company employee. In addition, in connection with the above matters, the Company and other former equity holders in ABH entered into a settlement and release with Shire, which resulted in the release to Shire of all amounts held in escrow related to the sale of ABH. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity In July 2015, the Company's Board of Directors authorized the Company, from time to time and depending on market conditions, to repurchase up to $25.0 million of the Company's outstanding common stock. The Company has not repurchased any shares under the existing authorization during 2018 or the quarter ended March 31, 2019. In February 2018, the Company's Board of Directors adopted a tax benefits preservation plan (the "Plan") designed to protect and preserve the Company's ability to utilize its net operating loss carryforwards ("NOLs"). The Company submitted the Plan for shareholder ratification at its 2018 Annual Meeting of Shareholders and the Plan was ratified by shareholders. The purpose of the Plan is to preserve the Company's ability to use its NOLs, which would be substantially limited if the Company experienced an "ownership change" as defined under Section 382 of the Internal Revenue Code. In general, an ownership change would be deemed to have occurred if the Company's shareholders who are treated as owning five percent or more of the outstanding shares of Safeguard for purposes of Section 382 ("five-percent shareholders") collectively increase their aggregate ownership in the Company's overall shares outstanding by more than 50 percentage points. Whether this change has occurred would be measured by comparing each five-percent shareholder's current ownership as of the measurement date to such shareholders' lowest ownership percentage during the three-year period preceding the measurement date. To protect the Company's NOLs from being limited or permanently lost under Section 382, the Plan is intended to deter any person or group from acquiring beneficial ownership of 4.99% or more of the Company's outstanding common stock without the approval of the Board, reducing the likelihood of an unintended ownership change. Under the Plan, the Company will issue one preferred stock purchase right (the "Rights") for each share of Safeguard's common stock held by shareholders as of the applicable date of record. The issuance of the Rights will not be taxable to Safeguard or its shareholders and will not affect Safeguard's reported earnings per share. The Rights will trade with Safeguard's common shares and will expire no later than February 19, 2021. The Rights and the Plan may also expire on an earlier date upon the occurrence of other events, including a determination by the Company's Board that the Plan is no longer necessary or desirable for the preservation of the Company's tax attributes or that no tax attributes may be carried forward (with such expiration occurring as of the beginning of the applicable taxable year). There can be no assurance that the Plan will prevent the Company from experiencing an ownership change. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During April 2019, the Company made a $27.4 million payment to its Lender consisting of $24.0 million of principal, $2.9 million of interest and $0.5 million of accrued interest. During April 2019, the Company deployed an additional $1.5 million into Zipnosis, Inc. The Company has previously deployed $8.5 million into Zipnosis. Zipnosis provides health systems with a white-labeled, fully integrated virtual care platform. During April 2019, the Company deployed an additional $3.0 million into Syapse, Inc. The Company has previously deployed an aggregate of $15.6 million into Syapse. Syapse drives healthcare transformation through precision medicine, enabling provider systems to improve clinical outcomes, streamline operations, and shift to new payment models. During April 2019, the Company deployed an additional $1.5 million into meQuilibrium. The Company had previously deployed $11.5 million in meQuilibrium. meQuilibrium is a digital coaching platform that delivers clinically validated and highly personalized resilience solutions to employers, health plans, wellness providers, and consumers increasing engagement, productivity and performance, as well as improving outcomes in managing stress, health and well-being. In April 2019, the Company entered into a sublease for replacement office space with a related party, a partner company, beginning in June 2019. The term of the sublease is 18 months with three conditional six month renewals based on mutual agreement with the sublessor. The aggregate payments expected under this sublease are not material. |
