Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Inspired Entertainment, Inc. | |
Entity Central Index Key | 0001615063 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,218,323 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash | $ 41,200 | $ 47,100 |
Accounts receivable, net | 21,000 | 27,500 |
Inventory, net | 17,100 | 17,600 |
Prepaid expenses and other current assets | 13,300 | 16,800 |
Total current assets | 92,600 | 109,000 |
Property and equipment, net | 61,800 | 65,500 |
Software development costs, net | 39,700 | 42,400 |
Other acquired intangible assets subject to amortization, net | 7,500 | 7,700 |
Goodwill | 84,700 | 83,700 |
Right of use asset | 12,000 | 12,500 |
Other assets | 2,700 | 3,300 |
Total assets | 301,000 | 324,100 |
Current liabilities | ||
Accounts payable | 21,100 | 17,900 |
Accrued expenses | 32,100 | 31,400 |
Corporate tax and other current taxes payable | 5,800 | 14,400 |
Deferred revenue, current | 9,300 | 11,500 |
Operating lease liabilities | 3,600 | 3,600 |
Other current liabilities | 2,400 | 2,500 |
Warrant liability | 16,000 | 13,000 |
Current portion of finance lease liabilities | 900 | 600 |
Total current liabilities | 91,200 | 94,900 |
Long-term debt | 295,900 | 297,500 |
Finance lease liabilities, net of current portion | 1,100 | 200 |
Deferred revenue, net of current portion | 9,200 | 11,400 |
Derivative liability | 1,100 | 1,700 |
Operating lease liabilities | 8,600 | 9,200 |
Other long-term liabilities | 6,300 | 10,900 |
Total liabilities | 413,400 | 425,800 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 22,594,207 shares and 22,430,475 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | ||
Additional paid in capital | 326,000 | 324,600 |
Accumulated other comprehensive income | 35,700 | 31,100 |
Accumulated deficit | (474,100) | (457,400) |
Total stockholders' deficit | (112,400) | (101,700) |
Total liabilities and stockholders' deficit | $ 301,000 | $ 324,100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 49,000,000 | 49,000,000 |
Common stock, shares issued | 22,594,207 | 22,430,475 |
Common stock, shares outstanding | 22,594,207 | 22,430,475 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 22,800 | $ 52,300 |
Cost of sales, excluding depreciation and amortization: | ||
Cost of service | (2,100) | (8,500) |
Cost of product sales | (3,200) | (6,200) |
Selling, general and administrative expenses | (15,200) | (29,000) |
Acquisition and integration related transaction expenses | (1,400) | (3,200) |
Depreciation and amortization | (13,100) | (12,600) |
Net operating loss | (12,200) | (7,200) |
Other expense | ||
Interest income | 300 | |
Interest expense | (8,600) | (6,100) |
Change in fair value of warrant liability | (3,000) | 7,600 |
Loss from equity method investee | (500) | |
Other finance income (expense) | 6,400 | (3,700) |
Total other expense, net | (5,200) | (2,400) |
Loss before income taxes | (17,400) | (9,600) |
Income tax benefit (expense) | 700 | (200) |
Net loss | (16,700) | (9,800) |
Other comprehensive income/(loss): | ||
Foreign currency translation (loss) gain | (1,100) | 3,100 |
Change in fair value of hedging instrument | 600 | (1,500) |
Reclassification of gain on hedging instrument to comprehensive income | 500 | 400 |
Actuarial gains on pension plan | 4,600 | 4,400 |
Other comprehensive income/(loss) | 4,600 | 6,400 |
Comprehensive loss | $ (12,100) | $ (3,400) |
Net loss per common share - basic and diluted | $ (.74) | $ (.44) |
Weighted average number of shares outstanding during the period - basic and diluted | 22,584,609 | 22,384,268 |
Supplemental disclosure of stock-based compensation expense | ||
Stock-based compensation included in: Selling, general and administrative expenses | $ (1,400) | $ (1,000) |
Service [Member] | ||
Revenue: | ||
Total revenue | 17,100 | 42,800 |
Product Sales [Member] | ||
Revenue: | ||
Total revenue | $ 5,700 | $ 9,500 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2019 | $ 320,600 | $ 45,100 | $ (425,000) | $ (59,300) | |
Balance, shares at Dec. 31, 2019 | 22,230,768 | ||||
Foreign currency translation adjustments | 3,100 | 3,100 | |||
Actuarial gains on pension plan | 4,400 | 4,400 | |||
Change in fair value of hedging instrument | (1,500) | (1,500) | |||
Reclassification of gain (loss) on hedging instrument to comprehensive income | 400 | 400 | |||
Shares issued upon net settlement of RSUs | |||||
Shares issued upon net settlement of RSUs, shares | 166,959 | ||||
Stock-based compensation expense | 1,000 | 1,000 | |||
Net loss | (9,800) | (9,800) | |||
Balance at Mar. 31, 2020 | 321,600 | 51,500 | (434,800) | (61,700) | |
Balance, shares at Mar. 31, 2020 | 22,397,727 | ||||
Balance at Dec. 31, 2020 | 324,600 | 31,100 | (457,400) | (101,700) | |
Balance, shares at Dec. 31, 2020 | 22,430,475 | ||||
Foreign currency translation adjustments | (1,100) | (1,100) | |||
Actuarial gains on pension plan | 4,600 | 4,600 | |||
Change in fair value of hedging instrument | 600 | 600 | |||
Reclassification of gain (loss) on hedging instrument to comprehensive income | 500 | 500 | |||
Shares issued upon net settlement of RSUs | |||||
Shares issued upon net settlement of RSUs, shares | 163,732 | ||||
Stock-based compensation expense | 1,400 | 1,400 | |||
Net loss | (16,700) | (16,700) | |||
Balance at Mar. 31, 2021 | $ 326,000 | $ 35,700 | $ (474,100) | $ (112,400) | |
Balance, shares at Mar. 31, 2021 | 22,594,207 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (16,700) | $ (9,800) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 13,100 | 12,600 |
Amortization of right of use asset | 600 | 900 |
Stock-based compensation expense | 1,400 | 1,000 |
Impairment of investment in equity method investee | 700 | |
Foreign currency translation on senior bank debt | (6,100) | 3,900 |
Change in fair value of warrant liability | 3,000 | (7,600) |
Reclassification of loss on hedging instrument to comprehensive income | 200 | 400 |
Non-cash interest expense relating to senior debt | 1,300 | 500 |
Changes in assets and liabilities: | ||
Accounts receivable | 6,700 | (10,000) |
Inventory | 700 | 1,300 |
Prepaid expenses and other assets | 4,300 | 5,700 |
Corporate tax and other current taxes payable | (8,600) | 100 |
Accounts payable | 3,000 | 4,900 |
Deferred revenues and customer prepayment | (4,500) | (500) |
Accrued expenses | 400 | 7,500 |
Operating lease liabilities | (700) | (800) |
Other long-term liabilities | (100) | 300 |
Net cash (used in) provided by operating activities | (2,000) | 11,100 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,000) | (8,400) |
Disposals of property and equipment | 1,000 | |
Purchases of capital software | (2,800) | (3,600) |
Net cash used in investing activities | (4,800) | (11,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of revolver | 22,300 | |
Repayments of finance leases | (200) | (100) |
Net cash (used in) provided by financing activities | (200) | 22,200 |
Effect of exchange rate changes on cash | 1,100 | (2,900) |
Net (decrease) increase in cash | (5,900) | 19,400 |
Cash, beginning of period | 47,100 | 29,100 |
Cash, end of period | 41,200 | 48,500 |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | 6,800 | 100 |
Cash paid during the period for income taxes | ||
Cash paid during the period for operating leases | 300 | 1,000 |
Supplemental disclosure of noncash investing and financing activities | ||
Property and equipment acquired through finance lease | 1,300 | |
Lease liabilities arising from obtaining right of use assets | (900) | |
Adjustment to goodwill arising from adjustment to fair value of assets acquired | $ (300) |
Nature of Operations, Managemen
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies | 1. Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies Company Description and Nature of Operations We are a global gaming technology company, supplying content, platform and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks. Management Liquidity Plans As of March 31, 2021, the Company’s cash on hand was $41.2 million, and the Company had working capital of $1.4 million. The Company recorded net losses of $16.4 million and $10.2 million for the three months ended March 31, 2021 and 2020, respectively. Net losses include excess depreciation and amortization over capital expenditure of $8.3 million and $0.6 million for the three months ended March 31, 2021, and 2020, respectively, non-cash stock-based compensation of $1.4 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively, and non-cash changes in fair value of warrant liability of $3.0 million loss and $7.6 million income for the three months ended March 31, 2021 and 2020, respectively. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows used in operations amounted to $2.0 million and $11.1 million provided by operations for the three months ended March 31, 2021 and 2020, respectively with the change year on year due to land based operations being subject to full lockdown restrictions for the three months ended March 31, 2021. Working capital of $1.4 million includes a non-cash settled item of $9.3 million of deferred income, and an item not expected to be cash settled of $16.0 million comprising a warrant liability. Management currently believes that, absent any unanticipated COVID-19 impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2022. Our business continues to be adversely affected by the continuing nature of the COVID-19 pandemic. Due to the fluidity with which the situation continues to develop, we are not able at this time to estimate the extent of the impact of the COVID-19 pandemic on our financial results and operations in future periods. The long-term impacts of the pandemic on the global economy, trade relations, consumer behavior, our industry and our business operations remain unknown, however the vaccination programme in the UK began on December 8, 2020, and as of the date of this report, whilst the majority of retail venues in Italy and Greece are closed, the UK is poised to re-open retail venues from May 17, 2021, and the vaccination programme in the UK remains on schedule. As a result of the significant reductions in revenue and other changes to our business, at least in the short term (which also affects other companies in our industry), we continue to protect our existing available liquidity by pro-actively managing capital expenditures and working capital as well as identifying both immediate and longer term opportunities for cost savings. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019. The financial information as of December 31, 2020 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2021 (“the Original 10-K”), and as amended and filed on Form 10-K/A with the SEC on May 10, 2021 (“the 10-K/A”). The interim results for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. Restatement of Previously Reported Information On May 7, 2021, after consultation with Marcum LLP, the Company’s independent registered public accounting firm, the Company’s management and the audit committee of the Company’s Board of Directors concluded that it was appropriate to restate the Company’s previously issued audited financial statements as of December 31, 2020, and December 31, 2019, and for the years ended December 31, 2020, and December 31, 2019, which were included in the Original 10-K. The restatement related to the SEC’s public statement released on April 12, 2021, informing market participants that warrants issued by special purpose acquisition companies may require classification as a liability of the entity measured at fair value, with changes in fair value each period reported in earnings. The effect of the restatement on previously reported information for the three months ended March 31, 2020 is as follows: As Previously Reported Adjustments As Restated (in millions, except per share data) Consolidated Statements of Stockholders’ Deficit as of January 1, 2020 Additional paid in capital $ 346.6 $ (26.0 ) $ 320.6 Accumulated deficit (441.2 ) 16.2 (425.0 ) Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020 Change in fair value of warrant liability $ — $ 7.6 $ 7.6 Net loss (17.4 ) 7.6 (9.8 ) Comprehensive loss (11.0 ) 7.6 (3.4 ) Net loss per common share – basic and diluted $ (0.78 ) $ 0.34 $ (0.44 ) Consolidated Statements of Stockholders’ Deficit as of March 31, 2020 Additional paid in capital $ 347.6 $ (26.0 ) $ 321.6 Accumulated deficit (458.6 ) 23.8 (434.8 ) Recharacterization of Previously Reported Information In prior years, and up to and including the interim period nine months ended September 30, 2020, the Company operated its business along three operating segments: Server Based Gaming, Virtual Sports (which included Interactive) and Acquired Businesses. During the period subsequent to September 30, 2020, the Company completed the process of changing its internal structure, which has been ongoing since the NTG Acquisition, and as a result changed the composition of its operating segments. The Company now operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are now managed and the way the performance of each segment is now evaluated. As part of the recharacterization exercise, certain items of Revenue, Cost of Sales and Selling, General and Administrative Expenses have been recharacterized to ensure consistency with similar items across the Group. The revenue recharacterizations are to ensure spares and similar items are reflected with other items of hardware (Product Sales). The resulting impact on previously reported information for the three months ended March 31, 2020 is as follows: Service Revenue, previously reported $43.2 million, now $42.8 million; Product Sales Revenue, previously reported $9.1 million, now $9.5 million; Cost of Service, previously reported $6.6 million, now $8.5 million; Cost of Product Sales, previously reported $7.0 million, now $6.2 million; Selling, General and Administrative Expenses (excluding Stock-based compensation), previously reported $29.1 million, now $28.0 million. The recharacterization has no impact on the previously reported Net Operating Loss, Net Loss or Net Comprehensive Loss for the three months ended March 31, 2020. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. Inventory Inventory consists of the following: March 31, December 31, 2020 (in millions) Component parts $ 11.5 $ 12.1 Work in progress 1.8 1.7 Finished goods 3.8 3.8 Total inventories $ 17.1 $ 17.6 Component parts include parts for gaming terminals. Included in component parts are reserves for excess and slow-moving inventory of $1.8 million and $1.5 million as of March 31, 2021 and December 31, 2020, respectively. Our finished goods inventory primarily consists of gaming terminals which are ready for sale. |
Contract Liabilities and Other
Contract Liabilities and Other Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities and Other Disclosures | 3. Contract Liabilities and Other Disclosures The following table summarizes contract related balances: Accounts Unbilled Deferred Customer (in millions) At March 31, 2021 $ 23.8 $ 5.0 $ (18.5 ) $ (1.8 ) At December 31, 2020 $ 30.4 $ 8.2 $ (22.9 ) $ (1.6 ) At December 31, 2019 $ 24.5 $ 15.3 $ (27.8 ) $ (1.9 ) Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $3.9 million and $10.3 million for the three months ended March 31, 2021 and the year ended December 31, 2020, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 4. Derivatives and Hedging Activities On January 15, 2020, the Company entered into two interest rate swaps with UBS AG designed to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the current floating rate debt facilities. The swaps fix the variable interest rate of the current debt facilities and provide protection over potential interest rate increases by providing a fixed rate of interest payment in return. These interest rate swaps are for £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and for €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate and are effective until maturity on October 1, 2023. Hedges of Multiple Risks The Company’s objectives in using interest rate derivatives are to add stability to interest and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $1.5 million will be reclassified as an increase to interest expense. As of March 31, 2021, and December 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Notional Interest rate swaps 2 £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of March 31, 2021. Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Derivative Liability $ (1.7 ) Total derivatives designated as hedging instruments $ — $ (1.7 ) The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of December 31, 2020. Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Other Current Liabilities and Long Term Derivative Liability $ (2.6 ) Total derivatives designated as hedging instruments $ — $ (2.6 ) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the three months ended March 31, 2021. Amount of Gain/(Loss) Location of Gain (in millions) (in millions) Interest Rate Products $ 0.6 Interest Expense $ (0.5 ) Total $ 0.6 $ (0.5 ) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the three months ended March 31, 2020. Amount of Gain Location of Gain (in millions) (in millions) Interest Rate Products $ (1.5 ) Interest Expense $ (0.4 ) Total $ (1.5 ) $ (0.4 ) The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2021. Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 8.6 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.5 ) The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2020. Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 6.1 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.4 ) The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheet. The ISDA Master Agreement between Gaming Acquisitions Limited, a wholly-owned subsidiary of the Company, and UBS AG is documented using the 2002 Form and the ISDA standard set-off provision in Section 6(f) of the ISDA Master Agreement apply to both parties and is only modified to include Affiliates of the Payee. There is no CSA and thus there is no collateral posting. Offsetting of Derivative Assets March 31, 2021 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities March 31, 2021 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ 1.7 $ — $ 1.7 $ — $ — $ — Offsetting of Derivative Assets December 31, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts of Assets Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities December 31, 2020 Gross Amounts Not Offset in the Gross Amounts Gross Amounts Net Amounts Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ 2.6 $ — $ 2.6 $ — $ — $ — Credit-risk-related Contingent Features The Company has entered into an industry standard ISDA Master Agreement, with a negotiated Scheduled thereto (the “ISDA Agreement”), with the counterparty to its derivative transactions and which ISDA Agreement sets forth various provisions which govern the trading relationship between the Company and its counterparty. Such provisions include certain events which, if triggered by either party, may give rise to an acceleration of the ISDA Agreement, thus triggering the exchange of a breakage payment between the parties. The ISDA Agreement with the Company’s derivative counterparty contains a provision where the Company could be declared in default on its derivative obligations if, among others, its repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The ISDA Agreement can also be accelerated if Lucid Trustee Services Limited requests or requires that the lender terminates or closes-out any Transaction under the ISDA Agreement pursuant to Clause 4.10 of the Intercreditor Agreement between primarily the Company, Lucid Agency Services as Senior Agent and Lucid Trustee Services Limited as Security Agent; in the event of certain refinancing circumstances; and in the event of certain reductions in the principal with respect to amounts loaned under the Senior Facilities Agreement. As of March 31, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to the ISDA Agreements was $1.7 million. As of March 31, 2021, the Company has not posted any collateral related to the ISDA Agreement, as no collateral is required under the terms of such ISDA Agreement. If the Company had breached any of the provision under the ISDA Agreement which resulted in an acceleration of the ISDA Agreement at March 31, 2021, it could have been required to settle its obligations under the ISDA Agreement at its termination value of $2.5 million |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset and liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities utilizing an established three-level hierarchy. