Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001593548 | |
Entity Registrant Name | PLAYAGS, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38357 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 46-3698600 | |
Entity Address, Address Line One | 5475 S. Decatur Blvd., Ste #100 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 722-6700 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | AGS | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 35,765,771 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 113,200 | $ 13,162 |
Restricted cash | 20 | 20 |
Accounts receivable, net of allowance of $1,961 and $723, respectively | 39,673 | 61,224 |
Inventories | 30,435 | 32,875 |
Prepaid expenses | 4,401 | 2,983 |
Deposits and other | 4,371 | 5,332 |
Total current assets | 192,100 | 115,596 |
Property and equipment, net | 79,234 | 103,598 |
Goodwill | 284,206 | 287,049 |
Intangible assets | 196,126 | 230,451 |
Deferred tax asset | 4,048 | 4,965 |
Operating lease assets | 10,143 | 11,543 |
Other assets | 12,101 | 9,176 |
Total assets | 777,958 | 762,378 |
Current liabilities | ||
Accounts payable | 4,682 | 15,598 |
Accrued liabilities | 28,055 | 34,840 |
Current maturities of long-term debt | 7,061 | 6,038 |
Total current liabilities | 39,798 | 56,476 |
Long-term debt | 632,232 | 518,689 |
Deferred tax liability, non-current | 1,139 | 1,836 |
Operating lease liabilities, long-term | 9,926 | 11,284 |
Other long-term liabilities | 31,048 | 40,309 |
Total liabilities | 714,143 | 628,594 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Preferred stock at $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock at $0.01 par value; 450,000,000 shares authorized at September 30, 2020 and at December 31, 2019; and 35,697,583 and 35,534,558 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively. | 357 | 355 |
Additional paid-in capital | 376,193 | 371,311 |
Accumulated deficit | (304,093) | (235,474) |
Accumulated other comprehensive loss | (8,642) | (2,408) |
Total stockholders’ equity | 63,815 | 133,784 |
Total liabilities and stockholders’ equity | $ 777,958 | $ 762,378 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance | $ 1,961 | $ 723 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 35,697,583 | 35,534,558 |
Common stock, shares outstanding (in shares) | 35,697,583 | 35,534,558 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues | |||||
Total revenues | $ 49,284 | $ 79,377 | $ 120,385 | $ 226,928 | |
Operating expenses | |||||
Selling, general and administrative | 10,862 | 16,861 | 31,111 | 46,343 | |
Research and development | 6,180 | 8,671 | 19,342 | 25,175 | |
Write-downs and other charges | 1,932 | 807 | 2,806 | 6,859 | |
Depreciation and amortization | 20,463 | 23,810 | 66,353 | 69,002 | |
Total operating expenses | 51,686 | 73,798 | 156,719 | 211,006 | |
(Loss) income from operations | (2,402) | 5,579 | (36,334) | 15,922 | |
Other expense | |||||
Interest expense | 11,330 | 9,320 | 30,566 | 27,754 | |
Interest income | (671) | (42) | (843) | (112) | |
Loss on extinguishment and modification of debt | 0 | 0 | 3,102 | 0 | |
Other expense | (311) | (106) | 3,993 | 5,108 | |
(Loss) income before income taxes | (12,750) | (3,593) | (73,152) | (16,828) | |
Income tax (expense) benefit | 1,672 | (1,926) | 5,016 | 3,884 | |
Net (loss) income | (11,078) | (5,519) | (68,136) | (12,944) | |
Less: Net income attributable to non-controlling interests | 0 | (17) | 0 | (231) | |
Net (loss) income attributable to PlayAGS, Inc. | (11,078) | (5,536) | (68,136) | (13,175) | |
Foreign currency translation adjustment | 1,375 | (1,273) | (6,234) | (403) | |
Total comprehensive (loss) income | $ (9,703) | $ (6,809) | $ (74,370) | $ (13,578) | |
Basic and diluted loss per common share: | |||||
Basic (in dollars per share) | $ (0.31) | $ (0.16) | $ (1.91) | $ (0.37) | |
Diluted (in dollars per share) | $ (0.31) | $ (0.16) | $ (1.91) | $ (0.37) | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 35,647 | 35,447 | 35,598 | 35,416 | |
Diluted (in shares) | 35,647 | 35,447 | 35,598 | 35,416 | |
Gaming Operations [Member] | |||||
Revenues | |||||
Total revenues | $ 36,299 | $ 52,522 | $ 89,173 | $ 158,976 | |
Operating expenses | |||||
Cost of goods and services sold | [1] | 8,268 | 10,170 | 23,756 | 30,721 |
Equipment Sales [Member] | |||||
Revenues | |||||
Total revenues | 12,985 | 26,855 | 31,212 | 67,952 | |
Operating expenses | |||||
Cost of goods and services sold | [1] | $ 3,981 | $ 13,479 | $ 13,351 | $ 32,906 |
[1] | exclusive of depreciation and amortization |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 353 | $ 361,628 | $ (222,403) | $ (3,774) | $ 0 | |
Stock option exercises | 1 | 684 | ||||
Repurchase of common stock | (1) | (1,000) | ||||
Vesting of restricted stock | 1 | (1) | ||||
Stock-based compensation expense | 5,309 | |||||
Net loss attributable to PlayAGS, Inc. | (13,175) | $ (13,175) | ||||
Restricted stock vesting and withholding | (132) | |||||
Foreign currency translation adjustment | (403) | (403) | ||||
Net income | 231 | 231 | ||||
Business acquisitions | 71 | |||||
Cash distributions to non-controlling interest owners | (302) | |||||
Balance at Sep. 30, 2019 | 354 | 367,620 | (236,710) | (4,177) | 0 | 127,087 |
Balance at Jun. 30, 2019 | 354 | 365,562 | (230,042) | (2,904) | 128 | |
Stock option exercises | 1 | 100 | ||||
Repurchase of common stock | (1) | (1,000) | ||||
Vesting of restricted stock | 0 | (1) | ||||
Stock-based compensation expense | 1,959 | |||||
Net loss attributable to PlayAGS, Inc. | (5,536) | (5,536) | ||||
Restricted stock vesting and withholding | (132) | |||||
Foreign currency translation adjustment | (1,273) | (1,273) | ||||
Net income | 17 | 17 | ||||
Business acquisitions | 0 | |||||
Cash distributions to non-controlling interest owners | (145) | |||||
Balance at Sep. 30, 2019 | 354 | 367,620 | (236,710) | (4,177) | 0 | 127,087 |
Balance at Dec. 31, 2019 | 355 | 371,311 | (235,474) | (2,408) | 0 | |
Stock option exercises | 0 | 158 | ||||
Repurchase of common stock | 0 | 0 | ||||
Vesting of restricted stock | 2 | (2) | ||||
Stock-based compensation expense | 4,726 | |||||
Net loss attributable to PlayAGS, Inc. | (68,136) | (68,136) | ||||
Restricted stock vesting and withholding | (483) | |||||
Foreign currency translation adjustment | (6,234) | (6,234) | ||||
Net income | 0 | 0 | ||||
Business acquisitions | 0 | |||||
Cash distributions to non-controlling interest owners | 0 | |||||
Balance at Sep. 30, 2020 | 357 | 376,193 | (304,093) | (8,642) | 0 | 63,815 |
Balance at Jun. 30, 2020 | 356 | 374,461 | (292,892) | (10,017) | 0 | |
Stock option exercises | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Vesting of restricted stock | 1 | (1) | ||||
Stock-based compensation expense | 1,733 | |||||
Net loss attributable to PlayAGS, Inc. | (11,078) | (11,078) | ||||
Restricted stock vesting and withholding | (123) | |||||
Foreign currency translation adjustment | 1,375 | 1,375 | ||||
Net income | 0 | 0 | ||||
Business acquisitions | 0 | |||||
Cash distributions to non-controlling interest owners | 0 | |||||
Balance at Sep. 30, 2020 | $ 357 | $ 376,193 | $ (304,093) | $ (8,642) | $ 0 | $ 63,815 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash flows from operating activities | |||
Net (loss) income | $ (68,136) | $ (12,944) | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 66,353 | 69,002 | |
Accretion of contract rights under development agreements and placement fees | [1] | 5,643 | 4,550 |
Amortization of deferred loan costs and discount | 2,538 | 1,426 | |
Stock-based compensation expense | 4,726 | 5,309 | |
Provision (benefit) for bad debts | 1,133 | 183 | |
Loss on disposition of long-lived assets | 2,004 | 1,015 | |
Impairment of assets | 6 | 5,343 | |
Fair value adjustment of contingent consideration | 796 | 501 | |
Benefit for deferred income tax | (518) | 873 | |
Changes in assets and liabilities that relate to operations: | |||
Accounts receivable | 19,391 | (12,136) | |
Inventories | 5,840 | 961 | |
