10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the transition period from ____________ to ____________

Commission File Number: 1-14310

GLASSBRIDGE ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Delaware	41-1838504
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
18 East 50th Street, FL7 New York, New York	10022
(Address of principal executive offices)	(Zip Code)

(212) 220-3300

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 25,170 shares of Common Stock, par value $0.01 per share, were outstanding as of November 11, 2022.

GLASSBRIDGE ENTERPRISES, INC.

TABLE OF CONTENTS

	PAGE
PART I. FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021	3
Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	4
Condensed Consolidated Statements of Shareholders’ Equity (Deficit) as of September 30, 2022 and 2021	5
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	6
Notes to Condensed Consolidated Financial Statements	7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	20
ITEM 4. CONTROLS AND PROCEDURES	20
PART II. OTHER INFORMATION	21
ITEM 1. LEGAL PROCEEDINGS	21
ITEM 1A. RISK FACTORS	21
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	21
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	21
ITEM 4. MINE SAFETY DISCLOSURES	21
ITEM 5. OTHER INFORMATION	21
ITEM 6. EXHIBITS	21
SIGNATURE	22
EX-31.1
EX-31.2
EX-32.1
EX-32.2

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

GLASSBRIDGE ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except for share and per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Net revenue	$	—		$	—		$	—		$	—
Operating expenses:
Selling, general and administrative		0.7			2.8			2.3			5.2
Restructuring and other		—			—			—			0.3
Total operating expenses		0.7			2.8			2.3			5.5
Operating loss from continuing operations		(0.7	)		(2.8	)		(2.3	)		(5.5	)
Other income (expense):
Interest expense		(0.1	)		(0.2	)		(0.2	)		(1.9	)
Gain on Chapter 11 reorganization		—			—			—			13.8
Bank Loan forgiveness		—			—			—			0.4
Other income (expense), net		—			0.4			0.2			0.4
Total other income (expense)		(0.1	)		0.2			—			12.7
Income (loss) from continuing operations before income taxes		(0.8	)		(2.6	)		(2.3	)		7.2
Income (loss) from continuing operations		(0.8	)		(2.6	)		(2.3	)		7.2
Net income(loss) from continuing operations		(0.8	)		(2.6	)		(2.3	)		7.2
Discontinued Operations:
Loss from discontinued operations, net of income taxes		—			(0.2	)		—			(0.5	)
Loss from discontinued businesses, net of income taxes		—			(0.2	)		—			(0.5	)
Net income (loss)	$	(0.8	)	$	(2.8	)	$	(2.3	)	$	6.7
Net income (loss) per common share — basic and diluted:
Continuing operations	$	(30.30	)	$	(101.56	)	$	(87.12	)	$	285.70
Discontinued operations		—			(7.81	)		—			(19.83	)
Net income (loss)	$	(30.30	)	$	(109.37	)	$	(87.12	)	$	265.87
Weighted average common shares outstanding:
Basic and diluted (thousands)		26.4			25.6			26.4			25.2

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

3

GLASSBRIDGE ENTERPRISES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share amounts)

	September 30,			December 31,
	2022			2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1.9		$	4.1
Accounts receivable, net		0.1			0.1
Total current assets		2.0			4.2
Arrive (See Note 5 – Supplemental Balance Sheet Information)		12.8			12.8
Other assets and other investments		0.5			0.2
Total assets	$	15.3		$	17.2
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	1.3		$	1.1
Other current liabilities		0.4			0.4
Total current liabilities		1.7			1.5
GHI LLC note payable (See Note 6 – Debt)		3.6			3.4
Other liabilities		0.2			0.2
Total liabilities		5.5			5.1
Shareholders’ equity:
Preferred stock, $.01 par value, authorized 200,000 shares, none issued and outstanding		—			—
Common stock, $.01 par value, authorized 50,000, 28,097 issued at September 30, 2022; 28,097 issued at December 31, 2021		—			—
Additional paid-in capital		1,073.0			1,073.0
Accumulated deficit		(1,038.3	)		(1,036.0	)
Treasury stock, at cost: 2,927 shares at September 30, 2022; 2,927 shares at December 31, 2021		(24.9	)		(24.9	)
Total shareholders’ equity		9.8			12.1
Total liabilities and shareholders’ equity	$	15.3		$	17.2

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

4

GLASSBRIDGE ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)

(In millions, except share amounts)

(Unaudited)

	Common Stock				Additional Paid-in			Accumulated			Treasury Stock						Non-controlling		Total Shareholders’
	Shares		Amount		Capital			Deficit			Shares			Amount			Interest		Equity
Balance as of December 31, 2021		28,097	$	—	$	1,073.0		$	(1,036.0	)		2,927		$	(24.9	)	$	—	$	12.1
Net loss						(2.3	)					(2.3	)
Balance as of September 30, 2022		28,097	$	—	$	1,073.0		$	(1,038.3	)		2,927		$	(24.9	)	$	—	$	9.8

	Common Stock				Additional Paid-in		Accumulated			Treasury Stock					Non-controlling			Total Shareholders’
	Shares		Amount		Capital		Deficit			Shares		Amount			Interest			Deficit
Balance as of December 31, 2020		28,097	$	—	$	1,059.6	$	(1,065.0	)		2,927	$	(24.9	)	$	22.7		$	(7.6	)
Net income (loss)								6.7								(0.7	)		6.0
Sale of warrants						0.2													0.2
Extinguishment of Stock Purchase Agreement Notes Payable						10.0													10.0
Balance as of September 30, 2021		28,097	$	—	$	1,069.8	$	(1,058.3	)		2,927	$	(24.9	)	$	22.0		$	8.6

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

5

GLASSBRIDGE ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Nine Months Ended
	September 30,
	2022			2021
Cash Flows from Operating Activities:
Net income (loss)	$	(2.3	)	$	6.7
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Payment-in-Kind interest		0.2			—
Depreciation and amortization		—			0.3
Change in non-controlling interest		—			(0.7	)
Gain on Chapter 11 reorganization		—			(13.8	)
Bank Loan forgiveness		—			(0.4	)
Loss on sale of investments		—			0.2
Changes in operating assets and liabilities		0.1			3.2
Net cash used in operating activities		(2.0	)		(4.5	)
Cash Flows from Investing Activities:
Purchase of investments		(0.2	)		—
Proceeds from sale of unsecured claims from related party pursuant to Chapter 11 reorganization		—			0.5
Collection of notes receivable from related party pursuant to Chapter 11 reorganization		—			0.7
Proceeds received for the assignment of related party notes receivable and accrued interest receivable to Fintech Debt Corp		—			0.4
Net cash provided by (used in) investing activities		(0.2	)		1.6
Cash Flows from Financing Activities:
Proceeds from ESW debtor-in-possession note payable		—			0.3
Proceeds from GHI LLC note payable		—			3.2
Repayment of Stock Purchase Agreement Notes Payable		—			(3.4	)
Proceeds from sale of warrants		—			0.2
Proceeds from advance from related party		—			0.1
Advance from bankruptcy trust subject to clawback		—			2.0
Net cash provided by financing activities		—			2.4
Net change in cash and cash equivalents		(2.2	)		(0.5	)
Cash, cash equivalents and restricted cash — beginning of period		4.1			1.8
Cash, cash equivalents and restricted cash — end of period	$	1.9		$	1.3
Supplemental disclosures of cash paid (received) during the period:
Income taxes (net of refunds received)	$	—		$	(0.6	)
Interest expense		0.1			0.6
Non-cash investing and financing activities during the period:
Extinguishment of ESW note payable in Chapter 11 reorganization	$	—		$	(11.0	)
Extinguishment of debtor-in-possession loan in Chapter 11 reorganization		—			(0.3	)
Forgiveness of Bank Loan		—			(0.4	)
Extinguishment of Stock Purchase Agreement Notes Payable		—			(14.2	)
Recognition of related party debt and accrued interest payable to Fintech Debt Corp.		—			4.6
Total non-cash investing and financing activities during the period	$	—		$	21.3

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

6

GLASSBRIDGE ENTERPRISES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Basis of Presentation

GlassBridge Enterprises, Inc. (“GlassBridge”, the “Company”, “we”, “us” or “our”) owns and operates an asset management business through various subsidiaries.

The interim Condensed Consolidated Financial Statements of GlassBridge are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal and recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes presented in accordance with the requirements of Annual Reports on Form 10-K.

The interim Condensed Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and entities in which the Company owns or controls fifty percent or more of the voting shares or interest in such entity, and has the right to control. The results of entities disposed of are included in the unaudited Condensed Consolidated Financial Statements up to the date of the disposal and, where appropriate, these operations have been reflected as discontinued operations. All inter-company balances and transactions have been eliminated in consolidation and, in the opinion of management, all adjustments necessary for a fair presentation have been included in the interim results reported.

The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

The December 31, 2021 Condensed Consolidated Balance Sheet data were derived from the audited Consolidated Financial Statements, but do not include all disclosures required by GAAP. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission on March 31, 2022.

The Company completed the disposition of its entire interest in SportBLX on December 30, 2021, and the operating results of the Sports Technology Platform are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented. Our continuing operations for each period presented represents our asset management business as well as corporate expenses. Assets and liabilities directly associated with our legacy businesses and Nexsan business and that are not part of our ongoing operations are included in other assets and other investments.

Note 2 — New Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be not applicable to the Company’s consolidated results of operations and financial condition.

