Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jul. 01, 2020 | |
Document Information [Line Items] | |||
Entity Registrant Name | HG Holdings, Inc. | ||
Entity Central Index Key | 0000797465 | ||
Trading Symbol | stly | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 34,404,556 | ||
Entity Public Float | $ 13.6 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(g) Security | Common Stock, par value $.02 per share, Preferred Stock Purchase Rights |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash | $ 11,396 | $ 2,567 |
Restricted cash | 234 | 233 |
Interest and dividend receivables | 298 | 91 |
Prepaid expenses and other current assets | 139 | 176 |
Income tax receivable | 488 | 735 |
Total current assets | 12,555 | 3,802 |
Property, plant and equipment, net | 7 | 7 |
Investment in affiliate | 12,072 | 4,405 |
Subordinated notes receivable | 1,883 | 3,379 |
Loan to affiliate | 2,000 | |
Other assets | 509 | 494 |
Deferred tax assets | 247 | |
Total assets | 27,026 | 14,334 |
LIABILITIES | ||
Accounts payable | 3 | 7 |
Accrued salaries, wages and benefits | 2 | 5 |
Other accrued expenses | 58 | 168 |
Total current liabilities | 63 | 180 |
Other long-term liabilities | 243 | 255 |
Total liabilities | 306 | 435 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.02 par value, 35,000,000 shares authorized, 34,404,556 and 14,946,839 shares issued and outstanding on each respective date | 684 | 294 |
Capital in excess of par value | 29,738 | 17,370 |
Retained deficit | (3,702) | (3,765) |
Total stockholders’ equity | 26,720 | 13,899 |
Total liabilities and stockholders’ equity | $ 27,026 | $ 14,334 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 34,404,556 | 14,946,839 |
Common stock, shares outstanding (in shares) | 34,404,556 | 14,946,839 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Expenses | ||
General and administrative expenses | $ (1,304) | $ (1,133) |
Total operating expenses | (1,304) | (1,133) |
Interest income | 608 | 1,039 |
Dividend income | 684 | 157 |
Gain on sale of closely held stock | 120 | |
Gain on extinguishment of subordinated note receivable | 1,326 | |
Loss from affiliate | (418) | (430) |
Income from Continued Dumping and Subsidy Offset Act, net | 0 | 1,230 |
Impairment loss | (833) | (897) |
Income from operations before income taxes | 63 | 86 |
Income tax benefit | 84 | |
Net income | $ 63 | $ 170 |
Basic and diluted income per share: | ||
Net income (in dollars per share) | $ 0 | $ 0.01 |
Weighted average shares outstanding: | ||
Basic (in shares) | 25,004 | 14,507 |
Diluted (in shares) | 25,421 | 14,937 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 14,712 | |||
Balance at Dec. 31, 2018 | $ 294 | $ 17,285 | $ (3,935) | $ 13,644 |
Net income | 170 | 170 | ||
Restricted stock forfeited or expired (in shares) | (182) | |||
Restricted stock forfeited or expired | ||||
Stock-based compensation (in shares) | 417 | |||
Stock-based compensation | 85 | 85 | ||
Balance (in shares) at Dec. 31, 2019 | 14,947 | |||
Balance at Dec. 31, 2019 | $ 294 | 17,370 | (3,765) | 13,899 |
Net income | 63 | 63 | ||
Stock-based compensation (in shares) | ||||
Stock-based compensation | 83 | 83 | ||
Issuance of common stock (in shares) | 19,500 | |||
Issuance of common stock | $ 390 | 12,285 | 12,675 | |
Options forfeited or expired (in shares) | (42) | |||
Balance (in shares) at Dec. 31, 2020 | 34,405 | |||
Balance at Dec. 31, 2020 | $ 684 | $ 29,738 | $ (3,702) | $ 26,720 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income from continuing operations | $ 63 | $ 170 |
Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||
Depreciation expense | 3 | 2 |
Accretion income on notes receivable | (104) | (217) |
Stock compensation expense | 83 | 85 |
Gain on extinguishment of subordinated note receivable | (1,326) | |
Gain on sale of closely held stock | (120) | |
Paid in kind interest on subordinated note receivable | (25) | |
Impairment loss on subordinated note receivable | 833 | 897 |
Dividends on HC Realty common stock | 165 | 124 |
Loss from affiliate | 418 | 430 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current assets | 37 | 47 |
Interest and dividend receivables | (207) | |
Income tax receivables | 247 | (247) |
Deferred tax assets and other assets | 232 | 232 |
Accounts payable | (4) | (22) |
Accrued salaries and other accrued expenses | (113) | 46 |
Other long-term liabilities | (12) | (32) |
Net cash provided by continuing operations | 290 | 1,395 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (3) | |
Investment in affiliate | (8,250) | (5,000) |
New advances on loan receivable from affiliate | (2,000) | |
Principal payments received on subordinated secured notes receivable | 2,118 | 1,824 |
Principal repayments on loan receivable from affiliate | 2,000 | |
Proceeds from sale of closely held stock | 120 | |
Net cash used by investing activities | (4,135) | (5,056) |
Cash flows from financing activities: | ||
Proceeds from Issuance of Common Stock | 12,675 | |
Net cash provided by financing activities | 12,675 | |
Net increase (decrease) in cash and restricted cash | 8,830 | (3,661) |
Cash and restricted cash at beginning of period | 2,800 | 6,461 |
Cash and restricted cash at end of period | 11,630 | 2,800 |
Cash | 11,396 | 2,567 |
Restricted cash | 234 | 233 |
Cash and restricted cash | 11,630 | 2,800 |
Supplemental Non-Cash Disclosures: | ||
Dividends on investment in affiliate | $ 200 | $ 150 |
Note 1 - Significant Accounting
