Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000086115 | |
Entity Registrant Name | SAFEGUARD SCIENTIFICS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5620 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1609753 | |
Entity Address, Address Line One | 100 Matsonford Road | |
Entity Address, City or Town | Radnor | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19087 | |
City Area Code | 610 | |
Local Phone Number | 293-0600 | |
Title of 12(b) Security | common stock, par value $0.10 | |
Trading Symbol | SFE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,893,063 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 16,437 | $ 25,028 |
Restricted cash | 0 | 25 |
Prepaid expenses and other current assets | 570 | 1,297 |
Total current assets | 17,007 | 26,350 |
Property and equipment, net | 1,869 | 2,101 |
Ownership interests in and advances | 55,844 | 77,129 |
Other assets | 1,368 | 1,997 |
Total Assets | 76,088 | 107,577 |
Current Liabilities: | ||
Accounts payable | 36 | 39 |
Accrued compensation and benefits | 1,706 | 1,364 |
Accrued expenses and other current liabilities | 531 | 627 |
Lease liability - current | 338 | 399 |
Total current liabilities | 2,611 | 2,429 |
Lease liability - non-current | 2,139 | 2,380 |
Other long-term liabilities | 1,109 | 1,027 |
Total Liabilities | 5,859 | 5,836 |
Commitments and contingencies (Note 9) | ||
Equity: | ||
Preferred stock, $0.10 par value; 1,000 shares authorized | 0 | 0 |
Common stock, $0.10 par value; 83,333 shares authorized; 21,573 shares issued at September 30, 2020 and December 31, 2019 | 2,157 | 2,157 |
Additional paid-in capital | 809,189 | 810,856 |
Treasury stock, at cost; 789 and 930 shares at September 30, 2020 and December 31, 2019, respectively | (11,806) | (14,024) |
Accumulated deficit | (729,286) | (697,223) |
Accumulated other comprehensive loss | (25) | (25) |
Total Equity | 70,229 | 101,741 |
Total Liabilities and Equity | $ 76,088 | $ 107,577 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 83,333 | 83,333 |
Common stock, shares issued (in shares) | 21,573 | 21,573 |
Treasury stock, shares (in shares) | 789 | 930 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and administrative expense | $ 2,275 | $ 2,262 | $ 7,835 | $ 7,922 |
Operating loss | (2,275) | (2,262) | (7,835) | (7,922) |
Other income (loss), net | (820) | 8,777 | (7,045) | 10,010 |
Interest income | 52 | 234 | 209 | 1,870 |
Interest expense | 0 | (5,806) | 0 | (14,023) |
Equity income (loss), net | (1,300) | (3,440) | (15,591) | 65,324 |
Net income (loss) before income taxes | (4,343) | (2,497) | (30,262) | 55,259 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Net income (loss) | $ (4,343) | $ (2,497) | $ (30,262) | $ 55,259 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ (0.21) | $ (0.12) | $ (1.46) | $ 2.68 |
Diluted (in dollars per share) | $ (0.21) | $ (0.12) | $ (1.46) | $ 2.68 |
Weighted average shares used in computing income (loss) per share: | ||||
Basic (in shares) | 20,786 | 20,657 | 20,731 | 20,623 |
Diluted (in shares) | 20,786 | 20,657 | 20,731 | 20,623 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ (4,343) | $ (2,497) | $ (30,262) | $ 55,259 |
Other comprehensive income (loss): | ||||
Share of other comprehensive income (loss) of equity method interests | 0 | 0 | 0 | (31) |
Reclassification adjustment for sale of equity method investments | 0 | 0 | 0 | 6 |
Total comprehensive income (loss) | $ (4,343) | $ (2,497) | $ (30,262) | $ 55,234 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net cash used in operating activities | $ (7,025) | $ (18,543) |
Cash Flows from Investing Activities: | ||
Proceeds from sales of and distributions from ownership interests | 7,587 | 101,190 |
Acquisitions of ownership interests | (7,510) | (9,500) |
Advances and loans to ownership interests | (1,638) | (4,954) |
Purchases of marketable securities | 0 | (57,243) |
Proceeds from sales and maturities in marketable securities | 0 | 95,189 |
Net cash (used in) provided by investing activities | (1,561) | 124,682 |
Cash Flows from Financing Activities: | ||
Repayments on credit facility | 0 | (68,568) |
Tax withholdings related to equity-based awards | (30) | (210) |
Net cash used in financing activities | (30) | (68,778) |