General General (Policies)
General General (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 and related subsequent amendments outline a single comprehensive model to use to account for revenue arising from contracts with customers and supersede most current revenue recognition guidance. For public companies, the guidance is effective for annual periods beginning after December 15, 2017 and any interim periods that fall within that reporting period. For nonpublic companies, the guidance was effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019 with early adoption permitted. As the new standard superseded most existing revenue guidance, it could impact revenue and cost recognition for partner companies. Any change in revenue or cost recognition for partner companies could affect the Company's recognition of its share of the results of its equity method partner companies. On July 20, 2017, the SEC staff observer at the FASB’s Emerging Issues Task Force ("EITF") meeting announced that the SEC staff will not object if a private company equity method investee meeting the definition of a public business entity that otherwise would not meet the definition of a public business entity except for the inclusion of its financial statements or financial information in another entity’s filings with the SEC, uses private company adoption dates for the new revenue standard. As a result, the Company's private, calendar year partner companies will adopt the new revenue standard for the year ending December 31, 2019. The impact of adoption of the new revenue standard will be reflected in the Company’s financial results for the interim and annual reporting periods beginning in 2020 on a one quarter-lag basis. In February 2016, the FASB issued ASU 2016-02, Leases . The guidance in ASU 2016-02 requires that a lessee recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. As with previous guidance, there continues to be a differentiation between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. Lease assets and liabilities arising from both finance and operating leases will be recognized in the statement of financial position. The transitional guidance for adopting the requirements of ASU 2016-02 calls for a modified retrospective approach that includes a number of optional practical expedients that entities may elect to apply. The guidance in ASU 2016-02 became effective for the Company on January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company to carry forward its historical lease classification. In addition, the Company has elected to exempt short term leases that qualify from recognizing right of use assets or lease liabilities, and has elected to not separate lease and non-lease components for all leases of which it is the lessee. The Company’s non-lease components are primarily related to utility and maintenance costs, which are typically variable in nature and are expensed in the period incurred. As of January 1, 2019, the Company's only material long-term lease was for its corporate headquarters in Radnor, PA under a lease expiring in 2026. The Company also has immaterial office equipment leases expiring at various dates through 2020. The Company recorded an initial lease liability of $2.9 million , a right-of-use asset of $2.2 million included in property and equipment and eliminated the deferred rent liability of $0.7 million that was previously included in other long-term liabilities. |
General General (Tables)
General General (Tables) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Lessor, Operating Lease, Payments to be Received, Maturity | A summary of the Company's operating lease at March 31, 2019 follows: Operating lease payments Sublease income (Unaudited - In thousands) 2019 (nine months ending December 31) $ 434 $ 166 2020 587 509 2021 595 525 2022 601 540 2023 607 556 2024 613 573 Thereafter 826 789 Total future minimum lease payments 4,263 $ 3,658 Less imputed interest (1,416 ) Total operating lease liabilities $ 2,847 | |
Lessee, Operating Lease, Liability, Maturity | A summary of the Company's operating lease at March 31, 2019 follows: Operating lease payments Sublease income (Unaudited - In thousands) 2019 (nine months ending December 31) $ 434 $ 166 2020 587 509 2021 595 525 2022 601 540 2023 607 556 2024 613 573 Thereafter 826 789 Total future minimum lease payments 4,263 $ 3,658 Less imputed interest (1,416 ) Total operating lease liabilities $ 2,847 |
Ownership Interests in and Ad_2
