Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-13906 | |
Entity Registrant Name | BALLANTYNE STRONG, INC. | |
Entity Central Index Key | 0000946454 | |
Entity Tax Identification Number | 47-0587703 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4201 Congress Street | |
Entity Address, Address Line Two | Suite 175 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | (704) | |
Local Phone Number | 994-8279 | |
Title of 12(b) Security | Common Shares, $0.01 par value | |
Trading Symbol | BTN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,475,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 10,372 | $ 4,435 |
Restricted cash | 150 | 352 |
Accounts receivable (net of allowance for doubtful accounts of $613 and $1,006, respectively) | 4,446 | 5,558 |
Inventories, net | 2,986 | 2,264 |
Current assets of discontinued operations | 3,748 | |
Other current assets | 5,667 | 1,452 |
Total current assets | 23,621 | 17,809 |
Property, plant and equipment, net | 6,109 | 5,524 |
Operating lease right-of-use assets | 3,842 | 4,304 |
Finance lease right-of-use assets | 1 | 4 |
Note receivable, net of current portion | 1,875 | |
Investments | 37,341 | 20,167 |
Intangible assets, net | 132 | 353 |
Goodwill | 937 | 938 |
Long-term assets of discontinued operations | 6,372 | |
Other assets | 19 | 28 |
Total assets | 73,877 | 55,499 |
Current liabilities: | ||
Accounts payable | 2,915 | 2,717 |
Accrued expenses | 2,400 | 2,182 |
Short-term debt | 3,201 | 3,299 |
Current portion of operating lease obligations | 562 | 619 |
Current portion of finance lease obligations | 1 | 1,015 |
Deferred revenue and customer deposits | 3,850 | 2,404 |
Current liabilities of discontinued operations | 3,901 | |
Total current liabilities | 12,929 | 16,137 |
Operating lease obligations, net of current portion | 3,408 | 3,817 |
Finance lease obligations, net of current portion | 1,091 | |
Deferred income taxes | 5,218 | 3,099 |
Long-term liabilities of discontinued operations | 4,066 | |
Other long-term liabilities | 229 | 223 |
Total liabilities | 21,784 | 28,433 |
Commitments, contingencies and concentrations (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, par value $.01 per share; authorized 1,000 shares, none outstanding | ||
Common stock, par value $.01 per share; authorized 25,000 shares; issued 21,231 and 17,596 shares at September 30, 2021 and December 31, 2020, respectively; outstanding 18,437 and 14,802 shares at September 30, 2021 and December 31, 2020, respectively | 212 | 176 |
Additional paid-in capital | 50,603 | 43,713 |
Retained earnings | 24,123 | 5,654 |
Treasury stock, 2,794 shares at cost | (18,586) | (18,586) |
Accumulated other comprehensive loss | (4,259) | (3,891) |
Total stockholders’ equity | 52,093 | 27,066 |
Total liabilities and stockholders’ equity | $ 73,877 | $ 55,499 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 613 | $ 1,006 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 21,231 | 17,596 |
Common stock, shares outstanding | 18,437 | 14,802 |
Common shares in treasury, shares | 2,794 | 2,794 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total net revenues | $ 6,116 | $ 5,561 | $ 16,981 | $ 15,534 |
Total cost of revenues | 3,668 | 4,397 | 10,909 | 12,353 |
Gross profit | 2,448 | 1,164 | 6,072 | 3,181 |
Selling and administrative expenses: | ||||
Selling | 411 | 382 | 1,158 | 1,231 |
Administrative | 2,155 | 2,222 | 6,775 | 7,923 |
Total selling and administrative expenses | 2,566 | 2,604 | 7,933 | 9,154 |
Loss on disposal of assets | (18) | (18) | ||
Loss from operations | (118) | (1,458) | (1,861) | (5,991) |
Other income (expense): | ||||
Interest income | 21 | 54 | ||
Interest expense | (28) | (109) | (284) | (372) |
Foreign currency transaction gain (loss) | 162 | (172) | (56) | 51 |
Unrealized gain on investments | 8,376 | 8,376 | ||
Other income, net | 1,692 | 2,749 | 1,847 | 2,867 |
Total other income | 10,223 | 2,468 | 9,937 | 2,546 |
Income (loss) from continuing operations before income taxes and equity method investment loss | 10,105 | 1,010 | 8,076 | (3,445) |
Income tax expense | (2,696) | (614) | (2,788) | (996) |
Equity method investment loss | (323) | (460) | (1,468) | (580) |
Net income (loss) from continuing operations | 7,086 | (64) | 3,820 | (5,021) |
Net income from discontinued operations (Note 3) | 5,710 | 14,649 | 6,492 | |
Net income | $ 7,086 | $ 5,646 | $ 18,469 | $ 1,471 |
Basic net income (loss) per share | ||||
Continuing operations | $ 0.38 | $ 0.21 | $ (0.34) | |
Discontinued operations | 0.38 | 0.82 | 0.44 | |
Basic net income per share | 0.38 | 0.38 | 1.03 | 0.10 |
Diluted net income (loss) per share | ||||
Continuing operations | 0.38 | 0.21 | (0.34) | |
Discontinued operations | 0.38 | 0.81 | 0.44 | |
Diluted net income per share | $ 0.38 | $ 0.38 | $ 1.02 | $ 0.10 |
Weighted-average shares used in computing net income (loss) per share: | ||||
Basic | 18,437 | 14,789 | 17,870 | 14,699 |
Diluted | 18,700 | 14,789 | 18,042 | 14,699 |
Product [Member] | ||||
Total net revenues | $ 4,086 | $ 4,138 | $ 11,811 | $ 11,370 |
Total cost of revenues | 2,624 | 3,205 | 7,831 | 8,286 |
Service [Member] | ||||
Total net revenues | 2,030 | 1,423 | 5,170 | 4,164 |
Total cost of revenues | $ 1,044 | $ 1,192 | $ 3,078 | $ 4,067 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net income | $ 7,086 | $ 5,646 | $ 18,469 | $ 1,471 |
Adjustment to postretirement benefit obligation | (8) | (8) | (54) | (13) |
Unrealized loss on available-for-sale securities of equity method investments, net of tax | (75) | |||
Currency translation adjustment: | ||||
Unrealized net change arising during period | (60) | 379 | (314) | (136) |
Total other comprehensive (loss) income | (68) | 371 | (368) | (224) |
Comprehensive income | $ 7,018 | $ 6,017 | $ 18,101 | $ 1,247 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 174 | $ 42,589 | $ 6,001 | $ (18,586) | $ (4,469) | $ 25,709 |
Beginning balance, shares at Dec. 31, 2019 | 17,410 | |||||
Net income (loss) | (447) | (447) | ||||
Net other comprehensive income | (1,285) | (1,285) | ||||
Vesting of restricted stock | ||||||
Vesting of restricted stock, shares | 35 | |||||
Stock-based compensation expense | 273 | 273 | ||||
Ending balance, value at Mar. 31, 2020 | $ 174 | 42,862 | 5,554 | (18,586) | (5,754) | 24,250 |
Ending balance, shares at Mar. 31, 2020 | 17,445 | |||||
Beginning balance, value at Dec. 31, 2019 | $ 174 | 42,589 | 6,001 | (18,586) | (4,469) | 25,709 |
Beginning balance, shares at Dec. 31, 2019 | 17,410 | |||||
Net income (loss) | 1,471 | |||||
Ending balance, value at Sep. 30, 2020 | $ 176 | 43,311 | 7,472 | (18,586) | (4,693) | 27,680 |
Ending balance, shares at Sep. 30, 2020 | 17,584 | |||||
Beginning balance, value at Mar. 31, 2020 | $ 174 | 42,862 | 5,554 | (18,586) | (5,754) | 24,250 |
Beginning balance, shares at Mar. 31, 2020 | 17,445 | |||||
Net income (loss) | (3,728) | (3,728) | ||||
Net other comprehensive income | 690 | 690 | ||||
Vesting of restricted stock | $ 2 | (2) | ||||
Vesting of restricted stock, shares | 107 | |||||
Stock-based compensation expense | 212 | 212 | ||||
Ending balance, value at Jun. 30, 2020 | $ 176 | 43,072 | 1,826 | (18,586) | (5,064) | 21,424 |
Ending balance, shares at Jun. 30, 2020 | 17,552 | |||||
Net income (loss) | 5,646 | 5,646 | ||||
Net other comprehensive income | 371 | 371 | ||||
Vesting of restricted stock | ||||||
Vesting of restricted stock, shares | 32 | |||||
Stock-based compensation expense | 239 | 239 | ||||
Ending balance, value at Sep. 30, 2020 | $ 176 | 43,311 | 7,472 | (18,586) | (4,693) | 27,680 |
Ending balance, shares at Sep. 30, 2020 | 17,584 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 176 | 43,713 | 5,654 | (18,586) | (3,891) | 27,066 |
Beginning balance, shares at Dec. 31, 2020 | 17,596 | |||||
Net income (loss) | 11,811 | 11,811 | ||||
Net other comprehensive income | (402) | (402) | ||||
Vesting of restricted stock | $ 2 | (9) | (7) | |||
Vesting of restricted stock, shares | 209 | |||||
Issuance of common stock, net of issuance costs | $ 33 | 6,277 | 6,310 | |||
Issuance of common stock, net of issuance costs, shares | 3,290 | |||||
Stock-based compensation expense | 314 | 314 | ||||
Ending balance, value at Mar. 31, 2021 | $ 211 | 50,295 | 17,465 | (18,586) | (4,293) | 45,092 |
Ending balance, shares at Mar. 31, 2021 | 21,095 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 176 | 43,713 | 5,654 | (18,586) | (3,891) | 27,066 |
Beginning balance, shares at Dec. 31, 2020 | 17,596 | |||||
Net income (loss) | 18,469 | |||||
Ending balance, value at Sep. 30, 2021 | $ 212 | 50,603 | 24,123 | (18,586) | (4,259) | 52,093 |
Ending balance, shares at Sep. 30, 2021 | 21,231 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 211 | 50,295 | 17,465 | (18,586) | (4,293) | 45,092 |
Beginning balance, shares at Mar. 31, 2021 | 21,095 | |||||
Net income (loss) | (428) | (428) | ||||
Net other comprehensive income | 102 | 102 | ||||
Vesting of restricted stock | $ 1 | (73) | (72) | |||
Vesting of restricted stock, shares | 65 | |||||
Stock option exercise | 9 | 9 | ||||
Stock option exercise, shares | 4 | |||||
Stock-based compensation expense | 159 | 159 | ||||
Ending balance, value at Jun. 30, 2021 | $ 212 | 50,390 | 17,037 | (18,586) | (4,191) | 44,862 |
Ending balance, shares at Jun. 30, 2021 | 21,164 | |||||
Net income (loss) | 7,086 | 7,086 | ||||
Net other comprehensive income | (68) | (68) | ||||
Vesting of restricted stock | ||||||
Vesting of restricted stock, shares | 67 | |||||
Stock-based compensation expense | 213 | 213 | ||||
Ending balance, value at Sep. 30, 2021 | $ 212 | $ 50,603 | $ 24,123 | $ (18,586) | $ (4,259) | $ 52,093 |
Ending balance, shares at Sep. 30, 2021 | 21,231 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) from continuing operations | $ 3,820 | $ (5,021) |
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: | ||
(Recovery of) provision for doubtful accounts | (249) | 453 |
Provision for obsolete inventory | 69 | 105 |
Provision for warranty | 46 | 14 |
Depreciation and amortization | 985 | 843 |
Amortization and accretion of operating leases | 620 | 717 |
Equity method investment loss | 1,468 | 580 |
Unrealized gain on investments | (8,376) | |
Deferred income taxes | 2,124 | 72 |
Stock-based compensation expense | 686 | 724 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,287 | 2,063 |
Inventories | (793) | (248) |
Current income taxes | (6) | 338 |
Other assets | (2,028) | (11) |
Accounts payable and accrued expenses | (1,373) | 2,551 |
Deferred revenue and customer deposits | 2,002 | 646 |
Operating lease obligations | (617) | (720) |
Net cash (used in) provided by operating activities from continuing operations | (335) | 3,106 |
Net cash provided by operating activities from discontinued operations | 510 | 5,651 |
Net cash provided by operating activities | 175 | 8,757 |
Cash flows from investing activities: | ||
Capital expenditures | (650) | (511) |
Net cash used in investing activities from continuing operations | (10,627) | (4,511) |
Net cash provided by (used in) investing activities from discontinued operations | 12,761 | (218) |
Net cash provided by (used in) investing activities | 2,134 | (4,729) |
Cash flows from financing activities: | ||
Principal payments on short-term debt | (509) | (450) |
Proceeds from stock issuance, net of costs | 6,310 | |
Payments of withholding taxes related to net share settlement of equity awards | (80) | |
Proceeds from borrowing under credit facility | 5,040 | |
Repayment of borrowing under credit facility | (5,040) | |
Proceeds from Paycheck Protection Program Loan | 3,174 | |
Repayment of Paycheck Protection Program Loan | (3,174) | |
Proceeds from exercise of stock options | 9 | |
Payments on capital lease obligations | (2,106) | (658) |
Net cash provided by (used in) financing activities from continuing operations | 3,624 | (1,108) |
Net cash used in financing activities from discontinued operations | (155) | (964) |
Net cash provided by (used in) financing activities | 3,469 | (2,072) |
Effect of exchange rate changes on cash and cash equivalents | (43) | 120 |
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations | (7,381) | (2,393) |
Net increase in cash and cash equivalents and restricted cash from discontinued operations | 13,116 | 4,469 |
Net increase in cash and cash equivalents and restricted cash | 5,735 | 2,076 |
Cash and cash equivalents and restricted cash at beginning of period | 4,787 | 5,302 |
Cash and cash equivalents and restricted cash at end of period | 10,522 | 7,378 |
Components of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents | 10,372 | 7,026 |
Restricted cash | 150 | 352 |
Total cash and cash equivalents and restricted cash | 10,522 | 7,378 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Short-term borrowings to finance insurance | 140 | 142 |
GreenFirst [Member] | ||
Cash flows from investing activities: | ||
Investment | (9,977) | |
FireflySystems [Member] | ||
Cash flows from investing activities: | ||
