Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001025953 | |
Entity Registrant Name | NOVATION COMPANIES, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-13533 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 74-2830661 | |
Entity Address, Address Line One | 9229 Ward Parkway, Suite 340 | |
Entity Address, City or Town | Kansas City | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64114 | |
City Area Code | 816 | |
Local Phone Number | 237-7000 | |
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 | 116,155,893 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,543 | $ 1,340 |
Accounts and unbilled receivables | 3,516 | 5,008 |
Prepaid expenses | 224 | 663 |
Other | 14 | 53 |
Total current assets | 5,297 | 7,064 |
Non-current assets: | ||
Intangible assets, net | 3,938 | 4,677 |
Property and equipment, net | 80 | 92 |
Operating lease right-of-use asset | 293 | 339 |
Other | 4 | 4 |
Total non-current assets | 4,315 | 5,112 |
Total assets | 9,612 | 12,176 |
Current liabilities: | ||
Accounts payable and accrued expenses | 211 | 315 |
Accrued compensation and benefits payable | 1,346 | 2,176 |
Operating lease liability | 109 | 195 |
Accrued claim settlements | 123 | 246 |
Other | 8 | 4 |
Total current liabilities | 1,797 | 2,936 |
Non-current liabilities: | ||
Senior notes, net of unamortized debt premium of $6.7 million and $4.2 million as of September 30, 2021 and December 31, 2020, respectively | 92,651 | 90,115 |
Accrued claim settlements | 0 | 62 |
Operating lease liability | 190 | 153 |
Total non-current liabilities | 92,841 | 90,330 |
Total liabilities | 94,638 | 93,266 |
Shareholders' deficit: | ||
Common stock, $.01 par value per share, 780,000,000 shares authorized:116,655,893 and 114,655,893 and shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 1,161 | 1,146 |
Additional paid-in capital | 746,327 | 746,227 |
Accumulated deficit | (832,514) | (828,463) |
Total shareholders' deficit | (85,026) | (81,090) |
Total liabilities and shareholders' deficit | $ 9,612 | $ 12,176 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Unamortized debt premium | $ 6.7 | $ 4.2 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 780,000,000 | 780,000,000 |
Common stock, shares issued (in shares) | 116,155,893 | 114,655,893 |
Common stock, shares outstanding (in shares) | 116,155,893 | 114,655,893 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Service fee income | $ 9,943 | $ 12,381 | $ 35,379 | $ 38,747 |
Cost and expenses: | ||||
Cost of services | 8,794 | 10,628 | 31,670 | 34,416 |
General and administrative expenses | 1,659 | 1,877 | 5,212 | 5,894 |
Goodwill impairment charge | 0 | 0 | 0 | 3,905 |
Operating loss | (510) | (124) | (1,503) | (5,468) |
Other income (expense) | (4) | 4 | 2 | 28 |
Interest expense | (864) | (836) | (2,545) | (2,462) |
Loss before income taxes | (1,378) | (956) | (4,046) | (7,902) |
Income tax expense | 0 | 3 | 5 | 24 |
Net loss | $ (1,378) | $ (959) | $ (4,051) | $ (7,926) |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.04) | $ (0.07) |
Diluted (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.04) | $ (0.07) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 113,608,581 | 110,216,273 | 113,605,893 | 110,197,754 |
Diluted (in shares) | 113,608,581 | 110,216,273 | 113,605,893 | 110,197,754 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 1,123 | $ 746,112 | $ (819,294) | $ (72,059) |
Compensation recognized under stock compensation plans | 127 | 127 | ||
Net loss | (7,926) | (7,926) | ||
Issuances of nonvested stock | 23 | (23) | ||
Balance at Sep. 30, 2020 | 1,146 | 746,216 | (827,220) | (79,858) |
Balance at Jun. 30, 2020 | 1,146 | 746,170 | (826,261) | (78,945) |
Compensation recognized under stock compensation plans | 46 | 46 | ||
Net loss | (959) | (959) | ||
Balance at Sep. 30, 2020 | 1,146 | 746,216 | (827,220) | (79,858) |
Balance at Dec. 31, 2020 | 1,146 | 746,227 | (828,463) | (81,090) |
Issuances and cancellations of nonvested stock | 15 | (15) | ||
Compensation recognized under stock compensation plans | 115 | 115 | ||
Net loss | (4,051) | (4,051) | ||
Balance at Sep. 30, 2021 | 1,161 | 746,327 | (832,514) | (85,026) |
Balance at Jun. 30, 2021 | 1,166 | 746,291 | (831,136) | (83,679) |
