Segment Reporting

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

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. The Company’s chief operating decision–making group is composed of the Chief Executive Officer. The Company operates in two segments, Cybersecurity and Bitcoin Mining. Certain corporate expenses are not allocated to segments.

The Company evaluates performance of its operating segments based on revenue and operating loss. The following table summarizes our segment information as of and for the three and six months ended June 30, 2017 and 2016:

	Intellectual property			Gaming			Cybersecurity			Unallocated corporate/ other			Bitcoin mining			Total
Three months ended June 30, 2017
Revenue	$	–		$	–		$	–		$	–		$	388		$	388
Cost of revenue		–			–			–			–			(188	)		(188	)
Gross margin		–			–			–			–			200			200
Operating (loss) income		–			–			(148	)		(4,172	)		200			(4,120	)
Three months ended June 30, 2016
Revenue	$	–		$	–		$	–		$	–			–		$	–
Cost of revenue		–			–			–			–			–			–
Gross margin		–			–			–			–			–			–
Operating loss		(659	)		(1,510	)		–			(3,769	)		–			(5,938	)
Six months ended June 30, 2017
Revenue	$	–		$			$	–		$	–		$	700		$	700
Cost of revenue		–			–			–			–			(389	)		(389	)
Gross margin		–			–			–			–			311			311
Operating (loss) income		–			–			(369	)		(7,007	)		311			(7,065	)
Six months ended June 30, 2016
Revenue	$	–		$	–		$	–		$	–		$	–		$	–
Cost of revenue		–			–			–			–			–			–
Gross margin		–			–			–			–			–			–
Operating loss		(659	)		(1,510	)		–			(4,423	)		–			(6,592	)
June 30, 2017
Cash and cash equivalents	$	–		$	–		$	–		$	323			–		$	323
Property and equipment		–			–			–			5			1,477			1,482
Intangible assets		–			–			385			-			–			385
December 31, 2016
Cash and cash equivalents	$	–		$	–		$	–		$	345			–		$	345
Property and equipment		–			–			–			8			594			602
Intangible assets		–			–			–			468			–			468