10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

  Washington, D.C. 20549

Form 10-Q/A

Amendment No. 1

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 0-26886

MGT CAPITAL INVESTMENTS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	13-4148725
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

500 Mamaroneck Avenue, Suite 204,
Harrison, NY 10528

(Address of Principal Executive Offices)

914-630-7431

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes xNo o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated Filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes oNo x

As of August 14, 2012 the registrant had outstanding 2,445,187 shares of common stock, $0.001 par value.

EXPLANATORY NOTE

The purpose of this Amendment No. 1 on Form 10-Q/A to MGT Capital Investment, Inc.’s quarterly report on Form 10-Q for the period ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012, is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 consists of the following materials from MGT Capital Investment, Inc.’s Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language): 

101.INS  XBRL Instance Document

101.SCH  XBRL Taxonomy Extension Schema Document

101.CAL  XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF  XBRL Taxonomy Extension Definition Linkbase Document

101.LAB  XBRL Taxonomy Extension Label Linkbase Document

101.PRE  XBRL Taxonomy Extension Presentation Linkbase Document

No other changes have been made to the original Form 10-Q.  This Amendment No. 1 speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. 

PART II — OTHER INFORMATION

ITEM 6. EXHIBITS.

Exhibit No.		Description
31.1	*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	**	Interactive Data File.

* Incorporated by reference to our Form 10-Q filed with the SEC on August 14, 2012.

 **Furnished with this Form 10Q/A.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MGT CAPITAL INVESTMENT, INC.
Dated:  September 11, 2012	By:	/s/ ROBERT B. LADD
		Robert B. Ladd
		President and Chief Executive Officer (principal executive officer)

Dated:  September 11, 2012	By:	/s/ ROBERT P. TRAVERSA
		Robert P. Traversa
		Chief Financial Officer (principal financial officer)

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Convertible note and warrants (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Senior secured convertible note	$ 3,500	$ 0
Less: unamortized debt discount	(957)	0
Convertible notes	$ 2,543	$ 0

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Stock incentive plan and share-based compensation (Details Textual) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended				6 Months Ended								6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 GBP (£)	Dec. 31, 2011 USD ($)	Jun. 30, 2012 Noncontrolling Interest [Member] USD ($)	Jun. 30, 2011 Noncontrolling Interest [Member] USD ($)	Jun. 30, 2012 Stock Option Plan J [Member]	Jun. 30, 2012 Each Current Independent Director Of Board [Member]	Jun. 30, 2012 Officers and Certain Employees [Member]	Jun. 25, 2012 Restricted Stock [Member] USD ($)	Jun. 30, 2012 Former Director [Member] USD ($)	Jun. 25, 2012 Former Director [Member]	Jun. 30, 2012 Medicsights [Member]
Number Of Shares Holding By Stockholders, Result Of Reverse Stock Split			500												325,000
Par Value Per Share Of Existing Ordinary Shares					£ 0.05
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Net Of Forfeitures									24
Share-Based Compensation	$ 197	$ 147	$ 229	$ 191			$ 15	$ 74
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized	415,000		415,000
Percentage Of Stockholder Incentive Stock Option Granted On Date Of Grant			10
Share Based Compensation Arrangement By Share Based Payment Restricted Shares Approved To Grant Of Grant			232,000
Share Based Compensation Arrangement By Share Based Payment Restricted Shares Issued										21,000	190,000
Deferred Compensation Share-Based Arrangements, Liability, Current	512		512			0						12	185
Common Stock, Capital Shares Reserved For Future Issuance														33,000
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized	$ 1,281		$ 1,281
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition			1 year 6 months
Stockholders' Equity, Reverse Stock Split															1-for-325,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Number	6		6

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Stock incentive plan and share-based compensation(Details 1)		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012 Medicsight Plan J [Member] USD ($)	Jun. 30, 2012 Medicsight Plan J [Member] GBP (£)
Number of Outstanding options	6	6	6
Outstanding options Remaining contractual life (years)		6 years 10 months 24 days	6 years 10 months 24 days
Outstanding options Average exercise price		$ 46,326	£ 29,250
Number of Exercisable options		6	6
Exercisable options Average exercise price		$ 46,326	£ 29,250

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Cash and cash equivalents (Details Textual) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Cash and Cash Equivalents, At Carrying Value	$ 5,658	$ 3,704	$ 5,704	$ 8,434
Cash, Fdic Insured Amount	3,271
Cash, Uninsured Amount	$ 2,387

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Non-controlling interest (Tables)

6 Months Ended

Jun. 30, 2012

Noncontrolling Interest [Abstract]

Schedule of Stockholders Equity [Table Text Block]

The Company has the following non-controlling interests:

	MGT Gaming			Medicsight			Total
Non-controlling interest at January1,2011	$	—		$	5,293		$	5,293
Non-controlling share of losses		(31	)		(381	)		(412	)
Non-controlling share of capital		819			—			819
Non-controlling share of stock-based expense		—			15			15
Non-controlling share of other comprehensive loss		—			32			32
Share consolidation of Medicsight’s stock		—			(1,386	)		(1,386	)
Non-controlling interest at June30,2012	$	788		$	3,573		$	4,361

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

The following schedule presents the effects of changes in MGT’s ownership interest in Medicsight on the equity attributable to MGT:

	Six months ended
	June 30, 2012			June 30, 2011
Net loss attributable to MGT Capital Investments, Inc.	$	(1,496	)	$	(2,942	)
Transfers (to) from the non-controlling interest:
Increase in MGT’s paid in capital from sale and assignment of Medicsight’s stock		—			21
Increase in MGT’s paid in capital from Medicsight Share Consolidation		2,392			—
Changes from the net loss attributable to MGT Capital Investments, Inc. and transfers from non-controlling interest	$	896		$	(2,921	)

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Related party transactions (Details Textual) In Thousands, unless otherwise specified	6 Months Ended		3 Months Ended		12 Months Ended		3 Months Ended					3 Months Ended			6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 Moneygate Group [Member] USD ($)	Mar. 31, 2011 Moneygate Group [Member] GBP (£)	Dec. 31, 2009 Moneygate Group [Member] USD ($)	Dec. 31, 2009 Moneygate Group [Member] GBP (£)	Mar. 31, 2011 Dunamis Capital [Member] USD ($)	Mar. 31, 2011 Dunamis Capital [Member] GBP (£)	Mar. 31, 2012 Dunamis Capital [Member]	Dec. 31, 2010 Dunamis Capital [Member] USD ($)	Dec. 31, 2010 Dunamis Capital [Member] GBP (£)	Mar. 31, 2012 Laddcap Value Partners Iii Llc [Member]	Jun. 30, 2011 Laddcap Value Partners Iii Llc [Member]	Dec. 31, 2011 Laddcap Value Partners Iii Llc [Member] USD ($)	Jun. 30, 2011 D4D Limited [Member] Medicsights [Member] USD ($)	Jun. 30, 2011 D4D Limited [Member] Mgt Gaming [Member] USD ($)
Equity Method Investment, Ownership Percentage					49.00%	49.00%
Provided Loan Facilities For Working Capital					$ 387	£ 250
Provided Loan Facilities For Acquisitions					3,094	2,000
Proceeds From Sale Of Equity Method Investments	0	401	401	250
Gain (Loss) On Sale Of Equity Investments			81	51
Percentage Of Owned By Related Party									100.00%
Due From Related Parties, Current										1,100	711
Proceeds From Related Party Debt							1,100	711
Interest and Fee Income, Loans and Leases							48	31
Line Of Credit Facility, Maximum Borrowing Capacity														500
Line Of Credit Facility, Commitment Fee Percentage													2.00%
Line Of Credit Facility, Interest Rate During Period												8.00%
Repayments Of Related Party Debt	0	(1,100)
Payments Of Service Agreement															$ 315	$ 304

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Non-controlling interest (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Non-controlling interest at January 1, 2011			$ 5,293
Non-controlling share of losses	(203)	(905)	(412)	(1,906)
Non-controlling share of capital			819	0
Non-controlling share of stock-based expense			32
Non-controlling share of other comprehensive loss			32
Share consolidation of Medicsight's stock			(1,386)
Non-controlling interest at June 30, 2012	4,361		4,361
Medicsights [Member]
Non-controlling interest at January 1, 2011			5,293
Non-controlling share of losses			(381)
Non-controlling share of capital			0
Non-controlling share of stock-based expense			15
Non-controlling share of other comprehensive loss			32
Share consolidation of Medicsight's stock			(1,386)
Non-controlling interest at June 30, 2012	3,573		3,573
Mgt Gaming [Member]
Non-controlling interest at January 1, 2011			0
Non-controlling share of losses			(31)
Non-controlling share of capital			819
Non-controlling share of stock-based expense			0
Non-controlling share of other comprehensive loss			0
Share consolidation of Medicsight's stock			0
Non-controlling interest at June 30, 2012	$ 788		$ 788