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 2 inputs also include non-binding market consensus prices that can be corroborated with observable market data, as well as quoted prices that were adjusted for security-specific restrictions. Level 3: Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the asset or liability. Level 3 inputs also include non-binding market consensus prices or non-binding broker quotes that are unable to be corroborated with observable market data. The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments approximates their recorded values. For each period, derivative financial instrument assets and liabilities measured at fair value on a recurring basis are included in the financial statements as per the table below. March 31, December 31, Level 2021 2020 (in millions) Public Warrants (included in warrant liability) 1 $ 4.3 $ 3.2 Long term receivable (included in other assets) 2 $ 1.3 $ 1.4 Private Placement Warrants (included in warrant liability) 2 $ 11.7 $ 9.8 Derivative liability (see Note 4) 2 $ 1.7 $ 2.6 Level 3 liabilities are valued using unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the derivative liabilities. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s principal financial officer, who reports to the principal executive officer, determines its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s Principal Financial Officer and approved by the Principal Executive Officer. At March 31, 2021 and December 31, 2020, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The Company’s stock-based compensation plans authorize awards of restricted stock units (“RSUs”), stock options and other equity-related awards. The Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”) was approved by stockholders in May 2019 and is the successor to the Company’s 2016 Long-Term Incentive Plan and the Second Long-Term Incentive Plan (collectively, the “Prior Plans”). The balances available for awards under the Prior Plans were terminated in connection with approval of the 2018 Plan; although outstanding awards under the Prior Plans remain governed by the terms of the Prior Plans, no new awards may be granted or become available for grant under the Prior Plans. See Note 17 “Subsequent Events” below regarding the Company’s adoption of the 2021 Omnibus Incentive Plan on April 12, 2021 which was approved by our stockholders on May 11, 2021. As of March 31, 2021, there were (i) 1,777,611 shares subject to outstanding awards under the 2018 Plan, including 75,000 shares subject to performance-based target awards and 259,300 shares subject to awards that were previously subject to performance criteria that were determined to have been met for the applicable performance year which awards continue to remain subject to a time-based vesting schedule; and (ii) 2,411,319 shares subject to outstanding awards under the Prior Plans, including 1,092,633 shares subject to market-price vesting conditions that have a satisfaction deadline of December 23, 2021. As of March 31, 2021, there were 221,799 shares available for new awards under the 2018 Plan and no shares available for new awards under the Prior Plans. All awards consist of RSUs and Restricted Stock. The Company also has an employee stock purchase plan (“ESPP”) that authorizes the issuance of up to an aggregate of 500,000 shares of common stock pursuant to purchases thereunder by employees. The ESPP, which was approved by stockholders in July 2017, is administered by the Compensation Committee which has discretion to designate the length of offering periods and other terms subject to the requirements of the ESPP. As of March 31, 2021, a total of 467,751 shares remain available for purchase under the ESPP. A summary of the Company’s RSU activity during the three months ended March 31, 2021 is as follows: Number of Unvested Outstanding at January 1, 2021 2,149,118 Granted 59,466 Forfeited (13,954 ) Vested (11,418 ) Unvested Outstanding at March 31, 2021 2,183,212 The Company issued a total of 163,732 shares during the three months ended March 31, 2021 in connection with the net settlement of RSUs that vested on December 31, 2020. Stock-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. For performance awards that are contingent upon the Company achieving certain pre-determined financial performance targets, compensation expense is calculated based on the number of shares expected to vest after assessing the probability that the performance criteria will be met. Determining the probability of achieving a performance target requires estimates and judgment. The Company recognized $1.4 million and $1.0 million of stock-based compensation expense during the three months ended March 31, 2021 and 2020, respectively. Total unrecognized compensation expense related to unvested stock awards and unvested RSUs at March 31, 2021 amounts to $5.0 million and is expected to be recognized over a weighted average period of 1 year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Income) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (Income) | 7. Accumulated Other Comprehensive Loss (Income) The accumulated balances for each classification of comprehensive loss (income) are presented below: Foreign Change in Unrecognized Accumulated (in millions) Balance at January 1, 2021 (71.1 ) 2.8 37.2 (31.1 ) Change during the period 1.1 (1.1 ) (4.6 ) (4.6 ) Balance at March 31, 2021 $ (70.0 ) $ 1.7 $ 32.6 $ (35.7 ) Foreign Change in Unrecognized Accumulated (in millions) Balance at January 1, 2020 (76.5 ) 1.4 30.0 (45.1 ) Change during the period (3.1 ) 1.1 (4.4 ) (6.4 ) Balance at March 31, 2020 $ (79.6 ) $ 2.5 $ 25.6 $ (51.5 ) Included within accumulated other comprehensive income is an amount of $0.4 million relating to the change in fair value of discontinued hedging instruments. This amount will be amortized as a charge to income over the life of the original instrument, to August 2021 in accordance with US GAAP. The remaining $1.3 million relates to currently active hedging instruments. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 8. Net Loss per Share Basic loss per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including stock options, restricted stock, RSUs and warrants, using the treasury stock method, and convertible debt or convertible preferred stock, using the if-converted method. Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive. The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: Three Months Ended 2021 2020 RSUs 3,564,814 2,954,493 Unvested Restricted Stock 624,116 624,116 Stock Warrants 9,539,565 9,539,565 13,728,495 13,118,174 |
Other Finance Income (Expense)
Other Finance Income (Expense) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Finance Income (Expense) | 9. Other Finance Income (Expense) Other finance income (expense) consisted of the following: Three Months Ended 2021 2020 (in millions) Pension interest cost $ (0.4 ) $ (0.6 ) Expected return on pension plan assets 0.7 0.8 Foreign currency translation on senior bank debt 6.1 (3.9 ) $ 6.4 $ (3.7 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective income tax rate for the three months ended March 31, 2021 and 2020 was 4.0% and 2.0%, respectively, resulting in a $0.7 million income tax benefit and a $0.2 million income tax expense, respectively. The Company’s effective income tax rate has fluctuated primarily as a result of the income mix between jurisdictions. The income tax expense for the three months ended March 31, 2021 and 2020 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to pre-tax losses for which no tax benefit can be recorded, and foreign earnings being taxed at rates different than the US statutory rate. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | 11. Related Parties Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”), is an affiliate of MIHI LLC, the beneficial owner of approximately 13% of our common stock. Macquarie UK is one of the lending parties with respect to our senior secured term loans and revolving credit facility under our senior facilities agreement dated September 27, 2019, as amended and restated on June 25, 2020 (the “SFA”). The portion of the total loans of $310.6 million at March 31, 2021, and $313.3 million at December 31, 2020, under these facilities held by Macquarie UK at March 31, 2021 and December 31, 2020 was $30.4 million and $30.7 million, respectively. Interest expense payable to Macquarie UK for the three months ended March 31, 2021 and 2020 amounted to $0.6 million and $0.5 million, respectively. In addition, $0.5 million and $0.6 million of accrued interest payable was due to Macquarie UK at March 31, 2021 and December 31, 2020, respectively. MIHI LLC, also holds warrants to purchase 1,000,000 shares of our common stock and is a party to a stockholders agreement with the Company and other stockholders, dated December 23, 2016, pursuant to which, subject to certain conditions, MIHI LLC, jointly with Hydra Industries Sponsor LLC, are permitted to designate two directors to be nominated for election as directors of the Company at any annual or special meeting of stockholders at which directors are to be elected, until such time as MIHI LLC and Hydra Industries Sponsor LLC in the aggregate hold less than 5% of the outstanding shares of the Company. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 12. Leases The Company is party to leases with third parties with respect to various gaming machines. Gaming machine leases typically include a lease (of the machine) and a non-lease (provision of software services) component. The components of lease income were as follows: Three Months Ended 2021 2020 (in millions) Interest receivable from sales type leases $ — $ — Operating lease income — 1.0 Variable income from sales type leases — 0.2 Total $ — $ 1.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Employment Agreements We are party to employment agreements with our executive officers and other employees of the Company and our subsidiaries which contain, among other terms, provisions relating to severance and notice requirements. Our employment agreement with our Executive Chairman dated October 9, 2020 provides that, subject to the terms and conditions thereunder, our Executive Chairman would receive special grants covering 750,000 RSUs (a mix of time-based RSUs, performance-based RSUs and stock-price based RSUs) during the year ending December 31, 2021, subject to the condition that our stockholders approve an increase in our equity incentive plan share authorization limit at the annual meeting of our stockholders to be held during 2021. Such RSUs were granted on May 11, 2021 upon the approval by our stockholders of a new equity incentive plan (see Note 17). Legal Matters From time to time, the Company may become involved in lawsuits and legal matters arising in the ordinary course of business. While the Company believes that, currently, it has no such matters that are material, there can be no assurance that existing or new matters arising in the ordinary course of business will not have a material adverse effect on the Company’s business, financial condition or results of operations. |