Investment | $ (4,000) |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations Ballantyne Strong, Inc. (“Ballantyne Strong” or the “Company”), a Delaware corporation, is a holding company with business operations in the entertainment industry and holdings in public and privately held companies. The Company conducts its operations primarily through its Strong Entertainment operating segment, which manufactures and distributes premium large format projection screens and provides technical support services and other related products and services to the cinema exhibition industry, theme parks, schools, museums and other entertainment-related markets. Strong Entertainment also distributes and supports third party products, including digital projectors, servers, library management systems, menu boards and sound systems. The Company also operates its Digital Ignition technology incubator and co-working facility in Alpharetta, Georgia. In addition, the Company holds minority positions in one privately held company and two publicly traded companies. In August 2020, the Company completed the sale of its Strong Outdoor business segment, and in February 2021, the Company completed the sale of its Convergent business segment. As a result of these divestitures, the Company has presented Strong Outdoor’s and Convergent’s operating results as discontinued operations for all periods presented. See Note 3 for additional details. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and all majority-owned and controlled domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements included in this report are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America (also referred to as “GAAP”) for annual reporting purposes or those made in the Company’s Annual Report on Form 10-K. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The condensed consolidated balance sheet as of December 31, 2020 was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary to present a fair statement of the financial position and the results of operations and cash flows for the respective interim periods. Certain prior period balances have been reclassified to conform to current period presentation. The results for interim periods are not necessarily indicative of trends or results expected for a full year. Unless otherwise indicated, all references to “dollars” and “$” in this Quarterly Report on Form 10-Q are to, and amounts are presented in, U.S. dollars. Use of Management Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. Significant uncertainty remains surrounding the COVID-19 global pandemic and the extent and duration of the impacts that it may have on the Company, as well as its customers, suppliers, and employees. While cinema and theme park operators in the United States and other parts of the world are in various stages of returning to “normal”, there continue to be spikes in COVID-19 cases and new variants in various parts of the world that could impact the pace of recovery in our markets. Accordingly, there continues to be a heightened potential for future reserves against trade receivables, inventory write downs, and impairments of long-lived assets, goodwill, intangible assets and investments. In the current environment, assumptions about future financial and operational performance, supply chain pricing and availability and customer creditworthiness have greater variability than normal, which could in the future significantly affect the valuation of the Company’s assets, both financial and non-financial. As an understanding of the longer-term impacts of COVID-19 on the Company’s customers and business develops, there is heightened potential for changes in these views over the remainder of 2021, and potentially beyond. Cash and Cash Equivalents All short-term, highly liquid financial instruments are classified as cash equivalents in the consolidated balance sheets and statements of cash flows. Generally, these instruments have maturities of three months or less from date of purchase. As of September 30, 2021, $ 1.8 10.5 Restricted Cash Restricted cash represents amounts held in a collateral account for the Company’s corporate travel and purchasing credit card program. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company determines the allowance for doubtful accounts based on several factors, including overall customer credit quality, historical write-off experience and a specific analysis that projects the ultimate collectability of the account. As such, these factors may change over time causing the allowance level and bad debt expense to be adjusted accordingly. Investments The Company applies the equity method of accounting to investments when it has significant influence, but not controlling interest, in the investee. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company’s proportionate share of the net income (loss) resulting from these investments is reported under the line item captioned “equity method investment income (loss)” in our condensed consolidated statements of operations. The Company’s equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s income or loss and dividend paid, if any. The Company’s share of the investee’s income or loss is recorded on a one quarter lag for all equity method investments. The Company classifies distributions received from equity method investments using the cumulative earnings approach on the condensed consolidated statements of cash flows. Changes in fair value of investments in marketable equity securities of unconsolidated entities in which the Company is not able to exercise significant influence (Fair Value Investments) are recognized on the condensed consolidated statement of operations. Investments in nonmarketable unconsolidated entities in which the Company is not able to exercise significant influence (“Cost Method Investments”) are accounted for at the Company’s initial cost, minus any impairment (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. Dividends on cost method investments received are recorded as income. The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. Management reviewed the underlying net assets of the Company’s equity method investee as of September 30, 2021 and determined that the Company’s proportionate economic interest in the investee indicates that the investment was not impaired. There were no observable price changes in orderly transactions for identical or a similar investment of the Company’s cost method investment during the three and nine months ended September 30, 2020. The carrying value of our equity method, fair value method and cost method investments is reported as “investments” on the condensed consolidated balance sheets. Notes 3 and 7 contain additional information on our equity method, fair value method and cost method investments. Fair Value of Financial Instruments Assets and liabilities measured at fair value are categorized into a fair value hierarchy based upon the observability of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: ● Level 1 – inputs to the valuation techniques are quoted prices in active markets for identical assets or liabilities ● Level 2 – inputs to the valuation techniques are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly ● Level 3 – inputs to the valuation techniques are unobservable for the assets or liabilities The following tables present the Company’s financial assets measured at fair value based upon the level within the fair value hierarchy in which the fair value measurements are classified, as of September 30, 2021 and December 31, 2020. Fair values measured on a recurring basis at September 30, 2021 (in thousands): Schedule of Fair Value Measured Financial Assets and Liabilities Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 10,372 $ - $ - $ 10,372 Restricted cash 150 - - 150 Fair value method investment 20,192 20,192 Total $ 30,714 $ - $ - $ 30,714 Fair values measured on a recurring basis at December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 4,435 $ - $ - $ 4,435 Restricted cash 352 - - 352 Total $ 4,787 $ - $ - $ 4,787 The carrying values of all other financial assets and liabilities, including accounts receivable, accounts payable, accrued expenses and short-term debt reported in the consolidated balance sheets equal or approximate their fair values due to the short-term nature of these instruments. Based on quoted market prices, the fair value of the Company’s equity method and fair value method investments was $ 25.2 Recently Adopted Accounting Pronouncements In December 2019, the Financial Account Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. The effective date of the standard is annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in the standard are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. The Company early adopted this ASU effective January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815.” This ASU clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives. The effective date of the standard is annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The adoption did not have a material impact on the Company’s consolidated financial statements. In April 2020, the FASB issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. As a result of the COVID-19 pandemic, the Company received certain lease concessions in the form of rent deferrals during 2020. The Company chose to implement the policy election provided by the FASB to record rent concessions as if no modifications to leases contracts were made, and thus no changes to the lease obligations were recorded in respect to these concessions. As of September 30, 2021, the Company did not have any deferred rent outstanding. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations Convergent As part of a transaction that closed in February 2021, the Company divested its Convergent business segment. The Company’s Convergent business segment delivered digital signage solutions and related services to large multi-location organizations in the United States and Canada. On February 1, 2021, the Company entered into an Equity Purchase Agreement (together with the other related documents defined therein, the “Purchase Agreement”), and closed the transactions contemplated by the Purchase Agreement, with SageNet LLC (“SageNet”). Pursuant to the Purchase Agreement, a subsidiary of Ballantyne Strong sold 100 15.0 2.5 5.7 23.2 14.9 Strong Outdoor As part of transactions in May 2019 and August 2020, the Company divested its Strong Outdoor business segment. The Company’s Strong Outdoor business segment provided outdoor advertising and experiential marketing to advertising agencies and corporate accounts, primarily in New York City. On May 21, 2019, Strong Digital Media, LLC (“SDM”), an indirect subsidiary of Ballantyne Strong, entered into a Taxicab Advertising Collaboration Agreement (the “Commercial Agreement”) and a Unit Purchase Agreement (the “Unit Purchase Agreement”) with Firefly Systems, Inc. (“Firefly”), pursuant to which SDM agreed to make available to Firefly 300 digital taxi tops. Additionally, the parties agreed to coordinate the fulfilling of SDM’s agreements with the Metropolitan Taxicab Board of Trade, Inc. (“MTBOT”) and Creative Mobile Media, LLC (“CMM”), each dated February 8, 2018. Firefly agreed to fulfill the digital taxi top advertising obligations under the MTBOT agreement and CMM agreement, and SDM agreed to fulfill the non-digital taxi top advertising obligations under the MTBOT agreement and CMM agreement. Ballantyne Strong is a party to the Unit Purchase Agreement and agreed to guarantee the payment obligations of SDM under the Commercial Agreement. As consideration for entering into these agreements, Ballantyne Strong received $ 4.8 The 300 digital tops the Company has made available to Firefly are subject to a master equipment lease agreement which the Company entered into during 2017. Pursuant to the master lease agreement and the Unit Purchase Agreement, the Company will remain the primary obligor until such time as the lease expires. In addition, of the $ 4.8 1.2 1.2 The Unit Purchase Agreement contained an earnout provision pursuant to which SDM obtained additional Firefly Series A-2 Shares. The earnout period was from May 22, 2019 through June 30, 2020. SDM was eligible to earn additional Firefly Series B-1 Shares equivalent to the cash collections under certain digital top contracts that were in place at the closing of the transaction. Ballantyne Strong received the shares earned pursuant to the earnout provision on August 3, 2020. In connection with the additional Firefly Series B-1 Shares that were received pursuant to the earnout, Ballantyne Strong recorded an additional $ 0.7 On August 3, 2020, SDM entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Firefly, pursuant to which SDM agreed to sell certain assets primarily related to its Strong Outdoor operating business to Firefly and continue to make available 300 digital taxi tops to Firefly. SDM retained certain accounts receivable as well as liabilities other than executory obligations under transferred contracts to the extent such liabilities are required to be performed following closing or constitute certain deferred revenue. The transaction closed on the same day. As consideration for entering into the Asset Purchase Agreement, SDM received approximately $ 0.6 3.2 1.1 5.3 5.7 7.4 As contemplated by the Asset Purchase Agreement, Firefly Series B-1 Shares are held by SDM. The Asset Purchase Agreement includes customary representations and warranties. In connection with the Asset Purchase Agreement, SDM agreed to indemnify Firefly for excluded liabilities related to the transferred business. Ballantyne Strong entered into a Master Services Agreement (the “Master Services Agreement”) with Firefly, pursuant to which Ballantyne Strong agreed to provide certain support services to Firefly, including remote equipment monitoring and diagnostics of screens, until no later than December 31, 2022, and to provide transition advertising instruction and integration services, content management services, ad-hoc reporting and analysis, wireless service, advertising content management services, and mapping data until no later than six months from closing. As consideration for entering into the Master Services Agreement, Ballantyne Strong received $ 2.0 The major classes of assets and liabilities included as part of discontinued operations as of December 31, 2020, are as follows (in thousands): Schedule of Financial Results of Discontinued Operations December 31, 2020 Convergent Strong Outdoor Total Accounts receivable, net $ 3,065 $ - $ 3,065 Inventories, net 312 - 312 Other current assets 371 - 371 Total current assets of discontinued operations 3,748 - 3,748 Property, plant and equipment, net 3,172 - 3,172 Intangible assets, net 753 - 753 Operating lease right-of-use assets 212 - 212 Finance lease right-of-use assets 2,235 - 2,235 Total long-term assets of discontinued operations 6,372 - 6,372 Total assets of discontinued operations $ 10,120 $ - $ 10,120 Accounts payable $ 449 $ - $ 449 Accrued expenses 812 - 812 Current portion of long-term debt 1,075 - 1,075 Current portion of operating lease obligation 108 - 108 Current portion of finance lease obligation 859 - 859 Deferred revenue and customer deposits 598 - 598 Total current liabilities of discontinued operations 3,901 - 3,901 Long-term debt, net of current portion 2,340 - 2,340 Operating lease obligation, net of current portion 107 - 107 Finance lease obligation, net of current portion 1,530 - 1,530 Other long-term liabilities 89 - 89 Total long-term liabilities of discontinued operations 4,066 - 4,066 Total liabilities of discontinued operations $ 7,967 $ - $ 7,967 The major line items constituting the net income from discontinued operations are as follows (in thousands): Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Convergent Strong Outdoor Total Convergent Strong Outdoor Total Net revenues $ - $ $ - $ 4,346 $ 148 $ 4,494 Cost of revenues - - - 2,263 160 2,423 Gross profit - - - 2,083 (12 ) 2,071 Selling and administrative expenses - - - 987 515 1,502 Loss on disposal of assets - - - - (64 ) (64 ) Income (loss) from operations - - - 1,096 (591 ) 505 Gain on Firefly transaction - - - - 5,264 5,264 Other expense - - - (147 ) - (147 ) Income from discontinued operations - - - 949 4,673 5,622 Income tax benefit - - - 88 - 88 Total net income from discontinued operations $ - $ - $ - $ 1,037 $ 4,673 $ 5,710 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Convergent Strong Outdoor Total Convergent Strong Outdoor Total Net revenues $ 