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Intellectual property (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Amortization of intangible assets	$ 17	$ 17	$ 0	$ 0
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	102	102
Finite-Lived Intangible Assets, Amortization Expense, Year Two	204	204
Finite-Lived Intangible Assets, Amortization Expense, Year Three	204	204
Finite-Lived Intangible Assets, Amortization Expense, Year Four	204	204
Finite-Lived Intangible Assets, Amortization Expense, Year Five	204	204
Patent Transfer Description		Pursuant to the Sale Agreement, (i) J&S sold certain patents to MGT Gaming in exchange for 1,000 shares (constituting 100% ownership) of MGT Gaming Common Stock, par value $0.001; (ii) the Company purchased from J&S 550 MGT Gaming Shares constituting 55% ownership in exchange for $200 cash and a four (4) year warrant to purchase 350,000 shares of the Company's common stock at an exercise price of $4.00 per share, subject to certain anti-dilution provisions (the "Warrants"); (iii) the Company and J&S agreed to grant rights of first refusal, "tag-along" and "drag-along" rights to one another with respect to their respective MGT Gaming Shares.
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	800	800
Stock Issued Warrants Fair Value		400,000
Fair Value Assumptions, Risk Free Interest Rate		0.80%
Fair Value Assumptions, Expected Term		5 years
Fair Value Assumptions, Expected Volatility Rate		75.00%
Fair Value Assumptions, Exercise Price	$ 4	$ 4
Percentage For Consideration Of Patent		55.00%
Percentage For Consideration Of Patent By Non Controlling Interests		45.00%
Consideration Of Patent By Non Controlling Interests Value		$ 819
Issuance Of Warrants In Anticipation		50,000
Additional Patent Transfer Description		Additionally, the Company has the right to purchase an additional 250 MGT Gaming Shares from J&S in exchange for a cash payment of $1,000 and a four (4) year warrant to purchase 250,000 shares of the Company's common stock for an exercise price of the lower of (i) $6.00 per share and (ii) 110% of the closing price of the common stock on the date of issuance.
Black Scholes Pricing [Member]
Fair Value Assumptions, Risk Free Interest Rate		0.80%

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Operating leases, commitments and security deposit (Details Textual) In Thousands, unless otherwise specified	6 Months Ended				12 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2012 GBP (£)	Jun. 30, 2011 USD ($)	Jun. 30, 2011 GBP (£)	Dec. 31, 2006 USD ($)	Dec. 31, 2006 GBP (£)
Operating Leases, Property Rent, Services and Related Costs					$ 516	£ 330
Operating Leases, Monthlty Rental Payments	4	2	13	8
Operating Leases, Rental Deposit	6	4	25	16
Operating Leases Refundable Rental Deposit			39
Operating Leases Rental Payments			240
Operating Leases Rental Deposit Refunded	128
Labor and Related Expense	10
Payments For Financial Advisory and Consulting Agreement	5
Operating Leases, Rent Expense	$ 72		$ 298

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Stock incentive plan and share-based compensation (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Stock-based compensation expense	$ 197	$ 147	$ 229	$ 191
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	197	126	222	167
Research and Development Expense [Member]
Stock-based compensation expense	$ 0	$ 21	$ 7	$ 24

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Summary of significant accounting policies

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 2: Summary of significant accounting policies

Principles of consolidation

The condensed consolidated financial statements include the accounts of our Company plus wholly-owned subsidiaries and our majority owned subsidiaries, Medicsight and MGT Gaming. The functional currency of Medicsight is its local currency, GBP. All intercompany transactions and balances have been eliminated. All foreign currency translation gains and losses arising on consolidation were recorded in stockholders’ equity as a component of accumulated other comprehensive income/(loss). Non-controlling interest represents the minority equity investment in any of the MGT group of companies, plus the minorities’ share of the net operating result and other components of equity relating to the non-controlling interest.

Use of estimates

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amount of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

The Company considers investments with original maturities of three months or less to be cash equivalents.

Revenue Recognition

Medicsight

The Company recognizes revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when there is persuasive evidence of an arrangement and that the product has been shipped or the services have been provided to the customer, the sales price is fixed or determinable and collectability is probable.

Software — License fee revenue is derived from the licensing of computer software. Maintenance revenue is derived from software maintenance. Our software licenses are generally sold as part of an arrangement that includes maintenance and support.

The Company licenses software and sells maintenance contracts through visualization solution partners and original equipment manufacturers. The Company receives regular sales reporting detailing the number of licenses sold by original equipment manufacturers, value-added resellers and independent distributors (collectively, “Resellers”) to end users. The Company generally offers terms that require payment 30 – 45 days from invoicing. Provided the Reseller: (i) assumes all risk of the purchase, (ii) has the ability and obligation to pay regardless of receiving payment from the end user, and (iii) all other revenue recognition criteria are met, license revenue from Resellers is recognized upon shipment of its product to vendors (“sell-in basis”).

Revenue from license fees is recognized when notification of shipment to the end user has occurred, there are no significant Company obligations with regard to implementation and the Company’s services are not considered essential to the functionality of other elements of the arrangement.

Maintenance — Revenue from maintenance and support arrangements is deferred and recognized ratably over the term of the maintenance and support arrangements.

Multiple-element arrangements — the Company enters into arrangements with resellers that include a combination of software products, maintenance and support. For such arrangements, the Company recognizes revenue using the Multiple-Deliverable Revenue Arrangements. The Company allocates the total arrangement fee among the various elements of the arrangement based on the fair value of each of the undelivered elements. The fair value of maintenance and support services is established based on renewal rates.

Hardware — Revenue is derived from the sale of our MedicCO ₂ LON product. This product is an automated CO ₂ insufflation device, and is generally sold as part of an arrangement that includes a one-year warranty. The risk of incurring warranty related expense is mitigated by the warranty contractually agreed with the supplier. The Company reviews the risk of warranty liabilities on a regular basis, and makes any and all appropriate provisions accordingly. At the present time, the Company feels that the warranty liability is insignificant and has therefore not made any provision.

MedicCO ₂ LON is sold exclusively through our distribution partner Medrad, Inc. Revenue is recognized as orders are satisfied and goods are delivered to our distribution partner. The Company generally offers terms which require payments within 30 – 45 days from invoicing.

Services-consulting — Consulting revenue is earned over the period in which the Company provides the related services. The Company recognizes consulting revenue as it meets the terms of the underlying contract on the terms of the agreement.

Equity-based compensation

The Company recognizes compensation expense for all equity-based payments. Under fair value recognition provisions, the Company recognizes equity-based compensation net of an estimated forfeiture rate and recognizes compensation cost only for those shares expected to vest over the requisite service period of the award.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the development of assumptions that are input into the model. These assumptions are the expected stock volatility, the risk-free interest rate, the option’s expected life and the dividend yield on the underlying stock. Expected volatility is calculated based on the historical volatility of our common stock over the expected option life and other appropriate factors. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on our common stock and does not intend to pay dividends on our common stock in the foreseeable future. The expected forfeiture rate is estimated based on historical experience.

Determining the appropriate fair value model and calculating the fair value of equity-based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity-based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, our equity-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and recognize expense only for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, the equity-based compensation expense could be significantly different from what the Company has recorded in the current period.

Inventory

We account for inventory at the lower of cost (first-in, first-out) or market. Cost is determined to be purchased cost for the finished MedicCO ₂ LON product from the third party supplier. We perform full physical inventory counts to maintain controls and obtain accurate data. The MedicCO ₂ LON product is either (i) sold to our exclusive distributor or (ii) placed in an external third party secure warehouse facility and remains our property. Once the units are shipped to the distributor it is deemed that the ownership is transferred to the distributor and the goods are delivered. Reserves for slow-moving and obsolete inventories are provided based on historical experience and product demand. Management evaluates the adequacy of these reserves periodically based on forecasted sales and market trends.

Research and development

The Company incurs costs in connection with the development of software products that are intended for sale. Costs incurred prior to technological feasibility being established for the product are expensed as incurred. Technological feasibility is established upon completion of a detail program design or, in its absence, completion of a working model. Thereafter, all software production costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Capitalized costs are amortized based on current and future revenue for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. Amortization commences when the product is available for general release to customers.

The Company concluded that capitalizing such expenditures on completion of a working model was inappropriate because the Company did not incur any material software production costs and therefore expenses were all research and development costs. Our research and development costs are comprised of staff, consultancy and other costs expensed on the Medicsight products.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method on the various asset classes over their estimated useful lives, which range from two to five years. Leasehold improvements are depreciated over the term of the lease.

Foreign currency translation

Prior to June 30, 2012, the accounts of the Company were maintained using GBP as the functional currency. Assets and liabilities were translated into U.S. dollars at period-end exchange rates, and income and expense accounts were translated at average monthly exchange rates. Net gains and losses from foreign currency translations were excluded from operating results and were accumulated as a separate component of stockholders’ equity. Gains and losses on foreign currency transactions are reflected in selling, general and administrative expenses in the income statement.

Effective June 30, 2012, in connection with the closing of the Medicsight UK office at quarter end June 2012 and the final transfer of all operations to the U.S., along with MGT’s proceeds from the sale of $3.5 million of convertible notes on June 1, 2012, the Company reassessed the functional currency designation and as a result of the aforementioned activities, determined to prospectively change the functional currency from the previous local currency, GBP to the U.S. dollar ($). Under ASC 830-10 when the functional currency changes from a foreign currency to the reporting currency translation adjustments for prior periods shall remain in accumulated other comprehensive income/(loss) and the translated amounts for non-monetary assets at the end of the prior period become the accounting basis for those assets in the period of the change and the subsequent periods.

Convertible instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities” . Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule, when the host instrument is deemed to be conventional as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized using the effective interest method over the term of the related debt to their stated date of redemption.

