MGTI MGT Capital Investments Inc (PK)

MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per–share amounts)

September 30,

December 31,

2015

2014

(Unaudited)

Assets:

Current assets

Cash and cash equivalents

$

428

$

648

Accounts receivable

12

5

Prepaid expenses and other current assets

49

141

Current assets – Discontinued operations

–

838

Investments – current

1,041

–

Notes receivable

1,875

–

Total current assets

3,405

1,632

Non–current assets

Restricted cash

39

138

Property and equipment, at cost, net

5

11

Property and equipment, at cost, net – Discontinued operations

–

32

Intangible assets, net

1,259

1,608

Intangible assets, net – Discontinued operations

–

809

Goodwill

1,496

1,496

Goodwill – Discontinued operations

–

4,948

Investments – long term

1,380

–

Other non–current assets

–

2

Total assets

$

7,584

$

10,676

Liabilities:

Current liabilities

Accounts payable

$

249

$

199

Accrued expenses

189

180

Current liabilities – Discontinued operations

–

988

Other payables

13

12

Amounts due to Viggle, Inc.

124

–

Total current liabilities

575

1,379

Total liabilities

575

1,379

Commitments and contingencies:

    Redeemable convertible preferred stock – Temporary equity

   Preferred stock, series A convertible preferred, $0.001 par value, 1,500,000 shares authorized
at September 30, 2015 and December 31, 2014; 1,416,463 and 1,416,160 shares issued at
September 30, 2015 and December 31, 2014, respectively; 10,451 and 9,993 shares outstanding
at September 30, 2015 and December 31, 2014, respectively

–

–

Stockholders' equity:

   Undesignated preferred stock, $0.001 par value; 8,583,840 and 8,583,840 shares authorized at
September 30, 2015 and December 31, 2014, respectively. No shares authorized, issued and
outstanding at September 30, 2015 and December 31, 2014 respectively

–

–

   Common Stock, $0.001 par value; 75,000,000 shares authorized; 14,169,665 and 10,731,160
shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively

14

11

  Additional paid–in capital

310,248

308,288

  Accumulated other comprehensive loss

(890)

(281)

  Accumulated deficit

(302,606)

(299,163)

  Total stockholders' equity

6,766

8,855

  Non–controlling interests

243

442

Total equity

7,009

9,297

Total stockholders' equity, liabilities and non–controlling interest

$

7,584

$

10,676

MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHESIVE LOSS

(In thousands, except share and per–share amounts)

(Unaudited)

Three months ended September 30

2015

2014

Revenues:

Licensing

$

90

$

1

Cost of revenues:

Licensing

5

–

Gross margin

85

1

Operating expenses:

General and administrative

642

961

Sales and marketing

–

–

Research and development 

–

40

642

1,001

Operating loss

(557)

(1,000)

Other non–operating (expense) / income:

Interest and other expense

8

2

Impairment of notes receivable

(256)

–

Disposal of assets

(144)

–

(392)

2

Net loss before income taxes and non–controlling interest

(949)

(998)

Income tax expense

–

(10)

Net loss from continuing operations before non–controlling interest

(949)

(1,008)

Discontinued operations – DraftDay.com:

Net loss from discontinued operations

(229)

(443)

Gain on termination of asset purchase agreement

250

–

Loss on sale of assets

(387)

–

(366)

(443)

Net loss before non–controlling interest

(1,315)

(1,451)

Net loss attributable to non–controlling interest

(6)

70

Net loss  attributable to common stockholders

$

(1,321)

$

(1,381)

Net loss  attributable to common stockholders

$

(1,321)

$

(1,381)

Other comprehensive loss:

Unrealized loss on investments

(609)

–

Comprehensive loss

$

(1,930)

$

(1,381)

Per–share data:

Basic and diluted loss per share – continuing operations

$

(0.07)

$

(0.10)

Basic and diluted loss per share from discontinued operations

(0.03)

(0.05)

Basic and diluted loss per share

(0.10)

(0.15)

Weighted average number of common shares outstanding

14,123,208

9,685,023

MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHESIVE LOSS

(In thousands, except share and per–share amounts)

(Unaudited)

Nine months ended September 30,

2015

2014

Revenues:

Licensing

$

102

$

81

Gaming

2

7

104

88

Cost of revenues:

Licensing

5

–

Gross margin

99

88

Operating expenses:

General and administrative

2,293

3,026

Research and development 

–

153

2,293

3,179

Operating loss

(2,194)

(3,091)

Other non–operating (expense) / income:

Interest and other (expense) / income

(28)

7

Impairment of notes receivable

(256)

–

Disposal of assets

(144)

–

(428)

7

Net loss before income taxes and non–controlling interest

(2,622)

(3,084)

Income tax benefit

–

1

Net loss from continuing operations before non–controlling interest

(2,622)

(3,083)

Discontinued operations – DraftDay.com:

Net loss from discontinued operations

(787)

(1,184)

Gain on termination of asset purchase agreement

250

–

Loss on sale of assets

(387)

–

(924)

(1,184)

Net loss before non–controlling interest

(3,546)

(4,267)

Net loss attributable to non–controlling interest

103

373

Net loss  attributable to common stockholders

$

(3,443)

$

(3,894)

Net loss  attributable to common stockholders

$

(3,443)

$

(3,894)

Other comprehensive loss:

Unrealized loss on investments

(609)

–

Comprehensive loss

$

(4,052)

$

(3,894)

Per–share data:

Basic and diluted loss per share – continuing operations

$

(0.20)

$

(0.30)

Basic and diluted loss per share from discontinued operations

(0.07)

(0.13)

Basic and diluted loss per share

(0.27)

(0.43)

Weighted average number of common shares outstanding

12,911,492

9,175,695