Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | NTN BUZZTIME INC | |
Entity Central Index Key | 0000748592 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
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 Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,898,834 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 2,533 | $ 2,536 |
Restricted cash | 51 | 50 |
Accounts receivable, net of allowances of $372 and $374, respectively | 777 | 1,143 |
Site equipment to be installed | 1,601 | 2,539 |
Prepaid expenses and other current assets | 585 | 517 |
Total current assets | 5,547 | 6,785 |
Restricted cash, long-term | 200 | 200 |
Operating lease right-of-use assets | 2,176 | |
Fixed assets, net | 3,365 | 4,667 |
Software development costs, net of accumulated amortization of $3,318 and $2,973, respectively | 2,504 | 2,018 |
Deferred costs | 340 | 424 |
Goodwill | 687 | 667 |
Other assets | 100 | 103 |
Total assets | 14,919 | 14,864 |
Current Liabilities: | ||
Accounts payable | 335 | 271 |
Accrued compensation | 450 | 572 |
Accrued expenses | 322 | 444 |
Sales taxes payable | 71 | 87 |
Income taxes payable | 6 | 1 |
Current portion of long-term debt | 1,000 | 1,000 |
Current portion of obligations under operating leases | 412 | |
Current portion of obligations under financing leases | 22 | 45 |
Current portion of deferred revenue | 743 | 1,267 |
Other current liabilities | 171 | 337 |
Total current liabilities | 3,532 | 4,024 |
Long-term debt | 1,987 | 2,729 |
Long-term obligations under operating leases | 2,992 | |
Long-term obligations under financing leases | 25 | 41 |
Long-term deferred revenue | 13 | 30 |
Deferred rent | 1,123 | |
Other liabilities | 25 | |
Total liabilities | 8,574 | 7,947 |
Shareholders' Equity | ||
Series A 10% cumulative convertible preferred stock, $0.005 par value, $156 liquidation preference, 156 shares authorized, issued and outstanding at September 30, 2019 and December 31, 2018 | 1 | 1 |
Common stock, $0.005 par value, 15,000 shares authorized at September 30, 2019 and December 31, 2018; 2,895 and 2,875 shares issued at September 30, 2019 and December 31, 2018, respectively | 14 | 14 |
Treasury stock, at cost, 10 shares at September 30, 2019 and December 31, 2018 | (456) | (456) |
Additional paid-in capital | 136,695 | 136,552 |
Accumulated deficit | (130,156) | (129,394) |
Accumulated other comprehensive income | 247 | 200 |
Total shareholders' equity | 6,345 | 6,917 |
Total liabilities and shareholders' equity | $ 14,919 | $ 14,864 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts - accounts receivable | $ 372 | $ 374 |
Software accumulated amortization | $ 3,318 | $ 2,973 |
Series A cumulative preferred stock, percentage | 10.00% | 10.00% |
Preferred stock series A, par value per share | $ 0.005 | $ 0.005 |
Preferred stock series A, liquidation preference | $ 156 | $ 156 |
Preferred stock series A, shares authorized | 156,000 | 156,000 |
Preferred stock series A, shares issued | 156,000 | 156,000 |
Preferred stock series A, shares outstanding | 156,000 | 156,000 |
Common stock, par value | $ 0.005 | $ 0.005 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,895,000 | 2,875,000 |
Common stock, shares outstanding | 2,895,000 | 2,875,000 |
Treasury stock, shares | 10,000 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total Revenue | $ 4,580 | $ 6,004 | $ 14,638 | $ 17,416 |
Operating expenses: | ||||
Direct operating costs (includes depreciation and amortization of $649 and $657 for the three months ended September 30,2019 and 2018, respectively, and $1,918 and $1,824 for the nine months ended September 30, 2019 and 2018, respectively) | 1,344 | 2,115 | 4,545 | 6,019 |
Selling, general and administrative | 3,464 | 3,444 | 10,355 | 11,123 |
Depreciation and amortization (excluding depreciation and amortization included in direct operating costs) | 88 | 75 | 273 | 244 |
Total operating expenses | 4,896 | 5,634 | 15,173 | 17,386 |
Operating (loss) income | (316) | 370 | (535) | 30 |
Other expense, net | (16) | (138) | (189) | (305) |
(Loss) income before income taxes | (332) | 232 | (724) | (275) |
Provision for income taxes | (19) | (10) | (30) | (36) |
Net (loss) income | (351) | 222 | (754) | (311) |
Series A preferred stock dividend | (8) | (8) | ||
Net (loss) income attributable to common shareholders | $ (351) | $ 222 | $ (762) | $ (319) |
Net (loss) income per common share - basic and diluted | $ (0.12) | $ 0.08 | $ (0.27) | $ (0.12) |
Weighted average shares outstanding - basic and diluted | 2,874,000 | 2,857,000 | 2,870,000 | 2,628,000 |
Comprehensive (loss) income | ||||
Net (loss) income | $ (351) | $ 222 | $ (754) | $ (311) |
Foreign currency translation adjustment | (18) | 39 | 47 | (52) |
Total comprehensive (loss) income | (369) | 261 | (707) | (363) |
Subscription Revenue [Member] | ||||
Revenues | ||||
Total Revenue | 3,723 | 4,005 | 11,356 | 12,111 |
Hardware Revenue [Member] | ||||
Revenues | ||||
Total Revenue | 11 | 1,158 | 811 | 2,427 |
Other Revenue [Member] | ||||
Revenues | ||||
Total Revenue | $ 846 | $ 841 | $ 2,471 | $ 2,878 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Depreciation and amortization - part of direct operating costs | $ 649 | $ 657 | $ 1,918 | $ 1,824 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Series A Cumulative Convertible Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2017 | $ 1 | $ 13 | $ (456) | $ 134,752 | $ (129,119) | $ 345 | $ 5,536 |
Balance, shares at Dec. 31, 2017 | 156,000 | 2,521,000 | |||||
Foreign currency translation adjustment | (52) | (52) | |||||
Net income (loss) | (311) | (311) | |||||
Net proceeds from common stock related to registered direct offering | $ 1 | 1,374 | 1,375 | ||||
Net proceeds from common stock related to registered direct offering, shares | 345,000 | ||||||
Issuance of common stock upon vesting of restricted stock units | (12) | (12) | |||||
Issuance of common stock upon vesting of restricted stock units, shares | 6,000 | ||||||
Cash paid to Series A preferred stockholders for semi-annual dividend | (8) | (8) | |||||
Non-cash stock based compensation | 368 | 368 | |||||
Balance at Sep. 30, 2018 | $ 1 | $ 14 | (456) | 136,482 | (129,438) | 293 | 6,896 |
Balance, shares at Sep. 30, 2018 | 156,000 | 2,872,000 | |||||
Balance at Jun. 30, 2018 | $ 1 | $ 14 | (456) | 136,383 | (129,660) | 254 | 6,536 |
Balance, shares at Jun. 30, 2018 | 156,000 | 2,866,000 | |||||
Foreign currency translation adjustment | 39 | 39 | |||||
Net income (loss) | 222 | 222 | |||||
Net proceeds from common stock related to registered direct offering | (6) | (6) | |||||
Issuance of common stock upon vesting of restricted stock units | $ (12) | $ (12) | |||||
Issuance of common stock upon vesting of restricted stock units, shares | 6,000 | ||||||
Cash paid to Series A preferred stockholders for semi-annual dividend | |||||||
Non-cash stock based compensation | 117 | 117 | |||||
Balance at Sep. 30, 2018 | $ 1 | $ 14 | (456) | 136,482 | (129,438) | 293 | 6,896 |
Balance, shares at Sep. 30, 2018 | 156,000 | 2,872,000 | |||||
Balance at Dec. 31, 2018 | $ 1 | $ 14 | (456) | 136,552 | (129,394) | 200 | 6,917 |
Balance, shares at Dec. 31, 2018 | 156,000 | 2,875,000 | |||||