Income taxes

The Company applies the elements of FASB ASC 740-10 “Income Taxes — overall” regarding accounting for uncertainty in income taxes. This clarifies the accounting for uncertainty in income taxes recognized in financial statements and requires the impact of a tax position to be recognized in the financial statements if that position is more likely than not of being sustained by the taxing authority. As of June 30, 2012 and December 31, 2011, the Company did not have any unrecognized tax benefits. The Company does not expect that the amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months. The Company’s policy is to recognize interest and penalties related to tax matters in the income tax provision in the Consolidated Statements of Operations. There was no interest and penalties for the six months ended June 30, 2012 and 2011. Tax years beginning in 2009 are generally subject to examination by taxing authorities, although net operating losses from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used.

Deferred taxes are computed based on the tax liability or benefit in future years of the reversal of temporary differences in the recognition of income or deduction of expenses between financial and tax reporting purposes. The net difference, if any, between the provision for taxes and taxes currently payable is reflected in the balance sheet as deferred taxes. Deferred tax assets and/or liabilities, if any, are classified as current and non-current based on the classification of the related asset or liability for financial reporting purposes, or based on the expected reversal date for deferred taxes that are not related to an asset or liability. Valuation allowances are recorded to reduce deferred tax assets to that amount which is more likely than not to be realized.

Loss per share

Basic loss per share is calculated by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated by dividing the net loss attributable to common shareholders by the sum of the weighted average number of common shares outstanding plus dilutive shares.

The computation of diluted loss per share for the six months ended June 30, 2012, and 2011, excludes all options at our Medicsight subsidiary as they are anti-dilutive. For the six months ended June 30, 2012, there were 6 options excluded with a weighted average exercise price of $46,326 per share. For the six months ended June 30, 2011, there were 31 options excluded with a weighted average exercise price of $78,000 per share. The convertible Note is also excluded from dilutive loss per share, since its inclusion would be anti-dilutive due to the net loss.

Comprehensive income/(loss)

Comprehensive income/(loss) includes net income/(loss) and items defined as other comprehensive income/(loss). Items defined as other comprehensive income/(loss), include foreign currency translation adjustments and are separately classified in the consolidated financial statements. Such items are reported in the Condensed Consolidated Statement of Operations and Comprehensive Loss.

Segment reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of the chief executive officer, chief financial officer and members of senior management. We operate in three operational segments, Medicsight Software/Devices, Medicsight Services and MGT Gaming. Certain corporate expenses are not allocated to segments. Medicsight services and MGT Gaming are new segments for the current quarter.

Deferred Financing Costs

In conjunction with the issuance of Senior Secured Convertible Notes on June 1, 2012, (as described in Note 9 to the Condensed Consolidated Financial Statements), the Company incurred certain financing costs, including the issuance of Common Stock. The Company accounts for deferred financing costs in accordance with ASC Topic 470, Debt (“ASC 470”). Deferred financing costs are amortized through periodic charges to other non-operating expenses over the 18 months term of the related financial instrument using the effective interest method.

Intangible assets

Estimates of future cash flows and timing of events for evaluating long-lived assets for impairment are based upon management’s judgment. If any of our intangible or long-lived assets are considered to be impaired, the amount of impairment to be recognized is the excess of the carrying amount of the assets over its fair value. Applicable long-lived assets are amortized or depreciated over the shorter of their estimated useful lives, the estimated period that the assets will generate revenue, or the statutory or contractual term in the case of patents. Estimates of useful lives and periods of expected revenue generation are reviewed periodically for appropriateness and are based upon management’s judgment. Goodwill and other assets are not amortized.

Amortization expense was $17 for the three and six months ended June 30, 2012, respectively. Based on the Company’s amortizable intangible assets as of June 30, 2012, amortization expense is expected to be approximately $102 for the remainder of 2012 and be approximately $204 for each of the next five fiscal years.

Beneficial conversion features

From time to time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid-in-capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

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Non-controlling interest (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net loss attributable to MGT Capital Investments, Inc.	$ (1,026)	$ (1,450)	$ (1,496)	$ (2,942)
Transfers (to) from the non-controlling interest:
Increase in MGT's paid in capital from sale and assignment of Medicsight's stock			0	21
Increase in MGT's paid in capital from Medicsight Share Consolidation			2,392	0
Changes from the net loss attributable to MGT Capital Investments, Inc. and transfers from non-controlling interest			$ 896	$ (2,921)

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Segment reporting (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 15: Segment reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of the chief executive officer, chief financial officer and members of senior management. We operate in three operational segments, Medicsight Software/Devices, Medicsight Services and MGT Gaming. Certain corporate expenses are not allocated to segments.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 2). We evaluate performance of our operating segments based on revenue and operating (loss). Segment information for the three and six months ended June 30, 2012 and June 30, 2011 are as follows:

	Medicsight									Unallocated
	Software/ Devices			Services			MGT Gaming			corporate/ other			Total
Three months ended June 30, 2012
Revenue from external customers	$	13		$	43		$	—		$	—		$	56
Cost of revenue		—			63			—			—			63
Gross profit/(loss)		13			(20	)		—			—			(7	)
Operating loss		(472	)		(27	)		(69	)		(562	)		(1,130	)
Three months ended June 30, 2011
Revenue from external customers	$	217		$	—		$	—		$	—		$	217
Cost of revenue		96			—			—			—			96
Gross profit/(loss)		121			—			—			—			121
Operating loss		(1,996	)		—			—			(421	)		(2,417	)
Six months ended June 30, 2012
Revenue from external customers	$	206		$	63					$		$—	$	269
Cost of revenue		36			63						—			99
Gross profit/(loss)		170			—			—			—			170
Operating loss		(956	)		(14	)		(69	)		(768	)		(1,807	)
Six months ended June 30, 2011
Revenue from external customers	$	264		$	—					$		$—	$	264
Cost of revenue		100			—			—			—			100
Gross profit/(loss)		164			—			—			—			164
Operating (loss)		(4,262	)		—			—			(750	)		(5,012	)
		—
June 30, 2012
Cash and cash equivalents	$	2,434		$	—		$	—		$	3,224		$	5,658
Intangible assets		—			—			1,802			—			1,802
December 31, 2011
Cash and cash equivalents	$	3,123		$	—		$	—		$	581		$	3,704
Intangible assets		—			—			—			—			—

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Operating leases, commitments and security deposit (Tables)

6 Months Ended

Jun. 30, 2012

Operating Leases Commitments and Security Deposit [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The following is a schedule of the future minimum payments required under operating leases and commitments that have initial or remaining non-cancellable terms in excess of one year:

Year Ending
2012(remaining six months)	$	33
2013		67
2014		56
Total	$	156

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Non-controlling interest (Details Textual) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jan. 31, 2012 Medicsights [Member]	Jun. 01, 2012 Mgt Gaming [Member]
Common Stock, Par Or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.01
Common Stock, Shares, Issued	2,105,187	2,108,187	1	550

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Organization, basis of presentation and liquidity (Details Textual) In Thousands, except Share data, unless otherwise specified	6 Months Ended					6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2012 GBP (£)	Dec. 31, 2011 USD ($)	Jun. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)	Jun. 30, 2012 Medicsights [Member] USD ($)	Jan. 31, 2012 Medicsights [Member]	Jun. 30, 2012 Mgt [Member] USD ($)
Common Stock Par Value At Exchange Ratio	$ 0.01
Stockholders' Equity, Reverse Stock Split						1-for-325,000
Stockholders Equity, Forward Stock Split	15-for-1 shares	15-for-1 shares
Number Of Shares Holding By Stockholders, Result Of Reverse Stock Split	500	500				325,000
Par Value Per Share Of Existing Ordinary Shares		£ 0.05
Par Value Per Share Of New Ordinary Shares		£ 16,250
Number Of Shares Holding By Parent Result Of Reverse Stock Split	318	318
Percentage Of Number Of Shares Holding By Parent Result Of Issued Share Capital	66.50%	66.50%
Common Stock, Shares, Issued	2,105,187	2,105,187	2,108,187				1
Retained Earnings (Accumulated Deficit)	$ (281,523)		$ (280,027)
Cash and Cash Equivalents, At Carrying Value	$ 5,658		$ 3,704	$ 5,704	$ 8,434	$ 2,434		$ 3,223

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Summary of significant accounting policies (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Amortization Description	Amortization expense is expected to be approximately $102 for the remainder of 2012 and be approximately $204 for each of the next five fiscal years.
Amortization	$ 17,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	102,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	204,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	204,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	204,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	204,000
Mgt [Member]
Proceeds From Sale Of Convertable Notes	3,500,000
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	6	31
Stock Options Weighted Average Price Per Share	$ 46,326,000	$ 78,000,000

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Organization, basis of presentation and liquidity

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

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

Note 1: Organization, basis of presentation and liquidity

The accompanying unaudited condensed consolidated financial statements of MGT Capital Investments, Inc. (“MGT”, “the Company”, “the Group”, “we”, “us”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, have been included. Operating results for the six months ended June 30, 2012, are not necessarily indicative of the results that may be expected for any subsequent quarter or for the year ending December 31, 2012. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The condensed consolidated financial statements include the accounts of the Company and its majority owned subsidiaries. All intercompany accounts and transactions have been eliminated. U.S. Dollars are denoted herein by “USD” and the UK Pound Sterling is denoted herein by “£” or “GBP.”

We have a wholly-owned subsidiary MGT Capital Investments (UK) Limited and a majority-owned subsidiary MGT Gaming, Inc. (“MGT Gaming”), a company in which we acquired a majority interest on June 1, 2012. In addition, we also have a majority interest in Medicsight Ltd., including its wholly-owned subsidiaries (“Medicsight”).

• MGT Gaming holds certain intellectual property patents focused in the casino gaming sector. The Company holds 55% of the issued share capital of MGT Gaming. MGT Gaming is privately held by MGT and J&S Gaming, Inc.