Note 1 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Significant Accounting Policies Organization and Basis of Presentation HG Holdings, Inc.'s (the “Company”) financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). On March 2, 2018, November 20, 2017, January 22, 2017 ( March 2, 2018, March 2, 2018. As a result of the Asset Sale, the Company had and continues to have no March 19, 2019, 300,000 $3,000,000 200,000 10.00% $2,000,000. April 3, April 9, June 29, 2020, 100,000, 250,000, 475,000 $8,250,000. 36.4% Also on March 19, 2019, $10,500,000 $2,000,000 August 14, 2020, As a result of these investments, our sources of income include dividends on HC Realty Series B Stock and interest paid on cash and subordinated secured promissory notes. The Company believes that the revenue generating from these sources in addition to the cash on hand is sufficient to fund operating expenses for at least 12 June 19, 2020, $12,675,000, June 19, 2020. 19,500,000 $0.65 May 18, 2020. 19,500,000 June 29, 2020, $4.75 may Cash We consider all highly liquid investments with a maturity of three Restricted Cash Restricted cash includes collateral deposits required under the Company's letter of credit agreement, which expires in June 2021, six December 31, 2020, no Concentration of Credit Risk The Company place its cash and restricted cash with financial institutions and, at times, cash held in depository accounts may Interest Income Interest income is recorded on an accrual basis based on the effective interest rate method and includes the accretion of fair value adjustments/discounts. Fair value adjustments to par value are accreted/amortized into interest income over the life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of fair value adjustments, if any. Other revenues are recognized when contractual obligations are fulfilled or as services are provided. Payment-in-Kind Interest The Company has subordinated secured notes receivables that may Variable Interest Entities As a result of both the Asset Sale and the S&L Asset Sale, we have a variable interest in three not three not not Subordinated Note s Receivable In accordance with ASC 810 40 5, March 2, 2018. Creditors Accounting for Modification or Exchange of Debt Instruments. third 2020 $833,000. Property, Plant and Equipment Depreciation of property, plant and equipment is computed using the straight-line method based upon the estimated useful lives. Depreciation expense is charged to general and administrative expenses. Gains and losses related to dispositions and retirements are included in income. Maintenance and repairs are charged to expense as incurred; renewals and betterments are capitalized. Assets are reviewed for possible impairment when events indicate that the carrying amount of an asset may not may December 31, 2020 not Equity Investments Long-term investments consist of investments in equity securities where our ownership is less than 50% not not 2016 01, Income Taxes Deferred income taxes are determined based on the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax expense represents the change in the deferred tax asset/liability balance. Income tax credits are reported as a reduction of income tax expense in the year in which the credits are generated. A valuation allowance is recorded when it is more likely than not not Fair Value of Financial Instruments Accounting for fair value measurements requires disclosure of the level within the fair value hierarchy in which fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1 2 3 Earnings per Common Share Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share includes any dilutive effect of outstanding stock options and restricted stock calculated using the treasury stock method. Stock-Based Compensation We record share-based payment awards at fair value on the grant date of the awards, based on the estimated number of awards that are expected to vest, over the vesting period. The fair value of stock options was determined using the Black-Scholes option-pricing model. The fair value of the restricted stock awards was based on the closing price of the Company's common stock on the date of the grant. For awards with performance conditions, we recognize compensation cost over the expected period to achieve the performance conditions, provided achievement of the performance conditions are deemed probable. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in such estimates may New Accounting Pronouncements In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 2016 13” 2016 13 2016 13 December 15, 2022, December 15, 2018. not 2016 13 |
Note 2 - Property, Plant and Eq
Note 2 - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 2. Property, Plant and Equipment Depreciable lives (in thousands) (in years) 2020 201 9 Computers and equipment 3 to 7 $ 10 $ 7 Furniture and fixtures 5 to 7 3 3 Property, plant and equipment, at cost 13 10 Less accumulated depreciation 6 3 Property, plant and equipment, net $ 7 $ 7 |
Note 3 - Subordinated Notes Rec
Note 3 - Subordinated Notes Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Subordinated Notes Receivable The Company received a $7.4 first 2018. September 6, 2018, $7.4 $3.3 A&R Note On February 7, 2019, $3.2 no March 2, 2023, 6%. On February 25, 2019, February 25, 2019 ( March 2, 2018 no 2 3 4 no Despite Buyer paying interest quarterly in advance on the Second A&R Note, the Company concluded during the second 2019, not second 2019, $897,000 second 2019 $1.3 June 30, 2019. August 21, 2019, On October 31, 2019, February 24, 2020 February 24, 2020, February 24, 2020 February 26, 2020. February 26, 2020 The Company received payments on January 31, 2020, February 28, 2020, March 4, 2020 $130,000, $200,000 $350,000, On March 6, 2020, February 26, 2020 March 17, 2020. $250,000 March 12, 2020 $750,000 March 13, 2020. $391,970 March 17, 2020 On March 12 13, 2020, $250,000 $750,000, On March 16, 2020, $392,000 first 2020 $1.3 first 2020. The Company did not December 31, 2020 December 31, 2019 A reconciliation of the activity in the Second A&R Note for the years ended December 31, 2020 2019 Principal Discount Balance Balance at January 1, 2019 $ 3,376 $ (1,012 ) $ 2,364 Principal payments (812 ) - (812 ) Impairment - (897 ) (897 ) Accretion of discount - 54 54 Balance at December 31, 2019 $ 2,564 $ (1,855 ) $ 709 Interest paid-in-kind 25 - 25 Gain on settlement of debt (529 ) 1,855 1,326 Principal