Compensation recognized under stock compensation plans | 31 | 31 | ||
Net loss | (1,378) | (1,378) | ||
Cancellations of nonvested stock | (5) | 5 | ||
Balance at Sep. 30, 2021 | $ 1,161 | $ 746,327 | $ (832,514) | $ (85,026) |
Condensed Consolidated Statem_3
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 loss | $ (4,051) | $ (7,926) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of intangible assets | 739 | 861 |
Amortization of debt premium and prepaid interest into interest expense | 2,536 | 2,453 |
Depreciation expense | 22 | 40 |
Loss (gain) on disposal of fixed assets | 5 | (3) |
Lease expense | (3) | (4) |
Allowance for doubtful accounts | 10 | |
Goodwill impairment | 0 | 3,905 |
Compensation recognized under stock compensation plans | 115 | 127 |
Changes in operating assets and liabilities | ||
Accounts and unbilled receivables | 1,482 | 683 |
Accounts payable and accrued expenses | (104) | (195) |
Accrued compensation and benefits payable | (830) | (315) |
Accrued health and wellness program payable | 0 | (492) |
Accrued claim settlements | (185) | (184) |
Other current assets and liabilities, net | 482 | 161 |
Net cash provided by (used in) operating activities | 218 | (889) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (15) | (11) |
Net cash used in investing activities | (15) | (11) |
Net increase (decrease) in cash and cash equivalents | 203 | (900) |
Cash and cash equivalents, beginning of period | 1,340 | 2,032 |
Cash and cash equivalents, end of period | 1,543 | 1,132 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 9 | 12 |
Cash paid for income taxes, net | $ 0 | $ 45 |
Note 1 - Condensed Consolidated
Note 1 - Condensed Consolidated Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Description of Operations – Liquidity and Going Concern – nine September 30, 2021 September 30, 2021 1.5 Prior to executing the Amendment with the Noteholders in August 2019 ( 5 March 30, 2033, June 2021, two one third 2021. Management continues to work toward expanding HCS’s customer base by increasing revenue from existing customers, looking at methods to reduce overall operating costs, both at HCS and the corporate level, and targeting new customers that have not 5 2019 not August 2019 March 2022, April 2022 In late March 2020, 19 19 Our historical operating results and poor cash flow suggest substantial doubt exists related to the Company's ability to continue as a going concern. Furthermore, there is still uncertainty regarding the future impact that COVID- 19 no not one Earnings Per Share nine September 30, 2021 2020 Condensed Consolidated Financial Statement Presentation – The Company's condensed consolidated financial statements are unaudited. In the opinion of management, all necessary adjustments have been made, which were of a normal and recurring nature, for a fair presentation of the condensed consolidated financial statements. The Company's condensed consolidated financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements of the Company and the notes thereto included in the Company's Annual Report on Form 10 December 31, 2020 2020 10 |
Note 2 - Revenue; Accounts and
Note 2 - Revenue; Accounts and Unbilled Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 2. Staffing services include the augmentation of customers' workforce with our contingent employees performing services under the customers' supervision, which provides our customers with a source of flexible labor at a competitive cost. Customer contracts are typically annual contracts but may The Company recognizes revenue when control of the promised services is transferred to customers and for the amount that reflects the consideration we are entitled to receive in exchange for those services. Furthermore, revenue is recognized over time based on a fixed amount for each hour of staffing service provided as our customers benefit from our services and as we provide them. Performance Obligations — not not no Contract Balances — two not Disaggregation of Revenue — Nine Months Ended September 30, 2021 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Three Months Ended September 30, 2020 Type of Customer CSB $ 32,708 92.5 % $ 8,799 88.5 % $ 37,963 98.0 % $ 12,116 97.9 % Other 2,671 7.5 % 1,144 11.5 % 784 2.0 % 265 2.1 % Total $ 35,379 100.0 % $ 9,943 100.0 % $ 38,747 100.0 % $ 12,381 100.0 % Accounts and unbilled receivables are summarized as follows, in thousands: September 30, 2021 (unaudited) December 31, 2020 Accounts receivable $ 2,312 $ 2,705 Unbilled receivables (Contract Assets) 1,214 2,303 Allowance for doubtful accounts (10 ) — Total $ 3,516 $ 5,008 During the nine September 30, 2021 four nine September 30, 2020 four September 30, 2021 September 30, 2020 two four September 30, 2021 September 30, 2020 |