Foreign currency translation adjustment | 47 | 47 | |||||
Net income (loss) | (754) | (754) | |||||
Net proceeds from common stock related to registered direct offering, shares | |||||||
Issuance of common stock upon vesting of restricted stock units | (29) | (29) | |||||
Issuance of common stock upon vesting of restricted stock units, shares | 20,000 | ||||||
Cash paid to Series A preferred stockholders for semi-annual dividend | (8) | (8) | |||||
Non-cash stock based compensation | 172 | 172 | |||||
Balance at Sep. 30, 2019 | $ 1 | $ 14 | (456) | 136,695 | (130,156) | 247 | 6,345 |
Balance, shares at Sep. 30, 2019 | 156,000 | 2,895,000 | |||||
Balance at Jun. 30, 2019 | $ 1 | $ 14 | (456) | 136,648 | (129,805) | 265 | 6,667 |
Balance, shares at Jun. 30, 2019 | 156,000 | 2,882,000 | |||||
Foreign currency translation adjustment | (18) | (18) | |||||
Net income (loss) | (351) | (351) | |||||
Issuance of common stock upon vesting of restricted stock units | (16) | (16) | |||||
Issuance of common stock upon vesting of restricted stock units, shares | 13,000 | ||||||
Cash paid to Series A preferred stockholders for semi-annual dividend | |||||||
Non-cash stock based compensation | 63 | 63 | |||||
Balance at Sep. 30, 2019 | $ 1 | $ 14 | $ (456) | $ 136,695 | $ (130,156) | $ 247 | $ 6,345 |
Balance, shares at Sep. 30, 2019 | 156,000 | 2,895,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows provided by operating activities: | ||
Net loss | $ (754) | $ (311) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,191 | 2,068 |
Provision for doubtful accounts | 144 | 53 |
Amortization of operating lease right-of-use assets | 217 | |
Scrap expense | 5 | 30 |
Transfer of fixed assets to sales-type lease | 7 | 10 |
Stock-based compensation | 172 | 368 |
Amortization of debt issuance costs | 7 | 57 |
Loss from disposition of equipment and capitalized software | 42 | 53 |
Changes in assets and liabilities: | ||
Accounts receivable | 222 | (617) |
Site equipment to be installed | 475 | (267) |
Operating lease liabilities | (111) | |
Prepaid expenses and other assets | (66) | 40 |
Accounts payable and accrued liabilities | (196) | 69 |
Income taxes | 4 | 24 |
Deferred costs | 84 | 305 |
Deferred revenue | (541) | (1,209) |
Deferred rent | (148) | |
Other liabilities | (141) | 3 |
Net cash provided by operating activities | 1,761 | 528 |
Cash flows used in investing activities: | ||
Capital expenditures | (111) | (291) |
Capitalized software development expenditures | (882) | (690) |
Proceeds from sales of equipment | 29 | |
Net cash used in investing activities | (964) | (981) |
Cash flows (used in) provided by financing activities: | ||
Net proceeds from issuance of common stock related to registered direct offering | 1,375 | |
Proceeds from long-term debt | 4,000 | |
Principal payments on long-term debt | (750) | (5,019) |
Debt issuance costs on long-term debt | (23) | |
Principal payments on financing leases | (39) | (132) |
Payment of preferred stockholders dividends | (8) | (8) |
Tax withholding related to net share settlement of vested restricted stock units | (29) | (12) |
Net cash (used in) provided by financing activities | (826) | 181 |
Effect of exchange rate on cash and cash equivalents | 27 | (28) |
Net decrease in cash, cash equivalents and restricted cash | (2) | (300) |
Cash, cash equivalents and restricted cash at beginning of period | 2,786 | 3,378 |
Cash, cash equivalents and restricted cash at end of period | 2,784 | 3,078 |
Supplemental disclosures of cash flow information: Cash paid during the period for: | ||
Interest | 195 | 255 |
Income taxes | 26 | 17 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Initial measurement of operating lease right-of-use assets and liabilities | 3,458 | |
Site equipment transferred to fixed assets | 458 | 1,292 |
Assets acquired under financing lease | 5 | |
Assets acquired under operating lease | 57 | |
Reconciliation of cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 2,533 | 3,078 |
Restricted cash | 51 | |
Restricted cash, long-term | 200 | |
Total cash, cash equivalents and restricted cash at end of period | $ 2,784 | $ 3,078 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) BASIS OF PRESENTATION Description of Business NTN Buzztime, Inc. (the “Company”) was incorporated in Delaware in 1984 as Alroy Industries and changed its corporate name to NTN Communications, Inc. in 1985. The Company changed its name to NTN Buzztime, Inc. in 2005 to better reflect the growing role of the Buzztime consumer brand. The Company delivers interactive entertainment and innovative technology, including performance analytics, to help its customers acquire, engage and retain its patrons. The Company’s tablets and technology offer engaging solutions to establishments with guests who experience dwell time, such as in bars, restaurants, casinos and senior living centers. Casual dining venues subscribe to the Company’s customizable solution to differentiate themselves via competitive fun by offering guests trivia, card, sports and arcade games. The Company’s platform creates connections among the players and venues, and amplifies guests’ positive experiences, and its in-venue TV network creates one of the largest digital out of home advertising audiences in the United States and Canada. The Company also continues to support its legacy network product line, which it calls its Classic platform. The Company generates revenue by charging subscription fees for its service to network subscribers, by leasing tablet platform equipment to certain network subscribers, by selling tablet platform equipment, by hosting live trivia events, by selling advertising aired on in-venue screens and as part of customized games, by licensing its content for use with third-party equipment, from providing professional services (such as developing certain functionality within the Company’s platform for customers), and from pay-to-play arcade games. At September 30, 2019, 2,565 venues in the U.S. and Canada subscribed to the Company’s interactive entertainment network. Basis of Accounting Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments that are necessary, which are of a normal and recurring nature, for a fair presentation for the periods presented of the financial position, results of operations and cash flows of the Company and its wholly-owned subsidiaries: IWN, Inc., IWN, L.P., Buzztime Entertainment, Inc., NTN Wireless Communications, Inc., NTN Software Solutions, Inc., NTN Canada, Inc., and NTN Buzztime, Ltd., all of which, other than NTN Canada, Inc., are dormant subsidiaries. All significant intercompany transactions have been eliminated in consolidation. These condensed consolidated financial statements should be read with the audited consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2018. The accompanying condensed balance sheet as of December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2019, or any other period. Liquidity In connection with preparing its financial statements as of and for the period ended September 30, 2019, the Company evaluated whether there are conditions and events, considered in the aggregate, that