Prepaid expenses | (1,463) | (1,098) | |
Deposits and other | 667 | (3,081) | |
Other assets, non-current | 1,955 | 9,024 | |
Accounts payable and accrued liabilities | (21,216) | (6,447) | |
Net cash provided by operating activities | 19,719 | 62,481 | |
Cash flows from investing activities | |||
Customer notes receivable | (4,690) | 0 | |
Proceeds from payments on customer notes receivable | 279 | 0 | |
Business acquisitions, net of cash acquired | 0 | (54,935) | |
Purchase of intangible assets | (1,414) | (4,926) | |
Software development and other expenditures | (8,004) | (9,957) | |
Proceeds from disposition of assets | 32 | 161 | |
Purchases of property and equipment | (12,196) | (38,760) | |
Net cash used in investing activities | (25,993) | (108,417) | |
Cash flows from financing activities | |||
Payment of financed placement fee obligations | (4,179) | (6,058) | |
Proceeds from incremental term loans | 92,150 | 0 | |
Borrowing on revolver | 30,000 | 0 | |
Payment of deferred loan costs | (5,744) | 0 | |
Payments of previous acquisition obligation | (292) | (1,227) | |
Payments on finance leases and other obligations | (1,012) | (1,043) | |
Repurchase of stock | (483) | (1,133) | |
Proceeds from stock option exercise | 158 | 685 | |
Distributions to non-controlling interest owners | 0 | (302) | |
Net cash provided by (used in) financing activities | 106,320 | (13,118) | |
Effect of exchange rates on cash and cash equivalents | (8) | 3 | |
Net increase (decrease) in cash and cash equivalents | 100,038 | (59,051) | |
Cash, cash equivalents and restricted cash, beginning of period | 13,182 | 70,804 | |
Cash, cash equivalents and restricted cash, end of period | 113,220 | 11,753 | |
Non-cash investing and financing activities: | |||
Intangible assets obtained under financed placement fee arrangements | 0 | 39,198 | |
Leased assets obtained in exchange for new finance lease liabilities | 426 | 882 | |
Leased assets obtained in exchange for new operating lease liabilities | 0 | 13,048 | |
First Lien Credit Facilities [Member] | |||
Cash flows from financing activities | |||
Repayment of long-term debt | (4,040) | (4,040) | |
Incremental Term Loans [Member] | |||
Cash flows from financing activities | |||
Repayment of long-term debt | $ (238) | $ 0 | |
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1. Description of Business PlayAGS, Inc. (the "Company," "PlayAGS," "we," "us," or "our") is a leading designer and supplier of gaming products and services for the gaming industry. We operate in legalized gaming markets across the globe and provide state-of-the-art, value-add products in three Dex S The Company filed a Registration Statement on Form 10 December 19, 2013, 1934, December 19, 2013. January 30, 2018, February 27, 2018, Electronic Gaming Machines Our EGM segment offers a selection of video slot titles developed for the global marketplace, and EGM cabinets which include the Alora Orion Portrait, Orion Curve, Orion Rise, Orion Upright, ICON, Big Red (“Colossal Diamonds”) Orion Slant Table Products Our Table Products include proprietary table products, side-bets, progressives, and table technology related to blackjack, poker, baccarat, craps and roulette. We have a number of popular proprietary brands, including In Bet Gaming (“In Bet”), Buster Blackjack, Double Draw Poker Criss Cross Poker Dex S second Pax S 2020. Interactive We operate a Business-to-Business ( "B2B" “B2C” B2C Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures required by generally accepted accounting principles (“GAAP”) are omitted or condensed in these condensed consolidated financial statements. In the opinion of Management, all adjustments (consisting of only normal recurring adjustments) that are necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not 10 December 31, 2019 Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may nine September 30, 2020 19” may Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 EGM Gaming operations $ 32,188 $ 48,854 $ 78,608 $ 148,515 Equipment sales 12,893 26,445 30,785 67,417 Total $ 45,081 $ 75,299 $ 109,393 $ 215,932 Table Products Gaming operations $ 2,170 $ 2,451 $ 4,991 $ 6,902 Equipment sales 92 410 427 535 Total $ 2,262 $ 2,861 $ 5,418 $ 7,437 Interactive (gaming operations) Social gaming revenue $ 829 $ 712 $ 2,746 $ 2,606 Real-money gaming revenue 1,112 505 2,828 953 Total $ 1,941 $ 1,217 $ 5,574 $ 3,559 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to any undelivered performance obligations is recorded as a contract liability. The balance of our contract liabilities was not September 30, 2020 December 31, 2019 Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns adjusted for current economic conditions, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. A large percentage of receivables are with Native American tribes and the Company has concentrations of credit risk with several tribes. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. Allowance for Expected Credit Losses Management not not The following table excludes receivables related to operating leases and presents all other receivables' gross amortized cost, allowance for credit losses and amortized cost, net of allowance for credit losses by portfolio segment as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 9,986 $ - $ 9,986 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,843 - $ 7,843 N/A N/A N/A Originated in 2019 Accounts Receivable 1,504 - 1,504 5,461 - 5,461 Total receivables with extended payment term $ 9,347 $ - $ 9,347 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 1,714 (86 ) $ 1,628 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 9 - 9 52 (3 ) 49 Total Sales-type leases receivables $ 1,723 $ (86 ) $ 1,637 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 2,510 - $ 2,510 N/A N/A N/A Originated in 2019 Deposits and other 4,633 - 4,633 2,359 - 2,359 Total Development Agreements $ 7,143 $ - $ 7,143 $ 2,359 $ - $ 2,359 Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 no September 30, 2020 December 31, 2019 Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The computer software we develop reaches technological feasibility when a working model of the computer software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed computer software to the net realizable value on a title or group of titles basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar issues (Level 2 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 654,267 $ 593,144 $ 533,727 $ 534,578 Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may In March 2020, 19 748, not Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from Management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of other accumulated other comprehensive loss in stockholders’ equity. Liquidity and Financing and COVID- 19 Due to the business disruption caused by the rapid nationwide spread of the novel coronavirus and the actions by state and tribal governments and businesses to contain the virus, almost all of the Company’s customers closed their operations during the month of March April 2020 May 2020 September, September 30, 2020 September 30, 2020 10%. 