Pension Plan
Pension Plan | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plan | 14. Pension Plan We operate a defined contribution plan in the US, and both defined benefit and defined contribution pension schemes in the UK. The defined contribution scheme assets are held separately from those of the Company in independently administered funds. Defined Benefit Pension Scheme The defined benefit scheme has been closed to new entrants since April 1, 1999 and closed to future accruals for services rendered to the Company for the entire financial statement periods presented. On March 15, 2019, it was agreed that no further deficit reduction contributions would be made to the scheme, except in the event that the scheme funding level does not progress as expected, in which case contingent contributions would be made subject to an agreed maximum amount. In January 2021, the funding level of the scheme was tested against the expected position at December 31, 2020 and it was determined that further contingent contributions of $1.2 million and expense contributions of $0.4 million will be payable during the year ending December 31, 2021. The funding level of the scheme will next be tested against the expected position at December 31, 2021 to determine whether further contingent contributions are payable during the year ending December 31, 2022. The total amount of employer contributions paid during the three months ended March 31, 2021 amounted to $0.1 million relating to the three months ended March 31, 2021, and $0.4 million of contributions relating to the year ending December 31, 2020 agreed with the trustees of the scheme to be deferred into the year ending December 31, 2021. The following table presents the components of our net periodic pension benefit cost: Three Months Ended 2021 2020 (in millions) Components of net periodic pension benefit cost: Interest cost $ 0.4 $ 0.6 Expected return on plan assets (0.7 ) (0.8 ) Net periodic (benefit) cost $ (0.3 ) $ (0.2 ) The following table sets forth the estimate of the combined funded status of the pension plans and their reconciliation to the related amounts recognized in our consolidated financial statements at the respective measurement dates: March 31, 2021 December 31, (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 127.8 $ 110.4 Interest cost 0.4 2.2 Actuarial (gain)/loss (9.9 ) 14.5 Benefits paid (0.6 ) (4.1 ) Foreign currency translation adjustments 1.5 4.8 Benefit obligation at end of period $ 119.2 $ 127.8 Change in plan assets: Fair value of plan assets at beginning of period $ 118.7 $ 107.3 Actual (loss)/gain on plan assets (4.8 ) 9.8 Employer contributions 0.1 1.6 Benefits paid (0.6 ) (4.1 ) Foreign currency translation adjustments 1.3 4.1 Fair value of assets at end of period $ 114.7 $ 118.7 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (4.5 ) $ (9.1 ) Net amount recognized $ (4.5 ) $ (9.1 ) |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 15. Segment Reporting and Geographic Information The Company operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated. In prior years, and up to and including the interim period nine months ended September 30, 2020, the Company operated its business along three operating segments: Server Based Gaming, Virtual Sports (which included Interactive) and Acquired Businesses. During the period subsequent to September 30, 2020, the Company completed the process of changing its internal structure, which has been ongoing since the NTG Acquisition, and as a result changed the composition of its operating segments. The following tables present revenue, cost of sales, excluding depreciation and amortization, selling, general and administrative expenses, depreciation and amortization, stock-based compensation expense and acquisition related transaction expenses, operating profit/(loss), total assets and total capital expenditures for the periods ended March 31, 2021 and March 31, 2020, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, right of use assets, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions. All acquisition and integration related transaction expenses are allocated as corporate function costs. Amounts previously disclosed for the three months ended March 31, 2020 have been recharacterized in line with the current operating segments and categories. In addition, as part of the recharacterization exercise, certain items of Revenue, Cost of Sales and Selling, General and Administrative Expenses have been recharacterized to ensure consistency with similar items across the Group. The revenue recharacterizations are to ensure spares and similar items are reflected with other items of hardware (Product Sales). The resulting impact on previously reported information for the three months ended March 31, 2020 is as follows: Service Revenue, previously reported $43.2 million, now $42.8 million; Product Sales Revenue, previously reported $9.1 million, now $9.5 million; Cost of Service, previously reported $6.6 million, now $8.5 million; Cost of Product Sales, previously reported $7.0 million, now $6.2 million; Selling, General and Administrative Expenses (excluding Stock-based compensation), previously reported $29.1 million, now $28.0 million. The recharacterization has no impact on the previously reported Net Operating Loss, Net Loss or Net Comprehensive Loss for the three months ended March 31, 2020. Segment Information Three Months Ended March 31, 2021 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 5.6 $ 6.3 $ 5.2 $ — $ — $ 17.1 Product sales 5.2 — — 0.5 — 5.7 Total revenue 10.8 6.3 5.2 0.5 — 22.8 Cost of sales, excluding depreciation and amortization: Cost of service (0.6 ) (0.3 ) (0.8 ) (0.4 ) — (2.1 ) Cost of product sales (2.9 ) — — (0.3 ) — (3.2 ) Selling, general and administrative expenses (4.1 ) (1.1 ) (1.0 ) (3.2 ) (4.4 ) (13.8 ) Stock-based compensation expense (0.2 ) (0.1 ) (0.1 ) (0.1 ) (0.9 ) (1.4 ) Acquisition and integration related transaction expenses — — — — (1.4 ) (1.4 ) Depreciation and amortization (6.6 ) (1.1 ) (0.7 ) (4.2 ) (0.5 ) (13.1 ) Segment operating income (loss) (3.6 ) 3.7 2.6 (7.7 ) (7.2 ) (12.2 ) Net operating loss $ (12.2 ) Total assets at March 31, 2021 $ 78.7 $ 60.9 $ 13.3 $ 84.6 $ 63.5 $ 301.0 Total goodwill at March 31, 2021 $ 1.5 $ 48.5 $ 0.4 $ 34.3 $ — $ 84.7 Total capital expenditures for the three months ended March 31, 2021 $ 1.2 $ 0.8 $ 0.9 $ 3.1 $ 0.2 $ 6.2 Three Months Ended March 31, 2020 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 16.6 $ 7.8 $ 2.1 $ 16.3 $ — $ 42.8 Product sales 8.3 — — 1.2 — 9.5 Total revenue 24.9 7.8 2.1 17.5 — 52.3 Cost of sales, excluding depreciation and amortization: Cost of service (4.3 ) (0.7 ) (0.2 ) (3.3 ) — (8.5 ) Cost of product sales (5.4 ) — — (0.8 ) — (6.2 ) Selling, general and administrative expenses (8.9 ) (1.2 ) (1.2 ) (11.0 ) (5.7 ) (28.0 ) Stock-based compensation expense (0.1 ) (0.1 ) — — (0.8 ) (1.0 ) Acquisition and integration related transaction expenses — — — — (3.2 ) (3.2 ) Depreciation and amortization (7.4 ) (0.8 ) (0.6 ) (3.4 ) (0.4 ) (12.6 ) Segment operating income (loss) (1.2 ) 5.0 0.1 (1.0 ) (10.1 ) (7.2 ) Net operating loss $ (7.2 ) Total assets at December 31, 2020 $ 93.9 $ 64.4 $ 8.5 $ 87.0 $ 70.3 $ 324.1 Total goodwill at December 31, 2020 $ 1.4 $ 48.0 $ 0.4 $ 33.9 $ — $ 83.7 Total capital expenditures for the three months ended March 31, 2020 $ 2.7 $ 1.0 $ 0.6 $ 5.2 $ 2.3 $ 11.8 Geographic Information Geographic information for revenue is set forth below: Three Months Ended 2021 2020 (in millions) Total revenue UK $ 10.9 $ 38.4 Greece 2.3 4.8 Canada 1.8 0.1 Italy 1.3 2.2 Rest of world 6.5 6.8 Total $ 22.8 $ 52.3 Geographic information of our non-current assets excluding goodwill is set forth below: March 31, 2021 December 31, 2020 (in millions) UK $ 97.0 $ 101.8 Greece 15.2 18.2 Italy 1.9 2.1 Rest of world 9.6 9.3 Total $ 123.7 $ 131.4 Software development costs are included as attributable to the market in which they are utilized. |