are known and reasonably knowable that would raise substantial doubt about its ability to continue as a going concern within twelve months after the date that such financial statements are issued. The Company believes it has sufficient cash to meet its operating cash requirements and to fulfill its debt obligations for at least the next twelve months after the date that such financial statements are issued. Under the terms of the Company’s existing agreements, the Company’s relationship with Buffalo Wild Wings corporate-owned and franchisee-owned restaurants terminates on November 15, 2019. Although the Company continues to have discussions with Buffalo Wild Wings corporate and its franchisees to extend the relationship beyond that date, and although the Company has extended its relationship with certain franchisees, the Company does not expect the relationship with Buffalo Wild Wings corporate or with a majority of franchisees to be extended. The Company began reducing its operating expenses in anticipation of the termination of existing relationships and is working on a de-commission plan in anticipation of relationships ending on November 15, 2019. The Company continues to explore and evaluate financing alternatives, including additional equity financings and alternative sources of debt. These efforts are being undertaken to increase the likelihood of the following: ● the Company will be able to successfully execute its current long-term operating and strategic plan; ● the Company positions itself to take advantage of market opportunities for growth and to respond to competitive pressures; and ● the Company will continue to meet its covenant of maintaining not less than $2,000,000 at all times in unrestricted cash in deposit accounts or securities accounts maintained with Avidbank. (See Note 6.) If the Company’s cash and cash equivalents are not sufficient to meet future capital requirements, and if the Company cannot raise an adequate amount of capital, it will not be able to successfully execute its current long-term operating and strategic plan or take advantage of market opportunities for growth and will have to reduce planned capital expenses and further reduce operational cash uses. Any capital the Company may raise may be on terms that are not as favorable to the Company as they otherwise might be. Any actions the Company is undertaking or may undertake to reduce planned capital expenses or operational cash uses may not cover shortfalls in available funds. Reclassifications Certain reclassifications have been made to the prior year’s consolidated balance sheet and statement of cash flows to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Restricted Cash | (2) RESTRICTED CASH When the Company entered the lease for its corporate headquarters, the Company’s bank, Avidbank, issued a $250,000 letter of credit to the lessor as security, which amount will be reduced by $50,000 on December 1 of each year beginning on December 1, 2019, provided there has been no default under the lease. Avidbank required the Company to deposit $250,000 in a restricted cash account maintained with the bank, which amount will be reduced as the amount required under the letter of credit is reduced. The Company recorded the $250,000 deposit as restricted cash on its balance sheet, with $50,000 plus any earned interest being recorded in short-term restricted cash and the balance being recorded in long-term restricted cash. The amount deposited in the restricted cash account does not count toward the covenant in the Avidbank loan and security agreement (see Note 6) that requires the Company to have an aggregate amount of unrestricted cash in deposit accounts or securities accounts maintained with Avidbank of not less than $2,000,000 at all times. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (3) Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). In general, when multiple performance obligations are present in a customer contract, the transaction price is allocated to the individual performance obligation based on the relative stand-alone selling prices, and the revenue is recognized when or as each performance obligation has been satisfied. Discounts are treated as a reduction to the overall transaction price and allocated to the performance obligations based on the relative stand-alone selling prices. All revenues are recognized net of sales tax collected from the customer. Revenue Streams The Company disaggregates revenue by material revenue stream as depicted on its statement of operations. The following describes how the Company recognizes revenue under Topic 606. Subscription Revenue Costs associated with installing the equipment are considered direct costs. Costs associated with sales commissions are considered incremental costs for fulfilling the contract because such costs would not have been incurred without obtaining the contract. The Company expects to recover both costs through future fees it collects and both costs are recorded in deferred costs on the balance sheet and amortized on a straight-line basis. For costs that are of an amount that is less than or equal to the deferred revenue for the related contract, the amortization period approximates the longer of the contract term and the expected term of the customer relationship. For any excess costs that exceed the deferred revenue, the amortization period of the excess cost is the initial term of the contract, which is generally one year because the Company can still recover that excess cost in the initial term of the contract. Sales-type Lease Revenue Leases. Equipment Sales Live Hosted Trivia Revenue Advertising Revenue Pay-to-Play Revenue Content Licensing Professional Development Revenue Revenue Concentrations The Company’s customers predominantly range from small independently operated bars and restaurants to bars and restaurants operated by national chains. This results in diverse venue sizes and locations. As of September 30, 2019, 2,565 venues in the U.S. and Canada subscribed to the Company’s interactive entertainment network, of which, approximately 47% were Buffalo Wild Wings corporate-owned restaurants and its franchisees. Under the terms of the Company’s existing agreements, the Company’s relationship with Buffalo Wild Wings corporate-owned and franchisee-owned restaurants terminates on November 15, 2019. See Note (1) BASIS OF PRESENTATION—Basis of Accounting Presentation, above and PART II — OTHER INFORMATION, ITEM 1A., Risk Factors. The table below sets forth the approximate amount of revenue the Company generated from Buffalo Wild Wings corporate-owned restaurants and its franchisees during the three and nine months ended September 30, 2019 and 2018, and the percentage of total revenue that such amount represents for such periods: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Buffalo Wild Wings revenue $ 1,676,000 $ 1,971,000 $ 5,891,000 $ 7,209,000 Percent of total revenue 37 % 33 % 40 % 41 % As of September 30, 2019 and December 31, 2018, approximately $202,000 and $552,000, respectively, was included in accounts receivable from Buffalo Wild Wings corporate-owned restaurants and its franchisees. The