Ownership Interests in and Advances to Partner Companies and Funds (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Ownership Interests in and Advances to Partner Companies and Private Equity Funds | The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies. March 31, 2019 December 31, 2018 (Unaudited - In thousands) Equity Method Companies: Partner companies $ 48,342 $ 64,097 Private equity funds 392 392 48,734 64,489 Other Companies: Partner companies and other holdings 17,585 15,260 Private equity funds 500 511 18,085 15,771 Advances to partner companies 18,784 15,325 $ 85,603 $ 95,585 The Company’s active partner companies were as follows as of March 31, 2019 : Partner Company Safeguard Primary Ownership as of March 31, 2019 Accounting Method Aktana, Inc. 18.9% Equity Clutch Holdings, Inc. 41.2% Equity Flashtalking 10.1% Other Hoopla Software, Inc. 25.5% Equity InfoBionic, Inc. 25.4% Equity Lumesis, Inc. 43.6% Equity MediaMath, Inc. 13.4% Other meQuilibrium 33.1% Equity Moxe Health Corporation 32.4% Equity NovaSom, Inc. 31.7% Equity Prognos Health Inc. 28.7% Equity QuanticMind, Inc. 24.2% Equity Sonobi, Inc. 21.6% Equity Syapse, Inc. 20.0% Equity T-REX Group, Inc. 17.8% Equity Transactis, Inc. 23.6% Equity Trice Medical, Inc. 16.7% Equity WebLinc, Inc. 38.5% Equity Zipnosis, Inc. 34.7% Equity |
Equity Method Investment Partner Company Results Of Operation | Three months ended March 31, 2019 2018 (Unaudited - In thousands) Results of Operations: Revenue $ 43,868 $ 110,393 Gross profit $ 24,589 $ 78,071 Net loss $ (33,616 ) $ (31,805 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Certain Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 : Carrying Value Fair Value Measurement at March 31, 2019 Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 44,592 $ 44,592 $ — $ — Restricted cash $ 525 $ 525 $ — $ — Trading securities $ 306 $ 306 $ — $ — Marketable securities—held-to-maturity: U.S. Government securities $ 32,905 $ 32,905 $ — $ — Credit facility repayment feature liability $ 7,069 $ — $ — $ 7,069 Carrying Value Fair Value Measurement at December 31, 2018 Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 7,703 $ 7,703 $ — $ — Restricted cash equivalents $ 500 $ 500 $ — $ — Marketable securities—held-to-maturity: U.S. Government securities $ 37,955 $ 37,955 $ — $ — Credit facility repayment feature liability $ 5,060 $ — $ — $ 5,060 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows: Three months ended March 31, 2019 2018 (Unaudited - In thousands) General and administrative expense $ 417 $ 277 $ 417 $ 277 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculations of Net Loss Per Share | The calculations of net income (loss) per share were as follows: Three months ended March 31, 2019 2018 (Unaudited - In thousands, except per share data) Basic: Net income (loss) $ 21,663 $ (6,170 ) Weighted average common shares outstanding 20,585 20,506 Net income (loss) per share $ 1.05 $ (0.30 ) Diluted: Net income (loss) for dilutive share computation $ 21,663 $ (6,170 ) Number of shares used in basic per share computation 20,585 20,506 Unvested restricted stock and DSU's — — Employee stock options — — Weighted average common shares outstanding 20,585 20,506 Net income (loss) per dilutive share $ 1.05 $ (0.30 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Active Partner Companies by Segment | The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies. March 31, 2019 December 31, 2018 (Unaudited - In thousands) Equity Method Companies: Partner companies $ 48,342 $ 64,097 Private equity funds 392 392 48,734 64,489 Other Companies: Partner companies and other holdings 17,585 15,260 Private equity funds 500 511 18,085 15,771 Advances to partner companies 18,784 15,325 $ 85,603 $ 95,585 The Company’s active partner companies were as follows as of March 31, 2019 : Partner Company Safeguard Primary Ownership as of March 31, 2019 Accounting Method Aktana, Inc. 18.9% Equity Clutch Holdings, Inc. 41.2% Equity Flashtalking 10.1% Other Hoopla Software, Inc. 25.5% Equity InfoBionic, Inc. 25.4% Equity Lumesis, Inc. 43.6% Equity MediaMath, Inc. 13.4% Other meQuilibrium 33.1% Equity Moxe Health Corporation 32.4% Equity NovaSom, Inc. 31.7% Equity Prognos Health Inc. 28.7% Equity QuanticMind, Inc. 24.2% Equity Sonobi, Inc. 21.6% Equity Syapse, Inc. 20.0% Equity T-REX Group, Inc. 17.8% Equity Transactis, Inc. 23.6% Equity Trice Medical, Inc. 16.7% Equity WebLinc, Inc. 38.5% Equity Zipnosis, Inc. 34.7% Equity |
General - Additional Informatio
General - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | May 31, 2018 | |
Debt Instrument [Line Items] | |||||
Cash and cash equivalents | $ 44,592,000 | $ 7,703,000 | |||
Cash and cash equivalents | 44,592,000 | $ 7,703,000 | |||
Marketable securities | 33,200,000 | ||||
Cash, cash equivalents, and marketable securities | $ 77,800,000 | ||||
