Segment Reporting

9 Months Ended

Sep. 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 HG LLC’s operations in the second quarter of 2009, the Company diversified into a second segment, Asset Liquidation. For both the nine months ending September 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 is expected to will result in more international operations in future periods.

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

		For the three months ended September 30,
		2013			2012
		Asset			Asset
		Liquidation			Liquidation
Revenues from external customers	$	2,265		$	3,052
Earnings from equity accounted asset liquidation investments		456			222
Other income (expense)		—			7
Interest expense		39			70
Depreciation and amortization		118			272
Segment loss		(112	)		(311	)
Investment in equity accounted asset liquidation investees		3,574			1,773
Segment assets		24,685			27,349

		For the nine months ended September 30,
		2013			2012
		Asset			Asset
		Liquidation			Liquidation
Revenues from external customers	$	5,589		$	9,917
Earnings from equity accounted asset liquidation investments		1,265			1,449
Other income (expense)		—			(301	)
Interest expense		308			174
Depreciation and amortization		358			283
Segment income (loss)		(1,631	)		755

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

		Three months			Three months			Nine months			Nine months
		ended			ended			ended			ended
		September 30,			September 30,			September 30,			September 30,
		2013			2012			2013			2012
Total other income (expense) for reportable segments	$	—		$	7		$	—		$	(301	)
Unallocated other income (expense)		—			1			—			2
Total other income (expense)	$	—		$	8		$	—		$	(299	)
Total interest expense for reportable segments	$	39		$	70		$	308		$	174
Unallocated interest expense from third party debt		—			1			—			1
Unallocated interest expense from related party debt		91			(11	)		91			—
Total interest expense	$	130		$	60		$	399		$	175
Total depreciation and amortization for reportable segments	$	118		$	272		$	358		$	283
Other unallocated depreciation from corporate assets		—			—			—			—
Total depreciation and amortization	$	118		$	272		$	358		$	283
Total segment income (loss)	$	(112	)	$	(311	)	$	(1,631	)	$	755
Revenue not allocated to reportable segments		624			—			824			—
Other income (expense) and earnings (loss) of other equity accounted investments		22			(11	)		61			(63	)
Other corporate expenses (primarily corporate level interest, general and administrative expenses)		(407	)		(1,316	)		(1,370	)		(2,335	)
Income tax expense (recovery)		387			(638	)		(466	)		(612	)
Net loss from continuing operations	$	(260	)	$	(1,000	)	$	(1,650	)	$	(1,031	)

		As at		As at
		September 30,		September 30,
		2013		2012
Segment assets	$	24,685	$	27,349
Other assets not allocated to segments (1)		33,002		33,583
Total assets	$	57,687	$	60,932

(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.