Composition of Certain Financial Statements Captions

12 Months Ended

Dec. 31, 2011

Composition Of Certain Financial Statements Captions [Abstract]

Composition Of Certain Financial Statements Captions [Text Block]

Note 6 – Composition of Certain Financial Statement Captions

Amounts receivable

The Company’s amounts receivable are primarily related to the operations of Counsel RB and its subsidiary, Equity Partners. They consist of three major categories: receivables from Joint Venture partners, receivables from asset sales, and fees and retainers relating to the business of Equity Partners. To date, the Company has not experienced any significant collectability issues with respect to either the receivables from Joint Venture partners or the receivables from asset sales. Given this experience, together with the ongoing business relationships between the Company and its partners, the Company has not yet been required to develop a policy for formal credit quality assessment The Equity Partners business has similarly not required formal credit quality assessments. As the Company’s asset liquidation business continues to develop, more comprehensive credit assessments may be required.

To date the Company has recorded only one interest-bearing note receivable, in the amount of $225. This note was acquired when Counsel RB commenced operations in the second quarter of 2009. It is in default and on non-accrual status. An allowance of $146 was recorded in the fourth quarter of 2010, and a further allowance of $40 was recorded in the second quarter of 2011. Therefore the Company’s recorded investment in financing receivables on non-accrual status is $39 at December 31, 2011. At this time, the Company does not expect to collect interest on this note.

In the first quarter of 2011, the Company acquired a lease receivable in the amount of $248, which is being reduced by monthly payments of $12 that began in April. The lease receivable began accruing interest on April 1, 2011, and at December 31, 2011 had a balance of $148.

At December 31, 2011 the Company has no investment in non-interest bearing financing receivables that are past due. The Company’s single past due receivable, which had a balance of $5 at March 31, 2011, was paid in full during the second quarter.

During the year ended December 31, 2011, there were no changes in the Company’s accounting policies for financing receivables, and therefore no related change in the current-period provision for credit losses. During the same period, there were no purchases, sales or reclassifications of financing receivables. There were no troubled debt restructurings during the year ended December 31, 2011.

Amounts receivable consisted of the following at December 31, 2011 and 2010:

	December 31,		December 31,
	2011		2010
Accounts receivable
(net of allowance for doubtful accounts of $0; 2010 - $22)	$	730	$	124
Notes receivable
(net of allowance for doubtful accounts of $186; 2010 - $146)		39		79
Lease receivable		148		—
	$	917	$	203

Goodwill

At December 31, 2011 the Company’s goodwill relates to its acquisition of Equity Partners in June 2011, as detailed in Note 2. No goodwill impairment was present upon the performance of the impairment tests at December 31, 2011.

The Company recorded a goodwill impairment charge of $173 at December 31, 2010, reducing the carrying value of the goodwill it held at that date to $0. The goodwill related to an investment in a subsidiary company that holds certain of the Company’s patent rights.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following at December 31:

	2011		2010
Regulatory and legal fees	$	49	$	612
Distributions payable to former non-controlling interest		—		766
Accounting, auditing and tax consulting		169		118
Due to Joint Venture partners		89		178
Customer deposits		—		313
Patent licensing and maintenance		8		118
Sales and other taxes		66		81
Remuneration and benefits		402		228
Other		72		141
	$	855	$	2,555