Net change in cash, cash equivalents and restricted cash | (8,616) | 37,361 |
Cash, cash equivalents and restricted cash at beginning of period | 25,053 | 8,203 |
Cash, cash equivalents and restricted cash at end of period | $ 16,437 | $ 45,564 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Total |
Balance (in shares) | 21,573 | 914 | ||||
Balance at Dec. 31, 2018 | $ (731,105) | $ 0 | $ 2,157 | $ 810,928 | $ (15,001) | $ 66,979 |
Balance (in shares) at Dec. 31, 2018 | 21,573 | 914 | ||||
Net income (loss) | 21,663 | 0 | $ 0 | 0 | $ 0 | 21,663 |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | 7 | $ (156) | (149) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | 83 | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 417 | $ 0 | 417 |
Balance (in shares) | 21,573 | 914 | ||||
Stock options exercised, net of tax withholdings | 0 | 0 | $ 0 | 0 | $ 0 | 0 |
Stock options exercised, net of tax withholdings (in shares) | 0 | 1 | ||||
Other comprehensive income (loss) | 0 | (31) | $ 0 | 0 | $ 0 | (31) |
Balance at Mar. 31, 2019 | (709,442) | (31) | 2,157 | 811,352 | (15,157) | 88,879 |
Balance at Dec. 31, 2018 | (731,105) | 0 | $ 2,157 | 810,928 | $ (15,001) | 66,979 |
Balance (in shares) at Dec. 31, 2018 | 21,573 | 914 | ||||
Net income (loss) | 55,259 | |||||
Balance (in shares) | 21,573 | 914 | ||||
Balance at Sep. 30, 2019 | (675,846) | (25) | $ 2,157 | 810,649 | $ (13,998) | 122,937 |
Balance (in shares) | 21,573 | 998 | ||||
Balance at Mar. 31, 2019 | (709,442) | (31) | $ 2,157 | 811,352 | $ (15,157) | 88,879 |
Balance (in shares) at Mar. 31, 2019 | 21,573 | 998 | ||||
Net income (loss) | 36,093 | 0 | $ 0 | 0 | $ 0 | 36,093 |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | (1,220) | $ 1,189 | (31) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | (77) | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 269 | $ 0 | 269 |
Balance (in shares) | 21,573 | 998 | ||||
Other comprehensive income (loss) | 0 | 6 | $ 0 | 0 | $ 0 | 6 |
Balance at Jun. 30, 2019 | (673,349) | (25) | $ 2,157 | 810,401 | $ (13,968) | 125,216 |
Balance (in shares) | 21,573 | 921 | ||||
Balance (in shares) at Jun. 30, 2019 | 21,573 | 921 | ||||
Net income (loss) | (2,497) | 0 | $ 0 | 0 | $ 0 | (2,497) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | 0 | $ (30) | (30) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | 7 | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 248 | $ 0 | 248 |
Balance (in shares) | 21,573 | 921 | ||||
Other comprehensive income (loss) | 0 | 0 | $ 0 | 0 | $ 0 | 0 |
Balance at Sep. 30, 2019 | (675,846) | (25) | $ 2,157 | 810,649 | $ (13,998) | 122,937 |
Balance (in shares) | 21,573 | 928 | ||||
Balance (in shares) | 21,573 | 930 | ||||
Balance at Dec. 31, 2019 | (697,223) | (25) | $ 2,157 | 810,856 | $ (14,024) | 101,741 |
Balance (in shares) at Dec. 31, 2019 | 21,573 | 930 | ||||
Net income (loss) | (16,008) | 0 | $ 0 | 0 | $ 0 | (16,008) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | (32) | $ 104 | 72 |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | (6) | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 3 | $ 0 | 3 |
Balance (in shares) | 21,573 | 930 | ||||
Balance at Mar. 31, 2020 | (713,231) | (25) | $ 2,157 | 810,827 | $ (13,920) | 85,808 |
Balance at Dec. 31, 2019 | (697,223) | (25) | $ 2,157 | 810,856 | $ (14,024) | 101,741 |
Balance (in shares) at Dec. 31, 2019 | 21,573 | 930 | ||||
Net income (loss) | (30,262) | |||||
Balance (in shares) | 21,573 | 930 | ||||
Balance at Sep. 30, 2020 | (729,286) | (25) | $ 2,157 | 809,189 | $ (11,806) | 70,229 |
Balance (in shares) | 21,573 | 924 | ||||
Balance at Mar. 31, 2020 | (713,231) | (25) | $ 2,157 | 810,827 | $ (13,920) | 85,808 |
Balance (in shares) at Mar. 31, 2020 | 21,573 | 924 | ||||
Net income (loss) | (9,911) | 0 | $ 0 | 0 | $ 0 | (9,911) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | (1,718) | $ 1,790 | 72 |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | (114) | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 146 | $ 0 | 146 |
Change in accounting at ownership interests | (1,801) | 0 | $ 0 | 0 | $ 0 | (1,801) |
Balance (in shares) | 21,573 | 924 | ||||
Balance at Jun. 30, 2020 | (724,943) | (25) | $ 2,157 | 809,255 | $ (12,130) | 74,314 |