• Medicsight is a medical technology company focusing on medical imaging software development and medical hardware devices. The Company developed and is commercializing Computer-Aided Detection (“CAD”) applications that analyze Computer Tomography (“CT”) scans to assist radiologists in the early detection and measurement of colorectal polyps. The CAD software received a CE Mark in 2009, which allows for sales in the European Union. In 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. The Company has also developed an automated CO ₂ medical inflation device and associated disposable tubing (MedicCO ₂ LON) that is being commercialized via a global distributor. The Company continues to explore all strategic alternatives with respect to its majority interest in Medicsight Limited, including sale or license of its global patent portfolio. As of June 30, 2012, the Company holds 318 shares (66.5%) of the 478 issued share capital of Medicsight. Medicsight was previously listed on the AIM market of the London Stock Exchange until September 2011, when its shares were cancelled based upon a duly passed shareholder resolution and Medicsight became private.

• On March 21, 2012, MGT affected a reverse split, immediately followed by a forward split. At our March 20, 2012 Special Meeting of Stockholders, the Company’s stockholders approved the proposal to amend the Company’s Certificate of Incorporation to effect a Reverse/Forward Split of the Company’s Common Stock, $0.01 par value per share at an exchange ratio of 1 for 500 shares of the Company’s outstanding Common Stock, immediately followed by a forward split of the Company’s outstanding Common Stock, at an exchange ratio of 15 for 1 shares of the Company’s outstanding Common Stock. The amendment did not change the par value per share or the number of authorized shares of Common Stock. As a result of the Reverse Split, stockholders holding fewer than 500 shares of Common Stock, at the time of the reversal, received a cash payment instead of fractional shares and no longer had an interest in the Company. All Share and per share amounts have been retrospectively adjusted for all periods presented to give effect to the Reverse/Forward Split.

• On March 26, 2012, at Medicsight’s General Meeting, stockholders approved a resolution to Reverse Split the Company’s existing ordinary shares of £0.05 par value per share into 1 new ordinary share of £16,250 par value per share and for MGT to acquire all New Ordinary Shares representing the fractions of shares left over following the Reverse Split. The exchange ratio for the Reverse Split was 1 for 325,000. As a result of the Reverse Split, stockholders holding fewer than 325,000 shares were cancelled and not entitled to a cash payment for fractional shares.

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 $281,523 at June 30, 2012. 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 June 30, 2012, MGT’s and Medicsight’s cash and cash equivalents were $3,223 and $2,435, respectively. Management believes that the current level of working capital will be sufficient to allow the Company to maintain its operations into September 2013.

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Divestment of investments (Details Textual) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended		3 Months Ended
	Mar. 31, 2011 USD ($)	Mar. 31, 2010 USD ($)	Mar. 31, 2010 GBP (£)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 Moneygate Group [Member] USD ($)	Mar. 31, 2011 Moneygate Group [Member] GBP (£)	Dec. 31, 2009 Moneygate Group [Member]
Proceeds From Sale Of Stock and Various Noncore Investments For Consideration		$ (1,136)	£ 750
Proceeds From Divestiture Of Interest In Subsidiaries and Affiliates	370						244
Equity Method Investment, Ownership Percentage								49.00%
Proceeds From Sale Of Equity Method Investments				0	401	401	250
Gain (Loss) On Sale Of Equity Investments						$ 81	£ 51

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Convertible note and warrants (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Proceeds from issuance of convertible notes payable	$ 3,500	$ 0	$ 3,500	$ 0
Fair value of warrants recorded as corresponding debt discount	500	0	400	0
Beneficial conversion feature on convertible note	500	0	500	0
Amortization of debt discount	43	0	0	0
Interest expense	23	0	0	0
Amortization of deferred financing costs	$ 33	$ 0	$ 33	$ 0

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Segment reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Revenue from External Customers	$ 56	$ 217	$ 269	$ 264
Cost of Revenue	63	96	99	100
Gross profit	(7)	121	170	164
Operating loss	(1,130)	(2,417)	(1,807)	(5,012)
Cash and cash equivalents	5,658	5,704	5,658	5,704	3,704	8,434
Intangible assets	1,802		1,802		0
Medicsights [Member]
Cash and cash equivalents	2,434		2,434
Medicsights [Member] | Software and Devices [Member]
Revenue from External Customers	13	217	206	264
Cost of Revenue	0	96	36	100
Gross profit	13	121	170	164
Operating loss	(472)	(1,996)	(956)	(4,262)
Cash and cash equivalents	2,434		2,434		3,123
Intangible assets	0		0		0
Medicsights [Member] | Service [Member]
Revenue from External Customers	43	0	63	0
Cost of Revenue	63	0	63	0
Gross profit	(20)	0	0	0
Operating loss	(27)	0	(14)	0
Cash and cash equivalents	0		0		0
Intangible assets	0		0		0
Mgt Gaming [Member]
Revenue from External Customers	0	0
Cost of Revenue	0	0		0
Gross profit	0	0	0	0
Operating loss	(69)	0	(69)	0
Cash and cash equivalents	0		0		0
Intangible assets	1,802		1,802		0
Unallocated Corporate Other [Member]
Revenue from External Customers	0	0	0	0
Cost of Revenue	0	0	0	0
Gross profit	0	0	0	0
Operating loss	(562)	(421)	(768)	(750)
Cash and cash equivalents	3,224		3,224		581
Intangible assets	$ 0		$ 0		$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 5,658	$ 3,704
Accounts receivable	14	84
Prepaid expenses and other current assets	75	327
Inventories	56	89
Total current assets	5,803	4,204
Property and equipment, at cost, net	26	28
Deferred financing costs, net	555	0
Intangible assets, net of accumulated amortization of $17	1,802	0
Security deposits	53	201
Total assets	8,239	4,433
Liabilities
Accounts payable	287	213
Accrued expenses	512	502
Accrued stock-based compensation	512	0
Other payables	32	71
Total current liabilities	1,343	786
Convertible note, net of discount of $957	2,543	0
Total liabilities	3,886	786
Stockholders' deficit
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2012.	0	0
Common stock, $0.001 par value; 75,000,000 shares authorized; 2,105,187 and 2,108,187 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively.	2	2
Additional paid in capital	287,344	283,240
Accumulated other comprehensive loss	(5,831)	(4,861)
Accumulated deficit	(281,523)	(280,027)
Total stockholder's deficit	(8)	(1,646)
Non-controlling interests	4,361	5,293
Total equity	4,353	3,647
Total stockholders' equity, liabilities and non-controlling interest	$ 8,239	$ 4,433

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Stock incentive plan and share-based compensation (Details)		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012 All Option Plans [Member] USD ($)	Jun. 30, 2012 All Option Plans [Member] GBP (£)
Number of Shares,Outstanding at December 31, 2011	6	11	11
Number of Shares,Granted		0	0
Number of Shares,Exercised		0	0
Number of Shares,Forfeited/ Cancelled		(5)	(5)
Number of Shares,Outstanding at June 30, 2012	6	6	6
Weighted-Average Exercise Price,Outstanding at December 31, 2011		$ 58,500	£ 35,700
Weighted-Average Exercise Price,Forfeited/ Cancelled		$ 30,917	£ 19,500
Weighted-Average Exercise Price,Outstanding at June 30, 2012		$ 46,326	£ 29,250
Number of shares Exercisable at December 31, 2011		10	10
Number of shares Exercisable at June 30, 2012		6	6
Weighted-Average Exercise Price, Exercisable at December 31, 2011		$ 58,500	£ 35,700
Weighted-Average Exercise Price, Exercisable at June 30, 2012		$ 46,326	£ 29,250

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS (DEFICIT) / EQUITY [Parenthetical] (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	$ 100

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Inventory (Details Textual) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Inventory, Net	$ 56	$ 89

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Segment reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 15: Segment reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of the chief executive officer, chief financial officer and members of senior management. We operate in three operational segments, Medicsight Software/Devices, Medicsight Services and MGT Gaming. Certain corporate expenses are not allocated to segments.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 2). We evaluate performance of our operating segments based on revenue and operating (loss). Segment information for the three and six months ended June 30, 2012 and June 30, 2011 are as follows:

	Medicsight									Unallocated
	Software/ Devices			Services			MGT Gaming			corporate/ other			Total
Three months ended June 30, 2012
Revenue from external customers	$	13		$	43		$	—		$	—		$	56
Cost of revenue		—			63			—			—			63
Gross profit/(loss)		13			(20	)		—			—			(7	)
Operating loss		(472	)		(27	)		(69	)		(562	)		(1,130	)
Three months ended June 30, 2011
Revenue from external customers	$	217		$	—		$	—		$	—		$	217
Cost of revenue		96			—			—			—			96
Gross profit/(loss)		121			—			—			—			121
Operating loss		(1,996	)		—			—			(421	)		(2,417	)
Six months ended June 30, 2012
Revenue from external customers	$	206		$	63					$		$—	$	269
Cost of revenue		36			63						—			99
Gross profit/(loss)		170			—			—			—			170
Operating loss		(956	)		(14	)		(69	)		(768	)		(1,807	)
Six months ended June 30, 2011
Revenue from external customers	$	264		$	—					$		$—	$	264
Cost of revenue		100			—			—			—			100
Gross profit/(loss)		164			—			—			—			164
Operating (loss)		(4,262	)		—			—			(750	)		(5,012	)
		—
June 30, 2012
Cash and cash equivalents	$	2,434		$	—		$	—		$	3,224		$	5,658
Intangible assets		—			—			1,802			—			1,802
December 31, 2011
Cash and cash equivalents	$	3,123		$	—		$	—		$	581		$	3,704
Intangible assets		—			—			—			—			—