payments (2,060 ) - (2,060 ) Balance at December 31, 2020 $ - $ - $ - S&L Note The S&L Note had a principal amount of $4.4 March 2, 2023, 10% $252,000 $356,000 December 31, 2020 2019, December 31, 2020 2019, $58,000 $1,011,000 At the assignment date, the Company evaluated the fair value of the S&L Note. The Company recorded accreted interest income on the fair value adjustment of the S&L Note of $104,000 $163,000 December 31, 2020 2019, The Company recorded an impairment loss of $833,000 $0 December 31, 2020 2019. third 2020 $58,000 fourth 2020 As of December 31, 2020, $1.9 19 third three 1 2 1 2 1 A reconciliation of the activity in the S&L Note for the years ended December 31, 2020 2019 Principal Discount Balance Balance at January 1, 2019 $ 4,340 $ (822 ) $ 3,518 Principal payments (1,011 ) - (1,011 ) Accretion of discount - 163 163 Balance at December 31, 2019 $ 3,329 $ (659 ) $ 2,670 Principal payments (58 ) - (58 ) Accretion of discount - 104 104 Impairment - (833 ) (833 ) Balance at December 31, 2020 $ 3,271 $ (1,388 ) $ 1,883 |
Note 4 - Loan to Affiliate
Note 4 - Loan to Affiliate | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | 4. Loan to Affiliate On March 19, 2019, $10,500,000 $2,000,000 The Loan Agreement was to mature on March 19, 2022. 14% On August 14, 2020, December 31, 2020 2019 $204,000 $223,000, |
Note 5 - Investment in Affiliat
Note 5 - Investment in Affiliate | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 5. Investment in Affiliate On March 19, 2019, 200,000 10.00% $2,000,000 300,000 $3,000,000. 850,000 $8,500,000. April 3, April 9, June 29, 2020, 100,000, 250,000, 475,000 $8,250,000. not The Series B Stock is not no The following table summarizes the Company's investment in HC Realty as of the two December 31, 2020 ( Ownership % Investment in Affiliate Balance Loss recorded in the Consolidated Statements of Operations (b) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 2020 2019 HC Realty Series B Stock (a) 28.7 % 7.9 % $ 10,250 $ 2,000 $ - $ - HC Realty common stock 7.7 % 8.5 % 1,822 2,405 (418 ) (430 ) Total 36.4 % 16.4 % $ 12,072 $ 4,405 $ (418 ) $ (430 ) (a) Represents investments in shares of HC Realty preferred stock with a basis of $10.25 one $9.10 (b) Loss from these investments is included in “Loss from affiliate” in the statements of operations. Since HC Realty is a Real Estate Investment Trust and not not The Company's investment in HC Realty common stock is accounted for under the equity method of accounting. For portions of the year ended December 31, 2020, 20% 20% |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The provision for income tax (benefit) expense consists of (in thousands): 20 20 2019 Current: Federal $ (247 ) $ - State - (84 ) Total current (247 ) (84 ) Deferred: Federal 247 - State - - Total deferred 247 - Income tax (benefit) expense from continuing operations $ - $ (84 ) A reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate follows: 2020 2019 Federal statutory rate 21.0 % 21.0 % State tax, net of federal benefit (0.1 ) 3.8 Deferred correction – State NOLs (359.7 ) (122.7 ) Permanent differences 2.3 - Valuation allowance increase 360.4 (3.9 ) Other, net (24.0 ) 4.3 Effective income tax rate - % (97.6 )% The income tax effects of temporary differences that comprise deferred tax assets and liabilities at December 31 2020 2019 Noncurrent deferred tax assets: Equity method investment $ 195 $ 99 Other accrued expenses 33 32 Notes receivable fair value adjustment 319 578 Employee benefits 50 65 Capital loss carryforward 11 - AMT credit - 247 Net operating loss 7,861 7,726 Gross non-current deferred tax assets 8,469 8,747 Noncurrent deferred tax liabilities: Property, tax, and equipment $ (1 ) $ (1 ) Non-taxable dividends (193 ) - Valuation allowance (8,275 ) (8,499 ) Gross non-current deferred tax liabilities (8,469 ) (8,500 ) Net noncurrent deferred tax assets $ - $ 247 We have U.S. federal net operating loss carryforwards of approximately $35.3 2033. $22.5 2027. During 2020, $226,000 December 31, 2020 740, Income Taxes four no not The unrecognized tax benefits activity for the year ended December 31 20 20 20 19 Unrecognized tax benefits balance at January 1 $ 157 $ 241 Gross decrease in tax positions of prior years - (84 ) Unrecognized tax benefits balance at December 31 $ 157 $ 157 Total amount of unrecognized tax benefits that would affect our effective tax rate if recognized is $157,000 December 31, 2020 2019. 2013 2019 |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders' Equity In addition to common stock, authorized capital includes 1,000,000 None two December 31, 2020. may may may Basic and diluted earnings per share are calculated using the following share data (in thousands): 20 20 2019 Weighted average shares outstanding for basic calculation 25,004 14,507 Dilutive effect of restricted stock 417 430 Weighted average shares outstanding for diluted calculation 25,421 14,937 For the year ended December 31, 2020 no December 31, 2019, 42,000 From time to time, we will repurchase common shares that are tendered by recipients of restricted stock awards to satisfy tax withholding obligations on vested restricted stock. There were no 2020 2019. In July 2012, $5.0 may No 2020 2019. not In the fourth 2016, December 15, 2016 one 4.9% 4.9% 1% The Company entered into Amendment No. 1, January 30, 2017, January 30, 2017 December 5, 2016 1 No 2, December 5, 2019, 2020 December 5, 2022 ( 2020 No. 2. If the rights become exercisable, all holders of rights, other than the person or group triggering the rights, will be entitled to purchase Company common stock at a 50% not may The Rights Agreement includes a procedure for the Board to consider requests to exempt a particular transaction from triggering the exercisability of the rights under the Rights Agreement if the transaction (i) does not x |
Note 8 - Stock Based Compensati