1,472 $ $ 1,472 $ 12,954 $ 1,587 $ 14,541 Cost of revenues 746 - 746 7,286 1,487 8,773 Gross profit 726 - 726 5,668 100 5,768 Selling and administrative expenses 1,241 - 1,241 3,075 1,621 4,696 Loss on disposal of assets - - - - (64 ) (64 ) (Loss) income from operations (515 ) - (515 ) 2,593 (1,585 ) 1,008 Gain on Convergent transaction 14,937 - 14,937 - - - Gain on Firefly transaction - - - - 5,966 5,966 Other income (expense) 194 - 194 (464 ) 8 (456 ) Income from discontinued operations 14,616 - 14,616 2,129 4,389 6,518 Income tax benefit (expense) 33 - 33 (26 ) - (26 ) Total net income from discontinued operations $ 14,649 $ - $ 14,649 $ 2,103 $ 4,389 $ 6,492 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue The Company accounts for revenue using the following steps: ● Identify the contract, or contracts, with a customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the identified performance obligations; and ● Recognize revenue when, or as, the Company satisfies the performance obligations. The Company combines contracts with the same customer into a single contract for accounting purposes when the contracts are entered into at or near the same time and the contracts are negotiated as a single commercial package, consideration in one contract depends on the other contract, or the services are considered a single performance obligation. If an arrangement involves multiple performance obligations, the items are analyzed to determine whether they are distinct, whether the items have value on a standalone basis, and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations. The standalone selling price is based on an observable price for services sold to other comparable customers, when available, or an estimated selling price using a cost-plus margin approach. The Company estimates the amount of total contract consideration it expects to receive for variable arrangements by determining the most likely amount it expects to earn from the arrangement based on the expected quantities of services it expects to provide and the contractual pricing based on those quantities. The Company only includes a portion of variable consideration in the transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is subsequently resolved. The Company considers the sensitivity of the estimate, its relationship and experience with the client and variable services being performed, the range of possible revenue amounts and the magnitude of the variable consideration to the overall arrangement. As discussed in more detail below, revenue is recognized when a customer obtains control of promised goods or services under the terms of a contract and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company typically does not have any material extended payment terms, as payment is due at or shortly after the time of the sale. Sales, value-added and other taxes collected concurrently with revenue producing activities are excluded from revenue. The Company recognizes contract assets or unbilled receivables related to revenue recognized for services completed but not yet invoiced to the clients. Unbilled receivables are recorded as accounts receivable when the Company has an unconditional right to contract consideration. A contract liability is recognized as deferred revenue when the Company invoices clients, or receives cash, in advance of performing the related services under the terms of a contract. Deferred revenue is recognized as revenue when the Company has satisfied the related performance obligation. The Company defers costs to acquire contracts, including commissions, incentives and payroll taxes, if they are incremental and recoverable costs of obtaining a customer contract with a term exceeding one year. Deferred contract costs are reported within other assets and amortized to selling expense over the contract term, which generally ranges from one to five years. The Company has elected to recognize the incremental costs of obtaining a contract with a term of less than one year as a selling expense when incurred. The Company did not have any deferred contract costs as of September 30, 2021 or December 31, 2020. The following tables disaggregate the Company’s revenue by major source and by operating segment for the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Disaggregation of Revenue Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Screen system sales $ 2,193 $ - $ 2,193 $ 1,631 $ - $ 1,631 Digital equipment sales 1,408 - 1,408 2,192 - 2,192 Extended warranty sales 44 - 44 110 - 110 Other product sales 441 - 441 205 - 205 Total product sales 4,086 - 4,086 4,138 - 4,138 Field maintenance and monitoring services 1,436 - 1,436 875 - 875 Installation services 244 - 244 186 - 186 Other service revenues 56 294 350 61 301 362 Total service revenues 1,736 294 2,030 1,122 301 1,423 Total $ 5,822 $ 294 $ 6,116 $ 5,260 $ 301 $ 5,561 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Screen system sales $ 6,680 $ - $ 6,680 $ 5,566 $ - $ 5,566 Digital equipment sales 3,890 - 3,890 4,529 - 4,529 Extended warranty sales 105 - 105 418 - 418 Other product sales 1,136 - 1,136 857 - 857 Total product sales 11,811 - 11,811 11,370 - 11,370 Field maintenance and monitoring services 3,545 - 3,545 3,030 - 3,030 Installation services 674 - 674 518 - 518 Other service revenues 91 860 951 123 493 616 Total service revenues 4,310 860 5,170 3,671 493 4,164 Total $ 16,121 $ 860 $ 16,981 $ 15,041 $ 493 $ 15,534 Screen system sales The Company typically recognizes revenue on the sale of its screen systems when control of the screen is transferred to the customer, usually at time of shipment. However, revenue is recognized upon delivery for certain international shipments with longer shipping transit times because control transfers upon customer delivery. The cost of freight and shipping to the customer is recognized in cost of sales at the time of transfer of control to the customer. For contracts that are long-term in nature, the Company believes that the use of the percentage-of-completion method is appropriate as the Company has the ability to make reasonably dependable estimates of the extent of progress towards completion, contract revenues, and contract costs. Under the percentage-of-completion method, revenue is recorded based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract. Digital equipment sales The Company recognizes revenue on sales of digital equipment when the control of the equipment is transferred, which typically occurs at the time of shipment from the Company’s warehouse or drop-shipment from a third party. The cost of freight and shipping to the customer is recognized in cost of sales at the time of transfer of control to the customer. Field maintenance and monitoring services The Company sells service contracts that provide maintenance and monitoring services to its Strong Entertainment customers. These contracts are generally 12 months in length. Revenue related to service contracts is recognized ratably over the term of the agreement. In addition to selling service contracts, the Company also performs discrete time and materials-based maintenance and repair work for customers in the Strong Entertainment segment. Revenue related to time and materials-based maintenance and repair work is recognized at the point in time when the performance obligation has been fully satisfied. Installation services The Company performs installation services for its Strong Entertainment customers and recognizes revenue upon completion of the installations. Extended warranty sales The Company sells extended warranties to its Strong Entertainment customers. When the Company is the primary obligor, revenue is recognized on a gross basis ratably over the term of the extended warranty. In third party extended warranty sales, the Company is not the primary obligor, and revenue is recognized on a net basis at the time of the sale. Timing of Revenue Recognition The following tables disaggregate the Company’s revenue by the timing of transfer of goods or services to the customer for the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Disaggregation of Revenue Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Point in time $ 4,795 $ 22 $ 4,817 $ 4,532 $ - $ 4,532 Over time 1,027 272 1,299 728 301 1,029 Total $ 5,822 $ 294 $ 6,116 $ 5,260 $ 301 $ 5,561 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Point in time $ 13,648 $ 32 $ 13,680 $ 12,326 $ 6 $ 12,332 Over time 2,473 828 3,301 2,715 487 3,202 Total $ 16,121 $ 860 $ 16,981 $ 15,041 $ 493 $ 15,534 At September 30, 2021, the unearned revenue amount associated with long-term projects that the Company uses the percentage-of-completion method to recognize revenue, maintenance and monitoring services and extended warranty sales in which the Company is the primary obligor was $ 1.8 million. The Company expects to recognize $ 1.0 million of unearned revenue amounts during the remainder of 2021 and $ 0.8 million during 2022. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 5. Net Income (Loss) Per Common Share Basic net income (loss) per share has been computed on the basis of the weighted average number of shares of common stock outstanding. In periods when the Company reported net income from continuing operations, diluted net income per share has been computed on the basis of the weighted average number of shares of common stock outstanding after giving effect to potential common shares from dilutive stock options and certain non-vested restricted stock units. In periods when the Company reported a net loss from continuing operations, there were no differences between average shares used to compute basic and diluted loss per share as inclusion of stock options and restricted stock units would have been anti-dilutive in those periods. The following table summarizes the weighted average shares used to compute basic and diluted net income (loss) per share (in thousands): Schedule of Reconciliation Weighted Average Between Basic and Diluted Earnings Per Share 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Weighted average shares outstanding: Basic weighted average shares outstanding 18,437 14,789 17,870 14,699 Dilutive effect of stock options and certain non-vested restricted stock units 263 - 172 - Diluted weighted average shares outstanding 18,700 14,789 18,042 14,699 A total of 117,357 72,260 329,500 884,500 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consisted of the following (in thousands): Schedule of Inventories September 30, 2021 December 31, 2020 Raw materials and components $ 1,477 $ 1,584 Work in process 532 141 Finished goods 977 539 Inventories net $ 2,986 $ 2,264 The inventory balances were net of reserves of approximately $ 0.4 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | 7. Investments The following summarizes our investments (dollars in thousands): Summary of Investments September 30, 2021 December 31, 2020 Carrying Amount Economic Interest Carrying Amount Economic Interest Equity Method Investments FG Financial Group, Inc. $ 4,052 20.7 % $ 4,370 20.9 % GreenFirst Forest Products Inc. - 2,697 29.6 % Total Equity Method Investments 4,052 7,067 Fair Value Method Investment GreenFirst Forest Products Inc. 20,192 8.6 % - Cost Method Investment Firefly Systems, Inc. 13,097 13,100 Total Investments $ 37,341 $ 20,167 The following summarizes the (loss) income of equity method investees reflected in the condensed consolidated statements of operations (in thousands): Summary of Income (Loss) of Equity Method Investees Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Entity FG Financial Group, Inc. $ 91 $ (440 ) $ (318 ) $ (443 ) GreenFirst Forest Products Inc. (414 ) (20 ) (1,150 ) (137 ) Total $ (323 ) $ (460 ) $ (1,468 ) $ (580 ) Equity Method Investment FG Financial Group, Inc. FG Financial Group, Inc. (“FGF”) (formerly 1347 Property Insurance Holdings, Inc.) is a reinsurance and investment management holding company focused on opportunistic collateralized and loss capped reinsurance, while allocating capital to special purpose acquisition companies (each, a “SPAC”) and SPAC sponsor-related businesses. The Company’s Chairman, D. Kyle Cerminara, is the chairman of the board of directors of FGF. As of September 30, 2021, Mr. Cerminara was affiliated with entities that, when combined with the Company’s ownership in FGF, own greater than 50% no 5.1 In October 2021, FGF announced the closing of a public offering of common stock of 652,174 4.00 0.15 757,720 4.00 Fair Value Method Investment GreenFirst Forest Products, Inc. GreenFirst Forest Products Inc. (“GreenFirst”) (formerly Itasca Capital Ltd.) is a publicly-traded Canadian company focused on environmentally sustainable forest management and lumber production. On April 12, 2021, GreenFirst announced that it had entered into an asset purchase agreement (the “GreenFirst Purchase Agreement”) pursuant to which it would acquire a portfolio of forest and paper product assets (the “Assets”) at a purchase price of approximately US$ 214 million. GreenFirst filed a prospectus to conduct a backstopped rights offering (the “Rights Offering”) to finance a portion of the purchase price for the Assets. Pursuant to the prospectus, GreenFirst issued three rights (each a “Right”) for each of its outstanding shares of common stock (each a “Common Share”) with each Right being exercisable, at a subscription price of CDN$ 1.50 , to acquire a subscription receipt (each a “Subscription Receipt”). On July 12, 2021, the Company received 21.1 million Rights. During July 2021, the Company sold 12.9 million Rights, which generated proceeds of approximately CDN$ 2.1 million, or approximately $ 1.7 million USD. In connection with the sale of the 12.9 million Rights, the Company recorded a $ 1.7 million realized gain on its investment in GreenFirst within other income, net on the condensed consolidated statement of operations during the third quarter of 2021. On July 30, 2021, the Company utilized the $ 1.7 million USD generated from the sale of Rights and approximately $ 8.3 million USD of cash on hand to exercise the remaining 8.3 million Rights and acquired Subscription Receipts for a total cost of CDN$ 12.4 million. On August 30, 2021, GreenFirst announced that it had completed the acquisition of the Assets. Upon the closing of the transactions contemplated by the Agreement, and without any further consideration, each Subscription Receipt was automatically exchanged into a Common Share. Following the exchange of the Subscription Receipts for Common Shares and the issuance of approximately 28.7 million Common Shares to the seller of the Assets, GreenFirst had a total of approximately 177.6 million Common Shares issued and outstanding. After the Subscription Receipts were exchanged into Common Shares, the Company holds approximately 15.3 million common shares of GreenFirst. The Company’s Chairman, Mr. Cerminara, served as a member of the board of directors of GreenFirst from June 2016 to October 2021, and was also appointed Chairman of GreenFirst from June 2018 to June 2021. Prior to the closing of the acquisition of the Assets, the Company held a 20.7% ownership position in GreenFirst. The Company’s 20.7% ownership of GreenFirst, combined with Mr. Cerminara’s board seat, provided the Company with significant influence over GreenFirst, but not a controlling interest. Accordingly, the Company applied the equity method of accounting to its investment in GreenFirst. Following GreenFirst’s acquisition of the Assets and issuance of additional Common Shares, as described above, the Company’s ownership percentage decreased to 8.6% as of September 30, 2021. 