50%. As of September 30, 2020 6 first 1.0. May 1, 2020, No. 4 No.4" June 30, 2020, September 30, 2020 December 31, 2020 May 1, 2020, December 31, 2021 ( first three 2021 No. 4, twelve twelve No. 4, 6 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 September 30, 2020 twelve Recently Issued Accounting Pronouncements In June 2016, No. 2016 13, Financial Instruments - Credit Losses (Topic 326 November 2018 No. 2018 19, not 326 20, 842. May 2019, No. 2019 05 326. December 15, 2019, first 326 not January 1, 2020 326 not no In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 December 15, 2019, January 1, 2020. not no We do not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 2. In Bet Gaming II During the quarter ended September 30, 2019, |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3. Property and equipment consist of the following (in thousands): September 30, 2020 December 31, 2019 Gaming equipment $ 172,545 $ 175,837 Other property and equipment 23,500 23,210 Less: Accumulated depreciation (116,811 ) (95,449 ) Property and equipment, net $ 79,234 $ 103,598 Gaming equipment and other property and equipment are depreciated over the respective useful lives of the assets ranging from two six three September 30, 2020 2019 nine September 30, 2020 2019 |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 4. Changes in the carrying amount of goodwill are as follows (in thousands): Gross Carrying Amount EGM Table Products Interactive(1) Total December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 Foreign currency adjustments (2,843 ) - - (2,843 ) Balance at September 30, 2020 $ 276,385 $ 7,821 $ - $ 284,206 ( 1 September 30, 2020 During the first 2020 1” March 31, 2020 two no Based on our quantitative analysis, the fair value was 34% greater than the carrying value for the EGM reporting unit and 21% greater for the Table Products reporting unit. As of October 1, 2019 ( 19 19 19 October 1, 2019, second third 2020, no not September 30, 2020 19 not may Intangible assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying (years) Value Amortization Value Value Amortization Value Indefinite lived trade names Indefinite $ 12,126 $ - $ 12,126 $ 12,126 $ - $ 12,126 Trade and brand names 5 - 7 14,870 (14,212 ) 658 14,870 (13,209 ) 1,661 Customer relationships 5 - 12 217,131 (136,189 ) 80,942 219,788 (120,384 ) 99,404 Contract rights under development and placement fees 1 - 7 47,012 (13,810 ) 33,202 48,180 (8,888 ) 39,292 Gaming software and technology platforms 1 - 7 169,347 (110,520 ) 58,827 162,391 (96,193 ) 66,198 Intellectual property 10 - 12 19,345 (8,974 ) 10,371 19,345 (7,575 ) 11,770 $ 479,831 $ (283,705 ) $ 196,126 $ 476,700 $ (246,249 ) $ 230,451 Intangible assets are amortized over their respective estimated useful lives ranging from one twelve three September 30, 2020 2019 nine September 30, 2020 2019 Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not September 30, 2020 September 30, 2019 September 30, 2019 The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not not three September 30, 2020 2019 nine September 30, 2020 2019 |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 5. Accrued liabilities consist of the following (in thousands): September 30, 2020 December 31, 2019 Salary and payroll tax accrual $ 5,149 $ 8,691 Taxes payable 3,818 4,151 Current portion of operating lease liability 1,964 2,175 License fee obligation 1,000 1,000 Placement fees payable 7,892 8,346 Accrued other 8,232 10,477 Total accrued liabilities $ 28,055 $ 34,840 |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 6. Long-term debt consists of the following (in thousands): September 30, 2020 December 31, 2019 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (4.5% at September 30, 2020), net of unamortized discount and deferred loan costs of $7.0 million and $9.0 million at September 30, 2020 and December 31, 2019, respectively. $ 520,996 $ 522,990 Incremental term loans, interest at LIBOR or base rate plus 13.0% (14.0% at September 30, 2020), net of unamortized discount and deferred loan costs of $8.0 million at September 30, 2020. $ 86,742 $ - Revolving credit facility, interest at LIBOR or base rate plus 3.5% (3.8% at September 30, 2020) 30,000 - Finance leases 1,555 1,737 Total debt 639,293 524,727 Less: Current portion (7,061 ) (6,038 ) Long-term debt $ 632,232 $ 518,689 First Lien Credit Facilities On June 6, 2017 ( first March 19, 2020 19 October 2020 February 15, 2024, June 6, 2022. On December 6, 2017, “December December An additional $1.0 million in loan costs were incurred related to the issuance of the December third On February 8, 2018, On February 8, 2018, third On October 5, 2018, No. 2 No. 2” No. 2 June 6, 2017, December 6, 2017 February 8, 2018 ( B1 On October 5, 2018, third On August 30, 2019, No. 3 On May 1, 2020 No. 4 No. 4” 1 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 An additional $11.7 million in loan costs including original issue discount, lender fees, and third No. 4. third As of September 30, 2020 1 19” Finance Leases The Company has entered into leases for vehicles and equipment that are accounted for as finance leases. |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7. Our amended and restated articles of incorporation provide that our authorized capital stock will consist of 450,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of preferred stock, par value $0.01 per share. As of September 30, 2020 zero Common Stock Voting Rights. one not Dividend and Distribution Rights All shares of our common stock are entitled to share equally in any dividends and distributions our board of directors may Share repurchase program 2019, August 11, 2021. |
Note 8 - Write-downs and Other
Note 8 - Write-downs and Other Charges | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 8. The Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income include various transactions, such as loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration that have been classified as write-downs and other charges. During the three September 30, 2020 , the Company recognized $1.9 million in write-downs and other charges primarily related to the write-off of placement fee intangible assets associated with the sale of previously leased EGMs to distributors in the period. During the nine September 30, 2020 (the Company used level 3 During the three September 30, 2019 3 3 During the nine September 30, 2019 3 3 |
Note 9 - Basic and Diluted (Los
Note 9 - Basic and Diluted (Loss) Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 9. The Company computes net (loss) income per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income. Basic EPS is computed by dividing net (loss) income for the period by the weighted average number of shares outstanding during the period. Basic EPS includes common stock weighted for average number of shares issued during the period. Diluted EPS is computed by dividing net (loss) income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. Potentially dilutive common shares include stock options and restricted stock (see Note 11 There were no potentially dilutive securities for the three nine September 30, 2020 Excluded from the calculation of diluted EPS for the three September 30, 2020 nine September 30, 2020 Excluded from the calculation of diluted EPS for the three September 30, 2019 nine September 30, 2019 |
Note 10 - Benefit Plans
Note 10 - Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 10. The Company has established a 401 “401 401 may April 2020, 401 401 three September 30, 2020 401 three September 2019, 401 nine September 30, 2020 2019, On April 28, 2014, 2014 ten may 1 January 30, 2018 September 30, 2020 not On January 16, 2018, 2018 may |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 11. The Company has granted equity or equity-based awards to eligible participants under its incentive plans. The awards include options to purchase the Company’s common stock, restricted stock or restricted stock units and phantom stock units. These awards include a combination of service and market conditions, as further described below. For the three September 30, 2020 nine September 30, 2020 three September 30, 2019 nine September 30, 2019 We recognize stock-based compensation on a straight-line basis over the vesting period for time-based awards and we recognize the expense for awards with market conditions over the service period derived from the related valuation. As of September 30, 2020 1.4, 2.3 2.5 The Company calculates the grant date fair value of stock options that vest over a service period using the Black Scholes model. For stock options and other stock awards that contain a market condition related to the return on investment that the Company’s stockholders achieve or obtaining a certain stock price, the awards are valued using a lattice-based valuation model. The assumptions