Segment reporting

9 Months Ended

Sep. 30, 2013

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 our chief executive officer and chief financial officer. We operate in three operational segments, Medicsight Software/Devices, Medicsight Services, Intellectual Property and Gaming. MGT Gaming is now referred to as Intellectual Property. Gaming is a new segment for the current quarter. 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 3). We evaluate performance of our operating segments based on revenue and operating (loss). Segment information as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 are as follows:

	Medicsight								Unallocated
	Software/				Intellectual				corporate/
	Devices		Services		property		Gaming		other		Total
Three months ended September 30, 2013
Revenue from external customers	$	4	$	-	$	-	$	36	$	-	$	40
Cost of revenue		-		-		-		(118)		-		(118)
Gross margin		4		-		-		(82)		-		(78)
Operating profit/(loss )		4		-		(349)		(419)		(2,138)		(2,902)
Three months ended September 30, 2012
Revenue from external customers	$	9	$	58	$	-	$	-	$	-	$	67
Cost of revenue		-		53		-		-		-		53
Gross margin		9		5		-		-		-		14
Operating profit/(loss)		(240)				(77)		-		(494)		(811)
Nine Months Ended September 30 2013
Revenue from external customers	$	42	$	97	$	-	$	54	$	-	$	193
Cost of revenue		-		(63)		-		(138)		-		(201)
Gross margin		42		34		-		(84)		-		(8)
Operating profit/(loss )		27		27		(675)		(560)		(5,956)		(7,137)
Nine Months Ended September 30 2012
Revenue from external customers	$	215	$	121	$	-	$	-	$	-	$	336
Cost of revenue		(36)		(116)		-		-		-		(152)
Gross margin		179		5		-		-		-		184
Operating profit/(loss )		(1,133)		(77)		(146)		-		(1,262)		(2,618)
September 30, 2013
Cash and cash equivalents (excludes $138 of restricted cash)	$	907	$	-	$	18	$	231	$	3,893	$	5,049
Intangible assets		-		-		1,642		391		455		2,488
December 31, 2012
Cash and cash equivalents (excludes $2,039 of restricted cash)	$	330	$	-	$	49	$	-	$	3,064	$	3,443
Intangible assets		-		-		1,795		-		-		1,795