Adoption of New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans, which makes minor changes to the disclosure requirements related to defined benefit pension and other postretirement plans. The ASU requires a retrospective transition approach. For the Company, the ASU was effective as of January 1, 2021. As this ASU relates only to disclosures, there was no impact to the Company’s consolidated results of operations and financial condition.

7

Note 3 —Income (Loss) per Common Share

Basic income per common share is calculated using the weighted average number of shares outstanding for the period. Unvested restricted stock and treasury shares are excluded from the calculation of weighted average number of common shares outstanding in all cases. Once restricted stock vests, it is included in our common shares outstanding.

Diluted income per common share is computed on the basis of the weighted average shares outstanding plus the dilutive effect of our stock-based compensation plans, using the “treasury stock” method. Since the exercise price of our stock options is greater than the average market price of the Company’s common stock for the period, we did not include dilutive common equivalent shares for these instruments in the computation of diluted net income per share because the effect would have been anti-dilutive.

The following table sets forth the computation of weighted average basic and diluted income per share (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in millions, except for per share amounts)	2022			2021			2022			2021
Numerator:
Income (loss) from continuing operations	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2
Loss from discontinued operations		—			(0.2	)		—			(0.5	)
Net income (loss)	$	(0.8	)	$	(2.8	)	$	(2.3	)	$	6.7
Denominator:
Weighted average number of common shares outstanding during the period - basic and diluted (in thousands)		26.4			25.6			26.4			25.2
Income (loss) per common share — basic and diluted:
Continuing operations	$	(30.30	)	$	(101.56	)	$	(87.12	)	$	285.70
Discontinued operations		—			(7.81	)		—			(19.83	)
Net income (loss)	$	(30.30	)	$	(109.37	)	$	(87.12	)	$	265.87
Anti-dilutive shares excluded from calculation		0.0			0.0			0.0			0.0

8

Note 4 — Discontinued Operations

On December 30, 2021, the Company completed the disposition of its entire interest in Sport-BLX. The operating results for the Sports Technology Platform are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to the business that were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In millions)	2022		2021			2022		2021
Net revenue	$	—	$	—		$	—	$	—
Operating expenses:
Selling, general and administrative		—		0.5			—		1.0
Restructuring and other		—		(0.3	)		—		(0.7	)
Total operating expenses		—		0.2			—		0.3
Operating loss from discontinued operations		—		(0.2	)		—		(0.3	)
Other income (expense)		—		—			—		(0.2	)
Loss from discontinued operations, before income taxes		—		(0.2	)		—		(0.5	)
Income tax		—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(0.2	)	$	—	$	(0.5	)

Restructuring and other includes the net loss attributable to the noncontrolling interest of $0.3 million and $0.7 million for the three and nine months ended September 30, 2021, respectively, which was reclassified to discontinued operations due to the sale of the Sports Technology Platform.

Note 5 — Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follows:

Total assets as of September 30, 2022 and December 31, 2021 include a $12.8 million investment in Arrive LLC (“Arrive”). Historically, we accounted for such investments 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 September 30, 2022, there were no indicators of impairment for this investment. The Company will assess the investment for potential impairment, quarterly.

Other assets as of September 30, 2022 and December 31, 2021 include a separate investment in Arrive of $0.4 million and $0.2 million, respectively. The Company uses the same method of accounting for this investment as its other investment in Arrive, described in the prior paragraph.

Other current liabilities, as of September 30, 2022 and December 31, 2021, include accruals for payroll expense of $0.2 million and insurance and corporate liability accruals of $0.2 million.

9

Note 6 — Debt

Debt and notes payable consists of the following:

	September 30,
	2022		December 31,
	(unaudited)		2021
	(In millions)
GHI LLC note payable	$	3.6	$	3.4
Other liabilities		0.2		0.2
Total long term debt	$	3.8	$	3.6

The Company entered into a Term Loan and Security Agreement (“GHI Loan Agreement”) with Gazellek Holdings I, LLC (“GHI LLC”), pursuant to which GHI LLC lent $3,450,000 to the Company on August 6, 2021. The loan bears in-kind interest, quarterly, at the annual rate of 7%, which has the effect of compounding the interest and adding it to the principal amount. The loan is secured by substantially all of the Company’s assets and those of all of its subsidiaries, which are required to guarantee the loan, and matures August 2, 2024.

The Company is required to prepay the loan upon receiving proceeds from future indebtedness exceeding $5,000,000 (other than indebtedness that is junior to the loan), or if the Company issues any capital stock (provided that the Company is allowed to retain up to 20% of the proceeds from such issuance). The GHI Loan Agreement contains customary representations and warranties, covenants and events of default. Upon the occurrence of an event of default, the loan bears interest at a rate 5% above the then-effective interest rate and, at GHI LLC’s option, is payable either in cash or in cash and shares of Company common stock, valued at market, equal to up to 10% of the outstanding principal amount of the loan. A default fee equal to 0.5% of the outstanding principal applies if any default exists for 10 days or more.

Scheduled maturities of the Company’s long-term debt, as they exist as of September 30, 2022, in each of the next five fiscal years and thereafter are as follows:

Fiscal years ending in	(in millions)
2022	$	—
2023		0.2
2024		3.6
2025		—
2026		—
2027 and thereafter		—
Total	$	3.8

Note 7 — Stock-Based Compensation

We have stock-based compensation awards consisting of stock options under the 2011 Incentive Plan, which is described in detail in our Annual Report on Form 10-K for the year ended December 31, 2021. As of September 30, 2022, there are no remaining shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan. The Company did not have any stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021.

10

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2021		1,360	$	106.00
Outstanding September 30, 2022		1,360	$	106.00
Exercisable as of September 30, 2022		1,360	$	106.00

As of September 30, 2022, options to purchase 1,360 shares are outstanding and 1,360 shares are exercisable, and the aggregate intrinsic value of all outstanding stock options was $0.0 million. No options were granted or exercised during the three months or nine months ended September 30, 2022.

As of September 30, 2022, unrecognized compensation expense related to outstanding stock options was immaterial.

Note 8 — Income Taxes

For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax income (loss), excluding unusual or infrequently occurring discrete items. For the three months ended September 30, 2022, we recorded income tax from continuing operations of $0.0 million, on a loss of $0.8 million. For the three months ended September 30, 2021, we recorded income tax from continuing operations of $0.0 million on a loss of $2.6 million. The effective income tax rate for the three months ended September 30, 2022 differs from the U.S. federal statutory rate of 21% primarily due to a valuation allowance on various deferred tax assets.

The Company received an income tax refund in February 2021 of approximately $0.6 million related to the Tax Reform Act’s elimination of corporate alternative minimum tax and the ability to receive refunds of AMT credit carryovers. This was the final AMT credit refund due to the Company, as $1.6 million of the total $2.2 million tax benefit recorded in 2017 through 2018 had already been received in prior years.

We file income tax returns in multiple jurisdictions that are subject to review by various U.S and state taxing authorities. Our U.S. federal income tax returns for 2018 through 2021, and certain state returns from 2016 to present, are open to examination.

Note 9 — Shareholders’ Equity

Treasury Stock

On November 14, 2016, our Board authorized a share repurchase program under which we may repurchase up to 2,500 shares of common stock, from time to time, using a variety of methods, which may include open market transactions and privately negotiated transactions.

The Company did not purchase any shares during the three and nine months ended September 30, 2022. Since the November 14, 2016 authorization, we have repurchased 780 shares of common stock for $0.3 million, and, as of September 30, 2022, we had remaining authorization to repurchase 1,720 additional shares.

As of September 30, 2022 and December 31, 2021, the Company has 2,927 shares of treasury stock, acquired at an average price of $8,496.47 per share.

11

Stock Warrants

In connection with the GHI Loan Agreement, the Company issued to GHI LLC, for $120,000, a Common Stock Purchase Warrant entitling GHI LLC to purchase 4.8% of GLAE’s outstanding common stock, at the price of $0.01 per share, and a second Common Stock Purchase Warrant entitling GHI LLC to purchase 5.2% of GLAE’s outstanding common stock, at the price of $169.62 per share. The second warrant is automatically canceled if the Company consummates a Sale Transaction that is sourced other than by GHI LLC or its affiliates. A “Sale Transaction” is a merger, consolidation, combination or similar transaction (in one or a series of related transactions), such that the beneficial owners of shares of Company common stock immediately prior to the transaction or transactions will, immediately after such transaction or transactions, beneficially own less than a majority of the shares of common stock or outstanding equity of the surviving corporation (on a fully diluted basis). Each warrant expires August 2, 2026, is exercisable net of proceeds received; entitles its holder to receive certain distributions on the Company’s common stock, as if the warrant had been exercised; and bears registration rights respecting the underlying common stock. The first warrant purports to give its holder voting rights, as if the warrant had been exercised. The sale was exempt from registration under the Securities Act pursuant to Sec. 4(a)(2), as not involving any public offering, because no general solicitation was involved, and GHI LLC is an accredited professional investor, which agreed to accept restricted securities. See Note 6 – Debt for more information on the GHI Loan Agreement.

Note 10 — Segment Information

As of September 30, 2022, the asset management business is our only reportable segment.

We evaluate segment performance based on revenue and operating loss. The operating loss reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. The corporate and unallocated operating loss includes costs that are not allocated to the business segments in management’s evaluation of segment performance, such as litigation settlement expense, corporate expense and other expenses.