geographic breakdown of the Company’s revenue for the three and nine months ended September 30, 2019 and 2018 were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 United States $ 4,420,000 $ 5,833,000 $ 14,144,000 $ 16,906,000 Canada 160,000 171,000 494,000 510,000 Total revenue $ 4,580,000 $ 6,004,000 $ 14,638,000 $ 17,416,000 Contract Assets and Liabilities The Company enters into contracts and may recognize contract assets and liabilities that arise from these contracts. The Company recognizes revenue and corresponding cash for customers who auto pay via their bank account or credit card, or the Company recognizes a corresponding accounts receivable for customers the Company invoices. The Company may receive consideration from customers, per the terms of the contract, prior to transferring goods or services to the customer. In such instances, the Company records a contract liability and recognizes the contract liability as revenue when all revenue recognition criteria are met. The table below shows the balance of contract liabilities as of September 30, 2019 and December 31, 2018, including the change during the period. Deferred Revenue Balance at January 1, 2019 $ 1,297,000 New performance obligations 1,156,000 Revenue recognized (1,697,000 ) Balance at September 30, 2019 756,000 Less non-current portion (13,000 ) Current portion at September 30, 2019 $ 743,000 The Company does not generally recognize revenue in advance of when the contract gives the Company the right to invoice a customer, and therefore the Company did not recognize any related contract assets as of September 30, 2019. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | (4) Basic and Diluted Earnings Per Common Share Basic earnings per share excludes the dilutive effects of options, warrants and other convertible securities. Diluted earnings per share reflects the potential dilutions of securities that could share in the Company’s earnings. Options, warrants and convertible preferred stock representing approximately 249,000 and 274,000 shares of common stock were excluded from the computations of diluted net loss per common share as of September 30, 2019 and 2018, respectively, as their effect was anti-dilutive. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income attributable to common shareholders $ (351,000 ) $ 222,000 $ (762,000 ) $ (319,000 ) Denominator: Weighted average common shares outstanding - basic 2,874,000 2,857,000 2,870,000 2,628,000 Effects of diluted common shares - - - - Weighted average common shares outstanding - diluted 2,874,000 2,857,000 2,870,000 2,628,000 Net (loss) income per common share - basic and diluted $ (0.12 ) $ 0.08 $ (0.27 ) $ (0.12 ) |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | (5) SHAREHOLDERS’ EQUITY Equity Incentive Plans The Company’s stock-based compensation plans include the NTN Buzztime, Inc. 2019 Performance Incentive Plan (the “2019 Plan”), the NTN Buzztime, Inc. Amended 2010 Performance Incentive Plan (the “2010 Plan”) and the NTN Buzztime, Inc. 2014 Inducement Plan (the “2014 Plan”). The Company’s board of directors designated its nominating and corporate governance/compensation committee as the administrator of the foregoing plans (the “Plan Administrator”). Among other things, the Plan Administrator selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures, if any, and other provisions of the award. At the Company’s 2019 Annual Meeting of Stockholders, the Company’s stockholders approved the 2019 Plan, which provides for the issuance of up to 240,000 shares of Company common stock. Awards the under the 2019 Plan may be granted to officers, directors, employees and consultants of the Company. Stock options granted under the 2019 Plan may either be incentive stock options or nonqualified stock options, have a term of up to ten years, and are exercisable at a price per share not less than the fair market value on the date of grant. As of September 30, 2019, there were stock options to purchase approximately 2,000 shares of common stock and 30,000 restricted stock units outstanding under the 2019 Plan. As a result of stockholder approval of the 2019 Plan, no future grants will be made under the 2010 Plan. All awards that are outstanding under the 2010 Plan will continue to be governed by the 2010 Plan until they are exercised or expire in accordance with the terms of the applicable award or the 2010 Plan. As of September 30, 2019, there were stock options to purchase approximately 59,000 shares of common stock and 67,000 restricted stock units outstanding under the 2010 Plan. The 2014 Plan provides for the grant of up to 85,000 share-based awards to a new employee as an inducement material to the new employee entering into employment with the Company and expires in September 2024. As of September 30, 2019, there were stock options to purchase approximately 85,000 shares of common stock and no restricted stock units outstanding under the 2014 Plan. Stock-Based Compensation The Company records stock-based compensation in accordance with ASC No. 718 , Compensation – Stock Compensation. Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting. The Company uses the historical stock price volatility as an input to value its stock options under ASC No. 718. The expected term of stock options represents the period of time options are expected to be outstanding and is based on observed historical exercise patterns of the Company, which the Company believes are indicative of future exercise behavior. For the risk-free interest rate, the Company uses the observed interest rates appropriate for the term of time options are expected to be outstanding. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The following weighted-average assumptions were used for stock option awards granted during the three and nine months ended September 30, 2019 and 2018: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Weighted average risk-free rate 1.39 % 2.82 % 1.70 % 2.87 % Weighted average volatility 95.11 % 113.90 % 108.83 % 113.20 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Expected term 5.61 years 5.92 years 5.73 years 7.06 years The Company estimates forfeitures, based on historical activity, at the time of grant and revises such estimates if necessary in subsequent periods if actual forfeiture rates differ from those estimates. Stock-based compensation expense for the three months ended September 30, 2019 and 2018 was approximately $63,000 and $118,000, respectively, and approximately $172,000 and $368,000 for the nine months ended September 30, 2019 and 2018, respectively, and is expensed in selling, general and administrative expenses and credited to additional paid-in-capital. For the three and nine months ended September 30, 2019 and 2018, the Company granted the following awards: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Stock option grants 1,000 250 2,000 2,000 Restricted stock units 30,000 - 77,000 53,000 No stock options were exercised during either of the three or nine months ended September 30, 2019 or 2018. Outstanding restricted stock units are settled in an equal number of shares of common stock on the vesting date