Discount rate | 12.00% | ||||
Operating lease, payments | $ 100,000 | $ 100,000 | |||
Payments to be received | 3,658,000 | ||||
Operating lease, liability | 2,847,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 68,600,000 | ||||
Liquidity threshold | 20,000,000 | ||||
Minimum aggregate appraised value plus liquidity threshold | 350,000,000 | ||||
Expense threshold | 11,500,000 | ||||
Cash and cash equivalent threshold | 50,000,000 | ||||
Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit outstanding | 68,600,000 | ||||
Liquidity threshold | 20,000,000 | ||||
Minimum aggregate appraised value plus liquidity threshold | 350,000,000 | ||||
Expense threshold | 11,500,000 | ||||
Cash and cash equivalent threshold | $ 50,000,000 | $ 50,000,000 | |||
Accounting Standards Update 2016-02 | |||||
Debt Instrument [Line Items] | |||||
Right-of-use asset | $ 2,200,000 | ||||
Operating lease, liability | 2,900,000 | ||||
Deferred rent credit | $ 700,000 |
General - Operating Lease Matur
General - Operating Lease Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 (nine months ending December 31) | $ 434 |
2020 | 587 |
2021 | 595 |
2022 | 601 |
2023 | 607 |
2024 | 613 |
Thereafter | 826 |
Total future minimum lease payments | 4,263 |
Sublease income | |
2019 (nine months ending December 31) | 166 |
2020 | 509 |
2021 | 525 |
2022 | 540 |
2023 | 556 |
2024 | 573 |
Thereafter | 789 |
Total future minimum lease payments | 3,658 |
Less imputed interest | (1,416) |
Total operating lease liabilities | $ 2,847 |
Ownership Interests in and Ad_3
Ownership Interests in and Advances to Partner Companies and Funds - Carrying Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments In And Advances To Affiliates [Line Items] | ||
Equity method investments | $ 48,734 | $ 64,489 |
Cost method investments | 18,085 | 15,771 |
Advances to partner companies | 18,784 | 15,325 |
Investments in and advance to affiliates, subsidiaries, associates, and joint ventures | 85,603 | 95,585 |
Partner companies | ||
Investments In And Advances To Affiliates [Line Items] | ||
Equity method investments | 48,342 | 64,097 |
Cost method investments | 17,585 | 15,260 |
Private equity funds | ||
Investments In And Advances To Affiliates [Line Items] | ||
Equity method investments | 392 | 392 |
Cost method investments | $ 500 | $ 511 |
Ownership Interests in and Ad_4
Ownership Interests in and Advances to Partner Companies and Funds - Narrative (Detail) - Cask Data - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
May 31, 2018 | Mar. 31, 2019 | |
Investment [Line Items] | ||
Proceeds from sale of equity method investments | $ 41.5 | |
Amount in holdbacks and escrows | $ 0.8 | |
Realized gain (loss) on disposal | $ 34.9 |
Ownership Interests in and Ad_5
Ownership Interests in and Advances to Partner Companies and Funds - Schedule of Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments in and Advances to Affiliates [Abstract] | ||
Revenue | $ 43,868 | $ 110,393 |
Gross profit | 24,589 | 78,071 |
Net loss | $ (33,616) | $ (31,805) |
Acquisitions of Ownership Int_2
Acquisitions of Ownership Interests in Partner Companies and Funds (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 48,734 | $ 64,489 |
InfoBionic | ||
Schedule of Equity Method Investments [Line Items] | ||
Convertible bridge loan | 400 | |
Equity method investments | 16,300 | |
Sonobi | ||
Schedule of Equity Method Investments [Line Items] | ||
Convertible bridge loan | 2,000 | |
Equity method investments | 11,400 | |
Novasom, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Convertible bridge loan | 700 | |
Equity method investments | 26,400 | |
WebLinc | ||
Schedule of Equity Method Investments [Line Items] | ||
Convertible bridge loan | $ 900 | |
Equity method investments | $ 15,000 |
Fair Value Measurements - Carr
Fair Value Measurements - Carrying Value and Fair Value of Certain Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 44,592 | $ 7,703 |
Long-term restricted cash equivalents | 525 | 500 |
Debt Securities, Trading | 306 | |
Marketable securities—held-to-maturity: | 32,905 | 37,955 |
Credit facility repayment feature liability | 7,069 | 5,060 |
Estimate of Fair Value Measurement [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 44,592 | 7,703 |
Long-term restricted cash equivalents | 525 | 500 |
Debt Securities, Trading | 306 | |
Marketable securities—held-to-maturity: | 32,905 | 37,955 |
Credit facility repayment feature liability | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Long-term restricted cash equivalents | 0 | 0 |
Debt Securities, Trading | 0 | |
Marketable securities—held-to-maturity: | 0 | 0 |