Net revenue, operating loss from operations and assets by segment were as follows (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2022			2021			2022			2021
Net revenue
Asset management business	$	—		$	—		$	—		$	—
Total net revenue		—			—			—			—
Operating loss from operations
Asset management business		(0.4	)		—			(1.1	)		(2.0	)
Total segment operating loss		(0.4	)		—			(1.1	)		(2.0	)
Corporate and unallocated		(0.3	)		(2.8	)		(1.2	)		(3.5	)
Total operating loss		(0.7	)		(2.8	)		(2.3	)		(5.5	)
Interest expense		(0.1	)		(0.2	)		(0.2	)		(1.9	)
Gain on Chapter 11 reorganization		—			—			—			13.8
Bank Loan forgiveness		—			—			—			0.4
Other income, net		—			0.4			0.2			0.4
Income (loss) from continuing operations before income taxes	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2

	September 30,
	2022		December 31,
(In millions)	(unaudited)		2021
Assets
Asset management business	$	13.4	$	13.2
Total segment assets		13.4		13.2
Corporate and unallocated		1.9		4.0
Total consolidated assets	$	15.3	$	17.2

12

Note 11 — Litigation, Commitments and Contingencies

In an action removed, on February 14, 2022, from New York Supreme Court to the Southern District of New York, Cypress Holdings, III L.P. v. Sport-BLX, Inc. et al., 1:22-cv-01243-LGS (S.D.N.Y.), plaintiff Cypress Holdings, III L.P. purports to assert claims against SportBLX, Mr. Hall, and Mr. De Perio for securities fraud and related issues and seeks compensatory damages, punitive damages and attorneys’ fees, in connection with solicitations of investments in SportBLX. Plaintiff also purports to allege that the Company is liable for unjust enrichment and tortious interference with contract. Defendants filed motions seeking to disqualify Plaintiff’s counsel, which were granted.

Plaintiff subsequently obtained new counsel and has indicated its intention to amend its complaint, purporting to add claims against the Company for aiding and abetting a breach of fiduciary duty and minority shareholder oppression. The Company intends to defend this matter vigorously and its motion to dismiss the causes of action asserted against it will be forthcoming.

As of September 30, 2022, the Company believes that an outcome resulting in a loss is remote and does not have any accruals related to the matter.

Indemnification Obligations

In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a supportable third-party claim. There has historically been no material losses related to such indemnifications. As of September 30, 2022 and December 31, 2021, estimated liability amounts associated with such indemnifications were not material.

Environmental Matters

Our legacy business operations and indemnification obligations resulting from our spinoff from 3M Company (“3M”) subject us to liabilities arising from a wide range of federal, state and local environmental laws. For example, from time to time we have received correspondence from 3M notifying us that we may have a duty to defend and indemnify 3M with respect to certain environmental claims such as remediation costs. Environmental remediation costs are accrued when a probable liability has been determined and the amount of such liability has been reasonably estimated. These accruals are reviewed periodically as remediation and investigatory activities proceed and are adjusted accordingly. We did not have any environmental accruals as of September 30, 2022. Compliance with environmental regulations has not had a material adverse effect on our financial results.

Note 12 — Related Party Transactions

On July 31, 2021, George E. Hall and Joseph A. De Perio agreed to accept $2,354,736 and $1,060,264, respectively, from the Company in satisfaction of its obligations arising from a stock purchase agreement in the amounts of $12,116,718 and $5,455,782, respectively. The obligations were due December 12, 2022 and bore interest at a 5% annual rate. Accordingly, GLAE’s obligations in the amounts of $12,116,718 and $5,455,782 have been paid in full.

Also on July 31, 2021, as part of the settlement of the stock purchase agreement, the Company assigned obligations owed to it from SportBLX, totaling $4,176,102.11, to Fintech Debt Corp (“FDC”), which is controlled by George E. Hall, the owner of 30.1% of the Company’s outstanding stock, and Joseph A. De Perio, a director, for $400,000.

The net gain on the settlement of the stock purchase agreement and the assignment of obligations to FDC were related party gains, and, as such, were recorded as equity transactions in the Condensed Consolidated Balances Sheets, rather than recognized as income in the Condensed Consolidated Statements of Operations.

On December 30, 2021, the Company completed a series of transactions for the purpose of disposing of its interest in SportBLX, described below:

● On December 21, 2021, SportBLX sold proprietary code to S-BLX Securities, which is controlled by Messrs. Hall and De Perio, for $225,000.

● On December 24, 2021, SportBLX repurchased $1,500,000 of its debt from FDC for $126,404.

● Finally, on December 30, 2021, the Company completed the disposition of its entire interest in SportBLX, selling all of its shares to FDC for $137,038.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements and Risk Factors

We may from time to time make written or oral forward-looking statements with respect to our future goals, including statements contained in this Form 10-Q, in our other filings with the SEC and in our reports to shareholders.

Certain information which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include information concerning the launch of our asset management business and related investment vehicles, strategic initiatives and potential acquisitions, the results of operations of our existing business lines, the impact of legal or regulatory matters on our business, as well as other actions, strategies and expectations, and are identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions. Such statements are subject to a wide range of risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include various factors set forth from time to time in our filings with the SEC including the following: our need for substantial additional capital in order to fund our business; our ability to realize the anticipated benefits of our restructuring plan and other recent significant changes; significant costs relating to pending and future litigation; our ability to attract and retain talented personnel; the structure or success of our participation in any joint investments; risks associated with any future acquisition or business opportunities; our need to consume resources in researching acquisitions, business opportunities or financings and capital market transactions; our ability to integrate additional businesses or technologies; the impact of our reverse stock split on the market trading liquidity of our common stock; the market price volatility of our common stock; our need to incur asset impairment charges for intangible assets; significant changes in discount rates, rates of return on pension assets and mortality tables; our reliance on aging information systems and our ability to protect those systems against security breaches; our ability to integrate accounting systems; changes in tax guidance and related interpretations and inspections by tax authorities; our ability to raise capital from third party investors for our asset management business; our ability to comply with extensive regulations relating to the launch and operation of our asset management business; our ability to compete in the intensely competitive asset management business; the performance of any investment funds we sponsor or accounts we manage; difficult market and economic conditions, including changes in interest rates and volatile equity and credit markets; our ability to achieve steady earnings growth on a quarterly basis in our asset management business; the significant demands placed on our resources and employees, and associated increases in expenses, risks and regulatory oversight, resulting from the potential growth of our asset management business; our ability to establish a favorable reputation for our asset management business; the lack of operating history of our asset manager subsidiary and any funds that we may sponsor; our ability to develop and deliver differentiated and innovative products as well as various factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, and from time to time in our filings with the SEC.

Overview

GlassBridge Enterprises, Inc. (“GlassBridge”, the “Company”, “we”, “us” or “our”) owns and operates an asset management business. We actively explore a diverse range of new, strategic asset management business opportunities for our portfolio.

In January 2021, Adara Enterprises, Corp. (“Adara” or “AEC”), a subsidiary of the Company, received notice from ESW Holdings, Inc. (“ESW”) that Adara had defaulted on its obligation to pay at maturity, i.e., on January 20, 2021, $11,000,000 in principal and all other amounts due to ESW under a Loan and Security Agreement (“ESW Loan Agreement”). Pursuant to the ESW Loan Agreement, AEC gave to ESW a security interest in all of AEC’s assets, and GlassBridge pledged to ESW all of GlassBridge’s AEC stock and 30% of GlassBridge’s SportBLX stock. The ESW Loan Agreement provided that, upon AEC’s default, AEC may elect to cooperate with ESW to effect a prearranged reorganization of AEC in bankruptcy, pursuant to which ESW would acquire all equity in AEC, as reorganized, and indirectly certain of AEC’s assets, most notably, property and equipment consisting of quantitative trading software, as well as deferred tax assets resulting from AEC’s net operating losses. In the ESW Loan Agreement, ESW agreed to provide $8.5 million to the bankruptcy estate to cover costs of administering the AEC bankruptcy case and to satisfy the claims of valid creditors, with any residual funds to be paid to GlassBridge. The $8.5 million was to be paid upon the effectiveness of AEC’s Chapter 11 plan (less any amounts advanced to AEC in the form of a DIP loan) and maintained awaiting outside creditor claims.

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AEC’s prepackaged Chapter 11 plan of reorganization was confirmed at a hearing on June 9, 2021 and became effective on June 15, 2021 (the “Effective Date”). Upon the occurrence of the Effective Date, ESW deposited $8.5 million, less $325,000 that ESW had previously funded in the form of a post-petition debtor-in-possession loan, into a distribution trust established pursuant to AEC’s Chapter 11 plan to fund the costs of administration associated with AEC’s bankruptcy case and to satisfy valid creditor claims. Also on the Effective Date, by order of the Bankruptcy Court, GlassBridge shares of AEC were canceled, and shares in reorganized AEC were issued to ESW and an affiliate. Finally, on the Effective Date, GlassBridge received a release of its guaranty obligations to ESW.

The Company received distributions from the bankruptcy estate totaling $6,594,703 in 2021. The Company received additional distributions of $17,909 during the nine months ended September 30, 2022. There are no funds remaining in the bankruptcy estate and any additional distributions, if any, are expected to be immaterial.