Balance (in shares) | 21,573 | 810 | ||||
Balance (in shares) at Jun. 30, 2020 | 21,573 | 810 | ||||
Net income (loss) | (4,343) | 0 | $ 0 | 0 | $ 0 | (4,343) |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net | 0 | 0 | $ 0 | (251) | $ 324 | 73 |
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares) | 0 | (21) | ||||
Stock-based compensation expense | 0 | 0 | $ 0 | 185 | $ 0 | 185 |
Balance (in shares) | 21,573 | 810 | ||||
Balance at Sep. 30, 2020 | $ (729,286) | $ (25) | $ 2,157 | $ 809,189 | $ (11,806) | $ 70,229 |
Balance (in shares) | 21,573 | 789 |
Note 1 - General
Note 1 - General | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. The accompanying unaudited interim Consolidated Financial Statements of Safeguard Scientifics, Inc. (“Safeguard” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America and the interim financial statement rules and regulations of the SEC. In the opinion of management, these statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Consolidated Financial Statements. The interim operating results are not 10 10 2019 10 Liquidity As of September 30, 2020 In January 2018, not may The Company believes that its cash and cash equivalents at September 30, 2020 one Principles of Accounting for Ownership Interests The Company accounts for its ownership interests using one In addition to holding voting and non-voting equity, the Company also periodically makes advances to its companies in the form of promissory notes which are included in the Ownership interests in and advances on the Consolidated Balance Sheets. Equity Method. not not 20% 50% not one When the Company’s carrying value in an equity method company is reduced to zero, the Company records no not not Other Method. not not Impairment of Ownership Interests and Advances On a periodic basis, but no not Management then determines whether there has been an other than temporary decline in the value of its ownership interest in the company. Impairment is measured as the amount by which the carrying value of an asset exceeds its estimated fair value. The estimated fair value of privately held companies is generally determined based on the value at which independent third Impairment charges related to equity method companies are included in Equity income (loss) in the Consolidated Statements of Operations. Impairment charges related to non-equity method companies and funds are included in Other income (loss), net in the Consolidated Statements of Operations. The reduced cost basis of a previously impaired company accounted for using the Equity method is not Recently Adopted Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 2014 09" 2014 09 December 15, 2017 December 15, 2018 December 15, 2019 June 3, 2020 2020 05, 606 not 2019 June 3, 2020, January 1, 2020. As the new standard superseded most existing revenue guidance, it impacted revenue and cost recognition for certain companies in which we hold an ownership interest. Any change in revenue or cost recognition for companies in which we hold an ownership interest could affect the Company's recognition of its share of the results of its equity method companies. On July 20, 2017, not not December 31, 2019, first 2019 For our ownership interests that have adopted ASU 2014 09, 2020 one nine September 30, 2020 2019 2014 09. 2014 09 not 2014 09 not 2019 may June 3, 2020 not |
Note 2 - Ownership Interests In
Note 2 - Ownership Interests In and Advances | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | 2. The following summarizes the carrying value of the Company’s ownership interests in and advances. September 30, 2020 December 31, 2019 (Unaudited - In thousands) Equity Method: Companies $ 30,436 $ 34,271 Private equity funds 271 271 30,707 34,542 Other Method: Companies 20,015 27,031 Private equity funds 423 453 20,438 27,484 Advances to companies 4,699 15,103 $ 55,844 $ 77,129 In September 2020, three nine September 30, 2020. During the nine September 30, 2020, three nine September 30, 2020, b8ta 19 third March 31, 2020, June 30, 2020, September 30, 2020, 3 During the nine September 30, 2020 three September 30, 2020, Summarized Financial Information The following table summarizes the statement of operations data for the companies accounted for under the equity method for the three nine September 30, 2020 2019 one not Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands) Results of Operations: Revenue $ 39,388 $ 28,940 $ 119,270 $ 112,540 Gross profit $ 23,244 $ 14,448 $ 73,395 $ 61,401 Net loss $ (15,650 ) $ (30,470 ) $ (56,684 ) $ (99,282 ) |