Note 8 - Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 8. Stock Based Compensation The Stanley Furniture Company, Inc. 2012 may 1.6 2008 December 2020, 1.2 Stock Options The options are issued at market value on the date of grant and have a term of 10 four five one The application of this valuation model involves assumptions that are judgmental and sensitive in the determination of compensation expense. No 2020 2019. Stock option activity for the two December 31, 2020, Number Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2019 63,197 $ 7.01 1.8 Cancelled/Forfeited (20,914 ) $ 8.64 Outstanding at December 31, 2019 42,283 $ 6.20 .8 Cancelled/Forfeited (36,071 ) $ 5.54 Expired (6,212 ) $ 10.01 Outstanding at December 31, 2020 - $ - - $ - Exercisable at December 31, 2020 - $ - - $ - There were no 2020 2019. Restricted Stock The restricted stock awards are accounted for as “non-vested equity shares” until the awards vest or are forfeited. In general, restricted stock awards for employees are time vested or performance vested and for non-employee directors vest at the end of their current term on the Board. The fair value of each share of restricted stock is the market price of our stock on the grant date. The fair value of each time vested award is amortized into compensation expense on a straight-line basis between the award date and the vesting date. Performance based awards are amortized into stock compensation expense based on the probability of meeting the performance criteria. In 2020 2019, 12,931 30,354 The following table summarizes information about restricted stock awards for the two December 31, 2020: Number Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 204,575 $ 0.83 Vested (30,354 ) 1.81 Granted 416,666 0.60 Cancelled/Forfeited/Expired (161,290 ) 0.62 Outstanding at December 31, 2019 429,597 $ 0.61 Vested (12,931 ) 1.16 Granted - - Cancelled/Forfeited /Expired - - Outstanding at December 31, 20 20 416,666 $ 0.60 As of December 31, 2020, $124,000 1.5 |
Note 9 - Income for Continued D
Note 9 - Income for Continued Dumping and Subsidy Offset Act (CDSOA) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income for Continued Dumping and Subsidy Offset Act [Text Block] | 9. Income for Continued Dumping and Subsidy Offset Act (CDSOA) The CDSOA provides for distribution of monies collected by U.S. Customs and Border Protection (Customs) for imports covered by antidumping duty orders entering the United States through September 30, 2007 2020 2019, $0 $1.2 September 2007. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 10. Commitments and Contingencies Our leased facility includes our corporate office space. The lease for office space is month to month. Rental expense charged to operations was $29,000 $29,000 2020 2019, We currently have letters of credit to cover estimated exposures, most notably with workman's compensation claims. This agreement requires us to maintain a compensating balance with the issuer for the amounts outstanding. We currently have letters of credit outstanding in the amount of $230,000. In the normal course of business, we are involved in claims and lawsuits, none |
Note 11 - Uncertainties
Note 11 - Uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Uncertainties [Text Block] | 11 . Uncertainties On March 11, 2020, 19 19 As a result of these measures, many non-essential retail commerce across the country experienced significant disruption causing severely reduced sales volume. Stone & Leigh, who distributes its products through these potentially impacted retail channels, has experienced and may 19 may 19 Despite the restrictions and measures by federal, state, and local governments in response to COVID- 19, 19 19 The Company continues to evaluate the impact of these measures on our operational and financial performance, specifically the impact on Stone & Leigh and HC Realty's operations. While, the Company has not December 31, 2020, 19 19 third 2020 $833,000 December 31, 2020. As of December 31, 2020, not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Organization and Basis of Presentation HG Holdings, Inc.'s (the “Company”) financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). On March 2, 2018, November 20, 2017, January 22, 2017 ( March 2, 2018, March 2, 2018. As a result of the Asset Sale, the Company had and continues to have no March 19, 2019, 300,000 $3,000,000 200,000 10.00% $2,000,000. April 3, April 9, June 29, 2020, 100,000, 250,000, 475,000 $8,250,000. 36.4% Also on March 19, 2019, $10,500,000 $2,000,000 August 14, 2020, As a result of these investments, our sources of income include dividends on HC Realty Series B Stock and interest paid on cash and subordinated secured promissory notes. The Company believes that the revenue generating from these sources in addition to the cash on hand is sufficient to fund operating expenses for at least 12 June 19, 2020, $12,675,000, June 19, 2020. 19,500,000 $0.65 May 18, 2020. 19,500,000 June 29, 2020, $4.75 may |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash We consider all highly liquid investments with a maturity of three |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash includes collateral deposits required under the Company's letter of credit agreement, which expires in June 2021, six December 31, 2020, no |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company place its cash and restricted cash with financial institutions and, at times, cash held in depository accounts may |
Revenue Recognition, Interest [Policy Text Block] | Interest Income Interest income is recorded on an accrual basis based on the effective interest rate method and includes the accretion of fair value adjustments/discounts. Fair value adjustments to par value are accreted/amortized into interest income over the life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of fair value adjustments, if any. Other revenues are recognized when contractual obligations are fulfilled or as services are provided. |