Adara has historically been one of the subsidiaries through which the Company has operated its asset management business. The Company, however, remains committed to its asset management business and holds various investments and assets, including Arrive LLC (“Arrive”), in other subsidiaries.

On December 30, 2021, the Company completed the disposition of its entire interest in SportBLX, selling all of its shares to Fintech Debt Corp (“FDC”) for $137,038. FDC is controlled by George E. Hall, the owner of 30.1% of the Company’s outstanding common stock, and Joseph A. De Perio, a director.

Important Notices and Disclaimers

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to be read in conjunction with our Condensed Consolidated Financial Statements and related Notes that appear elsewhere in this Quarterly Report on Form 10-Q. This MD&A contains forward-looking statements that involve risks and uncertainties. The Company’s actual results could differ materially from those anticipated due to various factors discussed in this MD&A under the caption “Forward-Looking Statements and Risk Factors” and the information contained in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 31, 2022, including in Part 1 Item 1A. Risk Factors of such Annual Report.

This Quarterly Report on Form 10-Q includes tradenames and trademarks owned by us or that we have the right to use. Solely for convenience, the trademarks or tradenames referred to in this Quarterly Report on Form 10-Q may appear without the ® or ™ symbols, but such references are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and tradenames.

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Executive Summary

Consolidated Results of Operations for the Three Months Ended September 30, 2022

● Net revenue from continuing operations was $0.0 million for the three months ended September 30, 2022 and 2021.

● Operating loss from continuing operations was $0.7 million and $2.8 million for the three months ended September 30, 2022 and 2021, respectively.

● Basic and diluted loss per share from continuing operations was $30.30 for the three months ended September 30, 2022, compared with basic and diluted loss per share of $101.56 for the same period last year.

Consolidated Results of Operations for the Nine Months Ended September 30, 2022

● Net revenue from continuing operations was $0.0 million for the nine months ended September 30, 2022 and 2021.

● Operating loss from continuing operations was $2.3 million for the nine months ended September 30, 2022, compared to an operating loss of $5.5 million in the same period last year.

● Basic and diluted loss per share from continuing operations was $87.12 for the nine months ended September 30, 2022, compared with basic and diluted income per share of $285.70 for the same period last year.

Cash Flow/Financial Condition for the Nine Months Ended September 30, 2022

● Cash and cash equivalents totaled $1.9 million at September 30, 2022, compared with $4.1 million at December 31, 2021. The decrease in the cash balance of $2.2 million was primarily due to operating expenses.

Results of Operations

The following discussion relates to continuing operations unless indicated otherwise. “NM” means that the percentage amount is not meaningful.

Net Revenue

		Three Months Ended					Nine Months Ended
		September 30,			Percent		September 30,			Percent
(Dollars in millions)		2022		2021	Change		2022		2021	Change
Net revenue	$	—	$	—	NM	$	—	$	—	—

Net revenue for the three and nine months ended September 30, 2022 and 2021 was $0.0 million.

Selling, General and Administrative (“SG&A”)

	Three Months Ended							Nine Months Ended
	September 30,				Percent			September 30,				Percent
(Dollars in millions)	2022		2021		Change			2022		2021		Change
Selling, general and administrative	$	0.7	$	2.8		(75.0	)%	$	2.3	$	5.2		(55.8	)%
As a percent of revenue		NM		NM					NM		NM

SG&A expense decreased for the three months ended September 30, 2022 by $2.1 million (or 75.0%), compared with the same period last year, primarily due to consulting fees paid to GHI LLC in the prior year.

SG&A expense decreased for the nine months ended September 30, 2022 by $2.9 million (or 55.8%), compared with the same period last year, primarily due to consulting fees paid to GHI LLC and the Chapter 11 reorganization of Adara in the prior year.

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Operating Loss from Continuing Operations

	Three Months Ended									Nine Months Ended
	September 30,						Percent			September 30,						Percent
(Dollars in millions)	2022			2021			Change			2022			2021			Change
Operating loss from continuing operations	$	(0.7	)	$	(2.8	)		(75.0	)%	$	(2.3	)	$	(5.5	)		(58.2	)%
As a percent of revenue		NM			NM						NM			NM

Operating loss from continuing operations was $0.7 million and $2.8 million for the three months ended September 30, 2022 and 2021, respectively. Operating loss from continuing operations decreased by $2.1 million for the three months ended September 30, 2022, compared with the same period last year, primarily due to consulting fees paid to GHI LLC in the prior year.

Operating loss from continuing operations was $2.3 million and $5.5 million for the nine months ended September 30, 2022 and 2021, respectively. Operating loss from continuing operations decreased by $3.2 million for the nine months ended September 30, 2022, compared with the same period last year, primarily due to consulting fees paid to GHI LLC and the Chapter 11 reorganization of Adara in the prior year.

Other Income

	Three Months Ended									Nine Months Ended
	September 30,						Percent			September 30,						Percent
(Dollars in millions)	2022			2021			Change			2022			2021			Change
Interest expense	$	(0.1	)	$	(0.2	)		(50.0	)%	$	(0.2	)	$	(1.9	)		(89.5	)%
Gain on Chapter 11 reorganization		—			—			NM			—			13.8			(100.0	)%
Bank Loan forgiveness		—			—			NM			—			0.4			(100.0	)%
Other income, net		—			0.4			(100.0	)%		0.2			0.4			(50.0	)%
Total other income	$	(0.1	)	$	0.2			(150.0	)%	$	—		$	12.7			(100.0	)%
As a percent of revenue		NM			NM						NM			NM

Total other expense for the three months ended September 30, 2022 was $0.1 million, compared to other income of $0.2 million for the same period last year. Other income for the three months ended September 30, 2021 was primarily related to a duty reimbursement claim from the US Department of the Treasury.

Total other income for the nine months ended September 30, 2022 was $0.0 million, compared to $12.7 million for the same period last year. Other income for the nine months ended September 30, 2021 was primarily related to the gain on the Chapter 11 reorganization and the Bank Loan forgiveness.

Income Tax Provision

	Three Months Ended								Nine Months Ended
	September 30,						Percent		September 30,						Percent
(Dollars in millions)	2022			2021			Change		2022			2021			Change
Income tax benefit (provision)	$	—		$	—			NM	$	—		$	—			NM
Effective tax rate		0.0	%		0.0	%				0.0	%		0.0	%

Income tax for the three and nine months ended September 30, 2022 and 2021 was $0.0 million, due to losses in the period or loss carryovers from prior periods.

Segment Results

The asset management business is our only reportable segment as of September 30, 2022.

We evaluate segment performance based on revenue and operating loss. The operating loss reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include costs that are not allocated to the business segments in management’s evaluation of segment performance, such as litigation settlement expense, corporate expense and other expenses.

17

Information related to our segment is as follows:

Asset Management Business

	Three Months Ended							Nine Months Ended
	September 30,					Percent		September 30,						Percent
(Dollars in millions)	2022			2021		Change		2022			2021			Change
Operating loss	$	(0.4	)	$	—		NM	$	(1.1	)	$	(2.0	)		(45.0	)%

The Company operates its diversified private asset management business through a number of subsidiaries that sponsor our fund offerings. We expect our asset management business to earn revenues primarily by providing investment advisory services to third party investors through our managed funds, as well as separate managed accounts.

Corporate and Unallocated

	Three Months Ended									Nine Months Ended
	September 30,						Percent			September 30,						Percent
(Dollars in millions)	2022			2021			Change			2022			2021			Change
Corporate and unallocated operating loss	$	(0.3	)	$	(2.8	)		(89.3	)%	$	(1.2	)	$	(3.5	)		(65.7	)%

For the three months ended September 30, 2022 and 2021, corporate and unallocated operating loss consists of $0.3 million and $2.8 million, respectively, of corporate general and administrative expenses, representing an 89.3% decrease from the prior year.

For the nine months ended September 30, 2022 and 2021, corporate and unallocated operating loss consists of $1.2 million and $3.5 million of corporate general and administrative expenses, representing a 65.7% decrease from the prior year.

Impact of Changes in Foreign Currency Rates

The impact of changes in foreign currency exchange rates to worldwide revenue was immaterial for the three and nine months ended September 30, 2022.

Financial Position

Our cash and cash equivalents balance as of September 30, 2022 was $1.9 million, compared to $4.1 million as of December 31, 2021.

Our accounts payable balance as of September 30, 2022 was $1.3 million, compared to $1.1 million as of December 31, 2021.

Our other current liabilities balance as of September 30, 2022 and December 31, 2021 was $0.4 million.

18

Liquidity and Capital Resources

Cash Flows Provided by (Used in) Operating Activities:

	Nine Months Ended
	September 30,
(Dollars in millions)	2022			2021
Net income (loss)	$	(2.3	)	$	6.7
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Payment-in-Kind interest		0.2			—
Depreciation and amortization		—			0.3
Change in non-controlling interest		—			(0.7	)
Gain on Chapter 11 reorganization		—			(13.8	)
Bank Loan forgiveness		—			(0.4	)
Loss on sale of investments		—			0.2
Changes in operating assets and liabilities		0.1			3.2
Net cash used in operating activities	$	(2.0	)	$	(4.5	)

Cash used in operating activities was $2.0 million for the nine months ended September 30, 2022, which was related to ordinary operating expenses. Cash used in operating activities was $4.5 million for the nine months ended September 30, 2021, which was primarily related to a consulting agreement signed with GHI LLC and ordinary operating expenses.