used in these calculations are the expected dividend yield, expected volatility, risk-free interest rate and expected term (in years). Expected volatilities are based on implied volatilities from comparable companies. The expected time to liquidity is based on Management’s estimate. The risk-free rate is based on the U.S. Treasury yield curve for a term equivalent to the estimated time to liquidity. There were no options granted during the three nine September 30, 2020 Stock Options Stock option awards represent options to purchase common stock and are granted pursuant to the Company’s incentive plans, and include options that the Company primarily classifies as Tranche A or time based, Tranche B and Tranche C. Tranche A or time-based options are eligible to vest in equal installments of 20% or 25% on each of the first five four not All other option awards are eligible to vest upon the satisfaction of certain performance conditions (collectively, “Performance Options”). These performance conditions included the achievement of investor returns or common stock trading prices. These performance conditions were achieved in October 2018 A summary of the changes in stock options outstanding during the nine September 30, 2020 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Granted - - - - Exercised (15,544 ) $ 10.15 Canceled or forfeited (74,607 ) $ 7.28 Options outstanding as of September 30, 2020 1,292,835 $ 9.19 4.69 $ - Options exercisable as of September 30, 2020 1,223,019 $ 8.84 4.57 $ - Restricted Stock and Restricted Stock Units Restricted stock awards and restricted stock units are typically eligible to vest in equal installments of 25% on each of the first four 12 Certain restricted stock units are eligible to vest upon the satisfaction of certain performance conditions. Vesting occurs on the first 60 A summary of the changes in restricted stock outstanding during the nine September 30, 2020 Shares Outstanding Grant Date Fair Value (per share) Restricted Stock Outstanding as of December 31, 2019 712,496 $ 23.66 Granted 1,342,322 $ 3.98 Vested (217,668 ) $ 18.62 Canceled or forfeited (34,225 ) $ 23.84 Restricted stock outstanding as of September 30, 2020 1,802,925 $ 9.61 Phantom Stock Units Phantom stock awards are typically eligible to vest in equal installments of 25% on each of the first four 12 first third fourth may A summary of the changes in phantom stock outstanding during the nine September 30, 2020 Shares Outstanding Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2019 - $ - Granted 616,224 $ 3.94 Vested - $ - Canceled or forfeited - $ - Phantom stock outstanding as of September 30, 2020 616,224 $ 3.94 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 12. The Company's effective income tax rate for the three September 30, 2020 three September 30, 2019 three September 30, 2019 three September 30, 2019 The Company's effective income tax rate for the nine September 30, 2020 nine September 30, 2020 nine September 30, 2019 nine September 30, 2019 The Company entered into an indemnification agreement with the prior owners of Cadillac Jack (acquired in May 2015 September 30, 2020 During the three September 30, 2020 nine September 30, 2020 three nine September 30, 2019 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13. The Company is subject to federal, state and Native American laws and regulations that affect both its general commercial relationships with its customers, as well as the products and services provided to them. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. If a potential loss from any claim or legal proceeding is considered reasonably possible, the Company discloses an estimate of the possible loss or range of possible loss, or a statement that such an estimate cannot be made. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to their pending claims and litigation and may During the three September 30, 2019 On June 25, 2020, No. 20 1209, August 2, 2018 August 7, 2019. second 2019 August 7, 2019. 10 20 1934. no On July 31, 2020, second Chowdhury No. 20 1428. Chowdhury 10 20 1934. no On August 4, 2020, third Chowdhury Miller No. 20 1443. 50% 10 20 1934 second 2019 August 7, 2019. Chowdhury Miller, May 3, 2018 August 7, 2019. 11, 12 2 15 1933, August 2018 March 2019 no These three |
Note 14 - Operating Segments
Note 14 - Operating Segments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 14. We report our business segment results by segment in accordance with the “management approach.” The Management approach designates the internal reporting used by our chief operating decision maker (“CODM”), who is our Chief Executive Officer (the “CEO”), for making decisions and assessing performance of our reportable segments. See Note 1 three Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment adjusted EBITDA includes the revenues and operating expenses from each segment adjusted for depreciation, amortization, write-downs and other charges, accretion of placement fees, non-cash stock based compensation expense, as well as other costs such as certain acquisitions and integration-related costs including restructuring and severance charges; initial public offering and secondary offerings costs; legal and litigation expenses including settlement payments; new jurisdictions and regulatory licensing costs; non-cash charges on capitalized installation and delivery; contract cancellation fees; and other adjustments primarily composed of professional fees incurred by the Company for projects, corporate and public filing compliance and other costs deemed to be non-recurring in nature. Revenues in each segment are attributable to third Segment adjusted EBITDA excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments. The following provides financial information concerning our reportable segments for the three nine September 30, 2020 2019 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues by segment EGM $ 45,081 $ 75,299 $ 109,393 $ 215,932 Table Products 2,262 2,861 5,418 7,437 Interactive 1,941 1,217 5,574 3,559 Total Revenues 49,284 79,377 $ 120,385 $ 226,928 Adjusted EBITDA by segment EGM 25,000 35,825 46,181 108,088 Table Products 1,272 1,409 2,044 2,694 Interactive 750 (447 ) 2,145 (1,985 ) Subtotal 27,022 36,787 50,370 108,797 Write-downs and other: Loss on disposal of long-lived assets 1,930 570 2,004 1,015 Impairment of long-lived assets - 136 6 5,343 Fair value adjustments to contingent consideration and other items 2 101 796 501 Depreciation and amortization 20,463 23,810 66,353 69,002 Accretion of placement fees (1) 1,910 1,747 5,643 4,550 Non-cash stock-based compensation expense 1,733 1,959 4,726 5,309 Acquisitions and integration-related costs including restructuring and severance 79 481 311 2,944 Initial public offering costs and secondary offering - (11 ) - 414 Legal and litigation expenses including settlement payments 389 1,745 389 1,748 Non-cash charge on capitalized installation and delivery 505 679 1,824 1,991 Other adjustments 2,413 (9 ) 4,652 58 Interest expense 11,330 9,320 30,566 27,754 Interest (income) (671 ) (42 ) (843 ) (112 ) Loss on extinguishment and modification of debt - - 3,102 - Other expense (311 ) (106 ) 3,993 5,108 (Loss) income before income taxes $ (12,750 ) $ (3,593 ) $ (73,152 ) $ (16,828 ) ( 1 The Company’s CODM does not not not two not not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may nine September 30, 2020 19” may |