Note 3 - Acquisitions of Owners
Note 3 - Acquisitions of Ownership Interests | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Cost and Equity Method Investments Disclosure [Text Block] | 3. The following is a summary of additional deployments during the nine September 30, 2020 The Company deployed an additional $2.5 million to Aktana, Inc. during the three September 30, 2020. The Company deployed an additional $1.0 million to meQuilibrium. The Company had previously deployed an aggregate of $13.0 million. meQuilibrium is a digital coaching platform that delivers clinically validated and highly personalized resilience solutions to employers, health plans, wellness providers, and consumers increasing engagement, productivity and performance, as well as improving outcomes in managing stress, health and well-being. The Company deployed an additional $4.4 million to Syapse, Inc., including the $0.6 million of convertible loans deployed in the first 2020, second The Company funded an additional $0.7 million of convertible loans to Trice Medical, Inc. The Company had previously deployed an aggregate of $10.2 million. Trice is focused on orthopedic diagnostics using fully integrated camera-enabled technologies to provide clinical solutions to physicians. The Company deployed an aggregate of $0.2 million to Clutch Holdings. The Company had previously deployed an aggregate of $16.7 million. Clutch provides customer intelligence and personalized engagements that empower consumer-focused businesses to identify, understand and motivate each segment of their customer base. The Company funded an additional $0.2 million of convertible loans to QuanticMind. The Company had previously deployed an aggregate of $13.5 million. QuanticMind delivers an intelligent, scalable and fast platform for maximizing digital marketing performance, including paid search and social, for enterprises. The Company funded an aggregate of $0.1 million of convertible loans to WebLinc, Inc. The Company had previously deployed an aggregate of $16.1 million. WebLinc is an e-commerce platform for online retailers. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. The Company categorizes its financial instruments into a three 1 3 Level 1—Observable Level 2—Include Level 3—Unobservable no The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of September 30, 2020 December 31, 2019 Carrying Fair Value Measurement at September 30, 2020 Value Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 16,437 $ 16,437 $ — $ — Carrying Fair Value Measurement at December 31, 2019 Value Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 25,028 $ 25,028 $ — $ — Restricted cash equivalents $ 25 $ 25 $ — $ — |
Note 5 - Stock-Based Compensati
Note 5 - Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5. Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands) General and administrative expense $ 452 $ 248 $ 979 $ 934 $ 452 $ 248 $ 979 $ 934 During the nine September 30, 2020 2019 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. The Company’s consolidated income tax benefit (expense) was $0.0 million for the three nine September 30, 2020 2019 not three nine September 30, 2020 three nine September 30, 2020 no |
Note 7 - Net Income (Loss) Per
Note 7 - Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7. The calculations of net income (loss) per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands, except per share data) Basic: Net income (loss) $ (4,343 ) $ (2,497 ) $ (30,262 ) $ 55,259 Weighted average common shares outstanding 20,786 20,657 20,731 20,623 Net income (loss) per share $ (0.21 ) $ (0.12 ) $ (1.46 ) $ 2.68 Diluted: Net income (loss) for dilutive share computation $ (4,343 ) $ (2,497 ) $ (30,262 ) $ 55,259 Number of shares used in basic per share computation 20,786 20,657 20,731 20,623 Unvested restricted stock and DSU's — — — — Employee stock options — — — — Weighted average common shares outstanding 20,786 20,657 20,731 20,623 Net income (loss) per dilutive share $ (0.21 ) $ (0.12 ) $ (1.46 ) $ 2.68 Basic and diluted average common shares outstanding for purposes of computing net income (loss) per share includes outstanding common shares and vested deferred stock units (DSUs). If an equity method company has dilutive stock options, unvested restricted stock, DSUs or warrants, diluted net income (loss) per share is computed by first Diluted earnings per share do not • At September 30, 2020 2019 • At September 30, 2020 2019 |