of the award. A stock unit award is settled only to the extent vested. Vesting generally requires the continued employment or service by the award recipient through the respective vesting date. Because restricted stock units are settled in an equal number of shares of common stock without any offsetting payment by the recipient, the measurement of cost is based on the quoted market price of the stock at the measurement date, which is the grant date. The weighted average grant date fair value of the restricted stock units awarded during the three months ended September 30, 2019 was $2.76 per restricted stock unit. The weighted average grant date fair value of the restricted stock units awarded during the nine months ended September 30, 2019 and 2018 was $2.95 and $6.04 per restricted stock unit, respectively. The 30,000 restricted stock units awarded during the three months ended September 30, 2019 is a performance-based award granted to the Company’s former chief executive officer in connection with his resignation. The award will vest in full upon the effective date of a change in control transaction in which an individual, entity or group acquires all of the Company’s then-outstanding equity interests on or before March 17, 2020, or in which an individual, entity or group acquires 51% of our then-outstanding equity interests on or before March 17, 2020, and then that same individual, entity or group acquires the remaining equity so that it holds all of the Company’s then-outstanding equity interests on or before June 17, 2020. Continuing service is not required for vesting to occur. Because a change in control is not considered probable until a change in control occurs, the Company will not recognize stock compensation expense on this award until such change in control occurs. Also in connection with the former chief executive officer’s resignation, the Company agreed to accelerate 10,000 of his restricted stock units outstanding, 5,000 of which accelerated in September 2019 and the remaining 5,000 in October 2019. The modification of this award resulted in the Company recognizing stock compensation expense for the accelerated restricted stock units in the period in which the units accelerated. With the exception of the performance-based award and the acceleration of certain restricted stock units discussed above, all restricted stock units granted vest as to 16.67% of the total underlying shares on the six month anniversary of the grant date and as to the balance of the total underlying shares in 30 substantially equal monthly installments, beginning on the seven month anniversary of the grant date, subject to accelerated vesting in the event of a change in control. The following table shows the number of restricted stock units that vested and were settled during the three and nine months ended September 30, 2019 and 2018, as well as the number of shares of common stock issued upon settlement. In lieu of paying cash to satisfy withholding taxes due upon the settlement of vested restricted stock units, an employee may elect to have shares of common stock withheld that would otherwise be issued at settlement, the value of which is equal to the amount of withholding taxes payable. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Restricted stock units vested and settled 18,000 9,000 29,000 9,000 Common stock issued, net of shares withheld 12,000 6,000 19,000 6,000 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | (6) DEBT Term Loan In September 2018, the Company entered into a loan and security agreement with Avidbank for a one-time 48-month term loan in the amount of $4,000,000. The Company makes monthly electronic principal payments initiated by Avidbank of approximately $83,000 plus accrued and unpaid interest. As of September 30, 2019, $3,000,000 of the term loan was outstanding, with $1,000,000 recorded in current portion of long-term debt and the remaining $2,000,000 recorded as long-term debt on the Company’s balance sheet. The Company recorded debt issuance costs of $23,000, which includes the $20,000 facility fee. The debt issuance costs are amortized to interest expense using the effective interest rate method over the life of the loan. The unamortized balance of the debt issuance costs as of September 30, 2019 was approximately $13,000 and is recorded as a reduction of long-term debt. The Company must comply with the following financial covenants: ● EBITDA (as defined below) must be at least $1,000,000 for the trailing six-month period as of the last day of each fiscal quarter. “EBITDA” means (a) net profit (or loss), after provision for taxes, plus (b) interest expense, plus (c) to the extent deducted in the calculation of net profit (or loss), depreciation expense and amortization expense, plus (d) income tax expense, plus (e) to the extent approved by Avidbank, other noncash expenses and charges, other onetime charges, and any losses arising from the sale, exchange, transfer or other disposition of assets not in the ordinary course of business. ● The aggregate amount of unrestricted cash the Company has in deposit accounts or securities accounts maintained with Avidbank must be not less than $2,000,000 at all times. As of September 30, 2019, the Company was in compliance with both of these financial covenants. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | (7) LEASES On January 1, 2019, the Company adopted ASC No. 842, Leases Topic 842 also allows lessees and lessors to elect certain practical expedients. The Company elected the following practical expedients: ● Transitional practical expedients, which must be elected as a package and applied consistently to all of the Company’s leases: o The Company need not reassess whether any expired or existing contracts are or contain leases. o The Company need not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with the previous guidance will be classified as operating leases, and all existing leases that were classified as capital leases in accordance with the previous guidance will be classified as finance leases). o The Company need not reassess initial direct costs for any existing leases. ● Hindsight practical expedient. The Company elected the hindsight practical expedient in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the Company’s right-of-use assets. ● As a lessor, the Company elected to not separate nonlease components from lease components when both of the following are met: o The timing and patterns of transfer for the lease component and nonlease component associated with that lease component are the same; and o The lease component, if accounted for separately, would be classified as an operating lease. As Lessee The Company has entered into operating leases for office and production facilities and equipment under agreements that expire at various dates through 2026. Certain of these leases contain renewal provisions and escalating rental clauses and generally require the Company to pay utilities, insurance, taxes and other operating expenses. The Company also has property held under financing leases that expire at various dates through 2021. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. Upon adoption of Topic 842, the Company recognized on its consolidated balance sheet as of January 1, 2019 an initial measurement of approximately $3,458,000 of operating lease liabilities, and approximately $2,336,000 of corresponding operating right-of use assets, net of tenant improvement allowances. The initial measurement of the financing leases under Topic 842 did not have a material change from the balances of the financing lease liabilities and assets recorded prior to the adoption of Topic 842. There was also no cumulative effect adjustment to retained earnings as a result of the transition to Topic 842. The Company recorded the initial recognition of the operating leases as a supplemental noncash financing activity on the accompanying consolidated statement of cash flows. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statement of operations. The tables below show the initial measurement of the operating lease right-of-use assets and liabilities as of January 1, 2019 and the balances as of September 30, 2019, including the changes during the periods. Operating lease assets Initial measurement at January 1, 2019 $ 3,458,000 Less tenant improvement allowance (1,122,000 ) Net right-of-use assets at January 1, 2019 2,336,000 Initial measurement of new operating lease right-of-use-assets 57,000 Less amortization of operating lease right-of-use assets (217,000 ) Operating lease right-of-use assets at September 30, 2019 $ 2,176,000 Operating lease liabilities Initial measurement at January 1, 2019 $ 3,458,000 Initial measurement of new operating lease liabilities 57,000 Less principal payments on operating lease liabilities (111,000 ) Operating lease liabilities at September 30, 2019 3,404,000 Less non-current portion (2,992,000 ) Current portion at September 30, 2019 $ 412,000 As of September 30, 2019, the Company’s operating leases have a weighted-average remaining lease term of 6.5 years and a weighted-average discount rate of 7.25%. The maturities of the operating lease liabilities are as follows: As of September 30, 2019 2019 $ 165,000 2020 635,000 2021 620,000 2022 634,000 2023 655,000 Thereafter 1,601,000 Total operating lease payments 4,310,000 Less imputed interest (906,000 ) Present value of operating lease liabilities $ 3,404,000 Total lease expense was approximately $137,000 and $132,000 for the three months ended September 30, 2019 and 2018, respectively, and approximately $407,000 and $396,000 for the nine months ended September 30, 2019 and 2018, respectively. Lease expense was recorded in selling, general and administrative expenses. The tables below show the initial measurement of the financing lease right-of-use assets and liabilities as of January 1, 2019 and the balances as of September 30, 2019, including the changes during the periods. The Company’s financing lease right-of-use assets are included in “Fixed assets, net” on the accompanying consolidated balance sheet. Financing lease right-of-use Initial measurement at January 1, 2019 $ 80,000 Less depreciation of financing lease right-of-use assets (28,000 ) Financing lease right-of-use assets at September 30, 2019 $ 52,000 Financing lease Initial measurement at January 1, 2019 $ 86,000 Less principal payments on financing lease liabilities (39,000 ) Financing lease liabilities as of September 30, 2019 47,000 Less non-current portion (25,000 ) Current portion at September 30, 2019 $ 22,000 As of September 30, 2019, the Company’s financing leases have a weighted-average remaining lease term of 2.1 years and a weighted-average discount rate of 5.51%. The maturities of the financing lease liabilities are as follows: As of September 30, 2019 2019 $ 6,000 2020 23,000 2021 21,000 Total financing lease payments 50,000 Less imputed interest (3,000 ) Present value of financing lease liabilities $ 47,000 For the three months ended September 30, 2019 and 2018, total lease costs under financing leases were approximately $10,000 and $48,000, respectively. For the nine months ended September 30, 2019 and 2018, total lease costs under financing leases were approximately $41,000 and $143,000, respectively. As Lessor Topic 842 did not make fundamental changes to lease accounting guidance for lessors. Therefore there was no financial statement impact due to the adoption of Topic 842. As a lessor, the Company has two types of customer contracts that involve leases: right-to-use operating leases and sales-type leases. Right-to-use operating leases. Revenue from Contracts with Customers, Sales-type leases. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity | |
Accumulated Other Comprehensive Income | (8) ACCUMULATED OTHER COMPREHENSIVE INCOME The United States dollar is the Company’s functional currency, except for its operations in Canada where the functional currency is the Canadian dollar. The financial position and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. In accordance with ASC No. 830, Foreign Currency Matters |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | (9) RECENT ACCOUNTING PRONOUNCEMENTS In November 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue and Percentage of Revenue | The table below sets forth the approximate amount of revenue the Company generated from Buffalo Wild Wings corporate-owned restaurants and its franchisees during the three and nine months ended September 30, 2019 and 2018, and the percentage of total revenue that such amount represents for such periods: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Buffalo Wild Wings revenue $ 1,676,000 $ 1,971,000 $ 5,891,000 $ 7,209,000 Percent of total revenue 37 % 33 % 40 % 41 % |
Schedule of Revenues Geographic Breakdown | The geographic breakdown of the Company’s revenue for the three and nine months ended September 30, 2019 and 2018 were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 United States $ 4,420,000 $ 5,833,000 $ 14,144,000 $ 16,906,000 Canada 160,000 171,000 494,000 510,000 Total revenue $ 4,580,000 $ 6,004,000 $ 14,638,000 $ 17,416,000 |
Schedule of Contract Liabilities | The table below shows the balance of contract liabilities as of September 30, 2019 and December 31, 2018, including the change during the period. Deferred Revenue Balance at January 1, 2019 $ 1,297,000 New performance obligations 1,156,000 Revenue recognized (1,697,000 ) Balance at September 30, 2019 756,000 Less non-current portion (13,000 ) Current portion at September 30, 2019 $ 743,000 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-dilutive Earnings Per Share | Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income attributable to common shareholders $ (351,000 ) $ 222,000 $ (762,000 ) $ (319,000 ) Denominator: Weighted average common shares outstanding - basic 2,874,000 2,857,000 2,870,000 2,628,000 Effects of diluted common shares - - - - Weighted average common shares outstanding - diluted 2,874,000 2,857,000 2,870,000 2,628,000 Net (loss) income per common share - basic and diluted $ (0.12 ) $ 0.08 $ (0.27 ) $ (0.12 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity | |
Schedule of Weighted Average Assumptions | The following weighted-average assumptions were used for stock option awards granted during the three and nine months ended September 30, 2019 and 2018: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Weighted average risk-free rate 1.39 % 2.82 % 1.70 % 2.87 % Weighted average volatility 95.11 % 113.90 % 108.83 % 113.20 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Expected term 5.61 years 5.92 years 5.73 years 7.06 years |
Schedule of Stock Awards Granted | For the three and nine months ended September 30, 2019 and 2018, the Company granted the following awards: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Stock option grants 1,000 250 2,000 2,000 Restricted stock units 30,000 - 77,000 53,000 |
Schedule of Restricted Stock and Common Stock Unit Vested | The following table shows the number of restricted stock units that vested and were settled during the three and nine months ended September 30, 2019 and 2018, as well as the number of shares of common stock issued upon settlement. In lieu of paying cash to satisfy withholding taxes due upon the settlement of vested restricted stock units, an employee may elect to have shares of common stock withheld that would otherwise be issued at settlement, the value of which is equal to the amount of withholding taxes payable. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Restricted stock units vested and settled 18,000 9,000 29,000 9,000 Common stock issued, net of shares withheld 12,000 6,000 19,000 6,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Right-of-use Assets and Liabilities | The tables below show the initial measurement of the operating lease right-of-use assets and liabilities as of January 1, 2019 and the balances as of September 30, 2019, including the changes during the periods. Operating lease assets Initial measurement at January 1, 2019 $ 3,458,000 Less tenant improvement allowance (1,122,000 ) Net right-of-use assets at January 1, 2019 2,336,000 Initial measurement of new operating lease right-of-use-assets 57,000 Less amortization of operating lease right-of-use assets (217,000 ) Operating lease right-of-use assets at September 30, 2019 $ 2,176,000 Operating lease liabilities Initial measurement at January 1, 2019 $ 3,458,000 Initial measurement of new operating lease liabilities 57,000 Less principal payments on operating lease liabilities (111,000 ) Operating lease liabilities at September 30, 2019 3,404,000 Less non-current portion (2,992,000 ) Current portion at September 30, 2019 $ 412,000 |
Schedule of Maturities of Operating Leases | The maturities of the operating lease liabilities are as follows: As of September 30, 2019 2019 $ 165,000 2020 635,000 2021 620,000 2022 634,000 2023 655,000 Thereafter 1,601,000 Total operating lease payments 4,310,000 Less imputed interest (906,000 ) Present value of operating lease liabilities $ 3,404,000 |
Schedule of Financing Lease Right-of-use Assets and Liabilities | The Company’s financing lease right-of-use assets are included in “Fixed assets, net” on the accompanying consolidated balance sheet. Financing lease right-of-use Initial measurement at January 1, 2019 $ 80,000 Less depreciation of financing lease right-of-use assets (28,000 ) Financing lease right-of-use assets at September 30, 2019 $ 52,000 Financing lease Initial measurement at January 1, 2019 $ 86,000 Less principal payments on financing lease liabilities (39,000 ) Financing lease liabilities as of September 30, 2019 47,000 Less non-current portion (25,000 ) Current portion at September 30, 2019 $ 22,000 |
Schedule of Maturities of Financing Leases | The maturities of the financing lease liabilities are as follows: As of September 30, 2019 2019 $ 6,000 2020 23,000 2021 21,000 Total financing lease payments 50,000 Less imputed interest (3,000 ) Present value of financing lease liabilities $ 47,000 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) $ in Thousands | 1 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2019Number | |
Number of venues | Number | 2,565 | |
Loan and Security Agreement [Member] | Avidbank [Member] | ||
Aggregate amount of unrestricted cash to be maintained | $ 2,000 | |
Loan and Security Agreement [Member] | Avidbank [Member] | Minimum [Member] | ||
Aggregate amount of unrestricted cash to be maintained | $ 2,000 |
Restricted Cash (Details Narrat
Restricted Cash (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2018 | Dec. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Short-term restricted cash | $ 51 | $ 50 | ||
Loan and Security Agreement [Member] | Avidbank [Member] | ||||
Aggregate amount of unrestricted cash to be maintained | $ 2,000 | |||
Loan and Security Agreement [Member] | Avidbank [Member] | Minimum [Member] | ||||
Aggregate amount of unrestricted cash to be maintained | $ 2,000 | |||
Avidbank [Member] | ||||
Line of credit facility | 250 | |||
Deposit | 250 | |||
Short-term restricted cash | $ 50 | |||
Avidbank [Member] | Forecast [Member] | ||||
Reduction in line of credit facility | $ 50 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Number | Dec. 31, 2018USD ($) | |
Number of venues | Number | 2,565 | |
Owned percentage | 51.00% | |
Accounts receivable | $ | $ 777 | $ 1,143 |
Buffalo Wild Wings [Member] | ||
Number of venues | Number | 2,565 | |
Owned percentage | 47.00% | |
Accounts receivable | $ | $ 202 | $ 552 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue and Percentage of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 4,580 | $ 6,004 | $ 14,638 | $ 17,416 |
Buffalo Wild Wings [Member] | ||||
Revenue | $ 1,676 | $ 1,971 | $ 5,891 | $ 7,209 |
Percent of total revenue | 37.00% | 33.00% | 40.00% | 41.00% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenues Geographic Breakdown (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 4,580 | $ 6,004 | $ 14,638 | $ 17,416 |
United States [Member] | ||||
Total revenue | 4,420 | 5,833 | 14,144 | 16,906 |
Canada [Member] | ||||
Total revenue | $ 160 | $ 171 | $ 494 | $ 510 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Contract Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue Recognition [Abstract] | |
Balance at January 1, 2019 | $ 1,297 |
New performance obligations | 1,156 |
Revenue recognized | (1,697) |
Balance at September 30, 2019 | 756 |
Less non-current portion | (13) |
Current portion at September 30, 2019 | $ 743 |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Common Share (Details Narrative) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded from earnings per share | 249,000 | 274,000 |
Basic and Diluted Earnings Pe_4
Basic and Diluted Earnings Per Common Share - Schedule of Anti-Dilutive Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to common shareholders | $ (351) | $ 222 | $ (762) | $ (319) |
Weighted average common shares outstanding - basic | 2,874,000 | 2,857,000 | 2,870,000 | 2,628,000 |
Effects of diluted common shares | ||||
Weighted average common shares outstanding - diluted | 2,874,000 | 2,857,000 | 2,870,000 | 2,628,000 |
Net (loss) income per common share - basic and diluted | $ (0.12) | $ 0.08 | $ (0.27) | $ (0.12) |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share based compensation | $ 63 | $ 117 | $ 172 | $ 368 | ||
Stock options, exercised | ||||||
