Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Text Block]

Note 15 – Segment Reporting

From 2005 until the second quarter of 2009, the Company operated in a single business segment, Intellectual Property 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 the years ending December 31, 2013 and 2012, only the Asset Liquidation segment had revenues and assets sufficiently significant to require separate reporting, as the other operations were considered to be quantitatively immaterial.

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 result in more international operations in future periods.

The table below presents information about the Asset Liquidation segment of the Company as of and for the years ended December 31, 2013 and 2012:

		Year Ended December 31
		2013			2012
		Asset Liquidation
Revenues from external customers	$	8,068		$	14,128
Earnings from equity accounted asset liquidation investments		1,200			2,023
Other income		—			63
Interest expense		388			289
Depreciation and amortization		472			407
Segment income (loss) from continuing operations		(2,404	)		92
Investment in equity accounted asset liquidation investees		1,380			3,618
Segment assets		20,399			27,752

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

		Year ended December 31,
		2013			2012
Total revenue for reportable segments	$	8,068		$	14,128
Unallocated intellectual property licensing revenue		824			—
Total revenue	$	8,892		$	14,128
Total other income for reportable segments	$	—		$	63
Unallocated other income		—			1
Total other income	$	—		$	64
Total interest expense for reportable segments	$	388		$	289
Unallocated interest expense from third party debt		—			1
Unallocated interest expense from related party debt		168			—
Total interest expense	$	556		$	290
Total depreciation and amortization for reportable segments	$	472		$	407
Other unallocated depreciation from corporate assets		—			—
Total depreciation and amortization	$	472		$	407
Total segment income (loss)	$	(2,404	)	$	92
Intellectual property licensing revenue not allocated to reportable segments		824			—
Other income (expense) and earnings (loss) of other equity accounted investments		126			(111	)
Other corporate expenses (primarily corporate level interest, general and administrative expenses)		(1,913	)		(2,772	)
Income tax (expense) recovery		(3,029	)		978
Net loss from continuing operations	$	(6,396	)	$	(1,813	)
Segment assets	$	20,399		$	27,752
Other assets not allocated to segments (1)		29,596			33,558
Total assets	$	49,995		$	61,310

(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.