Note 8 - Segment Reporting
Note 8 - Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. The Company operates as one operating segment based upon the similar nature of its technology-driven companies, the functional alignment of the organizational structure, and the reports that are regularly reviewed by the chief operating decision maker for the purpose of assessing performance and allocating resources. As of September 30, 2020 12 Certain of the Company’s ownership interests as of September 30, 2020 Company Name Safeguard Primary Ownership as of September 30, 2020 Accounting Method Aktana, Inc. 15.2% Equity Clutch Holdings, Inc. 41.2% Equity Flashtalking 13.4% Other InfoBionic, Inc. 25.2% Equity Lumesis, Inc. 43.5% Equity MediaMath, Inc. 13.3% Other meQuilibrium 32.0% Equity Moxe Health Corporation 29.9% Equity Prognos Health Inc. 28.5% Equity QuanticMind, Inc. 24.2% Equity Syapse, Inc. 19.6% Equity T-REX Group, Inc. 13.7% Other Trice Medical, Inc. 16.6% Equity WebLinc, Inc. 39.9% Equity Zipnosis, Inc. 37.7% Equity As of September 30, 2020 December 31, 2019 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. In March 2019, June 2019. April 2026, In April 2019, June 2019. fourth 2020 not A summary of the Company's operating lease cash flows at September 30, 2020 Operating lease payments Expected sublease receipts (Unaudited - In thousands) 2020 (three months ending December 31) $ 170 $ 129 2021 595 525 2022 601 540 2023 607 556 2024 613 573 2025 619 590 Thereafter 208 199 Total future minimum lease payments 3,413 $ 3,112 Less imputed interest (936 ) Total operating lease liabilities $ 2,477 The Company and the companies in which it holds ownership interests are involved in various claims and legal actions arising in the ordinary course of business. In the current opinion of the Company, the ultimate disposition of these matters will not no one The Company had outstanding guarantees of $3.8 million at September 30, 2020 one In 2018, February 2019 June 2020, January 2018. June 2020 first may first first no second 60 September 30, 2020 The Company recorded severance expense of $1.9 million during the nine September 30, 2020 second fourth 2020. September 30, 2020 In June 2011, March 2012, July 2015 one 2014 one |
Note 10 - Equity
Note 10 - Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. In July 2015, not 2019 nine September 30, 2020 In February 2018, 2019 382 five 382 50 five three 382, one not not no February 19, 2021. may no no may no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Liquidity, Policy [Policy Text Block] | Liquidity As of September 30, 2020 In January 2018, not may The Company believes that its cash and cash equivalents at September 30, 2020 one |
Investment, Policy [Policy Text Block] | Principles of Accounting for Ownership Interests The Company accounts for its ownership interests using one In addition to holding voting and non-voting equity, the Company also periodically makes advances to its companies in the form of promissory notes which are included in the Ownership interests in and advances on the Consolidated Balance Sheets. Equity Method. not not 20% 50% not one When the Company’s carrying value in an equity method company is reduced to zero, the Company records no not not Other Method. not not Impairment of Ownership Interests and Advances On a periodic basis, but no not Management then determines whether there has been an other than temporary decline in the value of its ownership interest in the company. Impairment is measured as the amount by which the carrying value of an asset exceeds its estimated fair value. The estimated fair value of privately held companies is generally determined based on the value at which independent third Impairment charges related to equity method