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Intellectual property (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash	$ 200
Fair value of warrants issued	800	0
Fair value of intangible asset contributed by non-controlling interest	819	0
Total	$ 1,819

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Convertible note and warrants (Tables)

6 Months Ended

Jun. 30, 2012

Warrants and Rights Note Disclosure [Abstract]

Senior Secured Convertible Note [Table Text Block]

Senior Secured Convertible Note consists of the following as of:

	June 30, 2012			December 31, 2011
Senior secured convertible note	$	3,500		$	—
Less: unamortized debt discount		(957	)		—
Convertible notes	$	2,543			—

Activity Of Convertible Note [Table Text Block]

The following sets forth the Company’s activity related to its Note during the three and six-months ended June 30, 2012 and 2011, respectively:

	Three and six months ended,
	June 30, 2012		June 30, 2011
Proceeds from issuance of convertible notes payable	$	3,500	$	—
Fair value of warrants recorded as corresponding debt discount		500		—
Beneficial conversion feature on convertible note		500		—
Amortization of debt discount		43		—
Interest expense		23		—
Amortization of deferred financing costs		33		—

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss before non-controlling interest	$ (1,908)	$ (4,848)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	15	42
Amortization of intangible assets	17	0
Amortization of convertible note discount	43	0
Amortization of deferred financing costs	33	0
Stock-based compensation expense	229	191
Loss on disposal of property and equipment	2	0
Assignment of Medicsight's stock	0	(4)
Gain on sale of loan receivable - related party	0	(81)
(Increase)/decrease in assets
Accounts receivable	72	(176)
Other receivables - related party	0	47
Proceeds from release of security deposits	140	0
Prepaid expenses and other current assets	241	(337)
Inventory	36	0
Increase/(decrease) in liabilities
Accounts payable	71	197
Accrued expenses	(5)	(154)
Other payables	(23)	0
Net cash used in operating activities	(1,037)	(5,123)
Cash flows from investing activities:
Purchase of property and equipment	(12)	0
Purchase of intangible asset	(200)	0
Repayment of Dunamis loan	0	1,100
Receipts from sale of Moneygate	0	401
Receipts of deferred consideration for sale of assets	0	370
Receipts from sale of Medicsight's stock	0	110
Net cash (used in)/provided by investing activities	(212)	1,981
Cash flows from financing activities:
Cash paid in lieu of fractional shares in reverse/forward split	(5)	0
Proceeds from issuance of convertible note	3,500	0
Payments for convertible note issuance costs	(372)	0
Net cash provided by financing activities	3,123	0
Effects of exchange rates on cash and cash equivalents	80	412
Net change in cash and cash equivalents	1,954	(2,730)
Cash and cash equivalents, beginning of period	3,704	8,434
Cash and cash equivalents, end of period	5,658	5,704
Supplemental non-cash disclosures (investing and financing activities):
Stock issued for services in connection with issuance of convertible note	315	0
Warrants issued in connection with acquisition of intangible assets	800	0
Warrants issued in connection with issuance of convertible note	500	0
Beneficial conversion on convertible note	500	0
Intangible asset contributed by non-controlling interest	$ 819	$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets, Accumulated Amortization	$ 17	$ 0
Less: unamortized debt discount	$ 957	$ 0
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001
Preferred Stock, Shares Authorized	10,000,000
Preferred Stock, Shares Issued	0
Preferred Stock, Shares Outstanding	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	2,105,187	2,108,187
Common stock, shares outstanding	2,105,187	2,108,187

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Non-controlling interest

6 Months Ended

Jun. 30, 2012

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

Note 10: Non-controlling interest

The Company has the following non-controlling interests:

	MGT Gaming			Medicsight			Total
Non-controlling interest at January 1, 2011	$	—		$	5,293		$	5,293
Non-controlling share of losses		(31	)		(381	)		(412	)
Non-controlling share of capital		819			—			819
Non-controlling share of stock-based expense		—			15			15
Non-controlling share of other comprehensive loss		—			32			32
Share consolidation of Medicsight’s stock		—			(1,386	)		(1,386	)
Non-controlling interest at June 30, 2012	$	788		$	3,573		$	4,361

The following schedule presents the effects of changes in MGT’s ownership interest in Medicsight on the equity attributable to MGT:

	Six months ended
	June 30, 2012			June 30, 2011
Net loss attributable to MGT Capital Investments, Inc.	$	(1,496	)	$	(2,942	)
Transfers (to) from the non-controlling interest:
Increase in MGT’s paid in capital from sale and assignment of Medicsight’s stock		—			21
Increase in MGT’s paid in capital from Medicsight Share Consolidation		2,392			—
Changes from the net loss attributable to MGT Capital Investments, Inc. and transfers from non-controlling interest	$	896		$	(2,921	)

In January 2012, the Company purchased 1 share of Medicsight ordinary shares from a shareholder for consideration of $0.01.

On June 1, 2012 the Company purchased 550 shares in MGT Gaming (Note 7).

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Entity Registrant Name	MGT CAPITAL INVESTMENTS INC
Entity Central Index Key	0001001601
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	mgt
Entity Common Stock, Shares Outstanding		2,445,187
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Stock incentive plan and share-based compensation

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 11: Stock incentive plan and share-based compensation

Stock incentive plan

The Company’s board of directors established the 2012 Stock Incentive Plan (the “Plan”) on April 15, 2012, and the Company’s shareholders ratified the Plan at the annual meeting of the Company’s stockholders on May 30, 2012. 415,000 shares of Common Stock were reserved to grant Options, Stock Awards and Performance Shares (collectively the “Awards”) to “Participants” under the Plan. The Plan is administered by the board of directors or the Compensation Committee of the board of directors, which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award. 

Options granted under the Plan vest as determined by the Company’s Compensation and Nominations Committee and expire over varying terms, but not more than seven (7) years from date of grant. In the case of an Incentive Stock Option that is granted to a 10% shareholder on the date of grant, such Option shall not be exercisable after the expiration of five (5) years from the date of grant.

Issuance of restricted shares

At the June 25, 2012 board meeting, the members of the Compensation and Nominations Committee approved the grant of 232,000 restricted shares of MGT common stock under the Plan, with each current independent director of the board receiving 21,000 restricted shares and 190,000 shares awarded to officers and certain employees. The restricted shares vest one-third each six months from date of issue. The unvested shares are subject to forfeiture if the applicable recipient is not a director, officer and/or employee of the Company at the time the restricted shares are to vest. The restricted shares were valued at their fair market value on date of grant, of which the share-based compensation expense will be recognized over their vesting period.

At June 30, 2012 the Company accrued $12 share-based compensation expense relating to the issuance of the restricted shares. The shares were issued on August 9, 2012. No option grants were issued during the six months ended June 30, 2012.

Issuance of shares to former directors

At the June 25, 2012 board meeting, the members of the Compensation and Nominations Committee approved the issuance of 33,000 shares of common stock to certain of our former directors for past service on the Company’s board of directors. These shares were subsequently issued on August 10, 2012.

The stock was valued at $185, using the closing market price on the date of grant. Stock-based compensation of $185 was recorded and accrued for at June 30, 2012 and the shares were issued on August 9, 2012.

Unrecognized compensation cost

As of June 30, 2012 there was $1,281 of total unrecognized compensation costs related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.50 years.

Medicsight equity plan

Following Medicsight’s general meeting on March 26, 2012 (Note 1), a shareholder resolution approving the Reverse Split of 1-for-325,000 of the Company’s existing ordinary shares of £0.05 par value into one new ordinary share was duly passed. As a result of the reverse split, option holders under certain existing share option plans are no longer entitled to options under those plans as option holders’ share entitlement is now less than one as a result of the Reverse Split. Following the share reversal, the Company cancelled with immediate effect all redundant option plans with the exception of Plan J. All previously unrecognized stock based compensation expense was accelerated.

Medicsight has the following Stock Option Plan:

Plan J — on May 14, 2009, we approved and subsequently granted options for 24 shares under stock option plan “J”. Options under this plan vest in equal one-sixths for each six months that employees have been employed for 6, 12, 18, 24, 30 and 36 months from the grant date. At June 30, 2012, there were 6 options outstanding and exercisable.

No grants were issued in the six months ended June 30, 2012.

The following table summarizes stock option activity for the six months ended June 30, 2012, under all option plans:

	Outstanding						Exercisable
	Number of shares			Weighted-average exercise price			Number of shares		Weighted-average exercise price
Outstanding at December 31, 2011		11			£35,700 ($58,500	)		10		£35,700 ($58,500	)
Granted		—			—
Exercised		—			—
Forfeited/Cancelled		(5	)		£19,500 ($30,917	)
Outstanding at June 30, 2012		6			£29,250 ($46,326	)		6		£$29,250 ($46,326	)

The following is a summary of the status of stock options outstanding at June 30, 2012:

	Outstanding options							Exercisable options
	Number		Remaining contractual life (years)		Average exercise price			Number		Average exercise price
Medicsight Plan J		6		6.9		£29,250 ($46,326	)		6		£29,250 ($46,326	)

On November 30, 2010, David Sumner, Chairman of Medicsight Limited, resigned from his position within the group. Immediately after his resignation, a two-year consultancy agreement was signed whereby Mr. Sumner would continue to assist the group in its commercial needs. As part of this agreement, Mr. Sumner was to continue to vest in his existing Medicsight Plan J options throughout the consultancy period. A modification of the 6 existing options has been accounted for, and is not considered to be material to the overall financial statements. The Company is no longer receiving services under this consulting agreement. As such, all expenses and related Stock-based compensation were accelerated at December 31, 2011.