Revenue [Policy Text Block] | Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 EGM Gaming operations $ 32,188 $ 48,854 $ 78,608 $ 148,515 Equipment sales 12,893 26,445 30,785 67,417 Total $ 45,081 $ 75,299 $ 109,393 $ 215,932 Table Products Gaming operations $ 2,170 $ 2,451 $ 4,991 $ 6,902 Equipment sales 92 410 427 535 Total $ 2,262 $ 2,861 $ 5,418 $ 7,437 Interactive (gaming operations) Social gaming revenue $ 829 $ 712 $ 2,746 $ 2,606 Real-money gaming revenue 1,112 505 2,828 953 Total $ 1,941 $ 1,217 $ 5,574 $ 3,559 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to any undelivered performance obligations is recorded as a contract liability. The balance of our contract liabilities was not September 30, 2020 December 31, 2019 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns adjusted for current economic conditions, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. A large percentage of receivables are with Native American tribes and the Company has concentrations of credit risk with several tribes. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. Allowance for Expected Credit Losses Management not not The following table excludes receivables related to operating leases and presents all other receivables' gross amortized cost, allowance for credit losses and amortized cost, net of allowance for credit losses by portfolio segment as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 9,986 $ - $ 9,986 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,843 - $ 7,843 N/A N/A N/A Originated in 2019 Accounts Receivable 1,504 - 1,504 5,461 - 5,461 Total receivables with extended payment term $ 9,347 $ - $ 9,347 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 1,714 (86 ) $ 1,628 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 9 - 9 52 (3 ) 49 Total Sales-type leases receivables $ 1,723 $ (86 ) $ 1,637 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 2,510 - $ 2,510 N/A N/A N/A Originated in 2019 Deposits and other 4,633 - 4,633 2,359 - 2,359 Total Development Agreements $ 7,143 $ - $ 7,143 $ 2,359 $ - $ 2,359 |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 no September 30, 2020 December 31, 2019 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not |
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The computer software we develop reaches technological feasibility when a working model of the computer software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed computer software to the net realizable value on a title or group of titles basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may |
Business Combinations Policy [Policy Text Block] | Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar issues (Level 2 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 654,267 $ 593,144 $ 533,727 $ 534,578 |
Income Tax, Policy [Policy Text Block] | Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may In March 2020, 19 748, not |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from Management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of other accumulated other comprehensive loss in stockholders’ equity. |
Liquidity and Financing [Policy Text Block] | Liquidity and Financing and COVID- 19 Due to the business disruption caused by the rapid nationwide spread of the novel coronavirus and the actions by state and tribal governments and businesses to contain the virus, almost all of the Company’s customers closed their operations during the month of March April 2020 May 2020 September, September 30, 2020 September 30, 2020 10%. 50%. As of September 30, 2020 6 first 1.0. May 1, 2020, No. 4 No.4" June 30, 2020, September 30, 2020 December 31, 2020 May 1, 2020, December 31, 2021 ( first three 2021 No. 4, twelve twelve No. 4, 6 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 September 30, 2020 twelve |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In June 2016, No. 2016 13, Financial Instruments - Credit Losses (Topic 326 November 2018 No. 2018 19, not 326 20, 842. May 2019, No. 2019 05 326. December 15, 2019, first 326 not January 1, 2020 326 not no In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 December 15, 2019, January 1, 2020. not no We do not |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 EGM Gaming operations $ 32,188 $ 48,854 $ 78,608 $ 148,515 Equipment sales 12,893 26,445 30,785 67,417 Total $ 45,081 $ 75,299 $ 109,393 $ 215,932 Table Products Gaming operations $ 2,170 $ 2,451 $ 4,991 $ 6,902 Equipment sales 92 410 427 535 Total $ 2,262 $ 2,861 $ 5,418 $ 7,437 Interactive (gaming operations) Social gaming revenue $ 829 $ 712 $ 2,746 $ 2,606 Real-money gaming revenue 1,112 505 2,828 953 Total $ 1,941 $ 1,217 $ 5,574 $ 3,559 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 9,986 $ - $ 9,986 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,843 - $ 7,843 N/A N/A N/A Originated in 2019 Accounts Receivable 1,504 - 1,504 5,461 - 5,461 Total receivables with extended payment term $ 9,347 $ - $ 9,347 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 1,714 (86 ) $ 1,628 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 9 - 9 52 (3 ) 49 Total Sales-type leases receivables $ 1,723 $ (86 ) $ 1,637 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 2,510 - $ 2,510 N/A N/A N/A Originated in 2019 Deposits and other 4,633 - 4,633 2,359 - 2,359 Total Development Agreements $ 7,143 $ - $ 7,143 $ 2,359 $ - $ 2,359 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 654,267 $ 593,144 $ 533,727 $ 534,578 |
Note 3 - Property and Equipme_2
Note 3 - Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2020 December 31, 2019 Gaming equipment $ 172,545 $ 175,837 Other property and equipment 23,500 23,210 Less: Accumulated depreciation (116,811 ) (95,449 ) Property and equipment, net $ 79,234 $ 103,598 |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount EGM Table Products Interactive(1) Total December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 Foreign currency adjustments (2,843 ) - - (2,843 ) Balance at September 30, 2020 $ 276,385 $ 7,821 $ - $ 284,206 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | September 30, 2020 December 31, 2019 Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying (years) Value Amortization Value Value Amortization Value Indefinite lived trade names Indefinite $ 12,126 $ - $ 12,126 $ 12,126 $ - $ 12,126 Trade and brand names 5 - 7 14,870 (14,212 ) 658 14,870 (13,209 ) 1,661 Customer relationships 5 - 12 217,131 (136,189 ) 80,942 219,788 (120,384 ) 99,404 Contract rights under development and placement fees 1 - 7 47,012 (13,810 ) 33,202 48,180 (8,888 ) 39,292 Gaming software and technology platforms 1 - 7 169,347 (110,520 ) 58,827 162,391 (96,193 ) 66,198 Intellectual property 10 - 12 19,345 (8,974 ) 10,371 19,345 (7,575 ) 11,770 $ 479,831 $ (283,705 ) $ 196,126 $ 476,700 $ (246,249 ) $ 230,451 |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | September 30, 2020 December 31, 2019 Salary and payroll tax accrual $ 5,149 $ 8,691 Taxes payable 3,818 4,151 Current portion of operating lease liability 1,964 2,175 License fee obligation 1,000 1,000 Placement fees payable 7,892 8,346 Accrued other 8,232 10,477 Total accrued liabilities $ 28,055 $ 34,840 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2020 December 31, 2019 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (4.5% at September 30, 2020), net of unamortized discount and deferred loan costs of $7.0 million and $9.0 million at September 30, 2020 and December 31, 2019, respectively. $ 520,996 $ 522,990 Incremental term loans, interest at LIBOR or base rate plus 13.0% (14.0% at September 30, 2020), net of unamortized discount and deferred loan costs of $8.0 million at September 30, 2020. $ 86,742 $ - Revolving credit facility, interest at LIBOR or base rate plus 3.5% (3.8% at September 30, 2020) 30,000 - Finance leases 1,555 1,737 Total debt 639,293 524,727 Less: Current portion (7,061 ) (6,038 ) Long-term debt $ 632,232 $ 518,689 |
Note 11 - Stock-based Compens_2
Note 11 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Granted - - - - Exercised (15,544 ) $ 10.15 Canceled or forfeited (74,607 ) $ 7.28 Options outstanding as of September 30, 2020 1,292,835 $ 9.19 4.69 $ - Options exercisable as of September 30, 2020 1,223,019 $ 8.84 4.57 $ - |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Restricted Stock Outstanding as of December 31, 2019 712,496 $ 23.66 Granted 1,342,322 $ 3.98 Vested (217,668 ) $ 18.62 Canceled or forfeited (34,225 ) $ 23.84 Restricted stock outstanding as of September 30, 2020 1,802,925 $ 9.61 |
Phantom Share Units (PSUs) [Member] | |