Credit facility repayment feature liability | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Long-term restricted cash equivalents | 0 | 0 |
Debt Securities, Trading | 0 | |
Marketable securities—held-to-maturity: | 0 | 0 |
Credit facility repayment feature liability | $ 7,069 | $ 5,060 |
Fair Value Measurements - Narr
Fair Value Measurements - Narrative (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities, current | $ 32,905 | $ 37,955 | |
Amended Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit facility repayment feature | 7,100 | $ 2,000 | $ 500 |
Cash and cash equivalent threshold | $ 50,000 | $ 50,000 |
Credit Facility and Convertib_2
Credit Facility and Convertible Debentures - Additional Information (Detail) - USD ($) | Apr. 15, 2019 | May 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 31, 2018 |
Debt Instrument [Line Items] | ||||||
Gain (loss) from covenant liability | $ (2,000,000) | |||||
Interest expense | 2,535,000 | $ 2,690,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Cash and cash equivalent threshold | $ 50,000,000 | |||||
Liquidity threshold | 20,000,000 | |||||
Minimum aggregate appraised value plus liquidity threshold | 350,000,000 | |||||
Expense threshold | 11,500,000 | |||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | $ 2,500,000 | 1,800,000 | ||||
Debt instrument, interest rate, effective percentage | 15.30% | |||||
Interest paid | $ 1,900,000 | 1,300,000 | ||||
Credit Facility | Revolving Credit Facility | Interest Rate Application A | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 8.50% | |||||
Credit Facility | Revolving Credit Facility | Interest Rate Application A | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Credit Facility | Revolving Credit Facility | Interest Rate Application B | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Credit Facility | Revolving Credit Facility | Interest Rate Application B | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 7.50% | |||||
Credit Facility | Revolving Credit Facility | Interest Rate Application B | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Credit Facility | Revolving Credit Facility | Interest Rate Application B | Federal Funds Effective Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit outstanding | 68,600,000 | |||||
Cash and cash equivalent threshold | 50,000,000 | 50,000,000 | ||||
Liquidity threshold | 20,000,000 | |||||
Minimum aggregate appraised value plus liquidity threshold | 350,000,000 | |||||
Deployment threshold | 40,000,000 | |||||
Expense threshold | 11,500,000 | |||||
Unamortized discount and debt issuance costs | 2,900,000 | |||||
Long-term debt | 65,700,000 | |||||
Credit facility repayment feature | $ 7,100,000 | $ 2,000,000 | $ 500,000 | |||
Amended Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of lines of credit | $ 24,000,000 | |||||
Periodic payment, interest | $ 2,900,000 | |||||
2018 Debentures | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | $ 900,000 |
Stock-Based Compensation - Sto
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 417 | $ 277 |
General And Administrative Expenses | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 417 | $ 277 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit (expense) | $ 0 | $ 0 |
Net Income (Loss) Per Share -
Net Income (Loss) Per Share - Calculations of Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic: | ||
Net income (loss) | $ 21,663 | $ (6,170) |
Weighted average common shares outstanding (in shares) | 20,585 | 20,506 |
Net income (loss) per share (in dollars per share) | $ 1.05 | $ (0.30) |
Diluted: | ||
Unvested restricted stock and DSU's | 0 | 0 |
Employee stock options | 0 | 0 |
Weighted average common shares outstanding | $ 20,585 | $ 20,506 |
Net income (loss) per dilutive share | $ 0 | $ 0 |
Net Income (Loss) Per Share _2
Net Income (Loss) Per Share - Narrative (Detail) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Share of common stock excluded from diluted net loss per share calculation (in shares) | 0.3 | 0.6 |
Deferred stock units, performance-based stock units and restricted stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Share of common stock excluded from diluted net loss per share calculation (in shares) | 0.7 | 1 |
Convertible Senior Debentures due 2018 | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Share of common stock excluded from diluted net loss per share calculation (in shares) | 2.3 | |
Minimum | Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares of common stock at prices ranging, lower limit (in dollars per share) | $ 9.83 | $ 9.83 |
Maximum | Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares of common stock at prices ranging, lower limit (in dollars per share) | $ 19.41 | $ 19.95 |