The Company has recorded the following amounts related to its share-based compensation expense in the accompanying Condensed Consolidated Statements of Operations:

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
Selling, general and administrative	$	197	$	126	$	222	$	167
Research and development		—		21		7		24
Total	$	197	$	147	$	229	$	191

Of the Stock-based expense for the six months ended June 30, 2012 and 2011, $15 and $74 was allocated to non-controlling interest.

The aggregate intrinsic value for options outstanding and exercisable at June 30, 2012 and 2011, was $nil.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues
Software and devices	$ 13	$ 217	$ 206	$ 264
Services - consulting	43	0	63	0
Revenues	56	217	269	264
Cost of revenues
Software and devices	0	96	36	100
Services - consulting	63	0	63	0
Cost of Revenue	63	96	99	100
Gross (loss)/profit	(7)	121	170	164
Operating expenses
Selling, general and administrative	1,091	2,214	1,904	4,412
Research and development	32	324	73	764
Operating Expenses, Total	1,123	2,538	1,977	5,176
Operating loss	(1,130)	(2,417)	(1,807)	(5,012)
Other non-operating income/(expense)
Interest and other (expense)/income	(23)	11	(25)	32
Amortization of debt discount and deferred financing costs	(76)	0	(76)	0
Gain on sale of Moneygate			0	81
Other Nonoperating Income (Expense)	(99)	11	(101)	113
Net loss before income taxes and non-controlling interest	(1,229)	(2,406)	(1,908)	(4,899)
Income tax benefit	0	51	0	51
Net loss before non-controlling interest	(1,229)	(2,355)	(1,908)	(4,848)
Net loss attributable to non-controlling interest	203	905	412	1,906
Net loss attributable to MGT Capital Investments, Inc.	(1,026)	(1,450)	(1,496)	(2,942)
Net loss as reported	(1,229)	(2,355)	(1,908)	(4,848)
Other comprehensive loss
Unrealized foreign exchange (loss)/gain	(4)	54	68	404
Comprehensive loss	(1,233)	(2,301)	(1,840)	(4,444)
Comprehensive loss attributable to non-controlling interest	204	888	380	1,742
Comprehensive loss attributable to MGT Capital Investments, Inc.	$ (1,029)	$ (1,413)	$ (1,460)	$ (2,702)
Per share data:
Basic and diluted loss per share (in dollars per share)	$ (0.49)	$ (1.24)	$ (0.71)	$ (2.51)
Weighted average number of common shares outstanding (in shares)	2,105,187	1,171,518	2,106,763	1,171,518

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Loans receivable - related party

6 Months Ended

Jun. 30, 2012

Loans Receivable Related Party [Abstract]

Loans Receivable Related Party [Text Block]

Note 5: Loans receivable — related party

Dunamis Capital

On September 6, 2010, Medicsight made a short-term loan of $1,100 (£711) to Dunamis Capital (“Dunamis”) repayable by December 31, 2010, along with $36 (£23) of interest. Dunamis paid back the principal of $1,100 (£711) and interest of $48 (£31) on February 6, 2011 and February 10, 2011 respectively. Dunamis had provided the assets of the business as collateral against the loan made by Medicsight. Dunamis was considered a related party, as two former directors of Medicsight were also directors of Dunamis Capital (Note 13).

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Cash and cash equivalents

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents Disclosure [Text Block]

Note 4: Cash and cash equivalents

We invest our cash in short-term deposits with major banks. As of June 30, 2012, we held $5,658 of cash and cash equivalents.

Cash and cash equivalents consist of cash and temporary investments with original maturities of 90 days or less when purchased.

Concentrations

We maintain cash and cash equivalents with certain major financial institutions, in the US, Europe and the UK. As of June 30, 2012, our cash balance was $5,658. Of the total cash balance, $3,271 was covered by federal depository insurance in the US and $2,387 was uninsured in foreign institutions.

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Intellectual property (Tables)

6 Months Ended

Jun. 30, 2012

Intellectual Property [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The fair value was determined as follows:

Cash	$	200
Fair value of warrants issued		800
Fair value of intangible asset contributed by non-controlling interest		819
Total	$	1,819

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Interest and other income/(expense)

6 Months Ended

Jun. 30, 2012

Interst and Other Income Or Expense [Abstract]

Interst and Other Income Or Expense [Text Block]

Note 12: Interest and other income/(expense)

The Company’s interest and other (expense)/income were as follows:

	Three months ended June 30,					Six months ended June 30,
	2012			2011		2012			2011
Interest (expense)/income	$	(23	)	$	11	$	(23	)	$	32
Other (expense)/income		—			—		(2	)		—
Total	$	(23	)	$	11	$	(25	)	$	32

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Line of credit facility

6 Months Ended

Jun. 30, 2012

Line Of Credit Facility [Abstract]

Line of credit facility [Text Block]

Note 8: Line of credit facility

On April 12, 2011, the Company entered into an Agreement with Laddcap for up to $500 for a fifteen-month term. The Agreement encompasses a standby commitment fee of two (2%) percent of the maximum loan amount along with an eight (8%) percent interest charge on any funds drawn. The Company has fully accrued the commitment fee of $10 and expensed $4 associated with the facility for the six months ended June 30, 2012. Laddcap is a related party as the Managing Partner and beneficial owner of LaddCap is a 10% plus shareholder and President and Chief Executive Officer of MGT. The Agreement expired in July 2012, and has not been renewed. No amounts have been drawn down against the facility as of the date of the filing of the Company’s Form 10-Q for the quarterly period ended June 30, 2012.

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Inventory

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 6: Inventory

At June 30, 2012 and December 31, 2011, MedicCO ₂ LON Limited, a subsidiary of Medicsight, held finished goods inventory comprised of insufflation devices and administration kits totaling $56 and $89, respectively.

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Intellectual property

6 Months Ended

Jun. 30, 2012

Intellectual Property [Abstract]

Intellectual Property [Text Block]

Note 7: Intellectual property

On May 11, 2012, the Company entered into a Contribution and Sale Agreement (the “Sale Agreement”) with J&S Gaming, Inc. (“J&S”), and MGT Gaming, Inc. (“MGT Gaming”) for the acquisition of U.S. Patent #7,892,088, entitled “Gaming Device Having a Second Separate Bonusing Event” (“The Patent”). All terms of the Sale Agreement were filed in an 8-K on May 16, 2012. The patent acquired was recorded at its estimated fair value of $1,819 at the date of acquisition. 

The intellectual property is subject to amortization and will be expensed using the straight-line method, over nine years, the remaining life of the patent. Amortization expense was $17 for both the three and six months ended June 30, 2012. The Company’s future amortization expense for this intangible asset is expected to be approximately $102 for the remainder of 2012 and be approximately $204 for each of the next five fiscal years.

Pursuant to the Sale Agreement, (i) J&S sold certain patents to MGT Gaming in exchange for 1,000 shares (constituting 100% ownership) of MGT Gaming Common Stock, par value $0.001; (ii) the Company purchased from J&S 550 MGT Gaming Shares constituting 55% ownership in exchange for $200 cash and a four (4) year warrant to purchase 350,000 shares of the Company’s common stock at an exercise price of $4.00 per share, subject to certain anti-dilution provisions (the “Warrants”); (iii) the Company and J&S agreed to grant rights of first refusal, “tag-along” and “drag-along” rights to one another with respect to their respective MGT Gaming Shares. As a result of an anti-dilution provision in the warrants, with respect to future stock or option grants to officers, the Company anticipates issuing 50,000 additional Warrants to J&S over the next 12 months. These additional warrants were included in the calculation of purchase price for the intellectual property acquisition. The fair value of the 400,000 warrants was determined to be $800 as of June 1, 2012, the warrant issuance date.

The warrants were fair-valued as of the issuance date of June 1, 2012 at $800 based upon the following Black-Scholes pricing model (“BSM”) assumptions; risk free rate 0.80%; expected term four (4) years; annual volatility 75.0%; exercise price $4.00; as the underlying shares had not yet been registered at the issuance date, the market price at June 1, 2012 was discounted by approximately 11% for options pricing purposes.

For purposes of determining expected volatility, since the Company does not have representative historical data to determine volatility based upon its own information, the Company used significant judgment to identify a peer group and determine the appropriate weighting in order to estimate the volatility rate for use in the BSM. The risk-free rate for the period coincides with the expected life of the warrants and is based on the U.S. Treasury Department yield curve in effect at time of closing.

ASC 350 “Intangible Assets ”, establishes Accounting and Measurement guidance for the acquisition of the intellectual property asset from J&S. The Company determined that the consideration given for 55% of the patent was the best indication of the fair value of the patent, as such, the 45% of the patent contributed by the non-controlling shareholders is valued at $819.

The fair value was determined as follows:

Cash	$	200
Fair value of warrants issued		800
Fair value of intangible asset contributed by non-controlling interest		819
Total	$	1,819

Additionally, the Company has the right to purchase an additional 250 MGT Gaming Shares from J&S in exchange for a cash payment of $1,000 and a four (4) year warrant to purchase 250,000 shares of the Company’s common stock for an exercise price of the lower of (i) $6.00 per share and (ii) 110% of the closing price of the common stock on the date of issuance. This option expires on August 31, 2012 due to the qualified financing, as defined in the Agreement that the Company entered into with Hudson Bay Fund Ltd. Due to the high exercise price of this option and its very short term nature its fair value was determined to be de minimis.

