Organization, basis of presentation and liquidity

12 Months Ended

Dec. 31, 2011

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1. Organization, basis of presentation and liquidity

MGT Capital Investments, Inc. (“MGT”, “the Company”, the “Group”, “we”, “us”) is a holding company.  We currently have a controlling interest in Medicsight ltd (“Medicsight”) and its subsidiaries Medicsight, Inc., Medicsight KK (Japan), Medicsight Pty Limited (Australia), Medicsight FZE (UAE), MedicEndo Limited (UAE), MedicCO₂lon Limited (UAE) and Medicsight UK Limited (UK). On March 29, 2011 we disposed of our 49% holding in Moneygate Group Limited (“Moneygate”). On March 31, 2010 we disposed of our controlling interest in Medicexchange Limited (“Medicexchange”) and various other investments.  We also have wholly owned subsidiaries MGT Capital Investments (UK) Limited, MGT Investments (Gibraltar) Limited, and Medicsight Nominees Limited.

· Medicsight is a medical technology company focusing on medical imaging software development and medical hardware devices. The Company develops and commercializes enterprise-wide Computer-Aided Detection (“CAD”) applications which analyze Computer Tomography (“CT”) scans to assist radiologists in the early detection and measurement of colorectal polyps and lung lesions. The CAD software received a CE Mark in 2009, which allows for sales in the European Union. On May 19, 2011, Medicsight’s software also received clearance from the U. S. Food and Drug Administration.  Revenue is presently limited as Medicsight attempts to commercialize its recent U.S. approval. In late July 2011, Medicsight was informed by the Japanese Ministry of Health, Labor and Welfare (“MHLW”) that several statistical data errors were encountered in their review of the application for approval of its MedicRead software for use in CT Colonography procedures. Following informal guidance from MHLW, during August 2011, the Company decided to withdraw the current submission and is assessing the next course of action. In the meantime, the Board of Directors of Medicsight closed the Tokyo office as part of an overall program of expense reduction and corporate simplification. In addition to closing the Tokyo office, management of Medicsight has decided to close several non-essential subsidiaries in Australia, China and the UAE citing the unjustifiably high legal, regulatory and accounting costs of maintaining such entities. However, in order to better exploit the recent FDA approval of ColonCAD, Medicsight has opened a U.S. subsidiary (Medicsight, Inc.) in New York. Medicsight has also developed an automated CO₂ medical inflation device and associated disposable tubing (MedicCO₂LON) that is being commercialized via a global distributor. As of December 31, 2011, the Company held 83.75 million shares (53.85%) of the 155.5 million issued share capital of Medicsight. Medicsight was previously listed on the AIM market of the London Stock Exchange through September 22, 2011, when its shares were cancelled based on a duly passed shareholder resolution and Medicsight became private.

The Company has incurred significant operating losses since inception and continues to generate losses from operations. As a result, the Company has generated negative cash flows from operations and has an accumulated deficit of $280,027 at December 31, 2011. The Company is operating in a developing industry based on new technology and its primary source of funds to date has been through the issuance of securities. While the Company is optimistic and believes appropriate actions are being taken, there can be no assurance that management’s efforts will be successful or that the products the Company develops and markets will be accepted by consumers.

At December 31, 2011 Medicsight’s cash and cash equivalents were $3,123.

At December 31, 2011 MGT’s Company only cash and cash equivalents were $571.

Management believes that the current level of working capital, will be sufficient to allow the Company to maintain its operations into April 2013.