Customer Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | 16. Customer Concentration During the three months ended March 31, 2021, there were two customers that represented at least 10% of the Company’s revenues, accounting for 16% and 14% of the Company’s revenues. These customers were served by the Gaming, Virtual Sports and Interactive segments, and the Virtual Sports and Interactive segments, respectively. During the three months ended March 31, 2020, there were no customers that represented at least 10% of the Company’s revenues. At March 31, 2021 and December 31, 2020, there were no customers that represented at least 10% of accounts receivable. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. Other than as described below, the Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements. On April 12, 2021, the Company’s Board of Directors adopted the 2021 Omnibus Incentive Plan (the “2021 Plan”), subject to the approval of our stockholders, which was obtained at the Company’s annual meeting of stockholders held on May 11, 2021. The 2021 Plan authorizes a total of 2,900,000 shares to be issued pursuant to awards and will also replace the 2018 Plan such that shares available for grant under the 2018 Plan would instead be available for grant under the 2021 Plan. Upon approval of the 2021 Plan, the Company’s Executive Chairman received the sign-on equity awards discussed above pursuant to the terms of his employment agreement (see Note 13). On May 13, 2021, the Company issued a press release announcing that Inspired Entertainment (Financing) PLC, a wholly owned finance subsidiary of the Company, priced a private offering of £235.0 million ($324.2 million) aggregate principal amount of its 7.875% senior secured notes due 2026 (the “2026 Senior Secured Notes”). The 2026 Senior Secured Notes will be guaranteed by the Company and certain of its English and U.S. subsidiaries. The offering is expected to close on or about May 20, 2021, subject to customary closing conditions. The Company intends to use the proceeds from the offering of the 2026 Senior Secured Notes (i) to repay its existing £145.8 million ($201.1 million) senior secured term loan facility and €93.1 million ($109.4 million) senior secured term loan facility and accrued interest thereon, (ii) to pay fees, commissions and expenses incurred in connection with the refinancing, and (iii) for general corporate purposes, including to close-out derivative contracts entered into in connection with the existing term loan facilities. As part of the refinancing, the Company will also be putting into place a new 4.5 year £20 million ($27.6 million) Super Priority Senior Secured Revolving Credit Facility. |
Nature of Operations, Managem_2
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Description and Nature of Operations | Company Description and Nature of Operations We are a global gaming technology company, supplying content, platform and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks. |
Management Liquidity Plans | Management Liquidity Plans As of March 31, 2021, the Company’s cash on hand was $41.2 million, and the Company had working capital of $1.4 million. The Company recorded net losses of $16.4 million and $10.2 million for the three months ended March 31, 2021 and 2020, respectively. Net losses include excess depreciation and amortization over capital expenditure of $8.3 million and $0.6 million for the three months ended March 31, 2021, and 2020, respectively, non-cash stock-based compensation of $1.4 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively, and non-cash changes in fair value of warrant liability of $3.0 million loss and $7.6 million income for the three months ended March 31, 2021 and 2020, respectively. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows used in operations amounted to $2.0 million and $11.1 million provided by operations for the three months ended March 31, 2021 and 2020, respectively with the change year on year due to land based operations being subject to full lockdown restrictions for the three months ended March 31, 2021. Working capital of $1.4 million includes a non-cash settled item of $9.3 million of deferred income, and an item not expected to be cash settled of $16.0 million comprising a warrant liability. Management currently believes that, absent any unanticipated COVID-19 impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2022. Our business continues to be adversely affected by the continuing nature of the COVID-19 pandemic. Due to the fluidity with which the situation continues to develop, we are not able at this time to estimate the extent of the impact of the COVID-19 pandemic on our financial results and operations in future periods. The long-term impacts of the pandemic on the global economy, trade relations, consumer behavior, our industry and our business operations remain unknown, however the vaccination programme in the UK began on December 8, 2020, and as of the date of this report, whilst the majority of retail venues in Italy and Greece are closed, the UK is poised to re-open retail venues from May 17, 2021, and the vaccination programme in the UK remains on schedule. As a result of the significant reductions in revenue and other changes to our business, at least in the short term (which also affects other companies in our industry), we continue to protect our existing available liquidity by pro-actively managing capital expenditures and working capital as well as identifying both immediate and longer term opportunities for cost savings. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019. The financial information as of December 31, 2020 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2021 (“the Original 10-K”), and as amended and filed on Form 10-K/A with the SEC on May 10, 2021 (“the 10-K/A”). The interim results for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. |
Restatement of Previously Reported Information | Restatement of Previously Reported Information On May 7, 2021, after consultation with Marcum LLP, the Company’s independent registered public accounting firm, the Company’s management and the audit committee of the Company’s Board of Directors concluded that it was appropriate to restate the Company’s previously issued audited financial statements as of December 31, 2020, and December 31, 2019, and for the years ended December 31, 2020, and December 31, 2019, which were included in the Original 10-K. The restatement related to the SEC’s public statement released on April 12, 2021, informing market participants that warrants issued by special purpose acquisition companies may require classification as a liability of the entity measured at fair value, with changes in fair value each period reported in earnings. The effect of the restatement on previously reported information for the three months ended March 31, 2020 is as follows: As Previously Reported Adjustments As Restated (in millions, except per share data) Consolidated Statements of Stockholders’ Deficit as of January 1, 2020 Additional paid in capital $ 346.6 $ (26.0 ) $ 320.6 Accumulated deficit (441.2 ) 16.2 (425.0 ) Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020 Change in fair value of warrant liability $ — $ 7.6 $ 7.6 Net loss (17.4 ) 7.6 (9.8 ) Comprehensive loss (11.0 ) 7.6 (3.4 ) Net loss per common share – basic and diluted $ (0.78 ) $ 0.34 $ (0.44 ) Consolidated Statements of Stockholders’ Deficit as of March 31, 2020 Additional paid in capital $ 347.6 $ (26.0 ) $ 321.6 Accumulated deficit (458.6 ) 23.8 (434.8 ) |
Recharacterization of Previously Reported Information | Recharacterization of Previously Reported Information In prior years, and up to and including the interim period nine months ended September 30, 2020, the Company operated its business along three operating segments: Server Based Gaming, Virtual Sports (which included Interactive) and Acquired Businesses. During the period subsequent to September 30, 2020, the Company completed the process of changing its internal structure, which has been ongoing since the NTG Acquisition, and as a result changed the composition of its operating segments. The Company now operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are now managed and the way the performance of each segment is now evaluated. As part of the recharacterization exercise, certain items of Revenue, Cost of Sales and Selling, General and Administrative Expenses have been recharacterized to ensure consistency with similar items across the Group. The revenue recharacterizations are to ensure spares and similar items are reflected with other items of hardware (Product Sales). The resulting impact on previously reported information for the three months ended March 31, 2020 is as follows: Service Revenue, previously reported $43.2 million, now $42.8 million; Product Sales Revenue, previously reported $9.1 million, now $9.5 million; Cost of Service, previously reported $6.6 million, now $8.5 million; Cost of Product Sales, previously reported $7.0 million, now $6.2 million; Selling, General and Administrative Expenses (excluding Stock-based compensation), previously reported $29.1 million, now $28.0 million. The recharacterization has no impact on the previously reported Net Operating Loss, Net Loss or Net Comprehensive Loss for the three months ended March 31, 2020. |
Nature of Operations, Managem_3
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Restatement | The effect of the restatement on previously reported information for the three months ended March 31, 2020 is as follows: As Previously Reported Adjustments As Restated (in millions, except per share data) Consolidated Statements of Stockholders’ Deficit as of January 1, 2020 Additional paid in capital $ 346.6 $ (26.0 ) $ 320.6 Accumulated deficit (441.2 ) 16.2 (425.0 ) Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020 Change in fair value of warrant liability $ — $ 7.6 $ 7.6 Net loss (17.4 ) 7.6 (9.8 ) Comprehensive loss (11.0 ) 7.6 (3.4 ) Net loss per common share – basic and diluted $ (0.78 ) $ 0.34 $ (0.44 ) Consolidated Statements of Stockholders’ Deficit as of March 31, 2020 Additional paid in capital $ 347.6 $ (26.0 ) $ 321.6 Accumulated deficit (458.6 ) 23.8 (434.8 ) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: March 31, December 31, 2020 (in millions) Component parts $ 11.5 $ 12.1 Work in progress 1.8 1.7 Finished goods 3.8 3.8 Total inventories $ 17.1 $ 17.6 |
Contract Liabilities and Othe_2
Contract Liabilities and Other Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Related Balances | The following table summarizes contract related balances: Accounts Unbilled Deferred Customer (in millions) At March 31, 2021 $ 23.8 $ 5.0 $ (18.5 ) $ (1.8 ) At December 31, 2020 $ 30.4 $ 8.2 $ (22.9 ) $ (1.6 ) At December 31, 2019 $ 24.5 $ 15.3 $ (27.8 ) $ (1.9 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Derivatives Designated as Cash Flow Hedges | As of March 31, 2021, and December 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Notional Interest rate swaps 2 £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate |
Schedule of Fair Value of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of March 31, 2021. Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Derivative Liability $ (1.7 ) Total derivatives designated as hedging instruments $ — $ (1.7 ) The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of December 31, 2020. Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Other Current Liabilities and Long Term Derivative Liability $ (2.6 ) Total derivatives designated as hedging instruments $ — $ (2.6 ) |