Payment-In-Kind Interest, Policy [Policy Text Block] | Payment-in-Kind Interest The Company has subordinated secured notes receivables that may |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities As a result of both the Asset Sale and the S&L Asset Sale, we have a variable interest in three not three not not |
Subordinated Notes Receivable, Policy [Policy Text Block] | Subordinated Note s Receivable In accordance with ASC 810 40 5, March 2, 2018. Creditors Accounting for Modification or Exchange of Debt Instruments. third 2020 $833,000. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation of property, plant and equipment is computed using the straight-line method based upon the estimated useful lives. Depreciation expense is charged to general and administrative expenses. Gains and losses related to dispositions and retirements are included in income. Maintenance and repairs are charged to expense as incurred; renewals and betterments are capitalized. Assets are reviewed for possible impairment when events indicate that the carrying amount of an asset may not may December 31, 2020 not |
Cost Method Investments, Policy [Policy Text Block] | Equity Investments Long-term investments consist of investments in equity securities where our ownership is less than 50% not not 2016 01, |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes are determined based on the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax expense represents the change in the deferred tax asset/liability balance. Income tax credits are reported as a reduction of income tax expense in the year in which the credits are generated. A valuation allowance is recorded when it is more likely than not not |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments Accounting for fair value measurements requires disclosure of the level within the fair value hierarchy in which fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1 2 3 |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share includes any dilutive effect of outstanding stock options and restricted stock calculated using the treasury stock method. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation We record share-based payment awards at fair value on the grant date of the awards, based on the estimated number of awards that are expected to vest, over the vesting period. The fair value of stock options was determined using the Black-Scholes option-pricing model. The fair value of the restricted stock awards was based on the closing price of the Company's common stock on the date of the grant. For awards with performance conditions, we recognize compensation cost over the expected period to achieve the performance conditions, provided achievement of the performance conditions are deemed probable. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in such estimates may |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 2016 13” 2016 13 2016 13 December 15, 2022, December 15, 2018. not 2016 13 |
Note 2 - Property, Plant and _2
Note 2 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Depreciable lives (in thousands) (in years) 2020 201 9 Computers and equipment 3 to 7 $ 10 $ 7 Furniture and fixtures 5 to 7 3 3 Property, plant and equipment, at cost 13 10 Less accumulated depreciation 6 3 Property, plant and equipment, net $ 7 $ 7 |
Note 3 - Subordinated Notes R_2
Note 3 - Subordinated Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Principal Discount Balance Balance at January 1, 2019 $ 3,376 $ (1,012 ) $ 2,364 Principal payments (812 ) - (812 ) Impairment - (897 ) (897 ) Accretion of discount - 54 54 Balance at December 31, 2019 $ 2,564 $ (1,855 ) $ 709 Interest paid-in-kind 25 - 25 Gain on settlement of debt (529 ) 1,855 1,326 Principal payments (2,060 ) - (2,060 ) Balance at December 31, 2020 $ - $ - $ - Principal Discount Balance Balance at January 1, 2019 $ 4,340 $ (822 ) $ 3,518 Principal payments (1,011 ) - (1,011 ) Accretion of discount - 163 163 Balance at December 31, 2019 $ 3,329 $ (659 ) $ 2,670 Principal payments (58 ) - (58 ) Accretion of discount - 104 104 Impairment - (833 ) (833 ) Balance at December 31, 2020 $ 3,271 $ (1,388 ) $ 1,883 |
Note 5 - Investment in Affili_2
Note 5 - Investment in Affiliate (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | Ownership % Investment in Affiliate Balance Loss recorded in the Consolidated Statements of Operations (b) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 2020 2019 HC Realty Series B Stock (a) 28.7 % 7.9 % $ 10,250 $ 2,000 $ - $ - HC Realty common stock 7.7 % 8.5 % 1,822 2,405 (418 ) (430 ) Total 36.4 % 16.4 % $ 12,072 $ 4,405 $ (418 ) $ (430 ) |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 20 20 2019 Current: Federal $ (247 ) $ - State - (84 ) Total current (247 ) (84 ) Deferred: Federal 247 - State - - Total deferred 247 - Income tax (benefit) expense from continuing operations $ - $ (84 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Federal statutory rate 21.0 % 21.0 % State tax, net of federal benefit (0.1 ) 3.8 Deferred correction – State NOLs (359.7 ) (122.7 ) Permanent differences 2.3 - Valuation allowance increase 360.4 (3.9 ) Other, net (24.0 ) 4.3 Effective income tax rate - % (97.6 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2020 2019 Noncurrent deferred tax assets: Equity method investment $ 195 $ 99 Other accrued expenses 33 32 Notes receivable fair value adjustment 319 578 Employee benefits 50 65 Capital loss carryforward 11 - AMT credit - 247 Net operating loss 7,861 7,726 Gross non-current deferred tax assets 8,469 8,747 Noncurrent deferred tax liabilities: Property, tax, and equipment $ (1 ) $ (1 ) Non-taxable dividends (193 ) - Valuation allowance (8,275 ) (8,499 ) Gross non-current deferred tax liabilities (8,469 ) (8,500 ) Net noncurrent deferred tax assets $ - $ 247 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 20 20 20 19 Unrecognized tax benefits balance at January 1 $ 157 $ 241 Gross decrease in tax positions of prior years - (84 ) Unrecognized tax benefits balance at December 31 $ 157 $ 157 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 20 20 2019 Weighted average shares outstanding for basic calculation 25,004 14,507 Dilutive effect of restricted stock 417 430 Weighted average shares outstanding for diluted calculation 25,421 14,937 |
