SAFEGUARD SCIENTIFICS INC, 10-Q filed on 11/4/2021
Quarterly Report
v3.21.2
Document And Entity Information - shares
9 Months Ended
Sep. 30, 2021
Nov. 01, 2021
Document Information [Line Items]    
Entity Central Index Key 0000086115  
Entity Registrant Name SAFEGUARD SCIENTIFICS INC  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2021  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 1-5620  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 23-1609753  
Entity Address, Address Line One 150 N. Radnor Chester Road  
Entity Address, City or Town Radnor  
Entity Address, State or Province PA  
Entity Address, Postal Zip Code 19087  
City Area Code 610  
Local Phone Number 293-0600  
Title of 12(b) Security common stock, par value $0.10  
Trading Symbol SFE  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Small Business true  
Entity Filer Category Non-accelerated Filer  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   16,505,594
v3.21.2
Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 30, 2020
Current Assets:    
Cash and cash equivalents $ 64,211 $ 15,601
Restricted cash 25 0
Ownership interests 10,792 0
Prepaid expenses and other current assets 1,343 462
Total current assets 76,371 16,063
Property and equipment, net 1,622 1,790
Ownership interests and advances 25,492 50,398
Other assets 233 784
Total Assets 103,718 69,035
Current Liabilities:    
Accounts payable 77 56
Accrued compensation and benefits 2,817 2,677
Accrued expenses and other current liabilities 643 410
Lease liability - current 362 327
Total current liabilities 3,899 3,470
Lease liability - non-current 1,776 2,053
Other long-term liabilities 50 637
Total Liabilities 5,725 6,160
Commitments and contingencies (Note 9)
Equity:    
Preferred stock, $0.10 par value; 1,000 shares authorized 0 0
Common stock, $0.10 par value; 83,333 shares authorized; 21,573 shares issued and outstanding at September 30, 2021 and December 31, 2020 2,157 2,157
Additional paid-in capital 806,550 807,582
Treasury stock, at cost; 777 and 688 shares at September 30, 2021 and December 31, 2020, respectively (9,688) (10,200)
Accumulated deficit (701,001) (736,639)
Accumulated other comprehensive loss (25) (25)
Total Equity 97,993 62,875
Total Liabilities and Equity $ 103,718 $ 69,035
v3.21.2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
shares in Thousands
Sep. 30, 2021
Dec. 30, 2020
Preferred stock, par value (in dollars per share) $ 0.10 $ 0.10
Preferred stock, shares authorized (in shares) 1,000 1,000
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 83,333 83,333
Common stock, shares issued (in shares) 21,573 21,573
Common stock, shares outstanding (in shares) 21,573 21,573
Treasury stock, shares (in shares) 777 688
v3.21.2
Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
General and administrative expense $ 1,564 $ 2,275 $ 6,018 $ 7,835
Operating loss (1,564) (2,275) (6,018) (7,835)
Other income (loss), net 20,588 (820) 28,027 (7,045)
Interest income 70 52 197 209
Equity income (loss), net (761) (1,300) 13,432 (15,591)
Net income (loss) before income taxes 18,333 (4,343) 35,638 (30,262)
Net income (loss) $ 18,333 $ (4,343) $ 35,638 $ (30,262)
Net income (loss) per share:        
Basic (in dollars per share) $ 0.88 $ (0.21) $ 1.71 $ (1.46)
Diluted (in dollars per share) $ 0.88 $ (0.21) $ 1.71 $ (1.46)
Weighted average shares used in computing income (loss) per share:        
Basic (in shares) 20,786 20,786 20,847 20,731
Diluted (in shares) 20,786 20,786 20,847 20,731
v3.21.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash Flows from Operating Activities:    
Net cash used in operating activities $ (5,444) $ (7,025)
Cash Flows from Investing Activities:    
Proceeds from sales of ownership interests 58,559 7,587
Acquisitions of ownership interests 0 (7,510)
Advances and loans to ownership interests (2,718) (1,638)
Net cash provided by (used in) investing activities 55,841 (1,561)
Cash Flows from Financing Activities:    
Repurchases of Company common stock (1,639) 0
Tax withholdings related to equity-based awards (123) (30)
Net cash used in financing activities (1,762) (30)