Schedule of Accumulated Other Comprehensive Income | The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the three months ended March 31, 2021. Amount of Gain/(Loss) Location of Gain (in millions) (in millions) Interest Rate Products $ 0.6 Interest Expense $ (0.5 ) Total $ 0.6 $ (0.5 ) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the three months ended March 31, 2020. Amount of Gain Location of Gain (in millions) (in millions) Interest Rate Products $ (1.5 ) Interest Expense $ (0.4 ) Total $ (1.5 ) $ (0.4 ) |
Schedule of Consolidated Income Statements | The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2021. Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 8.6 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.5 ) The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2020. Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 6.1 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.4 ) |
Schedule of Offsetting of Derivative Assets and Liabilities | Offsetting of Derivative Assets March 31, 2021 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities March 31, 2021 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ 1.7 $ — $ 1.7 $ — $ — $ — Offsetting of Derivative Assets December 31, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts of Assets Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities December 31, 2020 Gross Amounts Not Offset in the Gross Amounts Gross Amounts Net Amounts Financial Instruments Cash Collateral Received Net Amount (in millions) Fair value of hedging instrument $ 2.6 $ — $ 2.6 $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Financial Instrument Assets and Liabilities Measured at Fair Value on Recurring Basis | For each period, derivative financial instrument assets and liabilities measured at fair value on a recurring basis are included in the financial statements as per the table below. March 31, December 31, Level 2021 2020 (in millions) Public Warrants (included in warrant liability) 1 $ 4.3 $ 3.2 Long term receivable (included in other assets) 2 $ 1.3 $ 1.4 Private Placement Warrants (included in warrant liability) 2 $ 11.7 $ 9.8 Derivative liability (see Note 4) 2 $ 1.7 $ 2.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity during the three months ended March 31, 2021 is as follows: Number of Unvested Outstanding at January 1, 2021 2,149,118 Granted 59,466 Forfeited (13,954 ) Vested (11,418 ) Unvested Outstanding at March 31, 2021 2,183,212 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Income) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The accumulated balances for each classification of comprehensive loss (income) are presented below: Foreign Change in Unrecognized Accumulated (in millions) Balance at January 1, 2021 (71.1 ) 2.8 37.2 (31.1 ) Change during the period 1.1 (1.1 ) (4.6 ) (4.6 ) Balance at March 31, 2021 $ (70.0 ) $ 1.7 $ 32.6 $ (35.7 ) Foreign Change in Unrecognized Accumulated (in millions) Balance at January 1, 2020 (76.5 ) 1.4 30.0 (45.1 ) Change during the period (3.1 ) 1.1 (4.4 ) (6.4 ) Balance at March 31, 2020 $ (79.6 ) $ 2.5 $ 25.6 $ (51.5 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: Three Months Ended 2021 2020 RSUs 3,564,814 2,954,493 Unvested Restricted Stock 624,116 624,116 Stock Warrants 9,539,565 9,539,565 |
Other Finance Income (Expense)
Other Finance Income (Expense) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Finance Income (Expense) | Other finance income (expense) consisted of the following: Three Months Ended 2021 2020 (in millions) Pension interest cost $ (0.4 ) $ (0.6 ) Expected return on pension plan assets 0.7 0.8 Foreign currency translation on senior bank debt 6.1 (3.9 ) $ 6.4 $ (3.7 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Income | The components of lease income were as follows: Three Months Ended 2021 2020 (in millions) Interest receivable from sales type leases $ — $ — Operating lease income — 1.0 Variable income from sales type leases — 0.2 Total $ — $ 1.2 |
Pension Plan (Tables)
Pension Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans | The following table presents the components of our net periodic pension benefit cost: Three Months Ended 2021 2020 (in millions) Components of net periodic pension benefit cost: Interest cost $ 0.4 $ 0.6 Expected return on plan assets (0.7 ) (0.8 ) Net periodic (benefit) cost $ (0.3 ) $ (0.2 ) |
Schedule of Pension Plans and Their Reconciliation | The following table sets forth the estimate of the combined funded status of the pension plans and their reconciliation to the related amounts recognized in our consolidated financial statements at the respective measurement dates: March 31, 2021 December 31, (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 127.8 $ 110.4 Interest cost 0.4 2.2 Actuarial (gain)/loss (9.9 ) 14.5 Benefits paid (0.6 ) (4.1 ) Foreign currency translation adjustments 1.5 4.8 Benefit obligation at end of period $ 119.2 $ 127.8 Change in plan assets: Fair value of plan assets at beginning of period $ 118.7 $ 107.3 Actual (loss)/gain on plan assets (4.8 ) 9.8 Employer contributions 0.1 1.6 Benefits paid (0.6 ) (4.1 ) Foreign currency translation adjustments 1.3 4.1 Fair value of assets at end of period $ 114.7 $ 118.7 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (4.5 ) $ (9.1 ) Net amount recognized $ (4.5 ) $ (9.1 ) |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information By Segment | Segment Information Three Months Ended March 31, 2021 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 5.6 $ 6.3 $ 5.2 $ — $ — $ 17.1 Product sales 5.2 — — 0.5 — 5.7 Total revenue 10.8 6.3 5.2 0.5 — 22.8 Cost of sales, excluding depreciation and amortization: Cost of service (0.6 ) (0.3 ) (0.8 ) (0.4 ) — (2.1 ) Cost of product sales (2.9 ) — — (0.3 ) — (3.2 ) Selling, general and administrative expenses (4.1 ) (1.1 ) (1.0 ) (3.2 ) (4.4 ) (13.8 ) Stock-based compensation expense (0.2 ) (0.1 ) (0.1 ) (0.1 ) (0.9 ) (1.4 ) Acquisition and integration related transaction expenses — — — — (1.4 ) (1.4 ) Depreciation and amortization (6.6 ) (1.1 ) (0.7 ) (4.2 ) (0.5 ) (13.1 ) Segment operating income (loss) (3.6 ) 3.7 2.6 (7.7 ) (7.2 ) (12.2 ) Net operating loss $ (12.2 ) Total assets at March 31, 2021 $ 78.7 $ 60.9 $ 13.3 $ 84.6 $ 63.5 $ 301.0 Total goodwill at March 31, 2021 $ 1.5 $ 48.5 $ 0.4 $ 34.3 $ — $ 84.7 Total capital expenditures for the three months ended March 31, 2021 $ 1.2 $ 0.8 $ 0.9 $ 3.1 $ 0.2 $ 6.2 Three Months Ended March 31, 2020 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 16.6 $ 7.8 $ 2.1 $ 16.3 $ — $ 42.8 Product sales 8.3 — — 1.2 — 9.5 Total revenue 24.9 7.8 2.1 17.5 — 52.3 Cost of sales, excluding depreciation and amortization: Cost of service (4.3 ) (0.7 ) (0.2 ) (3.3 ) — (8.5 ) Cost of product sales (5.4 ) — — (0.8 ) — (6.2 ) Selling, general and administrative expenses (8.9 ) (1.2 ) (1.2 ) (11.0 ) (5.7 ) (28.0 ) Stock-based compensation expense (0.1 ) (0.1 ) — — (0.8 ) (1.0 ) Acquisition and integration related transaction expenses — — — — (3.2 ) (3.2 ) Depreciation and amortization (7.4 ) (0.8 ) (0.6 ) (3.4 ) (0.4 ) (12.6 ) Segment operating income (loss) (1.2 ) 5.0 0.1 (1.0 ) (10.1 ) (7.2 ) Net operating loss $ (7.2 ) Total assets at December 31, 2020 $ 93.9 $ 64.4 $ 8.5 $ 87.0 $ 70.3 $ 324.1 Total goodwill at December 31, 2020 $ 1.4 $ 48.0 $ 0.4 $ 33.9 $ — $ 83.7 Total capital expenditures for the three months ended March 31, 2020 $ 2.7 $ 1.0 $ 0.6 $ 5.2 $ 2.3 $ 11.8 |
Schedule of Geographic Information | Geographic information for revenue is set forth below: Three Months Ended 2021 2020 (in millions) Total revenue UK $ 10.9 $ 38.4 Greece 2.3 4.8 Canada 1.8 0.1 Italy 1.3 2.2 Rest of world 6.5 6.8 Total $ 22.8 $ 52.3 Geographic information of our non-current assets excluding goodwill is set forth below: March 31, 2021 December 31, 2020 (in millions) UK $ 97.0 $ 101.8 Greece 15.2 18.2 Italy 1.9 2.1 Rest of world 9.6 9.3 Total $ 123.7 $ 131.4 |
Nature of Operations, Managem_4
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash on hand | $ 41,200 | $ 47,100 | |
Working capital | 1,400 | ||
Net losses | (16,700) | $ (9,800) | |
Excess depreciation and amortization over capital expenditure | 8,300 | 600 | |
Share-based compensation | 1,400 | 1,000 | |
Change in fair value of warrant liability | 3,000 | 7,600 | |
Net cash provided by operating | (2,000) | 11,100 | |
Deferred income | 9,300 | ||
Warrant liability | 16,000 | $ 13,000 | |
Revenue | 22,800 | 52,300 | |
Cost of service | 2,100 | 8,500 | |
Cost of product sales | 3,200 | 6,200 | |
Selling, general and administrative expenses excluding stock-based compensation | 15,200 | 29,000 | |
As Previously Reported [Member] | |||
Net losses | (17,400) | ||
Change in fair value of warrant liability | |||
Cost of service | 6,600 | ||
Cost of product sales | 7,000 | ||
Selling, general and administrative expenses excluding stock-based compensation | 29,100 | ||
Service [Member] | |||
Revenue | 17,100 | 42,800 | |
Service [Member] | As Previously Reported [Member] | |||
Revenue | 43,200 | ||
Product Sales [Member] | |||
Revenue | $ 5,700 | 9,500 | |
Product Sales [Member] | As Previously Reported [Member] | |||
Revenue | $ 9,100 |
Nature of Operations, Managem_5
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies - Schedule of Restatement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Additional paid in capital | $ 326,000 | $ 321,600 | $ 324,600 |
Accumulated deficit | (474,100) | (434,800) | $ (457,400) |
Change in fair value of warrant liability | 3,000 | 7,600 | |
Net loss | (16,700) | (9,800) | |
Comprehensive loss | $ (12,100) | $ (3,400) | |
Net loss per common share - basic and diluted | $ (.74) | $ (.44) | |
As Previously Reported [Member] | |||
Additional paid in capital | $ 346,600 | $ 347,600 | |
Accumulated deficit | (441,200) | (458,600) | |
Change in fair value of warrant liability | |||
Net loss | (17,400) | ||
Comprehensive loss | $ (11,000) | ||
Net loss per common share - basic and diluted | $ (.78) | ||
Adjustments [Member] | |||
Additional paid in capital | (26,000) | $ (26,000) | |
Accumulated deficit | $ 16,200 | 23,800 | |
Change in fair value of warrant liability | 7,600 | ||