Cash Flows Provided by Investing Activities:

	Nine Months Ended
	September 30,
(Dollars in millions)	2022			2021
Purchase of investments	$	(0.2	)	$	—
Proceeds from sale of unsecured claims from related party pursuant to Chapter 11 reorganization		—			0.5
Collection of notes receivable from related party pursuant to Chapter 11 reorganization		—			0.7
Proceeds received for the assignment of related party notes receivable and accrued interest receivable to FDC		—			0.4
Net cash provided by (used in) investing activities	$	(0.2	)	$	1.6

Investing activities for the nine months ended September 30, 2022 included a $0.2 million contribution to the Arrive investment. For the nine months ended September 30, 2021, cash provided by investing activities included the sale of unsecured claims, the collection of notes receivable from related parties pursuant to the Chapter 11 reorganization and proceeds from the assignment of related party notes receivable and accrued interest receivable.

Cash Flows Provided by Financing Activities:

	Nine Months Ended
	September 30,
(Dollars in millions)	2022		2021
Proceeds from ESW debtor-in-possession note payable	$	—	$	0.3
Proceeds from GHI LLC note payable		—		3.2
Repayment of Stock Purchase Agreement Notes Payable		—		(3.4	)
Proceeds from sale of warrants		—		0.2
Proceeds from advance from related party		—		0.1
Advance from bankruptcy trust subject to clawback		—		2.0
Net cash provided by financing activities	$	—	$	2.4

The Company had no cash provided by financing activities for the nine months ended September 30, 2022. Cash provided by financing activities for the nine months ended September 30, 2021 related to proceeds from a debtor-in-possession note payable, the GHI LLC note payable and the sale of warrants, an advance by Mr. Hall to SportBLX and an advance from the bankruptcy trust, subject to clawback, offset by payments to satisfy the stock purchase agreement notes payable.

We have various resources available to us for purposes of managing liquidity and capital needs. Our primary sources of liquidity include our cash and cash equivalents. Our primary liquidity needs relate to funding our operations.

We had $1.9 million cash and cash equivalents on hand as of September 30, 2022.

We expect that our cash, in addition to asset monetization, will provide liquidity sufficient to meet our needs for our operations and our obligations. We also plan to raise additional capital if necessary, although no assurance can be made that we will be able to secure such financing, if needed, on favorable terms or at all.

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Off Balance Sheet Arrangements

As of September 30, 2022, we did not have any material off-balance sheet arrangements.

Critical Accounting Policies and Estimates

A discussion of the Company’s critical accounting policies was provided in Part II — Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Recent Accounting Pronouncements

See Note 2 - New Accounting Pronouncements in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1, herein, for further information.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide the information required under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Based on an evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of September 30, 2022, the end of the period covered by this report, the Chief Executive Officer, Daniel Strauss, and the Chief Financial Officer, Francis Ruchalski, have concluded that the disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of September 30, 2022, based on the guidelines established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO 2013). Our internal control over financial reporting includes policies and procedures that provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with U.S. generally accepted accounting principles. During the quarter ended September 30, 2022, management concluded there was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(e) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 11 - Litigation, Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein for further information regarding our legal proceedings.

The Company is subject to various lawsuits, claims and other legal matters that arise in the ordinary course of conducting business (including litigation relating to our legacy businesses and discontinued operations). All such matters involve uncertainty and, accordingly, outcomes that cannot be predicted with assurance. As of September 30, 2022, we are unable to estimate with certainty the ultimate aggregate amount of monetary liability or financial impact that we may incur with respect to these matters. It is reasonably possible that the ultimate resolution of these matters, individually or in the aggregate, could materially affect our financial condition, results of the operations and cash flows. Similarly, the Company is the plaintiff in a number of matters in the United States and elsewhere where the potential outcomes could be materially beneficial to the Company. These outcomes are also uncertain.

Item 1A. Risk Factors.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide the information required under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

The following documents are filed as part of, or incorporated by reference into, this report:

Exhibit Number	Description of Exhibit
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from GlassBridge Enterprises, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2022, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) the Notes to Condensed Consolidated Financial Statements.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		GLASSBRIDGE ENTERPRISES, INC.
Date:	November 14, 2022	By:	/s/ Francis Ruchalski
		Name:	Francis Ruchalski
		Title:	Chief Financial Officer
			(duly authorized officer and principal financial officer)

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EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

I, Daniel Strauss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of GlassBridge Enterprises, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a -15(e) and 15d -15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2022

By:	/s/ Daniel Strauss
	Daniel Strauss,
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

I, Francis Ruchalski, certify that:

1. I have reviewed this quarterly report on Form 10-Q of GlassBridge Enterprises, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a -15(e) and 15d -15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:

(e) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(f) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(g) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(h) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(c) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(d) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2022

By:	/s/ Francis Ruchalski
	Francis Ruchalski,
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of GlassBridge Enterprises, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), I, Daniel Strauss, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 14, 2022

By:	/s/ Daniel Strauss
	Daniel Strauss,
	Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of GlassBridge Enterprises, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), I, Francis Ruchalski, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 14, 2022

By:	/s/ Francis Ruchalski
	Francis Ruchalski,
	Chief Financial Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 11, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	1-14310
Entity Registrant Name	GLASSBRIDGE ENTERPRISES, INC.
Entity Central Index Key	0001014111
Entity Tax Identification Number	41-1838504
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	18 East 50th Street
Entity Address, Address Line Two	FL7
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	(212)
Local Phone Number	220-3300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,170

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net revenue
Operating expenses:
Selling, general and administrative	0.7	2.8	2.3	5.2
Restructuring and other				0.3
Total operating expenses	0.7	2.8	2.3	5.5
Operating loss from continuing operations	(0.7)	(2.8)	(2.3)	(5.5)
Other income (expense):
Interest expense	(0.1)	(0.2)	(0.2)	(1.9)
Gain on Chapter 11 reorganization				13.8
Bank Loan forgiveness				0.4
Other income (expense), net		0.4	0.2	0.4
Total other income (expense)	(0.1)	0.2		12.7
Income (loss) from continuing operations before income taxes	(0.8)	(2.6)	(2.3)	7.2
Income (loss) from continuing operations	(0.8)	(2.6)	(2.3)	7.2
Net income(loss) from continuing operations	(0.8)	(2.6)	(2.3)	7.2
Discontinued Operations:
Loss from discontinued operations, net of income taxes		(0.2)		(0.5)
Loss from discontinued businesses, net of income taxes		(0.2)		(0.5)
Net income (loss)	$ (0.8)	$ (2.8)	$ (2.3)	$ 6.7
Net income (loss) per common share — basic and diluted:
Continuing operations	$ (30.30)	$ (101.56)	$ (87.12)	$ 285.70
Discontinued operations		(7.81)		(19.83)
Net income (loss)	$ (30.30)	$ (109.37)	$ (87.12)	$ 265.87
Weighted average common shares outstanding:
Basic and diluted (thousands)	26,400	25,600	26,400	25,200

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1.9	$ 4.1
Accounts receivable, net	0.1	0.1
Total current assets	2.0	4.2
Arrive (See Note 5 – Supplemental Balance Sheet Information)	12.8	12.8
Other assets and other investments	0.5	0.2
Total assets	15.3	17.2
Current liabilities:
Accounts payable	1.3	1.1
Other current liabilities	0.4	0.4
Total current liabilities	1.7	1.5
GHI LLC note payable (See Note 6 – Debt)	3.6	3.4
Other liabilities	0.2	0.2
Total liabilities	5.5	5.1
Shareholders’ equity:
Preferred stock, $.01 par value, authorized 200,000 shares, none issued and outstanding
Common stock, $.01 par value, authorized 50,000, 28,097 issued at September 30, 2022; 28,097 issued at December 31, 2021
Additional paid-in capital	1,073.0	1,073.0
Accumulated deficit	(1,038.3)	(1,036.0)
Treasury stock, at cost: 2,927 shares at September 30, 2022; 2,927 shares at December 31, 2021	(24.9)	(24.9)
Total shareholders’ equity	9.8	12.1
Total liabilities and shareholders’ equity	$ 15.3	$ 17.2

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	28,097	28,097

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Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - USD ($) $ in Millions	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2020		$ 1,059.6	$ (1,065.0)	$ (24.9)	$ 22.7	$ (7.6)
Beginning balance, shares at Dec. 31, 2020	28,097			2,927
Net income (loss)			6.7		(0.7)	6.0
Sale of warrants		0.2				0.2
Extinguishment of Stock Purchase Agreement Notes Payable		10.0				10.0
Ending balance, value at Sep. 30, 2021		1,069.8	(1,058.3)	$ (24.9)	22.0	8.6
Ending balance, shares at Sep. 30, 2021	28,097			2,927
Beginning balance, value at Dec. 31, 2021		1,073.0	(1,036.0)	$ (24.9)		12.1
Beginning balance, shares at Dec. 31, 2021	28,097			2,927
Net income (loss)		(2.3)
Ending balance, value at Sep. 30, 2022		$ 1,073.0	$ (1,038.3)	$ (24.9)		$ 9.8
Ending balance, shares at Sep. 30, 2022	28,097			2,927