Note 3 - Intangible Assets
Note 3 - Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 3. September 30, 2021 (unaudited) December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived assets (in thousands): Tradenames $ 1,147 $ — $ 1,147 $ 1,147 $ — $ 1,147 Total indefinite-lived assets $ 1,147 $ — $ 1,147 $ 1,147 $ — $ 1,147 Finite-lived assets (in thousands): Customer relationships 6,895 4,104 2,791 6,895 3,365 3,530 Non-compete agreement 627 627 — 627 627 — Total finite-lived assets $ 7,522 $ 4,731 $ 2,791 $ 7,522 $ 3,992 $ 3,530 Total indefinite-lived and finite-lived assets $ 8,669 $ 4,731 $ 3,938 $ 8,669 $ 3,992 $ 4,677 Amortization expense (unaudited, in thousands) Nine Months Ended September 30, 2021 $ 739 Estimated future amortization expense (unaudited, in thousands) 2021 $ 246 2022 985 2023 985 Thereafter 575 Total estimated amortization expense $ 2,791 As disclosed in Note 1, two one third 2021, June 2021. June 30, 2021. no |
Note 4 - Leases
Note 4 - Leases | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 4. Our leases consist primarily of office space. Leases with an initial term of less than 12 not not Most leases include one one three not three nine September 30, 2021 . As our leases do not Maturities of lease liabilities were as follows (in thousands): September 30, 2021 (unaudited) Remaining 2021 $ 43 2022 97 2023 58 Thereafter 142 Total $ 340 Less interest 41 Present value of lease liabilities $ 299 Other information related to the Company's operating leases was as follows (in thousands): September 30, 2021 (unaudited) Lease Term and Discount Rate Weighted average remaining lease term (years) 3.71 Weighted average discount rate 6.75 % |
Note 5 - Borrowings
Note 5 - Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 5. Note Refinancing and 2017 September 30, 2021 three “2017 2017 March 30, 2033, April 1, 2019 December 31, 2023; January 1, 2024 December 31, 2028; January 1, 2029 December 31, 2020 2017 may 2017 2017 July 27, 2017 On April 1, 2019 July 1, 2019, 2017 not April 1, 2022. not December 31, 2021. not may, 2017 first 2017 Under the terms of the Amendment, the Company issued to the Noteholders 9,000,000 shares of common stock of the Company and ten The carrying value of the 2017 September 30, 2021 (unaudited) December 31, 2020 Principal balance $ 85,938 $ 85,938 Unamortized debt premium 6,713 4,177 Total, 2017 Notes $ 92,651 $ 90,115 |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 6. Contingencies — 2016, 2006 third 1997 2007, third not third may not no not 2010. Historically, repurchases of loans or indemnification of losses where a loan defect has been alleged have been insignificant and any future losses for alleged loan defects have not no not not not 2007, not Pending Litigation — Although it is not not, not not one On May 21, 2008, June 16, 2009, 11, 12 15 1933, August 31, 2009, March 31, 2011, second May 16, 2011, March 29, 2012, second March 1, 2013, not April 23, 2013 five not February 5, 2015, March 8, 2017, May 10, 2017. not no October 19, 2018 March 7, 2019 March 8, 2019, March 26, 2019 June 28, 2019. September 27, 2019, October 18, 2019. February 19, 2020. no not |
Note 7 - Fair Value Accounting