Net loss | 7,600 | ||
Comprehensive loss | $ 7,600 | ||
Net loss per common share - basic and diluted | $ .34 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Reserves for excess and slow-moving inventory | $ 1,800 | $ 1,500 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Component parts | $ 11,500 | $ 12,100 |
Work in progress | 1,800 | 1,700 |
Finished goods | 3,800 | 3,800 |
Total inventories | $ 17,100 | $ 17,600 |
Contract Liabilities and Othe_3
Contract Liabilities and Other Disclosures (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized in deferred income | $ 3,900 | $ 10,300 |
Contract Liabilities and Othe_4
Contract Liabilities and Other Disclosures - Schedule of Contract Related Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Accounts Receivable | $ 23,800 | $ 30,400 | $ 24,500 |
Unbilled Accounts Receivable | 5,000 | 8,200 | 15,300 |
Deferred Income | (18,500) | (22,900) | (27,800) |
Customer Prepayments and Deposits | $ (1,800) | $ (1,600) | $ (1,900) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details Narrative) € in Thousands, £ in Thousands, $ in Thousands | Jan. 15, 2020USD ($) | Mar. 31, 2021USD ($) | Jan. 15, 2020EUR (€) | Jan. 15, 2020GBP (£) |
Derivative reclassified as increase to interest expense | $ 1,500 | |||
ISDA Agreements [Member] | ||||
Fair value of derivatives net liability position | 1,700 | |||
Termination amount | $ 2,500 | |||
LIBOR [Member] | Interest Rate Swap [Member] | ||||
Principal of face amount | $ 131,100 | |||
LIBOR [Member] | EUR [Member] | Interest Rate Swap [Member] | ||||
Description of terms | The Company entered into two interest rate swaps with UBS AG designed to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the current floating rate debt facilities. The swaps fix the variable interest rate of the current debt facilities and provide protection over potential interest rate increases by providing a fixed rate of interest payment in return. These interest rate swaps are for £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and for €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate and are effective until maturity on October 1, 2023. | |||
Maturity date | Oct. 1, 2023 | |||
LIBOR [Member] | GBP [Member] | Interest Rate Swap [Member] | ||||
Principal of face amount | £ | £ 95,000 | |||
Debt interest rate | 0.9255% | 0.9255% | 0.9255% | |
EUROLIBOR [Member] | Interest Rate Swap [Member] | ||||
Principal of face amount | $ 70,500 | |||
EUROLIBOR [Member] | EUR [Member] | Interest Rate Swap [Member] | ||||
Principal of face amount | € | € 60,000 | |||
Debt interest rate | 0.102% | 0.102% | 0.102% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Outstanding Derivatives Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - Cross Currency Interest Rate Swap [Member] - Instrument | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number of Instruments | 2 | 2 |
Notional | £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate | £95 million ($131.1 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million ($70.5 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Financial Instruments (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Hedging Instrument [Member] | Asset Derivatives Fair Value [Member] | ||
Balance Sheet Classification | Fair Value of Hedging Instruments | Fair Value of Hedging Instruments |
Interest Rate Products | ||
Total derivatives designated as hedging instruments | ||
Derivative Liability [Member] | Liability Derivatives Fair Value [Member] | ||
Balance Sheet Classification | Other Current Liabilities and Long Term Derivative Liability | Other Current Liabilities and Long Term Derivative Liability |
Interest Rate Products | $ (1,700) | $ (2,600) |
Total derivatives designated as hedging instruments | $ (1,700) | $ (2,600) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Schedule of Accumulated Other Comprehensive Income (Details) - Fair Value and Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Amount of Gain/(Loss Recognized in Other Comprehensive Income on Derivative | $ 600 | $ (1,500) |
Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income | (500) | (400) |
Interest Expense [Member] | ||
Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income | (500) | (400) |
Interest Rate and Foreign Exchange Products [Member] | ||
Amount of Gain/(Loss Recognized in Other Comprehensive Income on Derivative | $ 600 | $ (1,500) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Schedule of Consolidated Income Statements (Details) - Interest Expense [Member] - Fair Value and Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded | $ 8,600 | $ 6,100 |
Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 | $ (500) | $ (400) |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities - Schedule of Offsetting of Derivative Assets and Liabilities (Details) - Hedging Instrument [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Gross Amounts of Recognized Assets | ||
Gross Amounts Offset in the Statement of Financial Position | ||
Net Amounts of Assets presented in the Statement of Financial Position | ||
Financial Instruments | ||
Cash Collateral Received | ||
Net Amount | ||
Gross Amounts of Recognized Liabilities | 1,700 | 2,600 |
Gross Amounts Offset in the Statement of Financial Position | ||
Net Amounts of Liabilities presented in the Statement of Financial Position | 1,700 | 2,600 |
Financial Instruments | ||
Cash Collateral Received | ||
Net Amount |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Derivative Financial Instrument Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 1 [Member] | ||
Public Warrants (included in warrant liability) | $ 4,300 | $ 3,200 |
Fair Value, Inputs, Level 2 [Member] | ||
Long term receivable (included in other assets) | 1,300 | 1,400 |
Private Placement Warrants (included in warrant liability) | 11,700 | 9,800 |
Derivative liability (see Notes 14 and 17) | $ 1,700 | $ 2,600 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Stock-based compensation expense | $ 1,400 | $ 1,000 | |
Unrecognized compensation expense | $ 5,000 | ||
Weighted average period for recognition | 1 year | ||
Employee Stock Purchase Plan [Member] | |||
Outstanding awards plan, description | (i) 1,777,611 shares subject to outstanding awards under the 2018 Plan, including 75,000 shares subject to performance-based target awards and 259,300 shares subject to awards that were previously subject to performance criteria that were determined to have been met for the applicable performance year which awards continue to remain subject to a time-based vesting schedule; and (ii) 2,411,319 shares subject to outstanding awards under the Prior Plans, including 1,092,633 shares subject to market-price vesting conditions that have a satisfaction deadline of December 23, 2021. | ||
Number of shares available | 467,751 | ||
Issuance of an aggregate shares of common stock | 500,000 | ||
2018 Plan [Member] | |||
Restricted stock awards outstanding | 1,777,611 | ||
Number of shares available | 221,799 | ||
2018 Plan [Member] | Time Based Vesting Schedule [Member] | |||
Restricted stock awards outstanding | 259,300 | ||
2018 Plan [Member] | Performance-Based Stock [Member] | |||
Restricted stock awards outstanding | 75,000 | ||
2018 Plan [Member] | Restricted Stock [Member] | |||
Number of shares issued | 163,752 | ||
Prior Plans [Member] | |||
Restricted stock awards outstanding | 2,411,319 | ||
Prior Plans [Member] | Market-Price Vesting Conditions [Member] | |||
Restricted stock awards outstanding | 1,092,633 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock [Member] - Incentive Plan [Member] | 3 Months Ended |
Mar. 31, 2021shares | |
Number of shares, Unvested Outstanding, Beginning balance | 2,149,118 |
Number of shares, Granted | 59,466 |
Number of shares, Forfeited | (13,954) |
Number of shares, Vested | (11,418) |
Number of shares, Unvested Outstanding, Ending balance | 2,183,212 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Income) (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accumulated other comprehensive income | $ 35,700 | $ 31,100 | $ 51,500 | $ 45,100 |
Hedging Instrument [Member] | ||||
Accumulated other comprehensive income | 400 | |||
Active Hedging [Member] | ||||
Accumulated other comprehensive income | $ 1,300 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Income) - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Foreign Currency Translation Adjustments, Beginning balance | $ (71,100) | $ (76,500) |
Foreign Currency Translation Adjustments, Change during the period | 1,100 | (3,100) |
Foreign Currency Translation Adjustments, Ending balance | (70,000) | (79,600) |
Change in Fair Value of Hedging Instrument, Beginning balance | 2,800 | 1,400 |
Change in Fair Value of Hedging Instrument, Change during the period | (1,100) | 1,100 |
Change in Fair Value of Hedging Instrument, Ending balance | 1,700 | 2,500 |
Unrecognized Pension Benefit Costs, Beginning balance | 37,200 | 30,000 |
Unrecognized Pension Benefit Costs, Change during the period | (4,600) | (4,400) |
Unrecognized Pension Benefit Costs, Ending balance | 32,600 | 25,600 |
Accumulated Other Comprehensive (Income), Beginning balance | (31,100) | (45,100) |
Accumulated Other Comprehensive (Income), Change during the period | (4,600) | (6,400) |
Accumulated Other Comprehensive (Income), Ending balance | $ (35,700) | $ (51,500) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of antidilutive securities excluded from computation of earnings per share | 13,728,495 | 13,118,174 |
RSUs [Member] | ||
Number of antidilutive securities excluded from computation of earnings per share | 3,564,814 | 2,954,493 |
Unvested Restricted Stock [Member] | ||
Number of antidilutive securities excluded from computation of earnings per share | 624,116 | 624,116 |
Stock Warrants [Member] | ||
Number of antidilutive securities excluded from computation of earnings per share | 9,539,565 | 9,539,565 |
Other Finance Income (Expense_2
Other Finance Income (Expense) - Schedule of Other Finance Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | ||
Pension interest cost | $ (400) | $ (600) |
Expected return on pension plan assets | 700 | 800 |
Foreign currency translation on senior bank debt | 6,100 | (3,900) |