Note 8 - Stock Based Compensa_2
Note 8 - Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2019 63,197 $ 7.01 1.8 Cancelled/Forfeited (20,914 ) $ 8.64 Outstanding at December 31, 2019 42,283 $ 6.20 .8 Cancelled/Forfeited (36,071 ) $ 5.54 Expired (6,212 ) $ 10.01 Outstanding at December 31, 2020 - $ - - $ - Exercisable at December 31, 2020 - $ - - $ - |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 204,575 $ 0.83 Vested (30,354 ) 1.81 Granted 416,666 0.60 Cancelled/Forfeited/Expired (161,290 ) 0.62 Outstanding at December 31, 2019 429,597 $ 0.61 Vested (12,931 ) 1.16 Granted - - Cancelled/Forfeited /Expired - - Outstanding at December 31, 20 20 416,666 $ 0.60 |
Note 1 - Significant Accounti_2
Note 1 - Significant Accounting Policies (Details Textual) - USD ($) | Jun. 29, 2020 | Jun. 19, 2020 | Apr. 09, 2020 | Apr. 03, 2020 | Mar. 19, 2019 | Jun. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Payments to Acquire Equity Method Investments | $ 8,250,000 | $ 5,000,000 | ||||||
Proceeds from Issuance of Common Stock | 12,675,000 | |||||||
Impairment of Notes Receivable | 833,000 | 897,000 | ||||||
Rights Offering [Member] | ||||||||
Proceeds from Issuance of Common Stock | $ 12,675,000 | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | 19,500,000 | |||||||
Shares Issued, Price Per Share (in dollars per share) | $ 0.65 | |||||||
Senior Secured Term Loan [Member] | ||||||||
Notes Receivable, Related Parties | $ 2,000,000 | |||||||
Senior Secured Term Loan [Member] | The Lenders [Member] | ||||||||
Notes Receivable, Related Parties | $ 10,500,000 | |||||||
S&L Note [Member] | ||||||||
Impairment of Notes Receivable | $ 833,000 | $ 0 | ||||||
HC Government Realty Trust, Inc [Member] | ||||||||
Ownership Percentage | 36.40% | |||||||
HC Government Realty Trust, Inc [Member] | Common Stock of Investee [Member] | ||||||||
Equity Method Investment, Shares Purchased During Period (in shares) | 300,000 | |||||||
Equity Method Investment, Aggregate Cost | $ 3,000,000 | |||||||
HC Government Realty Trust, Inc [Member] | Series B Cumulative Convertible Preferred Stock [Member] | ||||||||
Equity Method Investment, Shares Purchased During Period (in shares) | 475,000 | 250,000 | 100,000 | 200,000 | ||||
Equity Method Investment, Aggregate Cost | $ 2,000,000 | $ 10,250,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | |||||||
Payments to Acquire Equity Method Investments | $ 4,750,000 | $ 8,250,000 |
Note 2 - Property, Plant and _3
Note 2 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment, gross | $ 13 | $ 10 |
Less accumulated depreciation | 6 | 3 |
Property, plant and equipment, net | 7 | 7 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | $ 10 | 7 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, Depreciable Lives (Year) | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, Depreciable Lives (Year) | 7 years | |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | $ 3 | $ 3 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, plant and equipment, Depreciable Lives (Year) | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, plant and equipment, Depreciable Lives (Year) | 7 years |
Note 3 - Subordinated Notes R_3
Note 3 - Subordinated Notes Receivable (Details Textual) - USD ($) | Mar. 16, 2020 | Mar. 13, 2020 | Mar. 12, 2020 | Mar. 04, 2020 | Feb. 28, 2020 | Jan. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 06, 2020 | Feb. 07, 2019 | Dec. 31, 2018 | Sep. 06, 2018 | Mar. 31, 2018 |
Financing Receivable, after Allowance for Credit Loss, Total | $ 7,400,000 | |||||||||||||||
Impairment of Notes Receivable | $ 833,000 | $ 897,000 | ||||||||||||||
Accretion (Amortization) of Discounts and Premiums, Investments | 104,000 | 217,000 | ||||||||||||||
A&R Note [Member] | ||||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 3,300,000 | |||||||||||||||
Second A&R Note [Member] | ||||||||||||||||
Financing Receivable, after Allowance for Credit Loss, Total | $ 1,300,000 | 709,000 | $ 2,364,000 | |||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | 2,564,000 | $ 3,200,000 | $ 3,376,000 | |||||||||||||
Notes Receivable, Interest Rate | 6.00% | |||||||||||||||
Impairment of Notes Receivable | $ 897,000 | 897,000 | ||||||||||||||
Proceeds from Interest Received | 0 | |||||||||||||||
Second A&R Note [Member] | Loan Parties [Member] | ||||||||||||||||
Proceeds from Collection of Finance Receivables | $ 392,000 | $ 750,000 | $ 250,000 | $ 350,000 | $ 200,000 | $ 130,000 | ||||||||||
Gain (Loss) on Payoff of Notes Receivable | $ 1,300,000 | |||||||||||||||
Second Forbearance Extension Letter Agreement, Second A&R Note due March 12, 2020 [Member] | Loan Parties [Member] | ||||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 250,000 | |||||||||||||||
Second Forbearance Extension Letter Agreement, Second A&R Note due March 13, 2020 [Member] | Loan Parties [Member] | ||||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | 750,000 | |||||||||||||||
Second Forbearance Extension Letter Agreement, Second A&R Note due March 17, 2020 [Member] | Loan Parties [Member] | ||||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 391,970 | |||||||||||||||
S&L Note [Member] | ||||||||||||||||
Financing Receivable, after Allowance for Credit Loss, Total | 1,900,000 | 1,900,000 | ||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 4,400,000 | |||||||||||||||
Notes Receivable, Interest Rate | 10.00% | |||||||||||||||
Impairment of Notes Receivable | 833,000 | 0 | ||||||||||||||
Proceeds from Collection of Finance Receivables | 58,000 | 1,011,000 | ||||||||||||||