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net income (loss)	$ (2.3)	$ 6.7
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Payment-in-Kind interest	0.2
Depreciation and amortization		0.3
Change in non-controlling interest		(0.7)
Gain on Chapter 11 reorganization		(13.8)
Bank Loan forgiveness		(0.4)
Loss on sale of investments		0.2
Changes in operating assets and liabilities	0.1	3.2
Net cash used in operating activities	(2.0)	(4.5)
Cash Flows from Investing Activities:
Purchase of investments	(0.2)
Proceeds from sale of unsecured claims from related party pursuant to Chapter 11 reorganization		0.5
Collection of notes receivable from related party pursuant to Chapter 11 reorganization		0.7
Proceeds received for the assignment of related party notes receivable and accrued interest receivable to Fintech Debt Corp		0.4
Net cash provided by (used in) investing activities	(0.2)	1.6
Cash Flows from Financing Activities:
Proceeds from ESW debtor-in-possession note payable		0.3
Proceeds from GHI LLC note payable		3.2
Repayment of Stock Purchase Agreement Notes Payable		(3.4)
Proceeds from sale of warrants		0.2
Proceeds from advance from related party		0.1
Advance from bankruptcy trust subject to clawback		2.0
Net cash provided by financing activities		2.4
Net change in cash and cash equivalents	(2.2)	(0.5)
Cash, cash equivalents and restricted cash — beginning of period	4.1	1.8
Cash, cash equivalents and restricted cash — end of period	1.9	1.3
Supplemental disclosures of cash paid (received) during the period:
Income taxes (net of refunds received)		(0.6)
Interest expense	0.1	0.6
Non-cash investing and financing activities during the period:
Extinguishment of ESW note payable in Chapter 11 reorganization		(11.0)
Extinguishment of debtor-in-possession loan in Chapter 11 reorganization		(0.3)
Forgiveness of Bank Loan		(0.4)
Extinguishment of Stock Purchase Agreement Notes Payable		(14.2)
Recognition of related party debt and accrued interest payable to Fintech Debt Corp.		4.6
Total non-cash investing and financing activities during the period		$ 21.3

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Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1 — Basis of Presentation

GlassBridge Enterprises, Inc. (“GlassBridge”, the “Company”, “we”, “us” or “our”) owns and operates an asset management business through various subsidiaries.

The interim Condensed Consolidated Financial Statements of GlassBridge are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal and recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes presented in accordance with the requirements of Annual Reports on Form 10-K.

The interim Condensed Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and entities in which the Company owns or controls fifty percent or more of the voting shares or interest in such entity, and has the right to control. The results of entities disposed of are included in the unaudited Condensed Consolidated Financial Statements up to the date of the disposal and, where appropriate, these operations have been reflected as discontinued operations. All inter-company balances and transactions have been eliminated in consolidation and, in the opinion of management, all adjustments necessary for a fair presentation have been included in the interim results reported.

The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

The December 31, 2021 Condensed Consolidated Balance Sheet data were derived from the audited Consolidated Financial Statements, but do not include all disclosures required by GAAP. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission on March 31, 2022.

The Company completed the disposition of its entire interest in SportBLX on December 30, 2021, and the operating results of the Sports Technology Platform are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented. Our continuing operations for each period presented represents our asset management business as well as corporate expenses. Assets and liabilities directly associated with our legacy businesses and Nexsan business and that are not part of our ongoing operations are included in other assets and other investments.

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New Accounting Pronouncements

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

New Accounting Pronouncements

Note 2 — New Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be not applicable to the Company’s consolidated results of operations and financial condition.

Adoption of New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans, which makes minor changes to the disclosure requirements related to defined benefit pension and other postretirement plans. The ASU requires a retrospective transition approach. For the Company, the ASU was effective as of January 1, 2021. As this ASU relates only to disclosures, there was no impact to the Company’s consolidated results of operations and financial condition.

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Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Income (Loss) per Common Share

Note 3 —Income (Loss) per Common Share

Basic income per common share is calculated using the weighted average number of shares outstanding for the period. Unvested restricted stock and treasury shares are excluded from the calculation of weighted average number of common shares outstanding in all cases. Once restricted stock vests, it is included in our common shares outstanding.

Diluted income per common share is computed on the basis of the weighted average shares outstanding plus the dilutive effect of our stock-based compensation plans, using the “treasury stock” method. Since the exercise price of our stock options is greater than the average market price of the Company’s common stock for the period, we did not include dilutive common equivalent shares for these instruments in the computation of diluted net income per share because the effect would have been anti-dilutive.

The following table sets forth the computation of weighted average basic and diluted income per share (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in millions, except for per share amounts)	2022			2021			2022			2021
Numerator:
Income (loss) from continuing operations	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2
Loss from discontinued operations		—			(0.2	)		—			(0.5	)
Net income (loss)	$	(0.8	)	$	(2.8	)	$	(2.3	)	$	6.7
Denominator:
Weighted average number of common shares outstanding during the period - basic and diluted (in thousands)		26.4			25.6			26.4			25.2
Income (loss) per common share — basic and diluted:
Continuing operations	$	(30.30	)	$	(101.56	)	$	(87.12	)	$	285.70
Discontinued operations		—			(7.81	)		—			(19.83	)
Net income (loss)	$	(30.30	)	$	(109.37	)	$	(87.12	)	$	265.87
Anti-dilutive shares excluded from calculation		0.0			0.0			0.0			0.0

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Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 4 — Discontinued Operations

On December 30, 2021, the Company completed the disposition of its entire interest in Sport-BLX. The operating results for the Sports Technology Platform are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to the business that were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In millions)	2022		2021			2022		2021
Net revenue	$	—	$	—		$	—	$	—
Operating expenses:
Selling, general and administrative		—		0.5			—		1.0
Restructuring and other		—		(0.3	)		—		(0.7	)
Total operating expenses		—		0.2			—		0.3
Operating loss from discontinued operations		—		(0.2	)		—		(0.3	)
Other income (expense)		—		—			—		(0.2	)
Loss from discontinued operations, before income taxes		—		(0.2	)		—		(0.5	)
Income tax		—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(0.2	)	$	—	$	(0.5	)

Restructuring and other includes the net loss attributable to the noncontrolling interest of $0.3 million and $0.7 million for the three and nine months ended September 30, 2021, respectively, which was reclassified to discontinued operations due to the sale of the Sports Technology Platform.

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Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information

Note 5 — Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follows:

Total assets as of September 30, 2022 and December 31, 2021 include a $12.8 million investment in Arrive LLC (“Arrive”). Historically, we accounted for such investments 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 September 30, 2022, there were no indicators of impairment for this investment. The Company will assess the investment for potential impairment, quarterly.

Other assets as of September 30, 2022 and December 31, 2021 include a separate investment in Arrive of $0.4 million and $0.2 million, respectively. The Company uses the same method of accounting for this investment as its other investment in Arrive, described in the prior paragraph.

Other current liabilities, as of September 30, 2022 and December 31, 2021, include accruals for payroll expense of $0.2 million and insurance and corporate liability accruals of $0.2 million.

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Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 6 — Debt

Debt and notes payable consists of the following:

	September 30,
	2022		December 31,
	(unaudited)		2021
	(In millions)
GHI LLC note payable	$	3.6	$	3.4
Other liabilities		0.2		0.2
Total long term debt	$	3.8	$	3.6

The Company entered into a Term Loan and Security Agreement (“GHI Loan Agreement”) with Gazellek Holdings I, LLC (“GHI LLC”), pursuant to which GHI LLC lent $3,450,000 to the Company on August 6, 2021. The loan bears in-kind interest, quarterly, at the annual rate of 7%, which has the effect of compounding the interest and adding it to the principal amount. The loan is secured by substantially all of the Company’s assets and those of all of its subsidiaries, which are required to guarantee the loan, and matures August 2, 2024.

The Company is required to prepay the loan upon receiving proceeds from future indebtedness exceeding $5,000,000 (other than indebtedness that is junior to the loan), or if the Company issues any capital stock (provided that the Company is allowed to retain up to 20% of the proceeds from such issuance). The GHI Loan Agreement contains customary representations and warranties, covenants and events of default. Upon the occurrence of an event of default, the loan bears interest at a rate 5% above the then-effective interest rate and, at GHI LLC’s option, is payable either in cash or in cash and shares of Company common stock, valued at market, equal to up to 10% of the outstanding principal amount of the loan. A default fee equal to 0.5% of the outstanding principal applies if any default exists for 10 days or more.

Scheduled maturities of the Company’s long-term debt, as they exist as of September 30, 2022, in each of the next five fiscal years and thereafter are as follows:

Fiscal years ending in	(in millions)
2022	$	—
2023		0.2
2024		3.6
2025		—
2026		—
2027 and thereafter		—
Total	$	3.8

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 7 — Stock-Based Compensation

We have stock-based compensation awards consisting of stock options under the 2011 Incentive Plan, which is described in detail in our Annual Report on Form 10-K for the year ended December 31, 2021. As of September 30, 2022, there are no remaining shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan. The Company did not have any stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021.

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2021		1,360	$	106.00
Outstanding September 30, 2022		1,360	$	106.00
Exercisable as of September 30, 2022		1,360	$	106.00

As of September 30, 2022, options to purchase 1,360 shares are outstanding and 1,360 shares are exercisable, and the aggregate intrinsic value of all outstanding stock options was $0.0 million. No options were granted or exercised during the three months or nine months ended September 30, 2022.