Restricted stock units awarded | 1,000 | 250 | 2,000 | 2,000 | ||
Equity percentage | 51.00% | 51.00% | 51.00% | |||
Restricted Stock Units [Member] | ||||||
Weighted average grant-date fair value per share price | $ 2.76 | $ 2.95 | $ 6.04 | |||
Restricted stock units awarded | 30,000 | |||||
Restricted Stock Units [Member] | Six Month Anniversary [Member] | ||||||
Number of restricted stock vesting, percentage | 16.67% | |||||
Restricted Stock Units [Member] | Former Chief Executive Officer [Member] | ||||||
Accelerate restricted stock units outstanding | 5,000 | 5,000 | 10,000 | |||
2019 Performance Incentive Plan [Member] | ||||||
Stock option granted terms description | Stock options granted under the 2019 Plan may either be incentive stock options or nonqualified stock options, have a term of up to ten years, and are exercisable at a price per share not less than the fair market value on the date of grant. | |||||
2019 Performance Incentive Plan [Member] | Restricted Stock Units [Member] | ||||||
Stock option to purchase common stock, granted | 30,000 | |||||
2019 Performance Incentive Plan [Member] | Common Stock [Member] | ||||||
Stock option to purchase common stock, granted | 2,000 | |||||
2019 Performance Incentive Plan [Member] | Maximum [Member] | ||||||
Number of option available for grants | 240,000 | 240,000 | 240,000 | |||
Amended 2010 Performance Incentive Plan [Member] | Common Stock [Member] | ||||||
Stock option to purchase common stock, granted | 59,000 | |||||
Amended 2010 Performance Incentive Plan [Member] | Restricted Stock Units [Member] | ||||||
Stock option to purchase common stock, granted | 67,000 | |||||
2014 Inducement Plan [Member] | New Employee [Member] | ||||||
Share-based awards, expiration date | Sep. 30, 2024 | |||||
2014 Inducement Plan [Member] | Restricted Stock Units [Member] | ||||||
Stock option to purchase common stock, granted | ||||||
2014 Inducement Plan [Member] | Common Stock [Member] | ||||||
Stock option to purchase common stock, granted | 85,000 | |||||
2014 Inducement Plan [Member] | Maximum [Member] | New Employee [Member] | ||||||
Number of option available for grants | 85,000 | 85,000 | 85,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Weighted Average Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Shareholders' Equity | ||||
Weighted average risk-free rate | 1.39% | 2.82% | 1.70% | 2.87% |
Weighted average volatility | 95.11% | 113.90% | 108.83% | 113.20% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term | 5 years 7 months 10 days | 5 years 11 months 1 day | 5 years 8 months 23 days | 7 years 22 days |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Stock Awards Granted (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||||
Number of shares granted | 30,000 | 77,000 | 53,000 | |
Stock Option Grants [Member] | ||||
Number of shares granted | 1,000 | 250 | 2,000 | 2,000 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Restricted Stock and Common Stock Unit Vested (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Shareholders' Equity | ||||
Restricted stock units vested and settled | 18,000 | 9,000 | 29,000 | 9,000 |
Common stock issued, net of shares withheld | 12,000 | 6,000 | 19,000 | 6,000 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Long term debt current portion | $ 1,000 | $ 1,000 | |
Loan and Security Agreement [Member] | |||
Term loan | 3,000 | ||
Long term debt current portion | 1,000 | ||
Remaining outstanding amount of loan | 2,000 | ||
Debt issuance costs | $ 13 | ||
Loan and Security Agreement [Member] | Avidbank [Member] | |||
Term of the loan | 48 months | ||
Term loan | $ 4,000 | ||
Monthly electronic principal payments plus accrued and unpaid interest | 83 | ||
Debt issuance costs | 23 | ||
Facility fee | 20 | ||
Minimum EBITDA | 1,000 | ||
Aggregate amount of unrestricted cash to be maintained | 2,000 | ||
Loan and Security Agreement [Member] | Avidbank [Member] | Minimum [Member] | |||
Aggregate amount of unrestricted cash to be maintained | $ 2,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 02, 2019 | Dec. 31, 2018 | |
Operating leases description | The Company has entered into operating leases for office and production facilities and equipment under agreements that expire at various dates through 2026. | |||||
Financing leases description | The Company also has property held under financing leases that expire at various dates through 2021. | |||||
Operating lease liabilities | $ 3,404 | $ 3,404 | $ 3,458 | |||
Operating right-of use assets | $ 2,176 | $ 2,176 | $ 2,336 | |||
Operating leases weighted-average remaining lease term | 6 years 6 months | 6 years 6 months | ||||
Operating leases weighted-average discount rate lease | 7.25% | 7.25% | ||||
Financing leases weighted-average remaining lease term | 2 years 1 month 6 days | 2 years 1 month 6 days | ||||
Financing leases weighted-average discount rate lease | 5.51% | 5.51% | ||||
Financing lease cost | $ 10 | $ 48 | $ 41 | $ 143 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Operarting lease expense | $ 137 | $ 132 | $ 407 | $ 396 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Right-of-use Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
Initial measurement at January 1, 2019 | $ 3,458 | |
Less tenant improvement allowance | (1,122) | |
Net right-of-use assets at January 1, 2019 | 2,336 | $ 2,336 |
Initial measurement of new operating lease right-of-use-assets | 57 | |
Less amortization of operating lease right-of-use assets | (217) | |
Operating lease right-of-use assets at September 30, 2019 | $ 2,336 | 2,176 |
Initial measurement at January 1, 2019 | 3,458 | |
Initial measurement of new operating lease liabilities | 57 | |
Less principal payments on operating lease liabilities | (111) | |
Operating lease liabilities at September 30, 2019 | 3,404 | |
Less non-current portion | (2,992) | |
Current portion at September 30, 2019 | $ 412 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 165 | |
2020 | 635 | |
2021 | 620 | |
2022 | 634 | |
2023 | 655 | |
Thereafter | 1,601 | |
Total operating lease payments | 4,310 | |
Less imputed interest | (906) | |
Present value of operating lease liabilities | $ 3,404 | $ 3,458 |
Leases - Schedule of Financing
Leases - Schedule of Financing Lease Right-of-use Assets and Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Initial measurement at January 1, 2019 | $ 80 |
Less depreciation of financing lease right-of-use assets | (33) |
Financing lease right-of-use assets at September 30, 2019 | 47 |
Initial measurement at January 1, 2019 | 86 |
Less principal payments on financing lease liabilities | (39) |
Financing lease liabilities as of September 30, 2019 | 47 |
Less non-current portion | (25) |
Current portion at September 30, 2019 | $ 22 |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Financing Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 6 | |
2020 | 23 | |
2021 | 21 | |
Total financing lease payments | 50 | |
Less imputed interest | (3) | |
Present value of financing lease liabilities | $ 47 | $ 86 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Shareholders' Equity | ||
Accumulated foreign currency translation adjustments | $ 247 | $ 200 |