Proceeds from Interest Received | $ 58,000 | |||||||||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 252,000 | 356,000 | ||||||||||||||
Accretion (Amortization) of Discounts and Premiums, Investments | $ 104,000 | $ 163,000 |
Note 3 - Subordinated Notes R_4
Note 3 - Subordinated Notes Receivable - Reconciliation of the Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment | $ (833,000) | $ (897,000) | |
Interest paid-in-kind | (25,000) | ||
Second A&R Note [Member] | |||
Principal | 2,564,000 | 3,376,000 | |
Discount, balance | (1,855,000) | (1,012,000) | |
Balance | 709,000 | 2,364,000 | |
Principal payments, principal | (2,060,000) | (812,000) | |
Principal payments | (2,060,000) | (812,000) | |
Impairment, principal | |||
Impairment, discount | (897,000) | ||
Impairment | $ (897,000) | (897,000) | |
Accretion of discount, discount | 54,000 | ||
Accretion of discount | 54,000 | ||
Interest paid-in-kind, principal | 25,000 | ||
Interest paid-in-kind | 25,000 | ||
Gain on settlement of debt, principal | (529,000) | ||
Gain on settlement of debt, discount | 1,855,000 | ||
Gain on settlement of debt | 1,326,000 | ||
Principal | 2,564,000 | ||
Discount, balance | (1,855,000) | ||
Balance | $ 1,300,000 | 709,000 | |
Accretion of discount, discount | 54,000 | ||
Accretion of discount | 54,000 | ||
S&L Subordinated Notes Receivable [Member] | |||
Principal | 3,329,000 | 4,340,000 | |
Discount, balance | (659,000) | (822,000) | |
Balance | 2,670,000 | 3,518,000 | |
Principal payments, principal | (58,000) | (1,011,000) | |
Principal payments | (58,000) | (1,011,000) | |
Impairment, discount | (833,000) | ||
Impairment | (833,000) | ||
Accretion of discount, discount | 104,000 | 163,000 | |
Accretion of discount | 104,000 | 163,000 | |
Principal | 3,271,000 | 3,329,000 | |
Discount, balance | (1,388,000) | (659,000) | |
Balance | 1,883,000 | 2,670,000 | |
Accretion of discount, discount | 104,000 | 163,000 | |
Accretion of discount | $ 104,000 | $ 163,000 |
Note 4 - Loan to Affiliate (Det
Note 4 - Loan to Affiliate (Details Textual) - Senior Secured Term Loan [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 19, 2019 | |
Notes Receivable, Related Parties | $ 2,000,000 | ||
Notes Receivable, Interest Rate | 14.00% | ||
Interest Income, Related Party | $ 204,000 | $ 223,000 | |
The Lenders [Member] | |||
Notes Receivable, Related Parties | $ 10,500,000 |
Note 5 - Investment in Affili_3
Note 5 - Investment in Affiliate (Details Textual) - USD ($) | Jun. 29, 2020 | Apr. 09, 2020 | Apr. 03, 2020 | Mar. 19, 2019 | Jun. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Payments to Acquire Equity Method Investments | $ 8,250,000 | $ 5,000,000 | |||||
HC Government Realty Trust, Inc [Member] | Series B Cumulative Convertible Preferred Stock [Member] | |||||||
Equity Method Investment, Shares Purchased During Period (in shares) | 475,000 | 250,000 | 100,000 | 200,000 | |||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||
Equity Method Investment, Aggregate Cost | $ 2,000,000 | $ 10,250,000 | |||||
Payments to Acquire Equity Method Investments | $ 4,750,000 | $ 8,250,000 | |||||
Convertible Preferred Stock of Investee, Shares Issued Upon Conversion (in shares) | 1 | ||||||
Convertible Preferred Stock, Maximum Conversion Price (in dollars per share) | $ 9.10 | ||||||
HC Government Realty Trust, Inc [Member] | Series B Cumulative Convertible Preferred Stock [Member] | Investors Affiliated with the Hale Partnership [Member] | |||||||
Equity Method Investment, Aggregate Cost | $ 8,500,000 | ||||||
HC Government Realty Trust, Inc [Member] | Common Stock of Investee [Member] | |||||||
Equity Method Investment, Shares Purchased During Period (in shares) | 300,000 | ||||||
Equity Method Investment, Aggregate Cost | $ 3,000,000 | ||||||
HC Government Realty Trust, Inc [Member] | Common Stock of Investee [Member] | Investors Affiliated with the Hale Partnership [Member] | |||||||
Equity Method Investment, Shares Purchased During Period (in shares) | 850,000 |
Note 5 - Investment in Affili_4
Note 5 - Investment in Affiliate - Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Investment in affiliate, balance | $ 12,072 | $ 4,405 | |
Loss recorded in the Consolidated Statements of Operations | $ (418) | $ (430) | |
HC Government Realty Trust, Inc [Member] | |||
Equity Method Investment, Ownership Percentage | 36.40% | 16.40% | |
Investment in affiliate, balance | $ 12,072 | $ 4,405 | |
Loss recorded in the Consolidated Statements of Operations | [1] | $ (418) | $ (430) |
HC Government Realty Trust, Inc [Member] | Series B Cumulative Convertible Preferred Stock [Member] | |||
Equity Method Investment, Ownership Percentage | [2] | 28.70% | 7.90% |
Investment in affiliate, balance | [2] | $ 10,250 | $ 2,000 |
Loss recorded in the Consolidated Statements of Operations | [1],[2] | ||
HC Government Realty Trust, Inc [Member] | Common Stock of Investee [Member] | |||
Equity Method Investment, Ownership Percentage | 7.70% | 8.50% | |
Investment in affiliate, balance | $ 1,822 | $ 2,405 | |
Loss recorded in the Consolidated Statements of Operations | [1] | $ (418) | $ (430) |
[1] | Loss from these investments is included in "Loss from affiliate" in the statements of operations. Since HC Realty is a Real Estate Investment Trust and not a taxable entity, the loss is not reported net of taxes. | ||
[2] | Represents investments in shares of HC Realty preferred stock with a basis of $10.25 million. Each share of preferred stock can be converted into one share of HC Realty common stock at a conversion price equal to the lesser of $9.10 per share or the fair market value per share of HC Realty common stock, subject to adjustment upon the occurrence of certain events. |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 226,000 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 157,000 | $ 157,000 |
Open Tax Year | 2013 2014 2015 2016 2017 2018 2019 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | $ 35,300,000 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Total | $ 22,500,000 |