Note 7 - Fair Value Accounting | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 7. Fair Value Measurements — two • Level 1 • Level 2 1 • Level 3 no The following table provides the estimated fair value of financial instruments and presents amounts that have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not not The estimated fair values of the Company's financial instruments are (in thousands): September 30, 2021 (unaudited) December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: 2017 Notes (Level 3) $ 92,651 $ 13,632 $ 90,115 $ 11,365 The 2017 not 2017 3 no No April 1, 2019 December 31, 2023; January 1, 2024 December 31, 2028; January 1, 2029 March 2033. Prior to the Company's acquisition of HCS in 2017, 2018, 33 September 30, 2021 December 31, 2020 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8. Prior to 2018, no not September 30, 2021 December 31, 2020 $169.6 million and $168.8 million may not As of September 30, 2021 $732.1 million, i $250.3 million not may not 2025 2037 2017, 2017 2020 not may 2017 2004. may 2024 2037 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Liquidity and Going Concern [Policy Text Block] | Liquidity and Going Concern – nine September 30, 2021 September 30, 2021 1.5 Prior to executing the Amendment with the Noteholders in August 2019 ( 5 March 30, 2033, June 2021, two one third 2021. Management continues to work toward expanding HCS’s customer base by increasing revenue from existing customers, looking at methods to reduce overall operating costs, both at HCS and the corporate level, and targeting new customers that have not 5 2019 not August 2019 March 2022, April 2022 In late March 2020, 19 19 Our historical operating results and poor cash flow suggest substantial doubt exists related to the Company's ability to continue as a going concern. Furthermore, there is still uncertainty regarding the future impact that COVID- 19 no not one |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share nine September 30, 2021 2020 |
Consolidation, Policy [Policy Text Block] | Condensed Consolidated Financial Statement Presentation – The Company's condensed consolidated financial statements are unaudited. In the opinion of management, all necessary adjustments have been made, which were of a normal and recurring nature, for a fair presentation of the condensed consolidated financial statements. The Company's condensed consolidated financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements of the Company and the notes thereto included in the Company's Annual Report on Form 10 December 31, 2020 2020 10 |
Note 2 - Revenue; Accounts an_2
Note 2 - Revenue; Accounts and Unbilled Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Nine Months Ended September 30, 2021 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Three Months Ended September 30, 2020 Type of Customer CSB $ 32,708 92.5 % $ 8,799 88.5 % $ 37,963 98.0 % $ 12,116 97.9 % Other 2,671 7.5 % 1,144 11.5 % 784 2.0 % 265 2.1 % Total $ 35,379 100.0 % $ 9,943 100.0 % $ 38,747 100.0 % $ 12,381 100.0 % |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | September 30, 2021 (unaudited) December 31, 2020 Accounts receivable $ 2,312 $ 2,705 Unbilled receivables (Contract Assets) 1,214 2,303 Allowance for doubtful accounts (10 ) — Total $ 3,516 $ 5,008 |
Note 3 - Intangible Assets (Tab
Note 3 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | September 30, 2021 (unaudited) December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived assets (in thousands): Tradenames $ 1,147 $ — $ 1,147 $ 1,147 $ — $ 1,147 Total indefinite-lived assets $ 1,147 $ — $ 1,147 $ 1,147 $ — $ 1,147 Finite-lived assets (in thousands): Customer relationships 6,895 4,104 2,791 6,895 3,365 3,530 Non-compete agreement 627 627 — 627 627 — Total finite-lived assets $ 7,522 $ 4,731 $ 2,791 $ 7,522 $ 3,992 $ 3,530 Total indefinite-lived and finite-lived assets $ 8,669 $ 4,731 $ 3,938 $ 8,669 $ 3,992 $ 4,677 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense (unaudited, in thousands) Nine Months Ended September 30, 2021 $ 739 Estimated future amortization expense (unaudited, in thousands) 2021 $ 246 2022 985 2023 985 Thereafter 575 Total estimated amortization expense $ 2,791 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | September 30, 2021 (unaudited) Remaining 2021 $ 43 2022 97 2023 58 Thereafter 142 Total $ 340 Less interest 41 Present value of lease liabilities $ 299 |
Operating Lease, Other Information [Table Text Block] | September 30, 2021 (unaudited) Lease Term and Discount Rate Weighted average remaining lease term (years) 3.71 Weighted average discount rate 6.75 % |
Note 5 - Borrowings (Tables)
