Composition of Certain Financial Statement Items

3 Months Ended

Mar. 31, 2012

Composition of Certain Financial Statements Items [Abstract]

Composition of Certain Financial Statements Items [Text Block]

Note 6 – Composition of Certain Financial Statement Items

Amounts receivable

The Company’s amounts receivable are primarily related to the operations of Counsel RB, its subsidiary, Equity Partners, and Heritage Global Partners. They consist of three major categories: receivables from Joint Venture partners, receivables from asset sales, and fees and retainers relating to the businesses of Equity Partners and Heritage Global 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 and Heritage Global Partners businesses have 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 March 31, 2012. 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 2011. The lease receivable began accruing interest beginning April 1, 2011.

At March 31, 2012 the Company had no investment in non-interest bearing financing receivables that are past due.

During the first quarter of 2012, 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 first quarter of 2012.

Amounts receivable from third parties consisted of the following at March 31, 2012 and December 31, 2011:

	March 31, 2012		December 31, 2011
Accounts receivable (net of allowance for doubtful accounts of $0; 2011 - $0)	$	1,507	$	730
Notes receivable (net of allowance for doubtful accounts of $186; 2011 - $186)		39		39
Lease receivable		114		148
	$	1,660	$	917

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following at March 31, 2012 and December 31, 2011:

	March 31, 2012		December 31, 2011
Due to Heritage Global Partners clients	$	3,117	$	—
Due to Joint Venture partners		1,677		89
Sales and other taxes		605		66
Remuneration and benefits		438		402
Asset liquidation expenses		37		—
Regulatory and legal fees		222		49
Accounting, auditing and tax consulting		122		169
Patent licensing and maintenance		29		8
Other		422		72
Total accounts payable and accrued liabilities	$	6,669	$	855