As of September 30, 2022, unrecognized compensation expense related to outstanding stock options was immaterial.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 8 — Income Taxes

For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax income (loss), excluding unusual or infrequently occurring discrete items. For the three months ended September 30, 2022, we recorded income tax from continuing operations of $0.0 million, on a loss of $0.8 million. For the three months ended September 30, 2021, we recorded income tax from continuing operations of $0.0 million on a loss of $2.6 million. The effective income tax rate for the three months ended September 30, 2022 differs from the U.S. federal statutory rate of 21% primarily due to a valuation allowance on various deferred tax assets.

The Company received an income tax refund in February 2021 of approximately $0.6 million related to the Tax Reform Act’s elimination of corporate alternative minimum tax and the ability to receive refunds of AMT credit carryovers. This was the final AMT credit refund due to the Company, as $1.6 million of the total $2.2 million tax benefit recorded in 2017 through 2018 had already been received in prior years.

We file income tax returns in multiple jurisdictions that are subject to review by various U.S and state taxing authorities. Our U.S. federal income tax returns for 2018 through 2021, and certain state returns from 2016 to present, are open to examination.

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Shareholders’ Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Shareholders’ Equity

Note 9 — Shareholders’ Equity

Treasury Stock

On November 14, 2016, our Board authorized a share repurchase program under which we may repurchase up to 2,500 shares of common stock, from time to time, using a variety of methods, which may include open market transactions and privately negotiated transactions.

The Company did not purchase any shares during the three and nine months ended September 30, 2022. Since the November 14, 2016 authorization, we have repurchased 780 shares of common stock for $0.3 million, and, as of September 30, 2022, we had remaining authorization to repurchase 1,720 additional shares.

As of September 30, 2022 and December 31, 2021, the Company has 2,927 shares of treasury stock, acquired at an average price of $8,496.47 per share.

Stock Warrants

In connection with the GHI Loan Agreement, the Company issued to GHI LLC, for $120,000, a Common Stock Purchase Warrant entitling GHI LLC to purchase 4.8% of GLAE’s outstanding common stock, at the price of $0.01 per share, and a second Common Stock Purchase Warrant entitling GHI LLC to purchase 5.2% of GLAE’s outstanding common stock, at the price of $169.62 per share. The second warrant is automatically canceled if the Company consummates a Sale Transaction that is sourced other than by GHI LLC or its affiliates. A “Sale Transaction” is a merger, consolidation, combination or similar transaction (in one or a series of related transactions), such that the beneficial owners of shares of Company common stock immediately prior to the transaction or transactions will, immediately after such transaction or transactions, beneficially own less than a majority of the shares of common stock or outstanding equity of the surviving corporation (on a fully diluted basis). Each warrant expires August 2, 2026, is exercisable net of proceeds received; entitles its holder to receive certain distributions on the Company’s common stock, as if the warrant had been exercised; and bears registration rights respecting the underlying common stock. The first warrant purports to give its holder voting rights, as if the warrant had been exercised. The sale was exempt from registration under the Securities Act pursuant to Sec. 4(a)(2), as not involving any public offering, because no general solicitation was involved, and GHI LLC is an accredited professional investor, which agreed to accept restricted securities. See Note 6 – Debt for more information on the GHI Loan Agreement.

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Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 10 — Segment Information

As of September 30, 2022, the asset management business is our only reportable segment.

We evaluate segment performance based on revenue and operating loss. The operating loss reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. The corporate and unallocated operating loss includes costs that are not allocated to the business segments in management’s evaluation of segment performance, such as litigation settlement expense, corporate expense and other expenses.

Net revenue, operating loss from operations and assets by segment were as follows (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2022			2021			2022			2021
Net revenue
Asset management business	$	—		$	—		$	—		$	—
Total net revenue		—			—			—			—
Operating loss from operations
Asset management business		(0.4	)		—			(1.1	)		(2.0	)
Total segment operating loss		(0.4	)		—			(1.1	)		(2.0	)
Corporate and unallocated		(0.3	)		(2.8	)		(1.2	)		(3.5	)
Total operating loss		(0.7	)		(2.8	)		(2.3	)		(5.5	)
Interest expense		(0.1	)		(0.2	)		(0.2	)		(1.9	)
Gain on Chapter 11 reorganization		—			—			—			13.8
Bank Loan forgiveness		—			—			—			0.4
Other income, net		—			0.4			0.2			0.4
Income (loss) from continuing operations before income taxes	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2

	September 30,
	2022		December 31,
(In millions)	(unaudited)		2021
Assets
Asset management business	$	13.4	$	13.2
Total segment assets		13.4		13.2
Corporate and unallocated		1.9		4.0
Total consolidated assets	$	15.3	$	17.2

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Litigation, Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Litigation, Commitments and Contingencies

Note 11 — Litigation, Commitments and Contingencies

In an action removed, on February 14, 2022, from New York Supreme Court to the Southern District of New York, Cypress Holdings, III L.P. v. Sport-BLX, Inc. et al., 1:22-cv-01243-LGS (S.D.N.Y.), plaintiff Cypress Holdings, III L.P. purports to assert claims against SportBLX, Mr. Hall, and Mr. De Perio for securities fraud and related issues and seeks compensatory damages, punitive damages and attorneys’ fees, in connection with solicitations of investments in SportBLX. Plaintiff also purports to allege that the Company is liable for unjust enrichment and tortious interference with contract. Defendants filed motions seeking to disqualify Plaintiff’s counsel, which were granted.

Plaintiff subsequently obtained new counsel and has indicated its intention to amend its complaint, purporting to add claims against the Company for aiding and abetting a breach of fiduciary duty and minority shareholder oppression. The Company intends to defend this matter vigorously and its motion to dismiss the causes of action asserted against it will be forthcoming.

As of September 30, 2022, the Company believes that an outcome resulting in a loss is remote and does not have any accruals related to the matter.

Indemnification Obligations

In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a supportable third-party claim. There has historically been no material losses related to such indemnifications. As of September 30, 2022 and December 31, 2021, estimated liability amounts associated with such indemnifications were not material.

Environmental Matters

Our legacy business operations and indemnification obligations resulting from our spinoff from 3M Company (“3M”) subject us to liabilities arising from a wide range of federal, state and local environmental laws. For example, from time to time we have received correspondence from 3M notifying us that we may have a duty to defend and indemnify 3M with respect to certain environmental claims such as remediation costs. Environmental remediation costs are accrued when a probable liability has been determined and the amount of such liability has been reasonably estimated. These accruals are reviewed periodically as remediation and investigatory activities proceed and are adjusted accordingly. We did not have any environmental accruals as of September 30, 2022. Compliance with environmental regulations has not had a material adverse effect on our financial results.

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Related Party Transactions

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Note 12 — Related Party Transactions

On July 31, 2021, George E. Hall and Joseph A. De Perio agreed to accept $2,354,736 and $1,060,264, respectively, from the Company in satisfaction of its obligations arising from a stock purchase agreement in the amounts of $12,116,718 and $5,455,782, respectively. The obligations were due December 12, 2022 and bore interest at a 5% annual rate. Accordingly, GLAE’s obligations in the amounts of $12,116,718 and $5,455,782 have been paid in full.

Also on July 31, 2021, as part of the settlement of the stock purchase agreement, the Company assigned obligations owed to it from SportBLX, totaling $4,176,102.11, to Fintech Debt Corp (“FDC”), which is controlled by George E. Hall, the owner of 30.1% of the Company’s outstanding stock, and Joseph A. De Perio, a director, for $400,000.

The net gain on the settlement of the stock purchase agreement and the assignment of obligations to FDC were related party gains, and, as such, were recorded as equity transactions in the Condensed Consolidated Balances Sheets, rather than recognized as income in the Condensed Consolidated Statements of Operations.

On December 30, 2021, the Company completed a series of transactions for the purpose of disposing of its interest in SportBLX, described below:

● On December 21, 2021, SportBLX sold proprietary code to S-BLX Securities, which is controlled by Messrs. Hall and De Perio, for $225,000.

● On December 24, 2021, SportBLX repurchased $1,500,000 of its debt from FDC for $126,404.

● Finally, on December 30, 2021, the Company completed the disposition of its entire interest in SportBLX, selling all of its shares to FDC for $137,038.

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New Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans, which makes minor changes to the disclosure requirements related to defined benefit pension and other postretirement plans. The ASU requires a retrospective transition approach. For the Company, the ASU was effective as of January 1, 2021. As this ASU relates only to disclosures, there was no impact to the Company’s consolidated results of operations and financial condition.