Net change in cash, cash equivalents and restricted cash 48,635 (8,616)
Cash, cash equivalents and restricted cash at beginning of period 15,601 25,053
Cash, cash equivalents and restricted cash at end of period $ 64,236 $ 16,437
v3.21.2
Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2019 $ (697,223) $ (25) $ 2,157 $ 810,856 $ (14,024) $ 101,741
Balance (in shares) at Dec. 31, 2019     21,573   930  
Net income (loss) (16,008)         (16,008)
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (32) $ 104 72
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (6)  
Stock-based compensation expense       3   3
Balance at Mar. 31, 2020 (713,231) (25) $ 2,157 810,827 $ (13,920) 85,808
Balance (in shares) at Mar. 31, 2020     21,573   924  
Balance at Dec. 31, 2019 (697,223) (25) $ 2,157 810,856 $ (14,024) 101,741
Balance (in shares) at Dec. 31, 2019     21,573   930  
Net income (loss)           (30,262)
Balance at Sep. 30, 2020 (729,286) (25) $ 2,157 809,189 $ (11,806) 70,229
Balance (in shares) at Sep. 30, 2020     21,573   789  
Balance at Dec. 31, 2019 (697,223) (25) $ 2,157 810,856 $ (14,024) 101,741
Balance (in shares) at Dec. 31, 2019     21,573   930  
Balance at Dec. 31, 2020 (736,639) (25) $ 2,157 807,582 $ (10,200) 62,875
Balance (in shares) at Dec. 31, 2020     21,573   688  
Balance at Mar. 31, 2020 (713,231) (25) $ 2,157 810,827 $ (13,920) 85,808
Balance (in shares) at Mar. 31, 2020     21,573   924  
Net income (loss) (9,911)         (9,911)
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (1,718) $ 1,790 72
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (114)  
Stock-based compensation expense       146   146
Change in accounting at ownership interests (1,801)         (1,801)
Balance at Jun. 30, 2020 (724,943) (25) $ 2,157 809,255 $ (12,130) 74,314
Balance (in shares) at Jun. 30, 2020     21,573   810  
Net income (loss) (4,343)         (4,343)
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (251) $ 324 73
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (21)  
Stock-based compensation expense       185   185
Balance at Sep. 30, 2020 (729,286) (25) $ 2,157 809,189 $ (11,806) 70,229
Balance (in shares) at Sep. 30, 2020     21,573   789  
Balance at Dec. 31, 2020 (736,639) (25) $ 2,157 807,582 $ (10,200) 62,875
Balance (in shares) at Dec. 31, 2020     21,573   688  
Net income (loss) 17,625         17,625
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (593) $ 963 370
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (58)  
Stock-based compensation expense       122   122
Balance at Mar. 31, 2021 (719,014) (25) $ 2,157 807,111 $ (9,237) 80,992
Balance (in shares) at Mar. 31, 2021     21,573   630  
Balance at Dec. 31, 2020 (736,639) (25) $ 2,157 807,582 $ (10,200) 62,875
Balance (in shares) at Dec. 31, 2020     21,573   688  
Net income (loss)           35,638
Balance at Sep. 30, 2021 (701,001) (25) $ 2,157 806,550 $ (9,688) 97,993
Balance (in shares) at Sep. 30, 2021     21,573   777  
Balance at Mar. 31, 2021 (719,014) (25) $ 2,157 807,111 $ (9,237) 80,992
Balance (in shares) at Mar. 31, 2021     21,573   630  
Net income (loss) (320)         (320)
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (839) $ 976 137
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (73)  
Stock-based compensation expense       175   175
Repurchases of common stock         $ (1,588) (1,588)
Repurchases of common stock (in shares)         229  
Balance at Jun. 30, 2021 (719,334) (25) $ 2,157 806,447 $ (9,849) 79,396
Balance (in shares) at Jun. 30, 2021     21,573   786  
Net income (loss) 18,333         18,333
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net       (98) $ 212 114
Restricted stock awards, forfeitures and shares repurchased for tax withholdings, net (in shares)         (16)  
Stock-based compensation expense       201   201
Repurchases of common stock         $ (51) (51)
Repurchases of common stock (in shares)         7  
Balance at Sep. 30, 2021 $ (701,001) $ (25) $ 2,157 $ 806,550 $ (9,688) $ 97,993
Balance (in shares) at Sep. 30, 2021     21,573   777  
v3.21.2
Note 1 - General
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. General