8.4 20.2 The Company did no 5.5 The summarized financial information presented below reflects the financial information of the Company’s equity method investees for the three and nine months ended June 30, 2021 and 2020, consistent with the Company’s recognition of the results of its equity method investments on a one-quarter lag (in thousands): Summarized Financial Information For the nine months ended June 30, 2021 2020 Revenue (1) $ 5,049 $ (4,883 ) Operating loss $ (5,983 ) $ (7,845 ) Net loss $ (5,954 ) $ (3,020 ) (1) FGF records realized and unrealized gains and losses on investments in net investment income (loss), which is included in the revenue line above. The summarized financial information presented above combines the results of FGF and GreenFirst. As noted above, the Company no longer applies the equity method of accounting to its investment in GreenFirst. Accordingly, the financial results of GreenFirst will be excluded from future presentation of summarized financial information of equity method investees. Cost Method Investment The Company received preferred shares of Firefly in connection with the transactions with Firefly in May 2019 and August 2020. See Note 3 for additional details. In addition, on August 3, 2020, the Company’s Canadian subsidiary, Strong/MDI Screen Systems, Inc. (“Strong/MDI”) entered into a Stock Purchase Agreement with Firefly, pursuant to which Strong/MDI agreed to purchase $ 4.0 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 8. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Property, Plant and Equipment, Net September 30, 2021 December 31, 2020 Land $ 50 $ 51 Buildings and improvements 6,913 6,824 Machinery and other equipment 5,840 4,635 Office furniture and fixtures 871 946 Construction in progress 147 154 Total properties, cost 13,821 12,610 Less: accumulated depreciation (7,712 ) (7,086 ) Property, plant and equipment, net $ 6,109 $ 5,524 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill The following represents a summary of changes in the Company’s carrying amount of goodwill for the nine months ended September 30, 2021 (in thousands): Summary of Changes in Carrying Amount of Goodwill Balance as of December 31, 2020 $ 938 Foreign currency translation adjustment (1 ) Balance as of September 30, 2021 $ 937 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The Company’s short-term debt consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Short-term Debt September 30, 2021 December 31, 2020 Short-term debt: Strong/MDI 20 $ 2,727 $ 2,906 Strong/MDI 5 334 393 Insurance note payable 140 - Total short-term debt $ 3,201 $ 3,299 Strong/MDI Installment Loans and Revolving Credit Facility On September 5, 2017, the Company’s Canadian subsidiary, Strong/MDI, entered into a demand credit agreement, as amended and restated May 15, 2018, with a bank consisting of a revolving line of credit for up to CDN$ 3.5 20 6.0 5 0.5 2.0 20 5.1 5 0.5 0.5% 4.0 3.5 2.7 20 2.95% 0.4 0.3 5 2.95% |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 11. Leases The Company and its subsidiaries lease plant and office facilities and equipment under operating and finance leases expiring through 2028. Right-of-use assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. Certain of the leases contain extension options; however, the Company has not included such options as part of its right-of-use assets and lease liabilities because it does not expect to extend the leases. The Company measures and records a right-of-use asset and lease liability based on the discount rate implicit in the lease, if known. In cases where the discount rate implicit in the lease is not known, the Company measures the right-of-use assets and lease liabilities using a discount rate equal to the Company’s estimated incremental borrowing rate for loans with similar collateral and duration. The Company elected to not apply the recognition requirements of Accounting Standards Codification Topic 842, “Leases,” to leases of all classes of underlying assets that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Instead, lease payments for such short-term leases are recognized in operations on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The Company elected, as a lessee, for all classes of underlying assets, to not separate nonlease components from lease components and instead to account for each separate lease component and the nonlease components associated with that lease component as a single lease component. The following tables present the Company’s lease costs and other lease information (dollars in thousands): Schedule of Lease Costs and Other Lease Information September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Lease cost Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Finance lease cost: Amortization of right-of-use assets $ 1 $ 227 $ 3 $ 658 Interest on lease liabilities - 81 292 265 Operating lease cost 218 304 666 918 Short-term lease cost 13 12 42 40 Sublease income (93 ) (92 ) (246 ) (278 ) Net lease cost $ 139 $ 532 $ 757 $ 1,603 September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Other information Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ - $ 81 $ 292 $ 265 Operating cash flows from operating leases $ 203 $ 239 $ 617 $ 720 Financing cash flows from finance leases $ 1 $ 227 $ 2,106 $ 658 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ - $ - $ - Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - $ - $ - As of Weighted-average remaining lease term - finance leases (years) 0.2 Weighted-average remaining lease term - operating leases (years) 6.6 Weighted-average discount rate - finance leases 13.2 % Weighted-average discount rate - operating leases 5.0 % The following table presents a maturity analysis of the Company’s operating lease liabilities as of September 30, 2021 (in thousands): Schedule of Future Minimum Lease Payments Operating Leases Remainder of 2021 $ 202 2022 706 2023 656 2024 669 2025 682 Thereafter 1,765 Total lease payments 4,680 Less: Amount representing interest (710 ) Present value of lease payments 3,970 Less: Current maturities (562 ) Lease obligations, net of current portion $ 3,408 On March 2, 2021, the Company received a notice of default and demand (the “Default Notice”) from Huntington Technology Finance, Inc. (“Huntington”). The Default Notice alleged the occurrence of an event of default under the terms of the Master Equipment Lease Agreement dated May 19, 2017 (the “Lease Agreement”), pursuant to which the Company’s subsidiaries lease certain digital taxi top advertising signs. The Company made all required payments to Huntington during the term of the Lease Agreement. The Default Notice did not allege that the Company has failed to make any payment or incurred any economic or payment default. Rather, the Default Notice alleged that the Company violated certain technical covenants in the Lease Agreement. Huntington demanded accelerated payment of the outstanding principal balance plus lessor profit and a fair market value buyout of the assets under lease within ten days of the receipt of the Default Notice. The Company disputed Huntington’s assertion that an event of default had occurred under the Lease Agreement and believes that many of the assertions made in the Default Notice are false, and that the claims made in the Default Notice are therefore baseless. Accordingly, on March 3, 2021, the Company provided a written response to Huntington detailing the Company’s position that Huntington’s allegations of an event of default under the Lease Agreement are unfounded, and asserting the Company’s good faith belief that the Company has abided by the terms, conditions, and covenants of the Lease Agreement. In order to resolve the situation and avoid the potential costs of a lengthy legal dispute, on April 2, 2021, the Company entered into an Agreement of Forbearance and Conditional Sale (the “Settlement Agreement”) with Huntington and CCA Financial, LLC. The amounts payable by the Company pursuant to the Settlement Agreement include only payments contractually due under the Lease Agreement and do not include any additional penalties, interest, or liquidation damages. The Company agreed to accelerate payment of the $ 2.1 million remaining payments contractually due under the Lease Agreement and to exercise its option to purchase the leased assets for $ 1.0 million. The $2.1 million plus sales tax owed under the Lease Agreement was paid upon execution of the Settlement Agreement and the lease equipment buyout will be paid in twelve monthly installments from June 1, 2021 to May 1, 2022. Upon payment in full, the Lease Agreement and all obligations thereunder will terminate. |
Income Taxes and Other Taxes
Income Taxes and Other Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Other Taxes | 12. Income Taxes and Other Taxes In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The Company considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. A cumulative loss in a particular tax jurisdiction in recent years is a significant piece of evidence with respect to the realizability that is difficult to overcome. Based on the available objective evidence, including recent updates to the taxing jurisdictions generating income, the Company concluded that a valuation allowance should be recorded against all of the Company’s U.S. tax jurisdiction deferred tax assets as of September 30, 2021 and December 31, 2020. During the first quarter of 2021, the Company sold its Convergent business segment. As a result, this business segment is categorized as discontinued operations for the periods presented. The Company has sufficient net operating losses to offset Federal taxable income from these discontinued operations as well as the tax effects related to the gain on sale of discontinued operations. State income tax expense related to the operations and sale of this entity has been allocated to discontinued operations. The Tax Cuts and Jobs Act of 2017 provides for a territorial tax system, which began in 2018. It includes the global intangible low-taxed income (“GILTI”) provision. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. As a result of the GILTI provisions, the Company’s inclusion of taxable income was incorporated into the overall net operating loss and valuation allowance for the three and nine months ended September 30, 2021 and comparative September 30, 2020, as well as December 31, 2020. Changes in tax laws may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The CARES Act made significant changes to Federal tax laws, including certain changes that are retroactive to the 2019 tax year. The effects of these changes relate to deferred tax assets and net operating losses; all of which are offset by valuation allowance. There were no material income tax consequences of this enacted legislation on the reporting period of these condensed consolidated financial statements. The Company is subject to possible examinations not yet initiated for Federal purposes for fiscal years 2017 through 2019. In most cases, the Company is subject to possible examinations by state or local jurisdictions based on the particular jurisdiction’s statute of limitations. The Consolidated Appropriations Act extended and expanded the availability of the CARES Act employee retention credit through June 30, 2021. Subsequently, the American Rescue Plan Act of 2021 (“ARP Act”), enacted on March 11, 2021, extended and expanded the availability of the employee retention credit through December 31, 2021, however, certain provisions apply only after December 31, 2020. This new legislation expanded the group of qualifying business to include businesses with fewer than 500 employees and those who previously qualified for the Paycheck Protection Program (the “PPP Loan”). The employee retention credit is calculated to be equal to 70% 10,000 70% 7,000 1.5 1.5 0.8 0.1 0.4 0.2 0.6 0.6 0.4 0.2 |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | 13. Stock Compensation The Company recognizes compensation expense for all stock-based payment awards based on estimated grant date fair values. Stock-based compensation expense included in selling and administrative expenses approximated $ 0.2 0.7 The Company’s 2017 Omnibus Equity Compensation Plan (“2017 Plan”) was approved by the Company’s stockholders and provides the Compensation Committee of the Board of Directors with the discretion to grant stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other stock- based awards and cash-based awards. Vesting terms vary with each grant and may be subject to vesting upon a “change in control” of the Company. On December 17, 2019, the Company’s stockholders approved the amendment and restatement of the 2017 Plan to (i) increase the number of shares of the Company’s common stock authorized for issuance under the 2017 Plan by 1,975,000 October 27, 2029 2.4 Stock Options The following table summarizes stock option activity for the nine months ended September 30, 2021: Summary of Stock Options Activities Number of Weighted Weighted Aggregate Outstanding at December 31, 2020 1,009,500 $ 3.99 7.3 $ 51 Granted - Exercised (4,000 ) 2.25 10 Forfeited (156,000 ) 4.10 Expired (190,000 ) 5.03 Outstanding at September 30, 2021 659,500 $ 3.68 6.9 $ 243 Exercisable at September 30, 2021 329,500 $ 4.49 5.9 $ 24 The aggregate intrinsic value in the table above represents the total that would have been received by the option holders if all in-the-money options had been exercised and sold on the date indicated. As of September 30, 2021, 330,000 0.3 2.5 Restricted Stock Units The Company estimates the fair value of restricted stock awards based upon the market price of the underlying common stock on the date of grant. The following table summarizes restricted stock unit activity for the nine months ended September 30, 2021: Summary of Restricted Stock Activity Number of Restricted Weighted Average Grant Non-vested at December 31, 2020 604,687 $ 2.38 Granted 122,609 3.00 Shares vested (358,218 ) 2.62 Shares forfeited - Non-vested at September 30, 2021 369,078 $ 2.36 As of September 30, 2021, the total unrecognized compensation cost related to non-vested restricted stock unit awards was approximately $ 0.6 1.2 |