Note 6 - Income Taxes - Provisi
Note 6 - Income Taxes - Provision for Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | ||
Federal | $ (247) | |
State | (84) | |
Total current | (247) | (84) |
Deferred: | ||
Federal | 247 | |
State | ||
Total deferred | 247 | |
Income tax (benefit) expense from continuing operations | $ (84) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Federal statutory rate | 21.00% | 21.00% |
State tax, net of federal benefit | (0.10%) | 3.80% |
Deferred correction – State NOLs | (359.70%) | (122.70%) |
Permanent differences | 2.30% | |
Valuation allowance increase | 360.40% | (3.90%) |
Other, net | (24.00%) | 4.30% |
Effective income tax rate | (97.60%) |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Effects of Temporary Differences That Comprise Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Noncurrent deferred tax assets: | ||
Equity method investment | $ 195 | $ 99 |
Other accrued expenses | 33 | 32 |
Notes receivable fair value adjustment | 319 | 578 |
Employee benefits | 50 | 65 |
Capital loss carryforward | 11 | |
AMT credit | 247 | |
Net operating loss | 7,861 | 7,726 |
Gross non-current deferred tax assets | 8,469 | 8,747 |
Property, tax, and equipment | (1) | (1) |
Non-taxable dividends | (193) | |
Valuation allowance | (8,275) | (8,499) |
Gross non-current deferred tax liabilities | (8,469) | (8,500) |
Net noncurrent deferred tax assets | $ 247 |
Note 6 - Income Taxes - Unrecog
Note 6 - Income Taxes - Unrecognized Tax Benefits Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized tax benefits balance at January 1 | $ 157 | $ 241 |
Gross decrease in tax positions of prior years | (84) | |
Unrecognized tax benefits balance at December 31 | $ 157 | $ 157 |
Note 7 - Stockholders' Equity_2
Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | Jul. 31, 2012 | |
Excess Stock, Shares Authorized (in shares) | 1,000,000 | |||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 | ||
Minimum [Member] | ||||
Equity Method Investment, Ownership Percentage | 4.90% | |||
Privately Negotiated Transaction [Member] | Common Stock [Member] | ||||
Stock Repurchase Program, Authorized Amount | $ 5 | |||
Stock Repurchased During Period, Shares (in shares) | 0 | 0 | ||
Restricted Stock [Member] | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares) | 0 | 0 | ||
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 42,000 |
Note 7 - Stockholders' Equity -
Note 7 - Stockholders' Equity - Basic and Diluted Earnings Per Share Calculation (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average shares outstanding for basic calculation (in shares) | 25,004 | 14,507 |
Dilutive effect of restricted stock (in shares) | 417 | 430 |
Weighted average shares outstanding for diluted calculation (in shares) | 25,421 | 14,937 |
Note 8 - Stock Based Compensa_3
Note 8 - Stock Based Compensation (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 10 years | |
Share-based Payment Arrangement, Option [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 12,931 | 30,354 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 124,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 182 days | |
A 2012 Incentive Compensation Plan [Member] | Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,600,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,200,000 |
Note 8 - Stock Based Compensa_4
Note 8 - Stock Based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding, shares (in shares) | 42,283 | 63,197 | |
Outstanding, weighted-average exercise price (in dollars per share) | $ 6.20 | $ 7.01 | |
Outstanding, weighted-average remaining contractual term (Year) | 292 days | 1 year 292 days | |
Cancelled/Forfeited, shares (in shares) | (36,071) | (20,914) | |
Cancelled/Forfeited, weighted-average exercise price (in dollars per share) | $ 5.54 | $ 8.64 | |
Expired, shares (in shares) | (6,212) | ||
Expired, weighted-average exercise price (in dollars per share) | $ 10.01 | ||
Outstanding, shares (in shares) | 42,283 | 63,197 | |
Outstanding, weighted-average exercise price (in dollars per share) | $ 6.20 | $ 7.01 | |
Outstanding, aggregate intrinsic value | |||
Exercisable, shares (in shares) | |||
Exercisable, weighted-average exercise price (in dollars per share) | |||
Exercisable, weighted-average remaining contractual term (Year) | |||
Exercisable, aggregate intrinsic value |
Note 8 - Stock Based Compensa_5
Note 8 - Stock Based Compensation - Summary of Restricted Stock (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Outstanding (in shares) | 429,597 | 204,575 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 0.61 | $ 0.83 |
Vested (in shares) | (12,931) | (30,354) |
Vested, weighted average grant date fair value (in dollars per share) | $ 1.16 | $ 1.81 |
Granted (in shares) | 416,666 | |
Granted, weighted average grant date fair value (in dollars per share) | $ 0.60 | |
Cancelled/Forfeited/Expired (in shares) | (161,290) | |
Cancelled/Forfeited/Expired, weighted average grant date fair value (in dollars per share) | $ 0.62 | |
Granted (in shares) | ||
Outstanding (in shares) | 416,666 | 429,597 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 0.60 | $ 0.61 |
Note 9 - Income for Continued_2
Note 9 - Income for Continued Dumping and Subsidy Offset Act (CDSOA) (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income from Continued Dumping and Subsidy Offset Act, Net | $ 0 | $ 1,230 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Letters of Credit Outstanding, Amount | $ 230,000 | |
Office Space [Member] | ||
Operating Lease, Expense | $ 29,000 | $ 29,000 |
Note 11 - Uncertainties (Detail
Note 11 - Uncertainties (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment of Notes Receivable | $ 833,000 | $ 897,000 |
S&L Note [Member] | ||
Impairment of Notes Receivable | 833,000 | $ 0 |
S&L Note [Member] | COVID 19 [Member] | ||
Impairment of Notes Receivable | $ 833,000 |