Note 5 - Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2021 (unaudited) December 31, 2020 Principal balance $ 85,938 $ 85,938 Unamortized debt premium 6,713 4,177 Total, 2017 Notes $ 92,651 $ 90,115 |
Note 7 - Fair Value Accounting
Note 7 - Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | September 30, 2021 (unaudited) December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: 2017 Notes (Level 3) $ 92,651 $ 13,632 $ 90,115 $ 11,365 |
Note 1 - Condensed Consolidat_2
Note 1 - Condensed Consolidated Financial Statement Presentation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Aug. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2012 | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Net Income (Loss) Attributable to Parent, Total | $ (1,378) | $ (959) | $ (4,051) | $ (7,926) | |||||||
Net Cash Provided by (Used in) Operating Activities, Total | 218 | (889) | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | (85,026) | $ (79,858) | (85,026) | $ (79,858) | $ (83,679) | $ (81,090) | $ (78,945) | $ (72,059) | |||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,543 | 1,543 | 1,340 | ||||||||
Liabilities, Total | 94,638 | $ 94,638 | $ 93,266 | ||||||||
Workforce Reduction Due to Impact of COVID-19, Percent | 8.00% | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 2.8 | 4.4 | |||||||||
Senior Notes [Member] | The 2017 Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||
NovaStar Mortgage LLC [Member] | |||||||||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 100 | $ 100 |
Note 2 - Revenue; Accounts an_3
Note 2 - Revenue; Accounts and Unbilled Receivables (Details Textual) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Customer Contracts, Notice of Termination Period (Day) | 60 days | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 4 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Three Customers [Member] | ||
Concentration Risk, Percentage | 66.00% | 72.00% |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | ||
Number of Major Customers | 2 | 4 |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Four Non-CSB Customers [Member] | ||
Concentration Risk, Percentage | 52.00% | 65.00% |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Twelve CSB Customers [Member] | ||
Concentration Risk, Percentage | 77.00% | 96.00% |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | CSB Customers [Member] | ||
Number of Major Customers | 11 | 12 |
Note 2 - Revenue; Accounts an_4
Note 2 - Revenue; Accounts and Unbilled Receivables - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financial services revenue | $ 9,943 | $ 12,381 | $ 9,943 | $ 12,381 | $ 35,379 | $ 38,747 |
Financial services revenue, percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||
CSB Customers [Member] | ||||||
Financial services revenue | $ 8,799 | $ 12,116 | $ 32,708 | $ 37,963 | ||
Financial services revenue, percentage | 88.50% | 97.90% | 92.50% | 98.00% | ||
Non-CSB Customers [Member] | ||||||
Financial services revenue | $ 1,144 | $ 265 | $ 2,671 | $ 784 | ||
Financial services revenue, percentage | 11.50% | 2.10% | 7.50% | 2.00% |
Note 2 - Revenue; Accounts an_5
Note 2 - Revenue; Accounts and Unbilled Receivables - Accounts and Unbilled Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts receivable | $ 2,312 | $ 2,705 |
Unbilled receivables (Contract Assets) | 1,214 | 2,303 |
Allowance for doubtful accounts | (10) | 0 |
Total | $ 3,516 | $ 5,008 |
Note 3 - Intangible Assets - Su
Note 3 - Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Total indefinite-lived assets | $ 1,147 | $ 1,147 |
Total finite-lived assets | 7,522 | 7,522 |
Finite-lived intangible assets, accumulated amortization | 4,731 | 3,992 |
Finite-lived intangible assets, net | 2,791 | 3,530 |
Total indefinite-lived and finite-lived assets | 8,669 | 8,669 |
Intangible assets, net | 3,938 | 4,677 |
Customer Relationships [Member] | ||
Total finite-lived assets | 6,895 | 6,895 |
Finite-lived intangible assets, accumulated amortization | 4,104 | 3,365 |
Finite-lived intangible assets, net | 2,791 | 3,530 |
Noncompete Agreements [Member] | ||
Total finite-lived assets | 627 | 627 |
Finite-lived intangible assets, accumulated amortization | 627 | 627 |
Finite-lived intangible assets, net | $ 0 | $ 0 |