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Income (Loss) per Common Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of computation of Weighted Average Basic and Diluted Income (Loss) Per Share

The following table sets forth the computation of weighted average basic and diluted income per share (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in millions, except for per share amounts)	2022			2021			2022			2021
Numerator:
Income (loss) from continuing operations	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2
Loss from discontinued operations		—			(0.2	)		—			(0.5	)
Net income (loss)	$	(0.8	)	$	(2.8	)	$	(2.3	)	$	6.7
Denominator:
Weighted average number of common shares outstanding during the period - basic and diluted (in thousands)		26.4			25.6			26.4			25.2
Income (loss) per common share — basic and diluted:
Continuing operations	$	(30.30	)	$	(101.56	)	$	(87.12	)	$	285.70
Discontinued operations		—			(7.81	)		—			(19.83	)
Net income (loss)	$	(30.30	)	$	(109.37	)	$	(87.12	)	$	265.87
Anti-dilutive shares excluded from calculation		0.0			0.0			0.0			0.0

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Key Components of Discontinued Operations

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In millions)	2022		2021			2022		2021
Net revenue	$	—	$	—		$	—	$	—
Operating expenses:
Selling, general and administrative		—		0.5			—		1.0
Restructuring and other		—		(0.3	)		—		(0.7	)
Total operating expenses		—		0.2			—		0.3
Operating loss from discontinued operations		—		(0.2	)		—		(0.3	)
Other income (expense)		—		—			—		(0.2	)
Loss from discontinued operations, before income taxes		—		(0.2	)		—		(0.5	)
Income tax		—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(0.2	)	$	—	$	(0.5	)

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Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt and Notes Payable

Debt and notes payable consists of the following:

	September 30,
	2022		December 31,
	(unaudited)		2021
	(In millions)
GHI LLC note payable	$	3.6	$	3.4
Other liabilities		0.2		0.2
Total long term debt	$	3.8	$	3.6

Schedule of Long-term Debt Maturities

Scheduled maturities of the Company’s long-term debt, as they exist as of September 30, 2022, in each of the next five fiscal years and thereafter are as follows:

Fiscal years ending in	(in millions)
2022	$	—
2023		0.2
2024		3.6
2025		—
2026		—
2027 and thereafter		—
Total	$	3.8

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2021		1,360	$	106.00
Outstanding September 30, 2022		1,360	$	106.00
Exercisable as of September 30, 2022		1,360	$	106.00

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Net Revenue, Operating Loss from Continuing Operations and Assets by Segment

Net revenue, operating loss from operations and assets by segment were as follows (unaudited):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2022			2021			2022			2021
Net revenue
Asset management business	$	—		$	—		$	—		$	—
Total net revenue		—			—			—			—
Operating loss from operations
Asset management business		(0.4	)		—			(1.1	)		(2.0	)
Total segment operating loss		(0.4	)		—			(1.1	)		(2.0	)
Corporate and unallocated		(0.3	)		(2.8	)		(1.2	)		(3.5	)
Total operating loss		(0.7	)		(2.8	)		(2.3	)		(5.5	)
Interest expense		(0.1	)		(0.2	)		(0.2	)		(1.9	)
Gain on Chapter 11 reorganization		—			—			—			13.8
Bank Loan forgiveness		—			—			—			0.4
Other income, net		—			0.4			0.2			0.4
Income (loss) from continuing operations before income taxes	$	(0.8	)	$	(2.6	)	$	(2.3	)	$	7.2

	September 30,
	2022		December 31,
(In millions)	(unaudited)		2021
Assets
Asset management business	$	13.4	$	13.2
Total segment assets		13.4		13.2
Corporate and unallocated		1.9		4.0
Total consolidated assets	$	15.3	$	17.2

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Schedule of computation of Weighted Average Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Income (loss) from continuing operations	$ (0.8)	$ (2.6)	$ (2.3)	$ 7.2
Loss from discontinued operations		(0.2)		(0.5)
Net income (loss)	$ (0.8)	$ (2.8)	$ (2.3)	$ 6.7
Weighted average number of common shares outstanding during the period - basic and diluted (in thousands)	26,400	25,600	26,400	25,200
Continuing operations	$ (30.30)	$ (101.56)	$ (87.12)	$ 285.70
Discontinued operations		(7.81)		(19.83)
Net income (loss)	$ (30.30)	$ (109.37)	$ (87.12)	$ 265.87
Anti-dilutive shares excluded from calculation	0.0	0.0	0.0	0.0

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Schedule of Key Components of Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]
Net revenue
Operating expenses:
Selling, general and administrative		0.5		1.0
Restructuring and other		(0.3)		(0.7)
Total operating expenses		0.2		0.3
Operating loss from discontinued operations		(0.2)		(0.3)
Other income (expense)				(0.2)
Loss from discontinued operations, before income taxes		(0.2)		(0.5)
Income tax
Loss from discontinued operations, net of income taxes		$ (0.2)		$ (0.5)

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Discontinued Operations (Details Narrative) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Noncontrolling Interest [Member]
Restructuring and other expense	$ 0.3	$ 0.7

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Supplemental Balance Sheet Information (Details Narrative) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investments	$ 12.8	$ 12.8
Investment in subsidiary	0.4	0.2
Accruals liabilities	$ 0.2	$ 0.2

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Schedule of Debt and Notes Payable (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Short-Term Debt [Line Items]
Total long term debt	$ 3.8	$ 3.6
GHI LLC Note Payable [Member]
Short-Term Debt [Line Items]
Total long term debt	3.6	3.4
Other Liabilities [Member]
Short-Term Debt [Line Items]
Total long term debt	$ 0.2	$ 0.2

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Schedule of Long-term Debt Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2022
2023	0.2
2024	3.6
2025
2026
2027 and thereafter
Total	$ 3.8	$ 3.6

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Debt (Details Narrative) - USD ($)	Aug. 06, 2021	Jul. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt interest bear percentage		5.00%
Debt maturity date		Dec. 12, 2022
GHI Loan Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from indebtedness	$ 5,000,000
Debt description	Upon the occurrence of an event of default, the loan bears interest at a rate 5% above the then-effective interest rate and, at GHI LLC’s option, is payable either in cash or in cash and shares of Company common stock, valued at market, equal to up to 10% of the outstanding principal amount of the loan. A default fee equal to 0.5% of the outstanding principal applies if any default exists for 10 days or more.
GHI Loan Agreement [Member] | Gazellek Holdings I, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt instrument, face amount	$ 3,450,000
Debt interest bear percentage	7.00%
Debt maturity date	Aug. 02, 2024

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Summary of Stock Option Activity (Details) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Stock options outstanding	1,360	1,360
Weighted average exercise price outstanding	$ 106.00	$ 106.00
Stock options exercisable	1,360
Weighted average exercise price exercisable	$ 106.00

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Stock-Based Compensation (Details Narrative) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Share-Based Payment Arrangement [Abstract]
Number of shares available for grant	0	0		0
Stock options outstanding	1,360	1,360	1,360
Stock options exercisable	1,360	1,360
Aggregate intrinsic value of outstanding stock options	$ 0.0	$ 0.0
Number of options granted	0	0
Number of options exercised	0	0

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Income Taxes (Details Narrative) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax benefit		$ 0.0	$ 0.0
Income (loss) from continuing operations		$ 0.8	$ 2.6	$ 2.3	$ (7.2)
Federal statutory income tax rate				21.00%
Income tax refunds	$ 0.6
Minimum tax credit refundable						$ 2.2	$ 1.6

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Shareholders’ Equity (Details Narrative) - USD ($)		3 Months Ended	9 Months Ended	12 Months Ended
	Aug. 06, 2021	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Nov. 14, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of treasury stock, shares		0	0
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Purchase of treasury stock, shares			780
Purchase of treasury stock, value			$ 300,000
Additional number of shares authorized to repurchased		1,720	1,720
Purchase of treasury stock			2,927	2,927
Average price per share of treasury stock acquired			$ 8,496.47	$ 8,496.47
Treasury Stock [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares authorized to repurchased					2,500
Common Stock Warrant [Member] | Gazellek Holdings I, LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues	$ 120,000
Percentage of outstanding stock	4.80%
Shares price	$ 0.01
Warrant maturity dtate	Aug. 02, 2026
Second Common Stock Warrant [Member] | Gazellek Holdings I, LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Percentage of outstanding stock	5.20%
Shares price	$ 169.62

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Schedule of Net Revenue, Operating Loss from Continuing Operations and Assets by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total net revenue
Total operating loss	(0.7)	(2.8)	(2.3)	(5.5)
Interest expense	(0.1)	(0.2)	(0.2)	(1.9)
Gain on Chapter 11 reorganization				13.8
Bank Loan forgiveness				0.4
Other income, net		0.4	0.2	0.4
Income (loss) from continuing operations before income taxes	(0.8)	(2.6)	(2.3)	7.2
Total consolidated assets	15.3		15.3		$ 17.2
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total operating loss	(0.4)		(1.1)	(2.0)
Total consolidated assets	13.4		13.4		13.2
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Total operating loss	(0.3)	(2.8)	(1.2)	(3.5)
Total consolidated assets	1.9		1.9		4.0
Asset Management Income [Member]
Segment Reporting Information [Line Items]
Total net revenue
Total operating loss	(0.4)		(1.1)	$ (2.0)
Total consolidated assets	$ 13.4		$ 13.4		$ 13.2

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Related Party Transactions (Details Narrative)			9 Months Ended
	Dec. 30, 2021 USD ($)	Jul. 31, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 24, 2021 USD ($)	Dec. 21, 2021 USD ($)
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Obligation paid				$ 100,000
Long term debt			$ 3,800,000		$ 3,600,000
Debt instrument, maturity date		Dec. 12, 2022
Debt interest bear percentage		5.00%
Sport BLX [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Sale of proprietary securities							$ 225,000
Repurchase of securities						$ 1,500,000
Disposition interest	$ 137,038
Fintech Debt Corp [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Business combination, consideration transferred		$ 4,176,102.11
Repurchase of debt securities						$ 126,404
George E. Hall [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Obligation paid		2,354,736
Long term debt		12,116,718
Repayment of debt		$ 12,116,718
Outstanding stock percentage		30.1
Joseph A. De Perio [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Obligation paid		$ 1,060,264
Long term debt		5,455,782
Repayment of debt		5,455,782
Business combination, consideration transferred		$ 400,000