Liquidity and financial condition

6 Months Ended

Jun. 30, 2013

Liquidity and Financial Condition [Abstract]

Liquidity and Financial Condition [Text Block]

Note 2: Liquidity and financial condition

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 $289,149 at June 30, 2013. The Company is operating in a competitive industry based on changing technology and its primary source of funds to date has been through the issuance of securities. Moreover, going forward, there can be no assurance that the Company’s products or patent monetization strategy will be successful in generating earnings for the Company.

At June 30, 2013, MGT’s cash, cash equivalents and restricted cash totaled $7,137, which includes $50 held in MGT Gaming and $143 in FanTD. Management believes that the current level of working capital is sufficient to maintain operations into September 2014. It is possible that some acquisitions may require the Company to raise capital; such capital may not be available on terms acceptable to the Company, if at all. To date, the purchase price of acquisitions has been funded primarily through the issuance of the Company’s equity securities to the sellers.