Note 3 - Intangible Assets - Es
Note 3 - Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Nine Months Ended September 30, 2021 | $ 739 | $ 861 | |
2021 | 246 | ||
2022 | 985 | ||
2023 | 985 | ||
Thereafter | 575 | ||
Total estimated amortization expense | $ 2,791 | $ 3,530 |
Note 4 - Leases (Details Textua
Note 4 - Leases (Details Textual) | Sep. 30, 2021 |
Minimum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 3 years |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Remaining 2021 | $ 43 |
2022 | 97 |
2023 | 58 |
Thereafter | 142 |
Total | 340 |
Less interest | 41 |
Present value of lease liabilities | $ 299 |
Note 4 - Leases - Operating Lea
Note 4 - Leases - Operating Lease Information (Details) | Sep. 30, 2021 |
Weighted average remaining lease term (years) (Year) | 3 years 8 months 15 days |
Weighted average discount rate | 6.75% |
Note 5 - Borrowings (Details Te
Note 5 - Borrowings (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 01, 2019 | Jul. 01, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 30, 2033 | Dec. 31, 2023 | Dec. 31, 2028 |
Amortization of Debt Discount (Premium) | $ 2,536 | $ 2,453 | ||||||
Warrants Issued in Debt Restructuring [Member] | ||||||||
Warrants and Rights Outstanding, Term (Year) | 10 years | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 22,250,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.01 | |||||||
Common Stock [Member] | ||||||||
Stock Issued During Period, Shares, Issued for Debt Restructuring (in shares) | 9,000,000 | |||||||
Senior Notes [Member] | Post-modification Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 85,900 | |||||||
Senior Notes [Member] | The 2017 Notes [Member] | ||||||||
Percentage of of Excess Cash Flow Each Year to Noteholders | 50.00% | |||||||
Debt Instrument, Redemption Notice, Number Of Days (Day) | 30 days | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.00% | |||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | $ 2,600 | |||||||
Debt Instrument, Aggregate Amount Due | $ 400 | |||||||
Payments Against Future Quarterly Interest Payments | $ 2,200 | |||||||
Amortization of Debt Discount (Premium) | $ 900 | |||||||
Interest Payable | $ 500 | |||||||
Senior Notes [Member] | The 2017 Notes [Member] | Forecast [Member] | ||||||||
Debt Instrument, Interest Rate During Period | 10.00% | 1.00% | 2.00% |
Note 5 - Borrowings - Schedule
Note 5 - Borrowings - Schedule of Debt (Details) - The 2017 Notes [Member] - Senior Notes [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Principal balance | $ 85,938 | $ 85,938 |
Unamortized debt premium | 6,713 | 4,177 |
Total, 2017 Notes | $ 92,651 | $ 90,115 |
Note 6 - Commitments and Cont_2
Note 6 - Commitments and Contingencies (Details Textual) $ in Billions | Dec. 31, 2007USD ($) |
Claims to Repurchase Securitized Loans [Member] | |
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | $ 43.1 |
Note 7 - Fair Value Accountin_2
Note 7 - Fair Value Accounting (Details Textual) - USD ($) $ in Thousands | Jan. 01, 2029 | Jan. 01, 2024 | Sep. 30, 2021 | Dec. 31, 2020 | Apr. 01, 2019 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||||
Debt Securities, Available-for-sale, Total | $ 0 | ||||
Senior Notes [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||
Senior Notes [Member] | Forecast [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 2.00% |
Note 7 - Fair Value Accountin_3
Note 7 - Fair Value Accounting - Carrying Values and Fair Values of Financial Instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Reported Value Measurement [Member] | ||
2017 Notes (Level 3) | $ 92,651 | $ 90,115 |
Estimate of Fair Value Measurement [Member] | ||
2017 Notes (Level 3) | $ 13,632 | $ 11,365 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) Pure in Thousands, $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 169.6 | $ 168.8 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | |
Operating Loss Carryforwards, Total | $ 732.1 | |
Operating Loss Carryforwards, Mortgage Securities | 250.3 | |
Operating Loss Carryforwards with No Expiration | $ 97 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2025 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2024 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 |