Other finance income (Costs) | $ 6,400 | $ (3,700) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 2.00% | 4.00% | |
Income tax expense (benefit) | $ 200 | $ (700) | $ 200 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Secured term loans | $ 310,600 | $ 313,300 | |
Interest expense | $ 8,600 | $ 6,100 | |
Macquarie Corporate Holdings Pty Limited [Member] | |||
Percentage of equity ownership | 13.00% | ||
Secured term loans | $ 30,400 | 30,700 | |
Interest expense | 600 | $ 500 | |
Accrued interest payable | $ 500 | $ 600 | |
MIHI LLC [Member] | |||
Warrants to purchase common stock | 1,000,000 | ||
MIHI LLC and Hydra Industries Sponsor LLC [Member] | Maximum [Member] | |||
Percentage of equity ownership | 5.00% |
Leases - Schedule of Lease Inco
Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Interest receivable from sales type leases | ||
Operating lease income | 1,000 | |
Variable income from sales type leases | 200 | |
Total | $ 1,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Oct. 09, 2020shares |
Executive Chairman [Member] | |
Restricted stock units, shares | 750,000 |
Pension Plan (Details Narrative
Pension Plan (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contingent contributions | $ 1,200 | ||||
Employer contributions | $ 100 | $ 400 | $ 1,600 | ||
Forecast [Member] | |||||
Expense contributions | $ 400 |
Pension Plan - Schedule of Defi
Pension Plan - Schedule of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Interest cost | $ 400 | $ 600 |
Expected return on plan assets | (700) | (800) |
Net periodic (benefit) cost | $ (300) | $ (200) |
Pension Plan - Schedule of Pens
Pension Plan - Schedule of Pension Plans and Their Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Benefit obligation at beginning of period | $ 127,800 | $ 110,400 | $ 110,400 |
Interest cost | 400 | 2,200 | |
Actuarial loss | (9,900) | 14,500 | |
Benefits paid | (600) | (4,100) | |
Foreign currency translation adjustments | 1,500 | 4,800 | |
Benefit obligation at end of period | 119,200 | 127,800 | |
Fair value of plan assets at beginning of period | 118,700 | 107,300 | 107,300 |
Actual gain on plan assets | (4,800) | 9,800 | |
Employer contributions | 100 | $ 400 | 1,600 |
Benefits paid | (600) | (4,100) | |
Foreign currency translation adjustments | 1,300 | 4,100 | |
Fair value of assets at end of period | 114,700 | 118,700 | |
Unfunded status (non-current) | (4,500) | (9,100) | |
Net amount recognized | $ (4,500) | $ (9,100) |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information (Details Narrative) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Integer | Mar. 31, 2020USD ($) | |
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Number of operating segment | Integer | 4 | |
Revenue | $ 22,800 | $ 52,300 |
Cost of service | 2,100 | 8,500 |
Cost of product sales | 3,200 | 6,200 |
Selling, general and administrative expenses | 15,200 | 29,000 |
As Previously Reported [Member] | ||
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Cost of service | 6,600 | |
Cost of product sales | 7,000 | |
Selling, general and administrative expenses | 29,100 | |
Service [Member] | ||
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Revenue | 17,100 | 42,800 |
Service [Member] | As Previously Reported [Member] | ||
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Revenue | 43,200 | |
Product Sales [Member] | ||
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Revenue | $ 5,700 | 9,500 |
Product Sales [Member] | As Previously Reported [Member] | ||
Segment Reporting and Geographic Information (Details) [Line Items] | ||
Revenue | $ 9,100 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Information - Schedule of Segment Reporting Information By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 22,800 | $ 52,300 | |
Cost of service | (2,100) | (8,500) | |
Cost of product sales | (3,200) | (6,200) | |
Selling, general and administrative expenses | (15,200) | (29,000) | |
Stock-based compensation expense | (1,400) | (1,000) | |
Acquisition and integration related transaction expenses | (1,400) | (3,200) | |
Depreciation and amortization | (13,100) | (12,600) | |
Segment operating income (loss) | (12,200) | (7,200) | |
Total assets | 301,000 | 324,100 | $ 324,100 |
Total goodwill | 84,700 | 83,700 | $ 83,700 |
Total capital expenditures | 6,200 | 11,800 | |
Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 17,100 | 42,800 | |
Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,700 | 9,500 | |
Gaming [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 10,800 | 24,900 | |
Cost of service | (600) | (4,300) | |
Cost of product sales | (2,900) | (5,400) | |
Selling, general and administrative expenses | (4,100) | (8,900) | |
Stock-based compensation expense | (200) | (100) | |
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (6,600) | (7,400) | |
Segment operating income (loss) | (3,600) | (1,200) | |
Total assets | 78,700 | 93,900 | |
Total goodwill | 1,500 | 1,400 | |
Total capital expenditures | 1,200 | 2,700 | |
Gaming [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,600 | 16,600 | |
Gaming [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,200 | 8,300 | |
Virtual Sports [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6,300 | 7,800 | |
Cost of service | (300) | (700) | |
Cost of product sales | |||
Selling, general and administrative expenses | (1,100) | (1,200) | |
Stock-based compensation expense | (100) | (100) | |
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (1,100) | (800) | |
Segment operating income (loss) | 3,700 | 5,000 | |
Total assets | 60,900 | 64,400 | |
Total goodwill | 48,500 | 48,000 | |
Total capital expenditures | 800 | 1,000 | |
Virtual Sports [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6,300 | 7,800 | |
Virtual Sports [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Interactive [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,200 | 2,100 | |
Cost of service | (800) | (200) | |
Cost of product sales | |||
Selling, general and administrative expenses | (1,000) | (1,200) | |
Stock-based compensation expense | (100) | ||
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (700) | (600) | |
Segment operating income (loss) | 2,600 | 100 | |
Total assets | 13,300 | 8,500 | |
Total goodwill | 400 | 400 | |
Total capital expenditures | 900 | 600 | |
Interactive [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,200 | 2,100 | |
Interactive [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Leisure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 500 | 17,500 | |
Cost of service | (400) | (3,300) | |
Cost of product sales | (300) | (800) | |
Selling, general and administrative expenses | (3,200) | (11,000) | |
Stock-based compensation expense | (100) | ||
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (4,200) | (3,400) | |
Segment operating income (loss) | (7,700) | (1,000) | |
Total assets | 84,600 | 87,000 | |
Total goodwill | 34,300 | 33,900 | |
Total capital expenditures | 3,100 | 5,200 | |
Leisure [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 16,300 | ||
Leisure [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 500 | 1,200 | |
Corporate Functions [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Cost of service | |||
Cost of product sales | |||
Selling, general and administrative expenses | (4,400) | (5,700) | |
Stock-based compensation expense | (900) | (800) | |
Acquisition and integration related transaction expenses | (1,400) | (3,200) | |
Depreciation and amortization | (500) | (400) | |
Segment operating income (loss) | (7,200) | (10,100) | |
Total assets | 63,500 | 70,300 | |
Total goodwill | |||
Total capital expenditures | 200 | 2,300 | |
Corporate Functions [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Corporate Functions [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Information - Schedule of Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 22,800 | $ 52,300 | |
Total non-current assets excluding goodwill | 123,700 | $ 131,400 | |
UK [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 10,900 | 38,400 | |
Total non-current assets excluding goodwill | 97,000 | 101,800 | |
Greece [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 2,300 | 4,800 | |
Total non-current assets excluding goodwill | 15,200 | 18,200 | |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 1,800 | 100 | |
Italy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 1,300 | 2,200 | |
Total non-current assets excluding goodwill | 1,900 | 2,100 | |
Rest of World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 6,500 | $ 6,800 | |
Total non-current assets excluding goodwill | $ 9,600 | $ 9,300 |
Customer Concentration (Details
Customer Concentration (Details Narrative) - Sales Revenue [Member] - Customer Concentration Risk [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Customer One [Member] | |
Customer Concentration (Details) [Line Items] | |
Concentration risk, percentage | 16.00% |
Customer Two [Member] | |
Customer Concentration (Details) [Line Items] | |
Concentration risk, percentage | 14.00% |
No Customer [Member] | |
Customer Concentration (Details) [Line Items] | |
Concentration risk, percentage | 10.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] € in Thousands, £ in Thousands, $ in Thousands | May 13, 2021USD ($) | May 13, 2021EUR (€) | May 13, 2021GBP (£) | May 13, 2021EUR (€) | Apr. 12, 2021shares |
2026 Senior Secured Notes [Member] | |||||
Proceeds from private offering | $ 324,200 | ||||
Debt instrument, interest rate | 7.875% | 7.875% | |||
Repayments of debt | $ 201,100 | ||||
Debt instrument principal and accrued interest | 109,400 | ||||
2026 Senior Secured Notes [Member] | GBP [Member] | |||||
Proceeds from private offering | £ | £ 235,000 | ||||
Repayments of debt | £ | £ 145,800 | ||||
2026 Senior Secured Notes [Member] | EUR [Member] | |||||
Debt instrument principal and accrued interest | € | € 93,100 | ||||
Super Priority Senior Secured Revolving Credit Facility [Member] | |||||
Proceeds from private offering | $ 27,600 | ||||
Super Priority Senior Secured Revolving Credit Facility [Member] | EUR [Member] | |||||
Proceeds from private offering | € | € 20,000 | ||||
2021 Omnibus Incentive Plan [Member] | |||||
Number of shares authorized | shares | 2,900,000 |