Segment Reporting - Narrative
Segment Reporting - Narrative (Detail) | 3 Months Ended |
Mar. 31, 2019segmentnonconsolidated_partner_company | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 1 |
Non-consolidated partner companies | nonconsolidated_partner_company | 19 |
Segment Reporting - Active Par
Segment Reporting - Active Partner Companies by Segment (Detail) | Mar. 31, 2019 |
Aktana, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 18.90% |
Clutch Holdings, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 41.20% |
Flashtalking | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under cost method, percentage | 10.10% |
Hoopla Software, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 25.50% |
InfoBionic | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 25.40% |
Lumesis, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 43.60% |
MediaMath, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under cost method, percentage | 13.40% |
meQuilibrium | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 33.10% |
Moxe Health | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 32.40% |
Novasom, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 31.70% |
Prognos | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 28.70% |
QuanticMind, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 24.20% |
Sonobi | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 21.60% |
Syapse, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 20.00% |
T-REX Group, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 17.80% |
Transactis | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 23.60% |
Trice | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 16.70% |
WebLinc | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 38.50% |
Zipnosis | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest under equity method, percentage | 34.70% |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2001 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2017 | |
Commitment Contingencies And Guarantees [Line Items] | |||||
Other long-term liabilities | $ 2,039 | $ 2,804 | |||
Annual payments | $ 650 | ||||
Severance costs | $ 3,900 | ||||
Minimum | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Bonus pool percent | 1.00% | ||||
Maximum | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Bonus pool percent | 1.333% | ||||
Employee Severance | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Maximum severance payments | $ 4,800 | ||||
Scenario, Forecast | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Severance costs | $ 500 | ||||
Accrued expenses and other current liabilities | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Liability to former chairman and chief executive officer, current | 800 | ||||
Other long-term liabilities | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Liability to former chairman and chief executive officer, non-current | 1,200 | ||||
Clawback Liability | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Other long-term liabilities | $ 300 | ||||
Company's ownership in the funds | 19.00% | ||||
Clawback liability paid | $ 1,000 | ||||
Private equity funds | |||||
Commitment Contingencies And Guarantees [Line Items] | |||||
Company outstanding guarantees | $ 3,800 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | |
Feb. 28, 2018 | Jul. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Individual ownership percent maximum | 4.99% | |
Common Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 25,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2019USD ($)extension | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Subsequent Event [Line Items] | |||
Equity method investments | $ 48,734 | $ 64,489 | |
Zipnosis | |||
Subsequent Event [Line Items] | |||
Equity method investments | 8,500 | ||
Syapse, Inc. | |||
Subsequent Event [Line Items] | |||
Equity method investments | 15,600 | ||
meQuilibrium | |||
Subsequent Event [Line Items] | |||
Equity method investments | $ 11,500 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repayments of debt | $ 27,400 | ||
Repurchased face amount | 24,000 | ||
Interest repaid | 2,900 | ||
Accrued interest repaid | $ 500 | ||
Term of lease | 18 months | ||
Number of renewal terms | extension | 3 | ||
Renewal term | 6 months | ||
Subsequent Event | Zipnosis | |||
Subsequent Event [Line Items] | |||
Payments to acquire equity method investments | $ 1,500 | ||
Subsequent Event | Syapse, Inc. | |||
Subsequent Event [Line Items] | |||
Payments to acquire equity method investments | 3,000 | ||
Subsequent Event | meQuilibrium | |||
Subsequent Event [Line Items] | |||
Payments to acquire equity method investments | $ 1,500 |