companies are included in Equity income (loss) in the Consolidated Statements of Operations. Impairment charges related to non-equity method companies and funds are included in Other income (loss), net in the Consolidated Statements of Operations. The reduced cost basis of a previously impaired company accounted for using the Equity method is not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 2014 09" 2014 09 December 15, 2017 December 15, 2018 December 15, 2019 June 3, 2020 2020 05, 606 not 2019 June 3, 2020, January 1, 2020. As the new standard superseded most existing revenue guidance, it impacted revenue and cost recognition for certain companies in which we hold an ownership interest. Any change in revenue or cost recognition for companies in which we hold an ownership interest could affect the Company's recognition of its share of the results of its equity method companies. On July 20, 2017, not not December 31, 2019, first 2019 For our ownership interests that have adopted ASU 2014 09, 2020 one nine September 30, 2020 2019 2014 09. 2014 09 not 2014 09 not 2019 may June 3, 2020 not |
Note 2 - Ownership Interests _2
Note 2 - Ownership Interests In and Advances (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block] | September 30, 2020 December 31, 2019 (Unaudited - In thousands) Equity Method: Companies $ 30,436 $ 34,271 Private equity funds 271 271 30,707 34,542 Other Method: Companies 20,015 27,031 Private equity funds 423 453 20,438 27,484 Advances to companies 4,699 15,103 $ 55,844 $ 77,129 |
Equity Method Investments [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands) Results of Operations: Revenue $ 39,388 $ 28,940 $ 119,270 $ 112,540 Gross profit $ 23,244 $ 14,448 $ 73,395 $ 61,401 Net loss $ (15,650 ) $ (30,470 ) $ (56,684 ) $ (99,282 ) |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying Fair Value Measurement at September 30, 2020 Value Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 16,437 $ 16,437 $ — $ — Carrying Fair Value Measurement at December 31, 2019 Value Level 1 Level 2 Level 3 (Unaudited - In thousands) Cash and cash equivalents $ 25,028 $ 25,028 $ — $ — Restricted cash equivalents $ 25 $ 25 $ — $ — |
Note 5 - Stock-Based Compensa_2
Note 5 - Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Activity [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands) General and administrative expense $ 452 $ 248 $ 979 $ 934 $ 452 $ 248 $ 979 $ 934 |
Note 7 - Net Income (Loss) Pe_2
Note 7 - Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Unaudited - In thousands, except per share data) Basic: Net income (loss) $ (4,343 ) $ (2,497 ) $ (30,262 ) $ 55,259 Weighted average common shares outstanding 20,786 20,657 20,731 20,623 Net income (loss) per share $ (0.21 ) $ (0.12 ) $ (1.46 ) $ 2.68 Diluted: Net income (loss) for dilutive share computation $ (4,343 ) $ (2,497 ) $ (30,262 ) $ 55,259 Number of shares used in basic per share computation 20,786 20,657 20,731 20,623 Unvested restricted stock and DSU's — — — — Employee stock options — — — — Weighted average common shares outstanding 20,786 20,657 20,731 20,623 Net income (loss) per dilutive share $ (0.21 ) $ (0.12 ) $ (1.46 ) $ 2.68 |
Note 8 - Segment Reporting (Tab
Note 8 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Partner Company Ownership Interest [Table Text Block] | Company Name Safeguard Primary Ownership as of September 30, 2020 Accounting Method Aktana, Inc. 15.2% Equity Clutch Holdings, Inc. 41.2% Equity Flashtalking 13.4% Other InfoBionic, Inc. 25.2% Equity Lumesis, Inc. 43.5% Equity MediaMath, Inc. 13.3% Other meQuilibrium 32.0% Equity Moxe Health Corporation 29.9% Equity Prognos Health Inc. 28.5% Equity QuanticMind, Inc. 24.2% Equity Syapse, Inc. 19.6% Equity T-REX Group, Inc. 13.7% Other Trice Medical, Inc. 16.6% Equity WebLinc, Inc. 39.9% Equity Zipnosis, Inc. 37.7% Equity |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating lease payments Expected sublease receipts (Unaudited - In thousands) 2020 (three months ending December 31) $ 170 $ 129 2021 595 525 2022 601 540 2023 607 556 2024 613 573 2025 619 590 Thereafter 208 199 Total future minimum lease payments 3,413 $ 3,112 Less imputed interest (936 ) Total operating lease liabilities $ 2,477 |
Note 1 - General (Details Textu