Commitments, Contingencies and
Commitments, Contingencies and Concentrations | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Concentrations | 14. Commitments, Contingencies and Concentrations Litigation The Company is involved, from time to time, in certain legal disputes in the ordinary course of business operations. No such disputes, individually or in the aggregate, are expected to have a material effect on the Company’s business or financial condition. The Company and its subsidiaries are named as defendants in personal injury lawsuits based on alleged exposure to asbestos-containing materials. A majority of the cases involve product liability claims based principally on allegations of past distribution of commercial lighting products containing wiring that may have contained asbestos. Each case names dozens of corporate defendants in addition to the Company. In the Company’s experience, a large percentage of these types of claims have never been substantiated and have been dismissed by the courts. The Company has not suffered any adverse verdict in a trial court proceeding related to asbestos claims and intends to continue to defend these lawsuits. When appropriate, the Company may settle certain claims. The Company does not expect the resolution of these cases to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Concentrations The Company’s top ten customers accounted for approximately 39% 46% 55% 10% Financial instruments that potentially expose the Company to a concentration of credit risk principally consist of accounts receivable and the SageNet Promissory Note. The Company sells product to a large number of customers in many different geographic regions. To minimize credit risk, the Company performs ongoing credit evaluations of its customers’ financial condition. Insurance Recoveries During February 2019, one portion of Strong/MDI’s Quebec, Canada facility sustained damage as a result of inclement weather. The Company has property and casualty and business interruption insurance and has made claims for reimbursement of incurred costs of the affected portion of the facility and compensation for the Company’s business interruption losses. During the third quarter of 2020, the Company reached a settlement with its insurance company which resolved all contingencies related to its business interruption claim, which resulted in an insurance recovery gain of approximately $ 2.7 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 15. Business Segment Information The Company conducts its operations primarily through its Strong Entertainment business segment which manufactures and distributes premium large format projection screens and provides technical support services and other related products and services to the cinema exhibition industry, theme parks, schools, museums and other entertainment-related markets. Strong Entertainment also distributes and supports third party products, including digital projectors, servers, library management systems, menu boards and sound systems. The Company’s operating segments were determined based on the manner in which management organizes segments for making operating decisions and assessing performance. Summary by Business Segments Schedule of Segment Reporting Information by Segment 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenues Strong Entertainment $ 5,822 $ 5,260 $ 16,121 $ 15,041 Other 294 301 860 493 Total net revenues 6,116 5,561 16,981 15,534 Gross profit Strong Entertainment 2,154 889 5,428 2,769 Other 294 275 644 412 Total gross profit 2,448 1,164 6,072 3,181 Operating income (loss) Strong Entertainment 1,028 (79 ) 2,150 (894 ) Other (142 ) (15 ) (577 ) (457 ) Total segment operating income (loss) 886 (94 ) 1,573 (1,351 ) Unallocated administrative expenses (1,004 ) (1,364 ) (3,434 ) (4,640 ) Loss from operations (118 ) (1,458 ) (1,861 ) (5,991 ) Other income, net 10,223 2,468 9,937 2,546 Income (loss) from continuing operations before income taxes and equity method investment loss $ 10,105 $ 1,010 $ 8,076 $ (3,445 ) Reconciliation of Assets from Segment to Consolidated (In thousands) September 30, 2021 December 31, 2020 Identifiable assets Strong Entertainment $ 37,231 $ 21,408 Corporate assets 36,646 23,971 Discontinued operations - 10,120 Total $ 73,877 $ 55,499 Summary by Geographical Area Schedule of Segment Reporting Information by Geographic Area (In thousands) 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2021 2020 2021 2020 Net revenues United States $ 4,735 $ 4,529 $ 13,831 $ 12,598 Canada 524 336 1,101 854 China 197 507 355 775 Mexico 1 - 15 78 Latin America 45 - 146 328 Europe 244 38 442 262 Asia (excluding China) 290 24 636 337 Other 80 127 455 302 Total $ 6,116 $ 5,561 $ 16,981 $ 15,534 Summary of Identifiable Assets by Geographical Area (In thousands) September 30, 2021 December 31, 2020 Identifiable assets United States $ 26,911 $ 34,924 Canada 46,966 20,575 Total $ 73,877 $ 55,499 Net revenues by business segment are to unaffiliated customers. Net revenues by geographical area are based on destination of sales. Identifiable assets by geographical area are based on location of facilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and all majority-owned and controlled domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements included in this report are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America (also referred to as “GAAP”) for annual reporting purposes or those made in the Company’s Annual Report on Form 10-K. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The condensed consolidated balance sheet as of December 31, 2020 was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary to present a fair statement of the financial position and the results of operations and cash flows for the respective interim periods. Certain prior period balances have been reclassified to conform to current period presentation. The results for interim periods are not necessarily indicative of trends or results expected for a full year. Unless otherwise indicated, all references to “dollars” and “$” in this Quarterly Report on Form 10-Q are to, and amounts are presented in, U.S. dollars. |
Use of Management Estimates | Use of Management Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. Significant uncertainty remains surrounding the COVID-19 global pandemic and the extent and duration of the impacts that it may have on the Company, as well as its customers, suppliers, and employees. While cinema and theme park operators in the United States and other parts of the world are in various stages of returning to “normal”, there continue to be spikes in COVID-19 cases and new variants in various parts of the world that could impact the pace of recovery in our markets. Accordingly, there continues to be a heightened potential for future reserves against trade receivables, inventory write downs, and impairments of long-lived assets, goodwill, intangible assets and investments. In the current environment, assumptions about future financial and operational performance, supply chain pricing and availability and customer creditworthiness have greater variability than normal, which could in the future significantly affect the valuation of the Company’s assets, both financial and non-financial. As an understanding of the longer-term impacts of COVID-19 on the Company’s customers and business develops, there is heightened potential for changes in these views over the remainder of 2021, and potentially beyond. |
Cash and Cash Equivalents | Cash and Cash Equivalents All short-term, highly liquid financial instruments are classified as cash equivalents in the consolidated balance sheets and statements of cash flows. Generally, these instruments have maturities of three months or less from date of purchase. As of September 30, 2021, $ 1.8 10.5 |
Restricted Cash | Restricted Cash Restricted cash represents amounts held in a collateral account for the Company’s corporate travel and purchasing credit card program. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company determines the allowance for doubtful accounts based on several factors, including overall customer credit quality, historical write-off experience and a specific analysis that projects the ultimate collectability of the account. As such, these factors may change over time causing the allowance level and bad debt expense to be adjusted accordingly. |
Investments | Investments The Company applies the equity method of accounting to investments when it has significant influence, but not controlling interest, in the investee. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company’s proportionate share of the net income (loss) resulting from these investments is reported under the line item captioned “equity method investment income (loss)” in our condensed consolidated statements of operations. The Company’s equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s income or loss and dividend paid, if any. The Company’s share of the investee’s income or loss is recorded on a one quarter lag for all equity method investments. The Company classifies distributions received from equity method investments using the cumulative earnings approach on the condensed consolidated statements of cash flows. Changes in fair value of investments in marketable equity securities of unconsolidated entities in which the Company is not able to exercise significant influence (Fair Value Investments) are recognized on the condensed consolidated statement of operations. Investments in nonmarketable unconsolidated entities in which the Company is not able to exercise significant influence (“Cost Method Investments”) are accounted for at the Company’s initial cost, minus any impairment (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. Dividends on cost method investments received are recorded as income. The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. Management reviewed the underlying net assets of the Company’s equity method investee as of September 30, 2021 and determined that the Company’s proportionate economic interest in the investee indicates that the investment was not impaired. There were no observable price changes in orderly transactions for identical or a similar investment of the Company’s cost method investment during the three and nine months ended September 30, 2020. The carrying value of our equity method, fair value method and cost method investments is reported as “investments” on the condensed consolidated balance sheets. Notes 3 and 7 contain additional information on our equity method, fair value method and cost method investments. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities measured at fair value are categorized into a fair value hierarchy based upon the observability of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: ● Level 1 – inputs to the valuation techniques are quoted prices in active markets for identical assets or liabilities ● Level 2 – inputs to the valuation techniques are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly ● Level 3 – inputs to the valuation techniques are unobservable for the assets or liabilities The following tables present the Company’s financial assets measured at fair value based upon the level within the fair value hierarchy in which the fair value measurements are classified, as of September 30, 2021 and December 31, 2020. Fair values measured on a recurring basis at September 30, 2021 (in thousands): Schedule of Fair Value Measured Financial Assets and Liabilities Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 10,372 $ - $ - $ 10,372 Restricted cash 150 - - 150 Fair value method investment 20,192 20,192 Total $ 30,714 $ - $ - $ 30,714 Fair values measured on a recurring basis at December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 4,435 $ - $ - $ 4,435 Restricted cash 352 - - 352 Total $ 4,787 $ - $ - $ 4,787 The carrying values of all other financial assets and liabilities, including accounts receivable, accounts payable, accrued expenses and short-term debt reported in the consolidated balance sheets equal or approximate their fair values due to the short-term nature of these instruments. Based on quoted market prices, the fair value of the Company’s equity method and fair value method investments was $ 25.2 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Account Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. The effective date of the standard is annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in the standard are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. The Company early adopted this ASU effective January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815.” This ASU clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives. The effective date of the standard is annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The adoption did not have a material impact on the Company’s consolidated financial statements. In April 2020, the FASB issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. As a result of the COVID-19 pandemic, the Company received certain lease concessions in the form of rent deferrals during 2020. The Company chose to implement the policy election provided by the FASB to record rent concessions as if no modifications to leases contracts were made, and thus no changes to the lease obligations were recorded in respect to these concessions. As of September 30, 2021, the Company did not have any deferred rent outstanding. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value Measured Financial Assets and Liabilities | Fair values measured on a recurring basis at September 30, 2021 (in thousands): Schedule of Fair Value Measured Financial Assets and Liabilities Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 10,372 $ - $ - $ 10,372 Restricted cash 150 - - 150 Fair value method investment 20,192 20,192 Total $ 30,714 $ - $ - $ 30,714 Fair values measured on a recurring basis at December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 4,435 $ - $ - $ 4,435 Restricted cash 352 - - 352 Total $ 4,787 $ - $ - $ 4,787 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial Results of Discontinued Operations | The major classes of assets and liabilities included as part of discontinued operations as of December 31, 2020, are as follows (in thousands): Schedule of Financial Results of Discontinued Operations December 31, 2020 Convergent Strong Outdoor Total Accounts receivable, net $ 3,065 $ - $ 3,065 Inventories, net 312 - 312 Other current assets 371 - 371 Total current assets of discontinued operations 3,748 - 3,748 Property, plant and equipment, net 3,172 - 3,172 Intangible assets, net 753 - 753 Operating lease right-of-use assets 212 - 212 Finance lease right-of-use assets 2,235 - 2,235 Total long-term assets of discontinued operations 6,372 - 6,372 Total assets of discontinued operations $ 10,120 $ - $ 10,120 Accounts payable $ 449 $ - $ 449 Accrued expenses 812 - 812 Current portion of long-term debt 1,075 - 1,075 Current portion of operating lease obligation 108 - 108 Current portion of finance lease obligation 859 - 859 Deferred revenue and customer deposits 598 - 598 Total current liabilities of discontinued operations 3,901 - 3,901 Long-term debt, net of current portion 2,340 - 2,340 Operating lease obligation, net of current portion 107 - 107 Finance lease obligation, net of current portion 1,530 - 1,530 Other long-term liabilities 89 - 89 Total long-term liabilities of discontinued operations 4,066 - 4,066 Total liabilities of discontinued operations $ 7,967 $ - $ 7,967 The major line items constituting the net income from discontinued operations are as follows (in thousands): Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Convergent Strong Outdoor Total Convergent Strong Outdoor Total Net revenues $ - $ $ - $ 4,346 $ 148 $ 4,494 Cost of revenues - - - 2,263 160 2,423 Gross profit - - - 2,083 (12 ) 2,071 Selling and administrative expenses - - - 987 515 1,502 Loss on disposal of assets - - - - (64 ) (64 ) Income (loss) from operations - - - 1,096 (591 ) 505 Gain on Firefly transaction - - - - 5,264 5,264 Other expense - - - (147 ) - (147 ) Income from discontinued operations - - - 949 4,673 5,622 Income tax benefit - - - 88 - 88 Total net income from discontinued operations $ - $ - $ - $ 1,037 $ 4,673 $ 5,710 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Convergent Strong Outdoor Total Convergent Strong Outdoor Total Net revenues $ 1,472 $ $ 1,472 $ 12,954 $ 1,587 $ 14,541 Cost of revenues 746 - 746 7,286 1,487 8,773 Gross profit 726 - 726 5,668 100 5,768 Selling and administrative expenses 1,241 - 1,241 3,075 1,621 4,696 Loss on disposal of assets - - - - (64 ) (64 ) (Loss) income from operations (515 ) - (515 ) 2,593 (1,585 ) 1,008 Gain on Convergent transaction 14,937 - 14,937 - - - Gain on Firefly transaction - - - - 5,966 5,966 Other income (expense) 194 - 194 (464 ) 8 (456 ) Income from discontinued operations 14,616 - 14,616 2,129 4,389 6,518 Income tax benefit (expense) 33 - 33 (26 ) - (26 ) Total net income from discontinued operations $ 14,649 $ - $ 14,649 $ 2,103 $ 4,389 $ 6,492 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Major Source [Member] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major source and by operating segment for the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Disaggregation of Revenue Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Screen system sales $ 2,193 $ - $ 2,193 $ 1,631 $ - $ 1,631 Digital equipment sales 1,408 - 1,408 2,192 - 2,192 Extended warranty sales 44 - 44 110 - 110 Other product sales 441 - 441 205 - 205 Total product sales 4,086 - 4,086 4,138 - 4,138 Field maintenance and monitoring services 1,436 - 1,436 875 - 875 Installation services 244 - 244 186 - 186 Other service revenues 56 294 350 61 301 362 Total service revenues 1,736 294 2,030 1,122 301 1,423 Total $ 5,822 $ 294 $ 6,116 $ 5,260 $ 301 $ 5,561 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Screen system sales $ 6,680 $ - $ 6,680 $ 5,566 $ - $ 5,566 Digital equipment sales 3,890 - 3,890 4,529 - 4,529 Extended warranty sales 105 - 105 418 - 418 Other product sales 1,136 - 1,136 857 - 857 Total product sales 11,811 - 11,811 11,370 - 11,370 Field maintenance and monitoring services 3,545 - 3,545 3,030 - 3,030 Installation services 674 - 674 518 - 518 Other service revenues 91 860 951 123 493 616 Total service revenues 4,310 860 5,170 3,671 493 4,164 Total $ 16,121 $ 860 $ 16,981 $ 15,041 $ 493 $ 15,534 |
Timing Of Transfer [Member] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by the timing of transfer of goods or services to the customer for the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Disaggregation of Revenue Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Point in time $ 4,795 $ 22 $ 4,817 $ 4,532 $ - $ 4,532 Over time 1,027 272 1,299 728 301 1,029 Total $ 5,822 $ 294 $ 6,116 $ 5,260 $ 301 $ 5,561 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Strong Entertainment Other Total Strong Entertainment Other Total Point in time $ 13,648 $ 32 $ 13,680 $ 12,326 $ 6 $ 12,332 Over time 2,473 828 3,301 2,715 487 3,202 Total $ 16,121 $ 860 $ 16,981 $ 15,041 $ 493 $ 15,534 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Weighted Average Between Basic and Diluted Earnings Per Share | Schedule of Reconciliation Weighted Average Between Basic and Diluted Earnings Per Share 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Weighted average shares outstanding: Basic weighted average shares outstanding 18,437 14,789 17,870 14,699 Dilutive effect of stock options and certain non-vested restricted stock units 263 - 172 - Diluted weighted average shares outstanding 18,700 14,789 18,042 14,699 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): Schedule of Inventories September 30, 2021 December 31, 2020 Raw materials and components $ 1,477 $ 1,584 Work in process 532 141 Finished goods 977 539 Inventories net $ 2,986 $ 2,264 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments | The following summarizes our investments (dollars in thousands): Summary of Investments September 30, 2021 December 31, 2020 Carrying Amount Economic Interest Carrying Amount Economic Interest Equity Method Investments FG Financial Group, Inc. $ 4,052 20.7 % $ 4,370 20.9 % GreenFirst Forest Products Inc. - 2,697 29.6 % Total Equity Method Investments 4,052 7,067 Fair Value Method Investment GreenFirst Forest Products Inc. 20,192 8.6 % - Cost Method Investment Firefly Systems, Inc. 13,097 13,100 Total Investments $ 37,341 $ 20,167 |
Summary of Income (Loss) of Equity Method Investees | The following summarizes the (loss) income of equity method investees reflected in the condensed consolidated statements of operations (in thousands): Summary of Income (Loss) of Equity Method Investees Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Entity FG Financial Group, Inc. $ 91 $ (440 ) $ (318 ) $ (443 ) GreenFirst Forest Products Inc. (414 ) (20 ) (1,150 ) (137 ) Total $ (323 ) $ (460 ) $ (1,468 ) $ (580 ) |
Summarized Financial Information | Summarized Financial Information For the nine months ended June 30, 2021 2020 Revenue (1) $ 5,049 $ (4,883 ) Operating loss $ (5,983 ) $ (7,845 ) Net loss $ (5,954 ) $ (3,020 ) (1) FGF records realized and unrealized gains and losses on investments in net investment income (loss), which is included in the revenue line above. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Property, Plant and Equipment, Net September 30, 2021 December 31, 2020 Land $ 50 $ 51 Buildings and improvements 6,913 6,824 Machinery and other equipment 5,840 4,635 Office furniture and fixtures 871 946 Construction in progress 147 154 Total properties, cost 13,821 12,610 Less: accumulated depreciation (7,712 ) (7,086 ) Property, plant and equipment, net $ 6,109 $ 5,524 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The following represents a summary of changes in the Company’s carrying amount of goodwill for the nine months ended September 30, 2021 (in thousands): Summary of Changes in Carrying Amount of Goodwill Balance as of December 31, 2020 $ 938 Foreign currency translation adjustment (1 ) Balance as of September 30, 2021 $ 937 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The Company’s short-term debt consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Short-term Debt September 30, 2021 December 31, 2020 Short-term debt: Strong/MDI 20 $ 2,727 $ 2,906 Strong/MDI 5 334 393 Insurance note payable 140 - Total short-term debt $ 3,201 $ 3,299 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of Lease Costs and Other Lease Information | The following tables present the Company’s lease costs and other lease information (dollars in thousands): Schedule of Lease Costs and Other Lease Information September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Lease cost Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Finance lease cost: Amortization of right-of-use assets $ 1 $ 227 $ 3 $ 658 Interest on lease liabilities - 81 292 265 Operating lease cost 218 304 666 918 Short-term lease cost 13 12 42 40 Sublease income (93 ) (92 ) (246 ) (278 ) Net lease cost $ 139 $ 532 $ 757 $ 1,603 September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Other information Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ - $ 81 $ 292 $ 265 Operating cash flows from operating leases $ 203 $ 239 $ 617 $ 720 Financing cash flows from finance leases $ 1 $ 227 $ 2,106 $ 658 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ - $ - $ - Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - $ - $ - As of Weighted-average remaining lease term - finance leases (years) 0.2 Weighted-average remaining lease term - operating leases (years) 6.6 Weighted-average discount rate - finance leases 13.2 % Weighted-average discount rate - operating leases 5.0 % |
Schedule of Future Minimum Lease Payments | The following table presents a maturity analysis of the Company’s operating lease liabilities as of September 30, 2021 (in thousands): Schedule of Future Minimum Lease Payments Operating Leases Remainder of 2021 $ 202 2022 706 2023 656 2024 669 2025 682 Thereafter 1,765 Total lease payments 4,680 Less: Amount representing interest (710 ) Present value of lease payments 3,970 Less: Current maturities (562 ) Lease obligations, net of current portion $ 3,408 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options Activities | The following table summarizes stock option activity for the nine months ended September 30, 2021: Summary of Stock Options Activities Number of Weighted Weighted Aggregate Outstanding at December 31, 2020 1,009,500 $ 3.99 7.3 $ 51 Granted - Exercised (4,000 ) 2.25 10 Forfeited (156,000 ) 4.10 Expired (190,000 ) 5.03 Outstanding at September 30, 2021 659,500 $ 3.68 6.9 $ 243 Exercisable at September 30, 2021 329,500 $ 4.49 5.9 $ 24 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock unit activity for the nine months ended September 30, 2021: Summary of Restricted Stock Activity Number of Restricted Weighted Average Grant Non-vested at December 31, 2020 604,687 $ 2.38 Granted 122,609 3.00 Shares vested (358,218 ) 2.62 Shares forfeited - Non-vested at September 30, 2021 369,078 $ 2.36 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Summary by Business Segments Schedule of Segment Reporting Information by Segment 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenues Strong Entertainment $ 5,822 $ 5,260 $ 16,121 $ 15,041 Other 294 301 860 493 Total net revenues 6,116 5,561 16,981 15,534 Gross profit Strong Entertainment 2,154 889 5,428 2,769 Other 294 275 644 412 Total gross profit 2,448 1,164 6,072 3,181 Operating income (loss) Strong Entertainment 1,028 (79 ) 2,150 (894 ) Other (142 ) (15 ) (577 ) (457 ) Total segment operating income (loss) 886 (94 ) 1,573 (1,351 ) Unallocated administrative expenses (1,004 ) (1,364 ) (3,434 ) (4,640 ) Loss from operations (118 ) (1,458 ) (1,861 ) (5,991 ) Other income, net 10,223 2,468 9,937 2,546 Income (loss) from continuing operations before income taxes and equity method investment loss $ 10,105 $ 1,010 $ 8,076 $ (3,445 ) |
Reconciliation of Assets from Segment to Consolidated | Reconciliation of Assets from Segment to Consolidated (In thousands) September 30, 2021 December 31, 2020 Identifiable assets Strong Entertainment $ 37,231 $ 21,408 Corporate assets 36,646 23,971 Discontinued operations - 10,120 Total $ 73,877 $ 55,499 |
Schedule of Segment Reporting Information by Geographic Area | Summary by Geographical Area Schedule of Segment Reporting Information by Geographic Area (In thousands) 2021 2020 2021 2020 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2021 2020 2021 2020 Net revenues United States $ 4,735 $ 4,529 $ 13,831 $ 12,598 Canada 524 336 1,101 854 China 197 507 355 775 Mexico 1 - 15 78 Latin America 45 - 146 328 Europe 244 38 442 262 Asia (excluding China) 290 24 636 337 Other 80 127 455 302 Total $ 6,116 $ 5,561 $ 16,981 $ 15,534 |
Summary of Identifiable Assets by Geographical Area | Summary of Identifiable Assets by Geographical Area (In thousands) September 30, 2021 December 31, 2020 Identifiable assets United States $ 26,911 $ 34,924 Canada 46,966 20,575 Total $ 73,877 $ 55,499 |
Schedule of Fair Value Measured
Schedule of Fair Value Measured Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | $ 10,372 | $ 4,435 | |
Restricted cash | 150 | 352 | $ 352 |
Fair value method investment | 20,192 | ||
Total | 30,714 | 4,787 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | 10,372 | 4,435 | |
Restricted cash | 150 | 352 | |
Fair value method investment | 20,192 | ||
Total | 30,714 | 4,787 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | |||
Restricted cash | |||
Total | |||
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | |||
Restricted cash | |||
Total |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) $ in Millions | Sep. 30, 2021USD ($) |
Accounting Policies [Abstract] | |
Cash | $ 1.8 |
Cash Equivalents, at Carrying Value | 10.5 |
Quoted fair value of company's ownership | $ 25.2 |
Schedule of Financial Results o
Schedule of Financial Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounts receivable, net | $ 3,065 | ||||
Inventories, net | 312 | ||||
Other current assets | 371 | ||||
Total current assets of discontinued operations | 3,748 | ||||
Property, plant and equipment, net | 3,172 | ||||
Intangible assets, net | 753 | ||||
Operating lease right-of-use assets | 212 | ||||
Finance lease right-of-use assets | 2,235 | ||||
Total long-term assets of discontinued operations | 6,372 | ||||
Total assets of discontinued operations | 10,120 | ||||
Accounts payable | 449 | ||||
Accrued expenses | 812 | ||||
Current portion of long-term debt | 1,075 | ||||
Current portion of operating lease obligation | 108 | ||||
Current portion of finance lease obligation | 859 | ||||
Deferred revenue and customer deposits | 598 | ||||
Total current liabilities of discontinued operations | 3,901 | ||||
Long-term debt, net of current portion | 2,340 | ||||
Operating lease obligation, net of current portion | 107 | ||||
Finance lease obligation, net of current portion | 1,530 | ||||
Other long-term liabilities | 89 | ||||
Total long-term liabilities of discontinued operations | 4,066 | ||||
Total liabilities of discontinued operations | 7,967 | ||||
Net revenues | $ 4,494 | 1,472 | $ 14,541 | ||
Cost of revenues | 2,423 | 746 | 8,773 | ||