 

The accompanying unaudited interim Consolidated Financial Statements of Safeguard Scientifics, Inc. (“Safeguard” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America and the interim financial statement rules and regulations of the SEC. In the opinion of management, these statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Consolidated Financial Statements. The interim operating results are not necessarily indicative of the results for a full year or for any interim period. Certain information and note 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 pursuant to such rules and regulations relating to interim financial statements. The Consolidated Financial Statements included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-Q and with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s 2020 Annual Report on Form 10-K.

 

Liquidity

 

As of September 30, 2021 the Company had $64.2 million of cash and cash equivalents.

 

In January 2018, Safeguard announced that the Company will not deploy any capital into new opportunities and will focus on supporting our existing companies and maximizing monetization opportunities to return value to shareholders. In that context, the Company has, is and will consider initiatives including, among others: the sale of individual ownership interests, the sale of certain or all ownership interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize shareholder value.  As we seek to provide additional funding to existing companies where we have an ownership interest, we may be required to expend our cash or incur debt, which will decrease our liquidity.  From time to time, we are engaged in discussions concerning acquisitions and dispositions which, if consummated, could impact our liquidity, perhaps significantly.  Accordingly, the Company could also pursue other sources of capital in order to maintain its liquidity.    

 

The Company believes that its cash and cash equivalents at September 30, 2021 will be sufficient to fund operations past one year from the issuance of these Consolidated Financial Statements.

 

Principles of Accounting for Ownership Interests

 

The Company accounts for its ownership interests, which primarily consist of equity interests in the form of common and preferred equity, using one of the following methods: Equity or Other. The accounting method applied is generally determined by the degree of the Company's influence over the entity, primarily determined by our voting interest in the entity.

 

In addition to holding voting and non-voting equity, the Company also periodically makes advances to its companies in the form of promissory notes which are included in the Ownership interests and advances on the Consolidated Balance Sheets.

 

Equity Method. The Company accounts for ownership interests whose results are not consolidated, but over which it exercises significant influence, under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an ownership interest depends on the evaluation of several factors including, among others, representation on the board of directors and our ownership level, which is generally a 20% to 50% interest in the voting securities of a company, including voting rights associated with the Company’s holdings in common, preferred and other convertible instruments in the company. Under the equity method of accounting, the Company does not reflect a company’s financial statements within our Consolidated Financial Statements; however, our share of the income or loss of such company is reflected in Equity income (loss), net in the Consolidated Statements of Operations. The Company includes the carrying value of equity method companies in Ownership interests and advances on the Consolidated Balance Sheets. Any excess of the Company’s cost over its underlying interest in the net assets of equity method companies that is allocated to intangible assets is amortized over the estimated useful lives of the related intangible assets. The Company reflects its share of the income or loss of the equity method companies on a one quarter lag. This reporting lag could result in a delay in recognition of the impact of changes in the business or operations of these companies.

 

When the Company’s carrying value in an equity method company is reduced to zero, the Company records no further losses in its Consolidated Statements of Operations unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method company. When such equity method company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of the Company’s share of losses not previously recognized.

 

Other Method. We account for ownership interests in companies that are not accounted for under the equity method that do not have a readily determinable fair value under the fair value measurement alternative. Under the fair value measurement alternative, these ownership interests are based on our original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar interest of the same issuer. Under this method, our share of the income or losses of such companies is not included in our Consolidated Statements of Operations, however, the result of observable price changes, if any, are reflected in Other income (loss), net. We include the carrying value of these interests in Ownership interests and advances on the Consolidated Balance Sheets.

 

The Company accounts for ownership interests that are not accounted for under the equity method and have a readily determinable fair value at fair value based on the closing stock price on the last trading day of the reporting period.  As of September 30, 2021 those ownership interests consist of approximately 1.3 million shares of Bright Health Group ("Bright Health") common shares valued at $10.8 million.  The Company is restricted from trading these securities until December 2021 as a result of a six-month lock-up agreement resulting from the Bright Health Group initial public offering.

 

Impairment of Ownership Interests and Advances

 

On a periodic basis, but no less frequently than quarterly, the Company evaluates the carrying value of its ownership interests and advances for possible impairment based on achievement of business plan objectives and milestones, the estimated fair value of each company relative to its carrying value, the financial condition and prospects of the company and other relevant factors. The business plan objectives and milestones the Company considers include, among others, those related to financial performance, such as achievement of planned financial results or completion of capital raising activities, and those that are not primarily financial in nature, such as hiring of key employees or the establishment of strategic relationships.

 

Management then determines whether there has been an other than temporary decline in the value of its ownership interest in the company. Impairment is measured as the amount by which the carrying value of an asset exceeds its estimated fair value.

 

The estimated fair value of privately held companies is generally determined based on the value at which independent third parties have invested or have committed to invest in these companies or based on other valuation methods, including discounted cash flows, valuation of comparable public companies and the valuation of acquisitions of similar companies.

 

Impairment charges related to ownership interests in companies and funds accounted for under the equity method are included in Equity income (loss), net in the Consolidated Statements of Operations. Impairment charges related to ownership interests and funds accounted for at fair value or the fair value measurement alternative are included in Other income (loss), net in the Consolidated Statements of Operations.

