Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Text Block]

Note 12 – Segment Reporting

     From 2005 until the second quarter of 2009, the Company operated in a single business segment, Patent Licensing. With the commencement of Counsel RB’s operations in the second quarter of 2009, the Company diversified into a second segment, Asset Liquidation. For both the six months ending June 30, 2013 and the year ending December 31, 2012, only the Asset Liquidation segment had revenues and assets sufficiently significant to require separate reporting.

     There are no material inter-segment revenues or expenses. To date the Company’s business has been conducted principally in North America, but the establishment of offices in Europe in the third quarter of 2012 will result in more international operations in future periods. To date these operations have not been sufficiently significant to require reporting as a separate segment.

     The table below presents information about the Company’s segments as of and for the three and six months ended June 30, 2013 and 2012:

		For the three months ended June 30,
		2013			2012
		Asset			Asset
		Liquidation			Liquidation
Revenues from external customers	$	1,932		$	3,831
Earnings from equity accounted asset liquidation investments		7			158
Other income (expense)		—			(318	)
Interest expense		174			48
Depreciation and amortization		119			8
Segment loss		(932	)		(160	)
Investment in equity accounted asset liquidation investees		2,803			1,677
Segment assets		25,126			20,472

		For the six months ended June 30,
		2013			2012
		Asset			Asset
		Liquidation			Liquidation
Revenues from external customers	$	3,324		$	6,865
Earnings from equity accounted asset liquidation investments		809			1,227
Other income (expense)		—			(308	)
Interest expense		269			104
Depreciation and amortization		240			11
Segment income (loss)		(1,519	)		1,065

     The following table reconciles reportable segment information to the unaudited condensed consolidated interim financial statements of the Company:

		Three months			Three months			Six months			Six months
		ended			ended			ended			ended
		June 30,			June 30,			June 30,			June 30,
		2013			2012			2013			2012
Total other income (expense) for reportable segments	$	—		$	(318	)	$	-		$	(308)
Unallocated other income (expense)		—			1			-			1
Total other income (expense)	$	—		$	(317	)	$	-		$	(307)
Total interest expense for reportable segments	$	174		$	48		$	269		$	104
Unallocated interest expense from related party debt		—			8			-			11
Total interest expense	$	174		$	56		$	269		$	115
Total depreciation and amortization for reportable segments	$	119		$	8		$	240		$	11
Other unallocated depreciation from corporate assets		—			—			—			—
Total depreciation and amortization	$	119		$	8		$	240		$	11
Total segment income (loss)	$	(932	)	$	(160	)	$	(1,519	)	$	1,065
Revenue not allocated to reportable segments		—			—			200			—
Other income (expense) and earnings (loss) of other equity accounted investments		38			(6	)		38			(53	)
Other corporate expenses (primarily corporate level interest, general and administrative expenses)		(349	)		(542	)		(962	)		(1,017	)
Income tax expense (recovery)		(500	)		(287	)		(853	)		26
Net income (loss) from continuing operations	$	(743	)	$	(421	)	$	(1,390	)	$	(31	)

		As at June 30, 2013		As at June 30, 2012
Segment assets	$	25,126	$	20,472
Other assets not allocated to segments (1)		32,934		35,548
Total assets	$	58,060	$	56,020

(1) Other assets not allocated to segments are corporate assets such as cash, non-trade accounts receivable, prepaid insurance, investments and deferred income tax assets.