Gross profit | 2,071 | 726 | 5,768 | ||
Selling and administrative expenses | 1,502 | 1,241 | 4,696 | ||
Loss on disposal of assets | (64) | (64) | |||
(Loss) income from operations | 505 | (515) | 1,008 | ||
Gain on Firefly transaction | 5,264 | 5,966 | |||
Other income (expense) | (147) | 194 | (456) | ||
Income from discontinued operations | 5,622 | 14,616 | 6,518 | ||
Income tax benefit (expense) | 88 | 33 | (26) | ||
Total net income from discontinued operations | 5,710 | 14,649 | 6,492 | ||
Gain on Convergent transaction | 14,937 | ||||
Convergent [Member] | |||||
Accounts receivable, net | 3,065 | ||||
Inventories, net | 312 | ||||
Other current assets | 371 | ||||
Total current assets of discontinued operations | 3,748 | ||||
Property, plant and equipment, net | 3,172 | ||||
Intangible assets, net | 753 | ||||
Operating lease right-of-use assets | 212 | ||||
Finance lease right-of-use assets | 2,235 | ||||
Total long-term assets of discontinued operations | 6,372 | ||||
Total assets of discontinued operations | 10,120 | ||||
Accounts payable | 449 | ||||
Accrued expenses | 812 | ||||
Current portion of long-term debt | 1,075 | ||||
Current portion of operating lease obligation | 108 | ||||
Current portion of finance lease obligation | 859 | ||||
Deferred revenue and customer deposits | 598 | ||||
Total current liabilities of discontinued operations | 3,901 | ||||
Long-term debt, net of current portion | 2,340 | ||||
Operating lease obligation, net of current portion | 107 | ||||
Finance lease obligation, net of current portion | 1,530 | ||||
Other long-term liabilities | 89 | ||||
Total long-term liabilities of discontinued operations | 4,066 | ||||
Total liabilities of discontinued operations | 7,967 | ||||
Net revenues | 4,346 | 1,472 | 12,954 | ||
Cost of revenues | 2,263 | 746 | 7,286 | ||
Gross profit | 2,083 | 726 | 5,668 | ||
Selling and administrative expenses | 987 | 1,241 | 3,075 | ||
Loss on disposal of assets | |||||
(Loss) income from operations | 1,096 | (515) | 2,593 | ||
Gain on Firefly transaction | |||||
Other income (expense) | (147) | 194 | (464) | ||
Income from discontinued operations | 949 | 14,616 | 2,129 | ||
Income tax benefit (expense) | 88 | 33 | (26) | ||
Total net income from discontinued operations | 1,037 | 14,649 | 2,103 | ||
Gain on Convergent transaction | 14,937 | ||||
Strong Outdoor [Member] | |||||
Accounts receivable, net | |||||
Inventories, net | |||||
Other current assets | |||||
Total current assets of discontinued operations | |||||
Property, plant and equipment, net | |||||
Intangible assets, net | |||||
Operating lease right-of-use assets | |||||
Finance lease right-of-use assets | |||||
Total long-term assets of discontinued operations | |||||
Total assets of discontinued operations | |||||
Accounts payable | |||||
Accrued expenses | |||||
Current portion of long-term debt | |||||
Current portion of operating lease obligation | |||||
Current portion of finance lease obligation | |||||
Deferred revenue and customer deposits | |||||
Total current liabilities of discontinued operations | |||||
Long-term debt, net of current portion | |||||
Operating lease obligation, net of current portion | |||||
Finance lease obligation, net of current portion | |||||
Other long-term liabilities | |||||
Total long-term liabilities of discontinued operations | |||||
Total liabilities of discontinued operations | |||||
Net revenues | 148 | 1,587 | |||
Cost of revenues | 160 | 1,487 | |||
Gross profit | (12) | 100 | |||
Selling and administrative expenses | 515 | 1,621 | |||
Loss on disposal of assets | (64) | (64) | |||
(Loss) income from operations | (591) | (1,585) | |||
Gain on Firefly transaction | 5,264 | 5,966 | |||
Other income (expense) | 8 | ||||
Income from discontinued operations | 4,673 | 4,389 | |||
Income tax benefit (expense) | |||||
Total net income from discontinued operations | $ 4,673 | 4,389 | |||
Gain on Convergent transaction |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) $ in Thousands | Feb. 01, 2021 | Aug. 03, 2020 | May 21, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash | $ 1,800 | ||||||
Investment | $ 20,167 | 37,341 | $ 20,167 | ||||
Number of shares issued, value | $ 6,310 | ||||||
Firefly Series B-1 Shares [Member] | |||||||
Stock issued during period holding amount | 5,700 | ||||||
FireflySystems [Member] | |||||||
Gain on firefly transaction | 700 | ||||||
FireflySystems [Member] | Firefly Series B-1 Shares [Member] | |||||||
Number of shares issued, value | 7,400 | ||||||
Equity Purchase Agreement [Member] | SageNet LLC [Member] | |||||||
Equity method ownership percentage | 100.00% | ||||||
Cash | $ 15,000 | ||||||
Promissory note | 2,500 | ||||||
Proceeds from related party | 5,700 | ||||||
Value of equity interest | $ 23,200 | ||||||
Gain on sale of convergent | $ 14,900 | ||||||
Taxicab Advertising Collaboration Agreement [Member] | FireflySystems [Member] | Series B-1 Shares [Member] | |||||||
Consideration received for agreement | $ 4,800 | ||||||
Master Lease Agreement [Member] | FireflySystems [Member] | |||||||
Investment | 1,200 | $ 1,200 | |||||
Master Lease Agreement [Member] | FireflySystems [Member] | Series B-1 Shares [Member] | |||||||
Number of shares repurchased, value | $ 1,200 | ||||||
Asset Purchase Agreement [Member] | Strong Digital Media, LLC [Member] | |||||||
Cash consideration received | $ 600 | ||||||
Gain on asset purchase transaction | $ 5,300 | ||||||
Asset Purchase Agreement [Member] | Strong Digital Media, LLC [Member] | Series B-1 Shares [Member] | |||||||
Cash consideration received | 1,100 | ||||||
Asset Purchase Agreement [Member] | Strong Digital Media, LLC [Member] | Series A-3 Preferred Shares [Member] | |||||||
Cash consideration received | $ 3,200 | ||||||
Master Services Agreement [Member] | |||||||
Cash consideration received | $ 2,000 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 6,116 | $ 5,561 | $ 16,981 | $ 15,534 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 4,817 | 4,532 | 13,680 | 12,332 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,299 | 1,029 | 3,301 | 3,202 |
Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 5,822 | 5,260 | 16,121 | 15,041 |
Strong Entertainment [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 4,795 | 4,532 | 13,648 | 12,326 |
Strong Entertainment [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,027 | 728 | 2,473 | 2,715 |
Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 294 | 301 | 860 | 493 |
Other Segments [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 22 | 32 | 6 | |
Other Segments [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 272 | 301 | 828 | 487 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 4,086 | 4,138 | 11,811 | 11,370 |
Product [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 4,086 | 4,138 | 11,811 | 11,370 |
Product [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Product [Member] | Screen System Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 2,193 | 1,631 | 6,680 | 5,566 |
Product [Member] | Screen System Sales [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 2,193 | 1,631 | 6,680 | 5,566 |
Product [Member] | Screen System Sales [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Product [Member] | Digital Equipment Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,408 | 2,192 | 3,890 | 4,529 |
Product [Member] | Digital Equipment Sales [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,408 | 2,192 | 3,890 | 4,529 |
Product [Member] | Digital Equipment Sales [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Product [Member] | Extended Warranty Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 44 | 110 | 105 | 418 |
Product [Member] | Extended Warranty Sales [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 44 | 110 | 105 | 418 |
Product [Member] | Extended Warranty Sales [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Product [Member] | Other Product Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 441 | 205 | 1,136 | 857 |
Product [Member] | Other Product Sales [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 441 | 205 | 1,136 | 857 |
Product [Member] | Other Product Sales [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 2,030 | 1,423 | 5,170 | 4,164 |
Service [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,736 | 1,122 | 4,310 | 3,671 |
Service [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 294 | 301 | 860 | 493 |
Service [Member] | Field Maintenance and Monitoring Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,436 | 875 | 3,545 | 3,030 |
Service [Member] | Field Maintenance and Monitoring Services [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,436 | 875 | 3,545 | 3,030 |
Service [Member] | Field Maintenance and Monitoring Services [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Service [Member] | Installation Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 244 | 186 | 674 | 518 |
Service [Member] | Installation Services [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 244 | 186 | 674 | 518 |
Service [Member] | Installation Services [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ||||
Service [Member] | Other Service Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 350 | 362 | 951 | 616 |
Service [Member] | Other Service Revenues [Member] | Strong Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 56 | 61 | 91 | 123 |
Service [Member] | Other Service Revenues [Member] | Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 294 | $ 301 | $ 860 | $ 493 |
Revenue (Details Narrative)
Revenue (Details Narrative) $ in Millions | Sep. 30, 2021USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract with Customer, Liability | $ 1.8 |
During 2021 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract with Customer, Liability | 1 |
During 2022 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract with Customer, Liability | $ 0.8 |
Schedule of Reconciliation Weig
Schedule of Reconciliation Weighted Average Between Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 18,437 | 14,789 | 17,870 | 14,699 |
Dilutive effect of stock options and certain non-vested restricted stock units | 263 | 172 | ||
Diluted weighted average shares outstanding | 18,700 | 14,789 | 18,042 | 14,699 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common Stock Equivalents [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share not included in computation of diluted loss per share | 117,357 | 72,260 | |
Options To Purchase Shares Of Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share not included in computation of diluted loss per share | 329,500 | 884,500 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and components | $ 1,477 | $ 1,584 |
Work in process | 532 | 141 |
Finished goods | 977 | 539 |
Inventories net | $ 2,986 | $ 2,264 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 0.4 | $ 0.4 |
Summary of Investments (Details
Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Equity Method Investments, Carrying Amount | $ 4,052 | $ 7,067 |
Total Investments | 37,341 | 20,167 |
FG Financial Group, Inc. [Member] | ||
Equity Method Investments, Carrying Amount | $ 4,052 | $ 4,370 |
Equity Method Investments, Economic Interest | 20.70% | 20.90% |
GreenFirst Forest Products Inc. [Member] | ||
Equity Method Investments, Carrying Amount | $ 2,697 | |
Equity Method Investments, Economic Interest | 29.60% | |
Fair Value Method Investments, Carrying Amount | $ 20,192 | |
Fair Value Method Investments, Economic Interest | 8.60% | |
FireflySystems [Member] | ||
Cost Method Investment, Carrying Amount | $ 13,097 | $ 13,100 |
Summary of Income (Loss) of Equ
Summary of Income (Loss) of Equity Method Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity method investment income (loss) | $ (323) | $ (460) | $ (1,468) | $ (580) |
FG Financial Group, Inc. [Member] | ||||
Equity method investment income (loss) | 91 | (440) | (318) | (443) |
GreenFirst Forest Products Inc. [Member] | ||||
Equity method investment income (loss) | $ (414) | $ (20) | $ (1,150) | $ (137) |
Summarized Financial Informatio
Summarized Financial Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue (1) | [1] | $ 5,049 | $ (4,883) |
Operating loss | (5,983) | (7,845) | |
Net loss | $ (5,954) | $ (3,020) | |
[1] | FGF records realized and unrealized gains and losses on investments in net investment income (loss), which is included in the revenue line above. |
Investments (Details Narrative)
Investments (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Millions | Nov. 29, 2021$ / sharesshares | Oct. 31, 2021$ / sharesshares | Aug. 30, 2021shares | Aug. 30, 2021USD ($) | Jul. 30, 2021USD ($)shares | Jul. 30, 2021CAD ($)shares | Apr. 12, 2021USD ($) | Apr. 12, 2021$ / shares | Aug. 03, 2020USD ($) | Jul. 31, 2021CAD ($)shares | Sep. 30, 2021USD ($) | Mar. 31, 2021shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Oct. 31, 2021$ / shares | Jul. 12, 2021shares | Dec. 31, 2020USD ($) |
Equity Method Investments, Fair Value Disclosure | $ 20,192,000 | $ 20,192,000 | ||||||||||||||||
Payments to Acquire Productive Assets | 650,000 | $ 511,000 | ||||||||||||||||
Ownership amount | 8,376,000 | |||||||||||||||||
Accumulated deficit | 24,123,000 | 24,123,000 | $ 5,654,000 | |||||||||||||||
Green First [Member] | ||||||||||||||||||
Ownership amount | 8,400,000 | |||||||||||||||||
Dividends received | $ 0 | 0 | 0 | |||||||||||||||
Green First Ownership [Member] | ||||||||||||||||||
Ownership amount | 20,200,000 | |||||||||||||||||
Equity Method Investees [Member] | ||||||||||||||||||
Accumulated deficit | 5,500,000 | 5,500,000 | ||||||||||||||||
Common Stock [Member] | ||||||||||||||||||
Closing of public offering of common stock, number of shares | shares | 3,290,000 | |||||||||||||||||
Subsequent Event [Member] | Green First [Member] | ||||||||||||||||||
Business acquisition description | The Company’s Chairman, Mr. Cerminara, served as a member of the board of directors of GreenFirst from June 2016 to October 2021, and was also appointed Chairman of GreenFirst from June 2018 to June 2021. Prior to the closing of the acquisition of the Assets, the Company held a 20.7% ownership position in GreenFirst. The Company’s 20.7% ownership of GreenFirst, combined with Mr. Cerminara’s board seat, provided the Company with significant influence over GreenFirst, but not a controlling interest. Accordingly, the Company applied the equity method of accounting to its investment in GreenFirst. Following GreenFirst’s acquisition of the Assets and issuance of additional Common Shares, as described above, the Company’s ownership percentage decreased to 8.6% as of September 30, 2021. | |||||||||||||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||||||||||||
Shares issued price per share | $ / shares | $ 4 | |||||||||||||||||