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Convertible note and warrants

6 Months Ended

Jun. 30, 2012

Warrants and Rights Note Disclosure [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Note 9: Convertible note and warrants

On May 24, 2012, the Company entered into a securities purchase agreement (the “SPA”) with Hudson Bay Fund Ltd. (the “Investor”). The SPA provided for the purchase of an 18 month promissory note with an interest rate of 8% (the “Senior Secured Convertible Note” or the “Note”) convertible into up to 1,166,667 shares of Company Common Stock at a conversion price of $3.00 per share and a warrant (the “Hudson Bay Warrant” or the “HB Warrant”) to purchase up to 875,000 shares of Common Stock at an exercise price of $3.00 per share for proceeds of $3,500 (the “Hudson Bay Transaction”). The Note is convertible at the option of the holder at a conversion price of $3.00 per share and the Company can require conversion into Company Common Stock if the Weighted Average Price of the Common Stock equals or exceeds 200% of the conversion price for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, subject to a 9.99% beneficial ownership ceiling for Investor’s ownership of Company Common Stock at any one time. The Note is also redeemable by the Company from and after the seven (7) month anniversary of the issuance date, subject to certain equity conditions, in cash at a price equal to the greater of (i) 125% of the Conversion Amount to be redeemed and (ii) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient determined by dividing (x) the greatest Closing Sale Price of the shares of Common Stock during the period beginning on the date immediately preceding the date of notice of redemption and ending on the date the redemption date, by (y) the lowest Conversion Price in effect during such period, as such terms are defined in the Note. The Conversion Price of the Note is subject to adjustment in case of a combination or subdivision of stock or in the event of the grant of rights with equity features. The HB Warrant is exercisable at the option of the holder at a $3.00 per share exercise price and the Company can require exercise if the Weighted Average Price of the Company’s Common Stock equals or exceeds 250% of the exercise price for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, as such terms are defined in the HB Warrant. The HB Warrant exercise price is subject to adjustment in the case of combination or subdivision of stock or in the event of the granting of any stock appreciation rights, phantom stock rights or other rights with equity features. The Note allows for payment of Common Stock in lieu of cash interest payments due pursuant to the Note. The Company obtained stockholder approval at a special meeting of the stockholders held on August 1, 2012 to issue up to 140,000 shares of Common Stock in satisfaction of interest due pursuant to the Note as well as 2,041,667 shares of Common Stock issuable pursuant to the Note and HB Warrant. In connection with the Hudson Bay Transaction, MGT agreed to issue 75,000 shares of Common Stock to Chardan Capital Markets, LLC (“Chardan”) and certain affiliates of Chardan in consideration of investment banking services rendered. Stockholder approval was also obtained on August 1, 2012 for the issuance of 75,000 shares of Common Stock to Chardan. The Hudson Bay Transaction required MGT and certain of its subsidiaries to provide all of its assets as collateral, to pledge the stock of its subsidiaries and certain of MGT’s affiliates to execute voting and lockup agreements. The proceeds of the Hudson Bay Transaction will be used by the Company for general working capital purposes.

The proceeds of the note were allocated between the HB Warrant and the Note based on their relative fair values.

Senior Secured Convertible Note consists of the following as of:

	June 30, 2012			December 31, 2011
Senior secured convertible note	$	3,500		$	—
Less: unamortized debt discount		(957	)		—
Convertible notes	$	2,543			—

The conversion feature embedded in the Note was evaluated to determine if such conversion feature should be bifurcated from its host instrument and accounted for as a free standing derivative. The Company determined that the conversion feature did not need to be bifurcated.

Financing and issuance costs totaling $688 were incurred in connection with the issuance of the Note and HB Warrants. These costs include legal and placement fees, including the issuance of 75,000 shares of restricted common stock. The stock was recorded at the fair market value of $315 at the date of closing, which was accrued for at June 30, 2012, and was subsequently issued on August 9, 2012. The total costs were allocated based on relative fair values to deferred financing costs in the amount of $588 and HB Warrant issuance costs of $100. Deferred financing costs are amortized through periodic charges to non-operating expense over the maximum term of the related instrument using the effective interest method. Amortization expense for the remainder of 2012 is anticipated to be $175, with the remaining costs being fully amortized in 2013.

The following sets forth the Company’s activity related to its Note during the three and six-months ended June 30, 2012 and 2011, respectively:

	Three and six months ended,
	June 30, 2012		June 30, 2011
Proceeds from issuance of convertible notes payable	$	3,500	$	—
Fair value of warrants recorded as corresponding debt discount		500		—
Beneficial conversion feature on convertible note		500		—
Amortization of debt discount		43		—
Interest expense		23		—
Amortization of deferred financing costs		33		—

We estimated the fair value of the HB Warrant as of the date of issuance, June 1, 2012, using a closed-formula option pricing method for barrier-type options that took into account the terms of the option rights of the holder and also the Company’s Mandatory Exercise Option, which is consistent with using a Monte Carlo option pricing method. The options pricing methods used the following input assumptions: expected stock price volatility 75.0%; warrant term five (5) years; risk-free rate of 0.80%; dividend yield 0.0%. As the trading volume of the Company’s publicly traded shares was approximately 30,000 per day and the issuable shares under the Note and HB warrant were over 2.0 million, and further because these issuable shares had not yet been registered for public sale at the issuance date, the price of the underlying shares was discounted approximately 30% for options pricing purposes. The fair value of the total HB warrants issued, given the terms of the HB Warrant agreement, was determined to be $500. The discount was recognized as an increase of additional paid-in capital and a discount to the convertible Note. The discount to the convertible Note payable is being amortized through periodic charges to other non-operating expense over the 18 month period from the date of issuance to the date the Note is due using the effective interest method.

A beneficial conversion feature of the Note was calculated to be $500 after adjusting the effective conversion price for the fair value of the HB Warrants issued.

The estimates discussed above require us to make assumptions based on historical results, observance of trends in our stock price, future expectations and other relevant risk factors. If other assumptions had been used, the HB Warrant valuation as calculated and recorded under the accounting guidance could have been affected.

Volatility is a key factor in option pricing models. For purposes of determining expected volatility, the Company used significant judgment to identify a peer group. The historical volatility of the Company’s own common stock was not deemed pertinent to the estimate, because of the recent change in the Company’s operations and business plan. The risk-free rate for the period coincides with the expected life of the HB Warrants and is based on the U.S. Treasury Department yield curve in effect at time of closing.

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Loans receivable - related party (Details Textual) (Dunamis Capital [Member]) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011 USD ($)	Mar. 31, 2011 GBP (£)	Dec. 31, 2010 USD ($)	Dec. 31, 2010 GBP (£)
Due From Related Parties, Current			$ 1,100	£ 711
Interest Receivable, Current			36	23
Proceeds From Related Party Debt	1,100	711
Interest and Fee Income, Loans and Leases	$ 48	£ 31

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Operating leases, commitments and security deposit (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
2012 (remaining six months)	$ 33
2013	67
2014	56
Total	$ 156

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Operating leases, commitments and security deposit

6 Months Ended

Jun. 30, 2012

Operating Leases Commitments and Security Deposit [Abstract]

Operating leases, commitments and security deposit [Text Block]

Note 14: Operating leases, commitments and security deposit

In 2006, we executed a 10-year agreement with Pirbright Holdings Limited, to lease office space in London, United Kingdom. Under this lease agreement, the property rent, services and related costs were approximately £330 ($516) per annum, paid quarterly in advance. The Company exercised its right to terminate the lease upon completion of the fifth year (August 2011) and had found an alternative UK office location with no long-term lease commitment. This commitment was on a month-to-month basis and began on August 1, 2011 with total monthly rental payments of £8 ($13) along with a rental deposit of £16 ($25). In February 2012, the Company moved to a smaller office in the same location with month-to-month rental payments of £2 ($4) and a rental deposit of £4 ($6). On April 30, 2012, we terminated our UK lease effective June 30, 2012.

In September 2011, the Company entered into a 39-month lease agreement for office space located in Harrison, New York, terminating on November 30, 2014. Under the agreement our total rental payments over the 39-month lease period are $240, inclusive of three months of free rent and a refundable rental deposit of $39.

A satellite office in Tokyo, Japan, was closed in January 2012, and the rental deposit of $128 was refunded to us.

The following is a schedule of the future minimum payments required under operating leases and commitments that have initial or remaining non-cancellable terms in excess of one year:

Year Ending
2012 (remaining six months)	$	33
2013		67
2014		56
Total	$	156

The total lease rental expense was $72 and $298 for the six months ended June 30, 2012 and 2011, respectively.

In January 2012, the Company entered into a two-year employment agreement with an employee at a base salary of $10 per month, with potential bonus payments as outlined in the agreement. This agreement provides for a maximum severance period of 12 months in the event of termination without cause as defined in the agreement.

On March 12, 2012, the Company entered into a one-year financial advisory and consulting agreement with a national investment-banking firm. The Agreement was cancelled in May 2012 in accordance with its terms.

On May 11, 2012, MGT Gaming entered into a one-year consulting agreement with the president of J&S for service to MGT Gaming, for a fee of $5 per month. The agreement can be cancelled with 60 days prior written notice.