Note 1 - General (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Apr. 01, 2020 | Dec. 31, 2019 | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 16,437 | $ 25,028 | |
Retained Earnings (Accumulated Deficit), Ending Balance | (729,286) | $ (697,223) | |
Accounting Standards Update 2014-09 [Member] | |||
Contract with Customer, Liability, Revenue Recognized | $ 1,800 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (1,800) |
Note 2 - Ownership Interests _3
Note 2 - Ownership Interests In and Advances (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | $ (0.5) | $ 1.5 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Impaired Investments in Affiliates Subsidiaries Associates and Joint Ventures, FairValue | 2.2 | 2.2 | $ 9.1 | $ 12.5 |
WebLinc, Inc and QuanticMind, Inc [Member] | ||||
Equity Method Investment, Other than Temporary Impairment | 9.2 | |||
T-Rex Group, Inc [Member] | ||||
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Annual Amount | 0.4 | $ 8.1 | ||
Sonobi [Member] | ||||
Proceeds from Sale of Equity Method Investments | $ 6.6 |
Note 2 - Ownership Interests _4
Note 2 - Ownership Interests In and Advances - Carrying Value of Ownership Interests (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Equity Method Companies | $ 30,707 | $ 34,542 |
Other Companies | 20,438 | 27,484 |
Advances to companies | 4,699 | 15,103 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | 55,844 | 77,129 |
Partnership Interest [Member] | ||
Equity Method Companies | 30,436 | 34,271 |
Other Companies | 20,015 | 27,031 |
Private Equity Funds [Member] | ||
Equity Method Companies | 271 | 271 |
Other Companies | $ 423 | $ 453 |
Note 2 - Ownership Interests _5
Note 2 - Ownership Interests In and Advances - Results of Operations (Details) - Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 39,388 | $ 28,940 | $ 119,270 | $ 112,540 |
Gross profit | 23,244 | 14,448 | 73,395 | 61,401 |
Net loss | $ (15,650) | $ (30,470) | $ (56,684) | $ (99,282) |
Note 3 - Acquisitions of Owne_2
Note 3 - Acquisitions of Ownership Interests (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Payments to Acquire Equity Method Investments | $ 7,510 | $ 9,500 | ||
Equity Method Investments | 30,707 | $ 34,542 | ||
Aktana, Inc. [Member] | ||||
Payments to Acquire Equity Method Investments | 2,500 | |||
Equity Method Investments | 11,700 | |||
meQuilibrium [Member] | ||||
Payments to Acquire Equity Method Investments | 1,000 | |||
Equity Method Investments | $ 13,000 | |||
Syapse, Inc. [Member] | ||||
Payments to Acquire Equity Method Investments | $ 600 | 4,400 | ||
Equity Method Investments | 20,600 | |||
Trice Medical [Member] | ||||
Equity Method Investments | 10,200 | |||
Convertible Bridge Loan | 700 | |||
Clutch Holdings [Member] | ||||
Payments to Acquire Equity Method Investments | 200 | |||
Equity Method Investments | 16,700 | |||
QuanticMind [Member] | ||||
Equity Method Investments | 13,500 | |||
Convertible Bridge Loan | 200 | |||
WebLinc, Inc. [Member] | ||||
Equity Method Investments | 16,100 | |||
Convertible Bridge Loan | $ 100 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Fair Value of Assets and Liabilities Measured On Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 16,437 | $ 25,028 |
Restricted cash equivalents | 25 | |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 16,437 | 25,028 |
Restricted cash equivalents | 25 | |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | $ 0 | 0 |
Restricted cash equivalents | $ 0 |
Note 5 - Stock-Based Compensa_3
Note 5 - Stock-Based Compensation (Details Textual) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total (in shares) | 79 | 30 |
Note 5 - Stock-Based Compensa_4
Note 5 - Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-based compensation expense | $ 452 | $ 248 | $ 979 | $ 934 |
General and Administrative Expense [Member] | ||||
Stock-based compensation expense | $ 452 | $ 248 | $ 979 | $ 934 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 | $ 0 | $ 0 |
Note 7 - Net Income (Loss) Pe_3
Note 7 - Net Income (Loss) Per Share (Details Textual) - $ / shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.2 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.2 | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | $ 10.37 | $ 9.83 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 17.11 | $ 19.41 |