Subsequent Event [Member] | IPO [Member] | ||||||||||||||||||
Closing of public offering of common stock, number of shares | shares | 652,174 | |||||||||||||||||
Shares issued price per share | $ / shares | $ 4 | $ 4 | ||||||||||||||||
Purchase price per share | $ / shares | $ 0.15 | $ 0.15 | ||||||||||||||||
Maximum [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||||||||||||||||
Number of issued purchase shares | shares | 757,720 | |||||||||||||||||
FG Financial Group, Inc. [Member] | ||||||||||||||||||
Proceeds from Dividends Received | $ 0 | 0 | $ 0 | |||||||||||||||
Equity Method Investments, Fair Value Disclosure | $ 5,100,000 | $ 5,100,000 | ||||||||||||||||
FG Financial Group, Inc. [Member] | Minimum [Member] | ||||||||||||||||||
Combined equity ownership percentage | 50.00% | 50.00% | ||||||||||||||||
GreenFirst Forest Products Inc. [Member] | ||||||||||||||||||
Proceeds from Dividends Received | $ 0 | |||||||||||||||||
Proceeds from sale of rights. | $ 2.1 | |||||||||||||||||
GreenFirst Forest Products Inc. [Member] | GreenFirst Purchase Agreement [Member] | ||||||||||||||||||
Payments to Acquire Productive Assets | $ 214,000,000 | |||||||||||||||||
Subscription price per share | $ / shares | $ 1.50 | |||||||||||||||||
Number of right received | shares | 21,100,000 | |||||||||||||||||
Number of rights sold | shares | 12,900,000 | |||||||||||||||||
[custom:UtilizationOfProceedsFromSaleOfRights] | $ 177,600,000 | $ 1,700,000 | ||||||||||||||||
Number of rights exercised | shares | 28,700,000 | 8,300,000 | 8,300,000 | |||||||||||||||
Payments to Acquire Investments | $ 12.4 | |||||||||||||||||
GreenFirst Forest Products Inc. [Member] | Common Stock [Member] | GreenFirst Purchase Agreement [Member] | ||||||||||||||||||
Investment Owned, Balance, Shares | shares | 15,300,000 | 15,300,000 | ||||||||||||||||
FireflySystems [Member] | Stock Purchase Agreement [Member] | Series A-3 Preferred Shares [Member] | ||||||||||||||||||
Purchase of preferred stock | $ 4,000,000 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | $ 13,821 | $ 12,610 |
Less: accumulated depreciation | (7,712) | (7,086) |
Property, plant and equipment, net | 6,109 | 5,524 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | 50 | 51 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | 6,913 | 6,824 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | 5,840 | 4,635 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | 871 | 946 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties, cost | $ 147 | $ 154 |
Summary of Changes in Carrying
Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 938 |
Goodwill, Foreign Currency Translation Gain (Loss) | (1) |
Ending balance | $ 937 |
Schedule of Short-term Debt (De
Schedule of Short-term Debt (Details) - USD ($) $ in Thousands | Jun. 07, 2021 | Sep. 05, 2017 | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||||
Short-term ( Strong/MDI installment loan ) | $ 3,201 | $ 3,299 | ||
Insurance note payable | 140 | |||
Total short-term debt | 3,201 | 3,299 | ||
Strong/MDI 20 - Year Installment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Short-term ( Strong/MDI installment loan ) | 2,727 | 2,906 | ||
Strong/MDI 5 - Year Equipment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Short-term ( Strong/MDI installment loan ) | $ 334 | $ 393 | ||
20-year Installment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 20 years | |||
Demand Credit Agreement [Member] | 20-year Installment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 5 years | 20 years | 20 years | 20 years |
Demand Credit Agreement [Member] | 5-Year Equipment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 5 years | 5 years |
Schedule of Short-Term Debt (_2
Schedule of Short-Term Debt (Details) (Parenthetical) | Jun. 07, 2021 | Sep. 05, 2017 | Sep. 30, 2021 | Dec. 31, 2020 |
20-year Installment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 20 years | |||
Demand Credit Agreement [Member] | 20-year Installment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 5 years | 20 years | 20 years | 20 years |
Demand Credit Agreement [Member] | 5-Year Equipment Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Loan term | 5 years | 5 years |
Debt (Details Narrative)
Debt (Details Narrative) $ in Millions, $ in Millions | Jun. 07, 2021CAD ($) | Sep. 05, 2017CAD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Dec. 31, 2020 |
20-year Installment Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 20 years | 20 years | |||
Proceeds from Issuance of Debt | $ 2.7 | $ 3.5 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | 2.95% | |||
5-year Installment Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 5 years | 5 years | |||
Proceeds from Issuance of Debt | $ 0.3 | $ 0.4 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | 2.95% | |||
Demand Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
[custom:MaximumLiabilitiesToEffectiveEquity] | $ 2 | ||||
[custom:MinimumEffectiveEquity-0] | $ 4 | ||||
Demand Credit Agreement [Member] | Prime Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Demand Credit Agreement [Member] | 20-year Installment Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6 | ||||
Debt Instrument, Term | 5 years | 20 years | 20 years | 20 years | 20 years |
Demand Credit Agreement [Member] | 5-year Installment Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0.5 | $ 0.5 | |||
Debt Instrument, Term | 5 years | ||||
Line of Credit [Member] | Demand Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5.1 | $ 3.5 |
Schedule of Lease Costs and Oth
Schedule of Lease Costs and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||||
Amortization of right-of-use assets | $ 1 | $ 227 | $ 3 | $ 658 |
Interest on lease liabilities | 81 | 292 | 265 | |
Operating lease cost | 218 | 304 | 666 | 918 |
Short-term lease cost | 13 | 12 | 42 | 40 |
Sublease income | (93) | (92) | (246) | (278) |
Net lease cost | 139 | 532 | 757 | 1,603 |
Operating cash flows from finance leases | 81 | 292 | 265 | |
Operating cash flows from operating leases | 203 | 239 | 617 | 720 |
Financing cash flows from finance leases | 1 | 227 | 2,106 | 658 |
Right-of-use assets obtained in exchange for new finance lease liabilities | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | ||||
Weighted-average remaining lease term - finance leases (years) | 2 months 12 days | 2 months 12 days | ||
Weighted-average remaining lease term - operating leases (years) | 6 years 7 months 6 days | 6 years 7 months 6 days | ||
Finance Lease, Weighted Average Discount Rate, Percent | 13.20% | 13.20% | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Remainder of 2021 | $ 202 | |
2022 | 706 | |
2023 | 656 | |
2024 | 669 | |
2025 | 682 | |
Thereafter | 1,765 | |
Total lease payments | 4,680 | |
Less: Amount representing interest | (710) | |
Present value of lease payments | 3,970 | |
Less: Current maturities | (562) | $ (619) |
Lease obligations, net of current portion | $ 3,408 | $ 3,817 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | Apr. 02, 2021 | Sep. 30, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Operating lease, expire term | expiring through 2028. | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 202 | |
Settlement Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 2,100 | |
[custom:OptionToBuyout] | $ 1,000 | |
Lessor, Operating Lease, Description | The $2.1 million plus sales tax owed under the Lease Agreement was paid upon execution of the Settlement Agreement and the lease equipment buyout will be paid in twelve monthly installments from June 1, 2021 to May 1, 2022. Upon payment in full, the Lease Agreement and all obligations thereunder will terminate. |
Income Taxes and Other Taxes (D
Income Taxes and Other Taxes (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 7,000 | $ 7,000 | |||
Accrued Payroll Taxes, Current | 600,000 | 600,000 | $ 1,500,000 | ||
Compensation Expense, Excluding Cost of Good and Service Sold | 200,000 | 1,500,000 | |||
Refund payroll taxes | 600,000 | 600,000 | |||
Selling and Marketing Expense [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Compensation Expense, Excluding Cost of Good and Service Sold | 100,000 | ||||
General and Administrative Expense [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Compensation Expense, Excluding Cost of Good and Service Sold | 400,000 | 400,000 | |||
Service [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Compensation Expense, Excluding Cost of Good and Service Sold | $ 800,000 | ||||
Maximum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Payments to Employees | $ 10,000 | ||||
Paycheck Protection Programme [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Reinsurance Retention Policy, Excess Retention, Percentage | 70.00% | 70.00% |
Summary of Stock Options Activi
Summary of Stock Options Activities (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Options, Outstanding Beginning Balance | 1,009,500 |
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance | $ / shares | $ 3.99 |
Weighted Average Remaining Contractual Term (Years), Beginning Balance | 7 years 3 months 18 days |
Aggregate Intrinsic Value, Beginning Balance | $ | $ 51 |
Number of Options, Granted | |
Number of Options, Forfeited | (4,000) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 2.25 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 10 |
Number of Options, Forfeited | (156,000) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 4.10 |
Number of Options, Expired | (190,000) |
Weighted Average Exercise Price Per Share, Expired | $ / shares | $ 5.03 |
Number of Options, Outstanding Ending Balance | 659,500 |
Weighted Average Exercise Price Per Share, Outstanding Ending Balance | $ / shares | $ 3.68 |
Weighted Average Remaining Contractual Term (Years), Ending Balance | 6 years 10 months 24 days |
Aggregate Intrinsic Value, Ending Balance | $ | $ 243 |
Number of Options, Exercisable | 329,500 |
Weighted Average Exercise Price Per Share, Exercisable | $ / shares | $ 4.49 |
Weighted Average Remaining Contractual Term (Years), Exercisable | 5 years 10 months 24 days |
Aggregate Intrinsic Value, Exercisable | $ | $ 24 |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Details) - Restricted Stock Shares [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock, Non-vested beginning balance | 604,687 |
Weighted Average Grant Date Fair Value, Non-vested beginning balance | $ / shares | $ 2.38 |
Number of Restricted Stock, Granted | 122,609 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 3,000 |
Number of Restricted Stock, Shares vested | (358,218) |
Weighted Average Grant Date Fair Value, Shares vested | $ / shares | $ 2.62 |
Number of Restricted Stock, Shares forfeited | |
Number of Restricted Stock, Non-vested ending balance | 369,078 |
Weighted Average Grant Date Fair Value, Non-vested ending balance | $ / shares | $ 2.36 |
Stock Compensation (Details Nar
Stock Compensation (Details Narrative) - USD ($) $ in Millions | Dec. 17, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period | 7 years 3 months 18 days | ||||
Restricted Stock Shares and Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized for restricted stock, value | $ 0.6 | $ 0.6 | |||
Compensation cost expected to be recognized, weighted average period | 1 year 2 months 12 days | ||||
Equity Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested stock option awards | 330,000 | 330,000 | |||
Unrecognized compensation cost related to stock option awards | $ 0.3 | $ 0.3 | |||
Weighted average period | 2 years 6 months | ||||
Year 2017 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 1,975,000 | ||||
Share based compensation extended expiration date | Oct. 27, 2029 | ||||
Share based compensation arrangement, number of shares available for grant | 2,400,000 | 2,400,000 | |||
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation expense | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.7 |
Commitments, Contingencies an_2
Commitments, Contingencies and Concentrations (Details Narrative) - USD ($) $ in Millions | Feb. 28, 2019 | Sep. 30, 2021 | Sep. 30, 2021 |
Product Information [Line Items] | |||
Insurance recovery | $ 2.7 | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Top 10 Customers [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 39.00% | 46.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Top 10 Customers [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 55.00% |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 6,116 | $ 5,561 | $ 16,981 | $ 15,534 |
Total gross profit | 2,448 | 1,164 | 6,072 | 3,181 |
Total segment operating income (loss) | 886 | (94) | 1,573 | (1,351) |
Unallocated administrative expenses | (1,004) | (1,364) | (3,434) | (4,640) |
Loss from operations | (118) | (1,458) | (1,861) | (5,991) |
Other income, net | 10,223 | 2,468 | 9,937 | 2,546 |
Income (loss) from continuing operations before income taxes and equity method investment loss | 10,105 | 1,010 | 8,076 | (3,445) |
Strong Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 5,822 | 5,260 | 16,121 | 15,041 |
Total gross profit | 2,154 | 889 | 5,428 | 2,769 |
Total segment operating income (loss) | 1,028 | (79) | 2,150 | (894) |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 294 | 301 | 860 | 493 |
Total gross profit | 294 | 275 | 644 | 412 |
Total segment operating income (loss) | $ (142) | $ (15) | $ (577) | $ (457) |
Reconciliation of Assets from S
Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total | $ 73,877 | $ 55,499 |
Strong Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 37,231 | 21,408 |
Corporate Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 36,646 | 23,971 |
Discontinued Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | $ 10,120 |
Schedule of Segment Reporting_2
Schedule of Segment Reporting Information by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 6,116 | $ 5,561 | $ 16,981 | $ 15,534 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 4,735 | 4,529 | 13,831 | 12,598 |
CANADA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 524 | 336 | 1,101 | 854 |
CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 197 | 507 | 355 | 775 |
MEXICO | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 1 | 15 | 78 | |
Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 45 | 146 | 328 | |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 244 | 38 | 442 | 262 |
Asia Excluding China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 290 | 24 | 636 | 337 |
Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 80 | $ 127 | $ 455 | $ 302 |
Summary of Identifiable Assets
Summary of Identifiable Assets by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 73,877 | $ 55,499 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 26,911 | 34,924 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 46,966 | $ 20,575 |