Notes Tables | |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2019 - $ - Granted 616,224 $ 3.94 Vested - $ - Canceled or forfeited - $ - Phantom stock outstanding as of September 30, 2020 616,224 $ 3.94 |
Note 14 - Operating Segments (T
Note 14 - Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues by segment EGM $ 45,081 $ 75,299 $ 109,393 $ 215,932 Table Products 2,262 2,861 5,418 7,437 Interactive 1,941 1,217 5,574 3,559 Total Revenues 49,284 79,377 $ 120,385 $ 226,928 Adjusted EBITDA by segment EGM 25,000 35,825 46,181 108,088 Table Products 1,272 1,409 2,044 2,694 Interactive 750 (447 ) 2,145 (1,985 ) Subtotal 27,022 36,787 50,370 108,797 Write-downs and other: Loss on disposal of long-lived assets 1,930 570 2,004 1,015 Impairment of long-lived assets - 136 6 5,343 Fair value adjustments to contingent consideration and other items 2 101 796 501 Depreciation and amortization 20,463 23,810 66,353 69,002 Accretion of placement fees (1) 1,910 1,747 5,643 4,550 Non-cash stock-based compensation expense 1,733 1,959 4,726 5,309 Acquisitions and integration-related costs including restructuring and severance 79 481 311 2,944 Initial public offering costs and secondary offering - (11 ) - 414 Legal and litigation expenses including settlement payments 389 1,745 389 1,748 Non-cash charge on capitalized installation and delivery 505 679 1,824 1,991 Other adjustments 2,413 (9 ) 4,652 58 Interest expense 11,330 9,320 30,566 27,754 Interest (income) (671 ) (42 ) (843 ) (112 ) Loss on extinguishment and modification of debt - - 3,102 - Other expense (311 ) (106 ) 3,993 5,108 (Loss) income before income taxes $ (12,750 ) $ (3,593 ) $ (73,152 ) $ (16,828 ) |
Note 1 - Description of the B_3
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | May 01, 2020USD ($) | Feb. 27, 2018shares | Jan. 30, 2018$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Number of Reportable Segments | 3 | ||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 1,537,500 | ||||
Inventory, Raw Materials, Gross, Total | $ 24,300 | $ 29,100 | |||
Inventory, Finished Goods, Gross, Total | 6,100 | 3,800 | |||
Inventory, Work in Process, Gross | 0 | 0 | |||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 113,200 | $ 13,162 | |||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | |||||
Debt Instrument, Covenant, Maximum Leverage Ration | 6 | ||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | |||||
Debt Instrument, Face Amount | $ 95,000 | ||||
Proceeds from Debt, Net of Issuance Costs | $ 83,300 | ||||
Debt Instrument, Refinancing, Payment Premium or Fee, Percentage | 1.00% | ||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 13.00% | ||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | Base Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 12.00% | ||||
Gaming Operations [Member] | Minimum [Member] | |||||
Lessor, Operating Lease, Term of Contract (Year) | 1 year | ||||
Gaming Operations [Member] | Maximum [Member] | |||||
Lessor, Operating Lease, Term of Contract (Year) | 3 years | ||||
IPO [Member] | |||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 10,250,000 | ||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 16 |
Note 1 - Description of the B_4
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenues | $ 49,284 | $ 79,377 | $ 120,385 | $ 226,928 |
Gaming Operations [Member] | ||||
Total revenues | 36,299 | 52,522 | 89,173 | 158,976 |
Equipment Sales [Member] | ||||
Total revenues | 12,985 | 26,855 | 31,212 | 67,952 |
EGM [Member] | ||||
Total revenues | 45,081 | 75,299 | 109,393 | 215,932 |
EGM [Member] | Gaming Operations [Member] | ||||
Total revenues | 32,188 | 48,854 | 78,608 | 148,515 |
EGM [Member] | Equipment Sales [Member] | ||||
Total revenues | 12,893 | 26,445 | 30,785 | 67,417 |
Table Products [Member] | ||||
Total revenues | 2,262 | 2,861 | 5,418 | 7,437 |
Table Products [Member] | Gaming Operations [Member] | ||||
Total revenues | 2,170 | 2,451 | 4,991 | 6,902 |
Table Products [Member] | Equipment Sales [Member] | ||||
Total revenues | 92 | 410 | 427 | 535 |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | 1,941 | 1,217 | 5,574 | 3,559 |
Interactive (Gaming Operations) [Member] | Social [Member] | ||||
Total revenues | 829 | 712 | 2,746 | 2,606 |
Interactive (Gaming Operations) [Member] | RMG [Member] | ||||
Total revenues | $ 1,112 | $ 505 | $ 2,828 | $ 953 |
Note 1 - Description of the B_5
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Trade Accounts Receivable [Member] | ||
Gross amortized cost | $ 9,986 | $ 22,741 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 9,986 | 22,741 |
Account Receivables with Extended Payment Term Originated in 2020 [Member] | ||
Gross amortized cost | 7,843 | |
Allowance for credit losses | 0 | |
Amortized cost, net of allowance for credit losses | 7,843 | |
Account Receivables with Extended Payment Term Originated in 2019 [Member] | ||
Gross amortized cost | 1,504 | 5,461 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 1,504 | 5,461 |
Account Receivables with Extended Payment Term [Member] | ||
Gross amortized cost | 9,347 | 5,461 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 9,347 | 5,461 |
Sales-type Leases Receivables Classified as Accounts Receivable Originated in 2019 [Member] | ||
Gross amortized cost | 1,714 | 2,206 |
Allowance for credit losses | (86) | (111) |
Amortized cost, net of allowance for credit losses | 1,628 | 2,095 |
Sales-type Leases Receivables Classified as Accounts Receivable Originated in 2017 [Member] | ||
Gross amortized cost | 9 | 52 |
Allowance for credit losses | 0 | (3) |
Amortized cost, net of allowance for credit losses | 9 | 49 |
Sales-type Leases Receivables Classified as Accounts Receivable [Member] | ||
Gross amortized cost | 1,723 | 2,258 |
Allowance for credit losses | (86) | (114) |
Amortized cost, net of allowance for credit losses | 1,637 | 2,144 |
Deposits and Other Originated in 2020 [Member] | ||
Gross amortized cost | 2,510 | |
Allowance for credit losses | 0 | |
Amortized cost, net of allowance for credit losses | 2,510 | |
Development Agreements Classified as Deposits and Other Originated in 2019 [Member] | ||
Gross amortized cost | 4,633 | 2,359 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 4,633 | 2,359 |
Development Agreements Classified as Deposits and Other [Member] | ||
Gross amortized cost | 7,143 | 2,359 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | $ 7,143 | $ 2,359 |
Note 1 - Description of the B_6
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Gaming Equipment [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Gaming Equipment [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 3 years |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Note 1 - Description of the B_7
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Estimated Fair Value of Long-term Debt (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
Long-term Debt, carrying amount | $ 654,267 | $ 533,727 |
Estimate of Fair Value Measurement [Member] | ||
Long-term Debt, fair value | $ 593,144 | $ 534,578 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - In Bet [Member] $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Business Combination, Consideration Transferred, Total | $ 4 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 2.8 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 9 years 3 months 18 days |
Note 3 - Property and Equipme_3
Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Depreciation, Total | $ 9.6 | $ 11.6 | $ 30.3 | $ 33.7 |
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 2 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 6 years |
Note 3 - Property and Equipme_4
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Less: Accumulated depreciation | $ (116,811) | $ (95,449) |
Property and equipment, net | 79,234 | 103,598 |
Gaming Equipment [Member] | ||
Property and equipment, gross | 172,545 | 175,837 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | $ 23,500 | $ 23,210 |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangibles (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020USD ($) | Mar. 31, 2020 | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2019 | ||
