Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information

Note 6 — Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided below.

Other current assets of $1.0 million as of December 31, 2020 consists of restricted cash of $0.5 million and a minimum tax refund that was received in the first quarter of 2021. Other current assets of $2.8 million as of December 31, 2019 include $1.7 million of prepaid professional service fees to a related party, $0.5 million for a tax refund received in 2020 and $0.6 million of escrowed funds related to the disposition of the Nexsan Business.

Property and equipment consists of quantitative trading software purchased from GEH Capital, LLC (“GEH”), a related party. The asset is depreciated on a straight-line basis over a useful life of three years. Net property and equipment of $1.5 million as of December 31, 2020 consists of the purchased cost of $1.7 million less accumulated depreciation of $0.2 million. The residual values, useful life and depreciation method are reviewed at each financial year end to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property and equipment. See Note 16 – Related Party Transactions for more information on the software purchase. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognized in income statement.

In January 2021, AEC received notice from ESW that Adara had defaulted on its obligations under the ESW Loan Agreement. On April 22, 2021, AEC filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the District of Delaware. As part of AEC’s prepackaged chapter 11 plan of reorganization which became effective on June 15, 2021, ESW acquired the Company’s interest in the quantitative trading software and GlassBridge received a license to use the software in connection with the sports industry. See Note 17 – Subsequent Events for more information.

Total assets of as of December 31, 2020 include a $12.8 million investment in Arrive LLC (“Arrive”), down $2.0 million as a result of distributions. The Arrive investment was $14.8 million as of December 31, 2019. Historically, we accounted for such investment under the cost method of accounting. The adoption of ASU No. 2016-01 in the first quarter of 2018 effectively eliminated the cost method of accounting, and the carrying value of this investment is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. Our strategic investment in equity securities does not have a readily determinable fair value; therefore, the new guidance was adopted prospectively. As of December 31, 2020, there were no indicators of impairment for this investment. The Company will assess the investment for potential impairment, quarterly.

Other assets of $0.4 million as of December 31, 2020 include a separate investment in Arrive. Other assets and other investments of $2.4 million as of December 31, 2019, include a $0.9 million investment in the Möbius Fund SCA SICAV-RAIF. In 2020, the Company contributed an additional $0.5 million to the investment due to market downturn. The investment subsequently ended and resulted in a $1.4 million loss that was realized in 2020. Another $0.5 million minimum tax refund, separate from the tax refund recorded in other current assets, is also included in other assets and other investments as of December 31, 2019.

Other current liabilities (included as a separate line item in our Consolidated Balance Sheets) include the following:

	December 31,
	2020		2019
	(In millions)
Accrued payroll	$	0.5	$	0.1
Other current liabilities		1.3		1.4
Total other current liabilities	$	1.8	$	1.5

Other current liabilities as of December 31, 2020, include accruals for interest expense of $1.2 million of which $0.1 million is related party.

Other current liabilities as of December 31, 2019, included accruals for professional services fees of $0.7 million and fees related to insurance and other claims of $0.4 million.

Stock purchase agreements as of December 31, 2020, include notes payable of $12.1 million and $5.5 million to George E. Hall and Joseph A. De Perio, respectively, in conjunction with the Stock Purchase Agreement for shares of SportBLX common stock. See Note 16 – Related Party Transactions for additional information.

As of December 31, 2020, the Company has a note payable of $11.0 million to ESW Holdings, LLC (“ESW”) and a $0.4 million Bank loan from Signature Bank pursuant to the Paycheck Protection Program (the “PPP”). See Note 8 – Debt for additional information on the ESW note payable and the Bank loan.

As of December 31, 2019, pension liabilities were $13.5 million. Following a payment made on October 3, 2019 in fulfillment of a settlement agreement with the Pension Benefit Guaranty Corporation, the Company is no longer obligated for this liability, as of January 6, 2020. See Note 11 – Retirement Plans for additional information on the pension liability.

As of December 31, 2019, the Company had notes payable of $13.0 million in connection with a Securities Purchase Agreement with Orix which were assigned from Adara Enterprises Corp. to Adara Asset Management, LLC, which, also on July 21, 2020, was sold to GEH Sport LLC, a related party, and, in effect, no longer an obligation of the Company. See Note 16 – Related Party Transactions for additional information.