Cash, cash equivalents and restricted cash

6 Months Ended

Jun. 30, 2013

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents Disclosure [Text Block]

Note 6: Cash, cash equivalents and restricted cash

MGT invests substantially all its cash in demand deposits and money market accounts with major U. S. banks. As of June 30, 2013, we held $7,137 of cash and cash equivalents, including restricted cash.

Concentrations

As of June 30, 2013, our cash balance was $6,348. Of the total cash balance, $700 is deposited in accounts protected by the U.S. Federal Deposit Insurance Corporation.

Restricted cash

Restricted cash includes $750 held in escrow relating to the sale of the Company’s portfolio of medical imaging patents. Proceeds from the patent sale were placed into escrow prior to receipt by the Company pursuant to an escrow agreement between the Company and Munich Innovations GmbH (Note 5). The escrow agent distributed the escrow deposit accordingly and subject to any deduction per the provisions within the sale of the patent agreement. $39 of restricted cash supports a letter of credit, in lieu of a rental deposit, for our Harrison, NY office lease.

With fewer than 345,012 shares of Preferred Stock outstanding, $2,000 was released out of restricted cash as 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 (Note 9).