Number of Reporting Units | 2 | |||||||
Amortization of Intangible Assets, Total | $ 10,900 | $ 12,100 | $ 36,100 | $ 35,300 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 12,126 | 12,126 | $ 12,126 | |||||
Accretion of Contract Rights Under Development Agreements and Customer Agreements | [1] | $ 1,910 | 1,747 | $ 5,643 | 4,550 | |||
RMG Customer Relationships, Gaming Licenses, and Game Content [Member] | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 600 | 600 | ||||||
RMG Technology Platform [Member] | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 700 | |||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 400 | $ 400 | ||||||
Minimum [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | |||||||
Maximum [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 12 years | |||||||
Measurement Input, Long-term Revenue Growth Rate [Member] | ||||||||
Impairment Assumptions, Measurement Input | 3 | |||||||
EGM [Member] | ||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 34.00% | 34.00% | 50.00% | |||||
EGM [Member] | Measurement Input, Discount Rate [Member] | ||||||||
Impairment Assumptions, Measurement Input | 10 | |||||||
Table Products [Member] | ||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 21.00% | 21.00% | 111.00% | |||||
Table Products [Member] | Measurement Input, Discount Rate [Member] | ||||||||
Impairment Assumptions, Measurement Input | 14 | |||||||
Interactive (Gaming Operations) [Member] | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 8,400 | $ 8,400 | ||||||
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangibles - Changes in Goodwill (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Goodwill, balance | $ 287,049 | |
Foreign currency adjustments | (2,843) | |
Goodwill, balance | 284,206 | |
EGM [Member] | ||
Goodwill, balance | 279,228 | |
Foreign currency adjustments | (2,843) | |
Goodwill, balance | 276,385 | |
Table Products [Member] | ||
Goodwill, balance | 7,821 | |
Foreign currency adjustments | 0 | |
Goodwill, balance | 7,821 | |
Interactive (Gaming Operations) [Member] | ||
Goodwill, balance | 0 | [1] |
Foreign currency adjustments | 0 | [1] |
Goodwill, balance | $ 0 | [1] |
[1] | Accumulated goodwill impairment charges for the Interactive segment as of September 30, 2020 were $8.4 million. |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Indefinite lived trade names | $ 12,126 | $ 12,126 |
Finite lived, accumulated amortization | (283,705) | (246,249) |
Intangible assets, gross value | 479,831 | 476,700 |
Intangible assets, net carrying value | $ 196,126 | 230,451 |
Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Trade Names [Member] | ||
Finite lived, gross value | $ 14,870 | 14,870 |
Finite lived, accumulated amortization | (14,212) | (13,209) |
Finite lived, net carrying value | $ 658 | 1,661 |
Trade Names [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Customer Relationships [Member] | ||
Finite lived, gross value | $ 217,131 | 219,788 |
Finite lived, accumulated amortization | (136,189) | (120,384) |
Finite lived, net carrying value | $ 80,942 | 99,404 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Contractual Rights [Member] | ||
Finite lived, gross value | $ 47,012 | 48,180 |
Finite lived, accumulated amortization | (13,810) | (8,888) |
Finite lived, net carrying value | $ 33,202 | 39,292 |
Contractual Rights [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Contractual Rights [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Computer Software, Intangible Asset [Member] | ||
Finite lived, gross value | $ 169,347 | 162,391 |
Finite lived, accumulated amortization | (110,520) | (96,193) |
Finite lived, net carrying value | $ 58,827 | 66,198 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Intellectual Property [Member] | ||
Finite lived, gross value | $ 19,345 | 19,345 |
Finite lived, accumulated amortization | (8,974) | (7,575) |
Finite lived, net carrying value | $ 10,371 | $ 11,770 |
Intellectual Property [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 10 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years |
Note 5 - Accrued Liabilities -
Note 5 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total accrued liabilities | $ 28,055 | $ 34,840 |
Accrued Liabilities [Member] | ||
Salary and payroll tax accrual | 5,149 | 8,691 |
Taxes payable | 3,818 | 4,151 |
Current portion of operating lease liability | 1,964 | 2,175 |
License fee obligation | 1,000 | 1,000 |
Placement fees payable | 7,892 | 8,346 |
Accrued other | $ 8,232 | $ 10,477 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) - USD ($) $ in Thousands | May 01, 2020 | Oct. 05, 2018 | Feb. 08, 2018 | Dec. 06, 2017 | Jun. 06, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Gain (Loss) on Extinguishment of Debt, Total | $ 0 | $ 0 | $ (3,102) | $ 0 | ||||||
Long-term Debt, Total | 639,293 | 639,293 | $ 524,727 | |||||||
The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||||||||||
Long-term Debt, Total | $ 86,742 | $ 86,742 | $ 0 | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | |||||||||
Line of Credit Facility, Annual Commitment Fee, Percentage | 0.50% | |||||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Face Amount | $ 30,000 | $ 65,000 | $ 450,000 | |||||||
Debt Instrument, Quarterly Payment, Percentage of Original Principle Amount | 0.25% | |||||||||
Debt Issuance Costs, Gross | 1,000 | |||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (1,500) | $ (900) | ||||||||
Long-term Debt, Total | $ 513,000 | |||||||||
Gains (Losses) on Restructuring of Debt | (1,200) | |||||||||
Write off of Deferred Debt Issuance Cost | $ 400 | |||||||||
Debt Instrument, Conditional Increase in Basis Spread on Variable Rate | 0.75% | |||||||||
Debt Instrument, Additional Increase in Basis Spread on Variable Rate | 0.25% | |||||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | 5.50% | ||||||||
Debt Instrument, Basis Floor on Variable Rate | 1.00% | |||||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||||||||||
Debt Instrument, Face Amount | $ 95,000 | |||||||||
Debt Issuance Costs, Gross | 11,700 | |||||||||
Gain (Loss) on Extinguishment of Debt, Total | (3,100) | |||||||||
Proceeds from Debt, Net of Issuance Costs | $ 83,300 | |||||||||
Debt Instrument, Refinancing, Payment Premium or Fee, Percentage | 1.00% | |||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net, Total | $ 8,600 | |||||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 13.00% | |||||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | Base Rate [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 12.00% |
Note 6 - Long-term Debt - Sched
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt | $ 639,293 | $ 524,727 |
Less: Current portion | (7,061) | (6,038) |
Long-term debt | 632,232 | 518,689 |
First Lien Credit Facilities [Member] | Revolving Credit Facility [Member] | ||
Long-term debt | 30,000 | 0 |
First Lien Credit Facilities [Member] | Term Loan [Member] | ||
Long-term debt | 520,996 | 522,990 |
The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||
Long-term debt | 86,742 | 0 |
Equipment Long-term Note Payable and Finance Leases [Member] | ||
Long-term debt | $ 1,555 | $ 1,737 |
Note 6 - Long-term Debt - Sch_2
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) (Parentheticals) | Sep. 30, 2020 |
First Lien Credit Facilities [Member] | Term Loan [Member] | |
Effective interest rate | 4.95% |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Common Stock, Shares Authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 35,697,583 | 35,534,558 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Stock Repurchase Program, Authorized Amount | $ 50 |
Note 8 - Write-downs and Othe_2
Note 8 - Write-downs and Other Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Cost and Expense, Operating, Total | $ 1,932 | $ 807 | $ 2,806 | $ 6,859 |