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Stock incentive plan and share-based compensation (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

The Company has recorded the following amounts related to its share-based compensation expense in the accompanying Condensed Consolidated Statements of Operations:

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
Selling, general and administrative	$	197	$	126	$	222	$	167
Research and development		—		21		7		24
Total	$	197	$	147	$	229	$	191

All Option Plans [Member]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes stock option activity for the six months ended June 30, 2012, under all option plans:

	Outstanding						Exercisable
	Number of shares			Weighted-average exercise price			Number of shares		Weighted-average exercise price
Outstanding at December 31, 2011		11			£35,700 ($58,500	)		10		£35,700 ($58,500	)
Granted		—			—
Exercised		—			—
Forfeited/Cancelled		(5	)		£19,500 ($30,917	)
Outstanding at June 30, 2012		6			£29,250 ($46,326	)		6		£$29,250 ($46,326	)

Medicsight Plan J [Member]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following is a summary of the status of stock options outstanding at June 30, 2012:

	Outstanding options							Exercisable options
	Number		Remaining contractual life (years)		Average exercise price			Number		Average exercise price
Medicsight Plan J		6		6.9		£29,250 ($46,326	)		6		£29,250 ($46,326	)

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Interest and other income/ (expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest (expense)/income	$ (23)	$ 11	$ (23)	$ 32
Other (expense)/income	0	0	(2)	0
Total	$ (23)	$ 11	$ (25)	$ 32

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Convertible note and warrants (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Debt Instrument, Convertible, Effective Interest Rate			8.00%
Debt Conversion, Converted Instrument, Shares Issued			1,166,667
Debt Instrument, Convertible, Conversion Price	$ 3.00		$ 3.00
Debt Conversion, Converted Instrument, Warrants or Options Issued			875,000
Proceeds from issuance of convertible notes payable	$ 3,500	$ 0	$ 3,500	$ 0
Debt Instrument, Convertible, Terms of Conversion Feature			The Note is convertible at the option of the holder at a conversion price of $3.00 per share and the Company can require conversion into Company Common Stock if the Weighted Average Price of the Common Stock equals or exceeds 200% of the conversion price for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, subject to a 9.99% beneficial ownership ceiling for Investor's ownership of Company Common Stock at any one time.
Debt Instrument Convertible Terms Of Conversion Feature Warrants			The HB Warrant is exercisable at the option of the holder at a $3.00 per share exercise price and the Company can require exercise if the Weighted Average Price of the Company's Common Stock equals or exceeds 250% of the exercise price for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, as such terms are defined in the HB Warrant.
Percentage Of Conversion Amount To Be Redeemed			125.00%
Maximum Common Stock Issuable In Satisfaction Of Interest Due			140,000
Maximum Common Stock Issuable Pursuant To Note and Warrant			2,041,667
Issuable Of Common Stock For Investment Banking Services			75,000
Financing and Issuance Costs			688
Issuance Of Restricted Common Stock			75,000
Restricted Common Stock Fair Market Value	315		315
Deferred Financing Costs	588		588
Warrant Issuance Costs			100
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	175		175
Fair Value Assumptions, Expected Volatility Rate			75.00%
Fair Value Assumptions, Risk Free Interest Rate			0.80%
Fair Value Assumptions, Expected Dividend Rate			0.00%
Maximum Trading Shares Per Day			30,000
Maximum Issuable Shares Under Note and Warrants			2,000,000
Maximum Percentage Of Stock Options Discounted			30.00%
Warrants Issued Fair Value			500
Beneficial conversion feature on convertible note	$ 500	$ 0	$ 500	$ 0
Fair Value Assumptions, Expected Term			5 years

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) / EQUITY (USD $) In Thousands, except Share data	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2011	$ 0	$ 2	$ 283,240	$ (4,861)	$ (280,027)	$ (1,646)	$ 5,293	$ 3,647
Balance (in shares) at Dec. 31, 2011	0	2,109
Cash in lieu of fractional shares for MGT reverse/ forward split	0	0	(5)			(5)		(5)
Cash in lieu of fractional shares for MGT reverse/ forward split (in shares)	0	(4)
Acquisition of subsidiary shares from non-controlling interest	0	0	2,392	(1,006)	0	1,386	(1,386)	0
Non-controlling Share of MGT Gaming, Inc	0	0	0	0	0	0	819	819
Stock-based compensation	0	0	17	0	0	17	15	32
Warrants issued in connection with acquisition of intangible assets	0	0	800	0	0	800	0	800
Warrants issued in connection with issuance of convertible note, net of issuance costs of $100	0	0	400	0	0	400	0	400
Beneficial conversion feature on convertible note	0	0	500			500	0	500
Net loss for the period	0	0	0	0	(1,496)	(1,496)	(412)	(1,908)
Translation adjustment	0	0	0	36	0	36	32	68
Balance at Jun. 30, 2012	$ 0	$ 2	$ 287,344	$ (5,831)	$ (281,523)	$ (8)	$ 4,361	$ 4,353
Balance (in shares) at Jun. 30, 2012	0	2,105

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Divestment of investments

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 3: Divestment of investments

On March 31, 2010, the Company sold its stock in Medicexchange and various non-core investments for consideration of £750 ($1,136). This consideration was deferred and was paid in installments, with the final installment of £244 ($370) paid in March 2011.

In Fiscal 2009, we purchased 49% of the share capital of Moneygate Group Limited (“Moneygate”), which was accounted for under the equity method. In March 2011, we sold our entire interest in Moneygate for total consideration of £250 ($401), resulting in a gain on sale of £51 ($81).

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Interest and other income/(expense) (Tables)

6 Months Ended

Jun. 30, 2012

Interst and Other Income Or Expense [Abstract]

Interest and Other Income [Table Text Block]

The Company’s interest and other (expense)/income were as follows:

	Three months ended June 30,					Six months ended June 30,
	2012			2011		2012			2011
Interest (expense)/income	$	(23	)	$	11	$	(23	)	$	32
Other (expense)/income		—			—		(2	)		—
Total	$	(23	)	$	11	$	(25	)	$	32

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Line of credit facility (Details Textual) (Laddcap Value Partners Iii Llc [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Dec. 31, 2011
Laddcap Value Partners Iii Llc [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 500
Line of Credit Facility, Commitment Fee Percentage	2.00%
Line of Credit Facility, Interest Rate at Period End			8.00%
Line Of Credit Facility, Accrued Commitment Fee		10
Line Of Credit Facility, Expenses		$ 4
Percentage Of Beneficial Owned		10.00%

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Related party transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions [Text Block]

Note 13: Related party transactions

Moneygate Group

In Fiscal 2009, we purchased 49% of the share capital of Moneygate. On acquisition we provided loan facilities of £250 ($387) for working capital and £2,000 ($3,094) for acquisitions and subsequently entered into various transactions with Moneygate and other non-related parties.

Through its disposal in March 2011, Moneygate was a related party as the Company had significant influence over its operations as a result of representation on Moneygate’s board of directors. Due to this significant influence, we accounted for it under the equity method. In March 2011, we sold our entire interest in Moneygate to Committed for total consideration of £250 ($401), resulting in a gain on sale of £51 ($81).

Dunamis

Allan Rowley, former Chief Executive Officer and former Chief Financial Officer of MGT and former Chief Executive Officer of Medicsight, along with David Sumner, former Chairman of Medicsight, are both directors of Dunamis. Dunamis is a United Arab Emirates (“UAE”) registered company regulated by the Dubai Financial Services Authority (“DFSA”). Dunamis is 100% owned by David Sumner and was set up by Mr. Sumner with Allan Rowley’s financial consulting assistance, as a corporate financing and advisory firm. On September 6, 2010, Medicsight made a short-term loan of $1,100 (£711) to Dunamis. Dunamis paid back the principal of $1,100 (£711) and interest of $48 (£30) on February 6, 2011 and February 10, 2011, respectively.

In February 2011, the Company, following consultation with its nominated advisor noted that as a result of Mr. Sumner’s relationships with both Dunamis and Medicsight, the Loan constituted a related party transaction under Rule 13 of AIM Rules for Companies. Rule 13 requires that an AIM company must issue notification without delay as soon as the terms of a transaction with a related party are agreed. The independent directors, having consulted with the Company’s nominated adviser, considered the terms of the transaction fair and reasonable insofar as shareholders were concerned. In February 2011, the Company issued a notice detailing the terms of the transaction with the related party.

Laddcap Value Partners III LLC (“Laddcap”)

On April 12, 2011, the Company entered into a Revolving Line of Credit and Security Agreement with Laddcap for up to $500 for a fifteen-month term. The Agreement encompasses a standby commitment fee of two (2%) percent of the maximum loan amount along with an eight (8%) percent interest charge on any funds drawn. Laddcap is a related party as the Managing Partner and beneficial owner of Laddcap is a 10% plus shareholder and CEO of MGT. No amounts have been drawn down against the facility as of the date of the filing of the Company’s Form 10-Q for the quarterly period ended June 30, 2012. The Agreement expired in July 2012 and was not renewed by management (Note 8).

D4D Limited

Effective July 2010, the Company entered into a service agreement with D4D Limited (“D4D”), a company that offers Executive Services for small and mid-cap companies. D4D is owned by Tim Paterson-Brown and Allan Rowley, and pursuant to the agreement, provided the services of Chairman, Chief Executive Officer and Chief Financial Officer of the Company at such time.

In April 2011, the agreement with D4D was terminated and a settlement agreement between MGT and D4D, Messrs. Paterson-Brown and Rowley was executed and delivered. During the six months ended June 30, 2011, MGT and Medicsight made payments to D4D, totaling $304 and $315, respectively.