PlayAGS, Inc. - 10-K filing on 2022-03-10

Schedule I - Condensed Financial Information of the Registrant

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

ITEM 15(a)(2). FINANCIAL STATEMENT SCHEDULES

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

PLAYAGS, INC.

(PARENT COMPANY ONLY)

CONDENSED BALANCE SHEETS

(in thousands, except share data)

	*December 31,*
	*2021*			*2020*
*Assets*
Current assets
Cash and cash equivalents	$	2,931		$	474
Intercompany Receivables		7			8
Prepaid expenses		32			27
Total current assets		2,970			509
Investment in subsidiaries		42,454			54,681
Other long-term assets		8			8
Total assets	$	45,432		$	55,198

*Liabilities and Stockholders’ Equity*
Current liabilities
Intercompany payables	$	3,861		$	1,415
Total current liabilities		3,861			1,415
Total liabilities		3,861			1,415
Stockholders’ equity:
Common stock		369			364
Additional paid-in capital		392,161			379,917
Retained earnings		(344,889	)		(321,412	)
Accumulated other comprehensive loss		(6,070	)		(5,086	)
Total stockholders’ equity		41,571			53,783
Total liabilities and stockholders’ equity	$	45,432		$	55,198

PLAYAGS, INC.

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	*Year ended December 31,*
	*2021*			*2020*			*2019*
Revenue
Intercompany revenue	$	-		$	-		$	8
Total Revenue		-			-			8
Operating expenses
Selling, general and administrative		(15	)		24			25
Total operating expenses		(15	)		24			25
Loss from operations		15			(24	)		(17	)
Other expense (income)
Equity in net loss of subsidiaries		(22,587	)		(85,349	)		(11,807	)
Other (Expense) Income		-			(5	)		72
Loss before income taxes		(22,572	)		(85,378	)		(11,752	)
Income tax (expense) benefit		-			-			-
Net loss attributable to PlayAGS, Inc.		(22,572	)		(85,378	)		(11,752	)
Foreign currency translation adjustment		(984	)		(2,678	)		1,366
Total comprehensive loss	$	(23,556	)	$	(88,056	)	$	(10,386	)

PLAYAGS, INC.

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

	*Year ended December 31,*
	*2021*			*2020*			*2019*
Cash flows from operating activities
Net loss	$	(22,572	)	$	(85,378	)	$	(11,752	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Equity income from subsidiaries		22,587			85,349			11,807
Changes in assets and liabilities that relate to operations:
Prepaid expenses		(5	)		(1	)		23
Intercompany payable/receivable		2,447			64			570
Net cash provided by (used in) operating activities		2,457			34			648
Cash flows from investing activities
Investment in subsidiaries		-			-			(13,280	)
Distributions received from subsidiaries		906			560			-
Net cash provided by (used in) investing activities		906			560			(13,280	)
Cash flows from financing activities
Repurchase of shares		(906	)		(560	)		(1,320	)
Proceeds from stock option exercise		-			158			685
Net cash (used in) provided by financing activities		(906	)		(402	)		(635	)
Increase (decrease) in cash and cash equivalents		2,457			192			(13,267	)
Cash and cash equivalents, beginning of period		474			282			13,549
Cash and cash equivalents, end of period	$	2,931		$	474		$	282

PLAYAGS, INC.

(PARENT COMPANY ONLY)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The stand-alone parent company financial statements of PlayAGS, Inc., (the “ Parent Company”) should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes thereto. For purposes of these condensed financial statements, the Parent Company’s wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of the subsidiaries’ net assets (similar to presenting them on the equity method).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included in the Company’s consolidated financial statements included elsewhere in this Form 10-K.

NOTE 2 - COMMITMENTS AND CONTINGENCIES

The Parent Company is a holding company and, as a result, its ability to pay dividends is dependent on its subsidiaries’ ability to obtain funds and its subsidiaries' ability to provide funds to it. Restrictions are imposed by its subsidiaries' debt instruments, which significantly restrict certain key subsidiaries holding a majority of its assets from making dividends or distributions to the Parent Company. These restrictions are subject to certain exceptions for affiliated overhead expenses as defined in the agreements governing the debt instruments, unless certain financial and non-financial criteria have been satisfied.

NOTE 3 - CASH FLOW STATEMENT SUPPLEMENTAL DISCLOSURES

The Parent Company charged $14.6 million and $8.5 million of stock-based compensation to additional paid-in capital during the years ended December 31, 2021 and 2020, respectively, the expense for which was contributed to the Parent Company’s subsidiaries that employ the employee recipients of the share-based awards.