Impairment of Intangible Assets, Finite-lived | 100 | 500 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | (100) | 800 | 500 | |
Other Asset Impairment Charges | 100 | |||
Gain (Loss) on Disposition of Assets, Total | $ (1,930) | $ (570) | (2,004) | (1,015) |
Interactive (Gaming Operations) [Member] | ||||
Impairment of Intangible Assets, Finite-lived | 3,500 | |||
Goodwill, Impairment Loss | $ 1,300 | |||
Placement Fees [Member] | ||||
Impairment of Intangible Assets, Finite-lived | $ 1,900 |
Note 9 - Basic and Diluted (L_2
Note 9 - Basic and Diluted (Loss) Income Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total (in shares) | 0 | 0 | ||
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 955,792 | 651,611 | 857,453 | 594,265 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 505,309 | 43,454 | 733,605 |
Note 10 - Benefit Plans (Detail
Note 10 - Benefit Plans (Details Textual) $ in Thousands | Jan. 30, 2018 | Apr. 28, 2014shares | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Oct. 01, 2020shares |
Defined Contribution Plan, Cost | $ | $ 0 | $ 300 | $ 400 | $ 1,000 | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | ||||||
The 2014 Long-Term Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award, Term (Year) | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,253,735 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 423,268 | ||||||
The 2018 Omnibus Incentive Plan [Member] | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 4,607,389 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 2,186,046 |
Note 11 - Stock-based Compens_3
Note 11 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Oct. 31, 2018 | |
Share-based Payment Arrangement, Expense | $ 1,733 | $ 1,959 | $ 4,726 | $ 5,309 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,292,835 | 1,292,835 | 1,382,986 | 556,763 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares) | 1,223,019 | 1,223,019 | ||||
Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 100 | 200 | $ 300 | 700 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 400 | $ 400 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 4 months 24 days | |||||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Maximum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Payment Arrangement, Expense | 1,600 | $ 1,800 | $ 4,400 | $ 4,600 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 12,000 | $ 12,000 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | |||||
Phantom Share Units (PSUs) [Member] | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 2,100 | $ 2,100 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Phantom Share Units (PSUs) [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Performance Shares [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Restricted Stock [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Note 11 - Stock-based Compens_4
Note 11 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Options outstanding, number of options (in shares) | 1,382,986 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.10 | |
Options outstanding, weighted average remaining contract term (Year) | 4 years 8 months 8 days | 5 years 5 months 12 days |
Options outstanding, aggregate intrinsic value | $ 0 | $ 4,793,000 |
Granted, number of options (in shares) | 0 | |
Granted, weighted average exercise price (in dollars per share) | $ 0 | |
Granted aggregate intrinsic value | $ 0 | |
Exercised, number of options (in shares) | (15,544) | |
Exercised, weighted average exercise price (in dollars per share) | $ 10.15 | |
Canceled or forfeited, number of options (in shares) | (74,607) | |
Canceled or forfeited, weighted average exercise price (in dollars per share) | $ 7.28 | |
Options outstanding, number of options (in shares) | 1,292,835 | 1,382,986 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.19 | $ 9.10 |
Options exercisable, number of options (in shares) | 1,223,019 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 8.84 | |
Options exercisable, weighted average remaining contract term (Year) | 4 years 6 months 25 days | |
Options exercisable, aggregate intrinsic value | $ 0 |
Note 11 - Stock-based Compens_5
Note 11 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Outstanding, shares (in shares) | shares | 712,496 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 23.66 |
Granted, shares (in shares) | shares | 1,342,322 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 3.98 |
Vested, shares (in shares) | shares | (217,668) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 18.62 |
Canceled or forfeited, shares (in shares) | shares | (34,225) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 23.84 |
Outstanding, shares (in shares) | shares | 1,802,925 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 9.61 |
Note 11 - Stock-based Compens_6
Note 11 - Stock-based Compensation - Phantom Stock Units (Details) - Phantom Share Units (PSUs) [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Outstanding, shares (in shares) | shares | 0 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 0 |
Granted, shares (in shares) | shares | 616,224 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 3.94 |
Vested, shares (in shares) | shares | 0 |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 0 |
Canceled or forfeited, shares (in shares) | shares | 0 |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 0 |
Outstanding, shares (in shares) | shares | 616,224 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 3.94 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 13.10% | 53.60% | 6.90% | 23.10% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | $ 700 | $ 700 | ||
Business Combination, Indemnification Assets, Change in Amount | $ 0 | $ 100 | $ 3,200 | $ (5,400) |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Insurance Claims [Member] | |
Loss Contingency Accrual, Provision | $ 1.6 |
Note 14 - Operating Segments (D
Note 14 - Operating Segments (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Number of Reportable Segments | 3 |
Note 14 - Operating Segments -
Note 14 - Operating Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Total revenues | $ 49,284 | $ 79,377 | $ 120,385 | $ 226,928 | |
Adjusted EBITDA | 27,022 | 36,787 | 50,370 | 108,797 | |
Loss on disposition of long-lived assets | 1,930 | 570 | 2,004 | 1,015 | |
Impairment of long-lived assets | 0 | 136 | 6 | 5,343 | |
Fair value adjustment of contingent consideration | 2 | 101 | 796 | 501 | |
Depreciation and amortization | 20,463 | 23,810 | 66,353 | 69,002 | |
Accretion of contract rights under development agreements and placement fees | [1] | 1,910 | 1,747 | 5,643 | 4,550 |
Non-cash stock-based compensation expense | 1,733 | 1,959 | 4,726 | 5,309 | |
Acquisitions and integration-related exploratory costs | 79 | ||||
Acquisitions and integration-related costs including restructuring and severance | 481 | 311 | 2,944 | ||
Initial public offering costs and secondary offering | 0 | (11) | 0 | 414 | |
Legal and litigation expenses including settlement payments | 389 | 1,745 | 389 | 1,748 | |
Non-cash charge on capitalized installation and delivery | 505 | 679 | 1,824 | 1,991 | |
Other adjustments | 2,413 | (9) | 4,652 | 58 | |
Interest expense | 11,330 | 9,320 | 30,566 | 27,754 | |
Interest income | (671) | (42) | (843) | (112) | |
Loss on extinguishment and modification of debt | 0 | 0 | 3,102 | 0 | |
Other expense | (311) | (106) | 3,993 | 5,108 | |
(Loss) income before income taxes | (12,750) | (3,593) | (73,152) | (16,828) | |
Electronic Gaming Machines, EGM [Member] | |||||
Total revenues | 45,081 | 75,299 | 109,393 | 215,932 | |
Adjusted EBITDA | 25,000 | 35,825 | 46,181 | 108,088 | |
Table Products [Member] | |||||
Total revenues | 2,262 | 2,861 | 5,418 | 7,437 | |
Adjusted EBITDA | 1,272 | 1,409 | 2,044 | 2,694 | |
Interactive (Gaming Operations) [Member] | |||||
Total revenues | 1,941 | 1,217 | 5,574 | 3,559 | |
Adjusted EBITDA | $ 750 | $ (447) | $ 2,145 | $ (1,985) | |
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. |