Restricted Stock, Performance-based Stock Units, and Deferred Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.3 | 0.3 |
Note 7 - Net Income (Loss) Pe_4
Note 7 - Net Income (Loss) Per Share - Calculations of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||||||||
Net income (loss) | $ (4,343) | $ (9,911) | $ (16,008) | $ (2,497) | $ 36,093 | $ 21,663 | $ (30,262) | $ 55,259 |
Basic (in shares) | 20,786 | 20,657 | 20,731 | 20,623 | ||||
Basic (in dollars per share) | $ (0.21) | $ (0.12) | $ (1.46) | $ 2.68 | ||||
Diluted: | ||||||||
Net income (loss) | $ (4,343) | $ (9,911) | $ (16,008) | $ (2,497) | $ 36,093 | $ 21,663 | $ (30,262) | $ 55,259 |
Basic (in shares) | 20,786 | 20,657 | 20,731 | 20,623 | ||||
Unvested restricted stock and DSU's (in shares) | 0 | 0 | 0 | 0 | ||||
Employee stock options (in shares) | 0 | 0 | 0 | 0 | ||||
Diluted (in shares) | 20,786 | 20,657 | 20,731 | 20,623 | ||||
Diluted (in dollars per share) | $ (0.21) | $ (0.12) | $ (1.46) | $ 2.68 |
Note 8 - Segment Reporting (Det
Note 8 - Segment Reporting (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Number of Operating Segments | 1 |
Note 8 - Segment Reporting - Ac
Note 8 - Segment Reporting - Active Partner Companies by Segment (Details) | Sep. 30, 2020 |
Aktana, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 15.20% |
Clutch Holdings [Member] | |
Ownership Interest Under Equity Method, Percent | 41.20% |
Flashtalking [Member] | |
Ownership Interest Under Other Method, Percent | 13.40% |
InfoBionic, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 25.20% |
Lumesis, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 43.50% |
MediaMath, Inc. [Member] | |
Ownership Interest Under Other Method, Percent | 13.30% |
meQuilibrium [Member] | |
Ownership Interest Under Equity Method, Percent | 32.00% |
Moxe Health Corporation [Member] | |
Ownership Interest Under Equity Method, Percent | 29.90% |
Prognos Health, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 28.50% |
QuanticMind [Member] | |
Ownership Interest Under Equity Method, Percent | 24.20% |
Syapse, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 19.60% |
T-Rex Group, Inc [Member] | |
Ownership Interest Under Other Method, Percent | 13.70% |
Trice Medical, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 16.60% |
WebLinc, Inc. [Member] | |
Ownership Interest Under Equity Method, Percent | 39.90% |
Zipnosis [Member] | |
Ownership Interest Under Equity Method, Percent | 37.70% |
Note 9 - Commitments and Cont_3
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Deferred Compensation Liability, Current and Noncurrent, Total | $ 1.5 | |
Deferred Compensation Liability, Current, Total | 0.9 | |
Employee and Severance Agreement, Maximum Aggregate Exposure | 2.5 | |
Employee Severance [Member] | ||
Restructuring Charges, Total | $ 1.9 | |
Minimum [Member] | ||
Long-term Incentive Plan, Bonus Pool, Percent of Proceeds Received | 0.20% | |
Maximum [Member] | ||
Long-term Incentive Plan, Bonus Pool, Percent of Proceeds Received | 1.30% | 1.00% |
Private Equity Funds [Member] | ||
Guarantor Obligations, Current Carrying Value | $ 3.8 |
Note 9 - Commitments and Cont_4
Note 9 - Commitments and Contingencies - Operating Lease Cash Flow (Details) $ in Thousands | Sep. 30, 2020USD ($) |
2020 (three months ending December 31) | $ 170 |
2020 (three months ending December 31) | 129 |
2021 | 595 |
2021 | 525 |
2022 | 601 |
2022 | 540 |
2023 | 607 |
2023 | 556 |
2024 | 613 |
2024 | 573 |
2025 | 619 |
2025 | 590 |
Thereafter | 208 |
Thereafter | 199 |
Total future minimum lease payments | 3,413 |
Total future minimum lease payments | 3,112 |
Less imputed interest | (936) |
Total operating lease liabilities | $ 2,477 |
Note 10 - Equity (Details Textu
Note 10 - Equity (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Feb. 28, 2019 | Jul. 31, 2015 | |
Stock Repurchase Program, Authorized Amount | $ 25 | |||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 | ||
Sale of Stock, Individual Ownership, Percent, Maximum | 4.99% | |||
Preferred Stock Purchase Right to be Exchanged for Common Stock Above Maximum Ownership Threshold (in shares) | 1 |