XML 35 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent events
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 12: Subsequent events

 

On April 10, 2013, the Company entered into an Asset Purchase Agreement with Digital Angel Corporation pursuant to which the Company acquired Digital Angel’s mobile game application business assets, including the rights to two mobile game applications currently under development. The purchase price consists of a cash payment in the amount of $137 and 50,000 restricted shares of the Company’s common stock. The Company is currently evaluating the accounting treatment of the Asset Purchase Agreement. The Company does not believe that such acquisition constitutes a “Significant Acquisition” for accounting purposes.

 

As a result of conversions, the Company had 172,517 shares of Preferred Stock outstanding, as of April 16, 2013. With fewer than 345,012 shares of Preferred Stock outstanding, the Company is no longer subject to the Cash Maintenance provision of the Purchase Agreement under which the Preferred Stock was originally sold in October 2012.

 

On April 22, 2013, the Company entered into a Securities Purchase Agreement by and among the Company, MGT Sports, Inc., FanTD, LLC and certain members of FanTD, LLC. The Agreement provides for the Company’s purchase, through its wholly-owned subsidiary MGT Sports, Inc. of 63% of the outstanding membership interests of FanTD, LLC in exchange for an aggregate of $203 in cash and 600,000 shares of common stock. The Company is currently evaluating the accounting treatment of the Securities Purchase Agreement.

 

On April 26, 2013, the Company made an offer to the holders of the Company’s $3.85 Common Stock Purchase Warrants (the “Warrants”), which are held by a limited number of accredited investors providing if such investors exercised one Warrant, they would have the right to exchange up to two additional Warrants (for each Warrant exercised) for 5/8ths per share of Common Stock per Warrant exchanged. The results of the offer were that holders of 678,934 Warrants elected to exercise their Warrants during the five business day period. In addition, the allowed maximum of 1,357,868 Warrants was exchanged for 848,671 shares of the Company’s Common Stock, issuable upon NYSE MKT approval. Total proceeds received from the exercise of 678,934 Warrants was $2,614. Any charge to earnings as a result of the transaction will be charged as Other Expense in the quarterly financial statements for the period ending June 30, 2013.

 

In May 2013, 36,808 additional Warrants and 50,000 of the Company’s $3.00 Common Stock Purchase Warrants were exercised with total proceeds of $292 received by the Company