 

The reduced cost basis of a previously impaired company accounted for using the Equity method is not written-up even if circumstances suggest the value of the company has subsequently recovered.

 

v3.21.2
Note 2 - Ownership Interests and Advances
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

2. Ownership Interests and Advances

 

The following summarizes the carrying value of the Company’s ownership interests and advances. 

  

  

September 30, 2021

  

December 31, 2020

 
  

(Unaudited - In thousands)

 

Equity Method:

        

Companies

 $23,828  $27,550 

Private equity funds

  117   271 
   23,945   27,821 

Other Method:

        

Companies, fair value

  10,792    

Companies, fair value measurement alternative

  514   19,683 

Private equity funds, fair value measurement alternative

  258   268 
   11,564   19,951 

Advances to companies

  775   2,626 
  $36,284  $50,398 

 

During the nine months ended September 30, 2021, Zipnosis, Inc. was acquired by another entity, Bright Health.  The Company received $3.5 million in cash proceeds, including escrows, and $15.3 million in preferred equity in the acquiror in connection with this transaction.  This ownership interest represented a security that did not have a readily determinable fair value.  Due to the inherent uncertainty of determining the fair value of ownership interests that do not have a readily determinable fair value, this estimated value  may differ significantly from the value that would have been reported had a ready market for the security existed, and it is reasonably possible that the difference could be material.  The Company recognized a $17.3 million gain on the sale, which is included in Equity income (loss), net in the Consolidated Statements of Operations.  The fair value of the ownership interest received as a result of the acquisition was estimated based on evaluating several valuation methods available, including the value at which independent third parties have recently invested, the valuation of comparable public companies, and the present value of our expected outcomes.  Assumptions considered within these methods include determining which public companies are comparable, projecting forward revenues, selecting an appropriate valuation multiple, discounts to apply for the lack of marketability or lack of comparability, other factors and the relative weight to apply to each valuation method available.  Due to the unobservable nature of some of these inputs, we have determined this initial estimate to be a Level 3 fair value measurement.  During the three months ended June 30, 2021, Bright Health completed an initial public offering that resulted in our ownership interest converting into approximately 1.3 million common shares.  Accordingly, the Bright Health common shares represent an ownership interest with a readily determinable fair value (Level 1), which will subsequently be measured at fair value with unrealized gains (losses) being reported as a component of Other income (loss), net.  As a result of these changes, the Company recognized an additional $7.4 million unrealized gain on Bright Health during the three months ended June 30, 2021.  The Company recognized an unrealized loss on Bright Health of $11.9 million during the three months ended September 30, 2021.  

 

During the three and nine months ended September 30, 2021, Flashtalking was acquired by another entity.  The Company received $44.8 million in cash proceeds and recorded a $32.3 million gain.  The Company may receive additional amounts of approximately $0.7 million over the next 24 months from the resolution of escrow contingencies.  

 

During the nine months ended September 30, 2021, WebLinc, Inc. was acquired by another entity.  The Company has received $3.6 million in cash proceeds to-date and may receive additional amounts over the next 15 months based on certain transactional performance activities, which could be partially offset by indemnifiable claims.  The Company has recognized a $0.1 million loss on the sale during the nine months ended September 30, 2021, which is included in Equity income (loss), as certain contingencies were resolved during the three months ended September 30, 2021.  To the extent additional amounts are collected as contingencies are resolved, those amounts will be recorded as gain on the sale and included within Equity income (loss).  QuanticMind was acquired during the first quarter by another entity, however there were no resultant proceeds to the Company.  There was no resulting gain or loss due to this equity method ownership interest being impaired during the prior year.

 

During the nine months ended September 30, 2021, the Company's ownership interest in T-REX Group, Inc., which was accounted for using the fair value measurement alternative, was acquired for $3.0 million in cash.  The Company recognized a $0.9 million gain, which is included in Other income (loss), net.  Hoopla was also acquired during the first quarter of 2021 by another entity, however there were no resultant proceeds to the Company.  There was no resulting gain or loss due to this Other method ownership interest being impaired during the prior year.

 

In April 2021, Velano Vascular was acquired by another entity.  The Company has received $3.5 million in cash proceeds and recorded a $1.9 million gain for the nine months ended September 30, 2021.  The Company  may receive additional amounts over the next 12 months from the resolution of escrow contingencies.

 

During the three and nine months ended September 30, 2021, the Company recorded an impairment of $2.5 million related to reduced expectations for certain Other ownership interests.

 

Summarized Financial Information

 

The following table summarizes the statement of operations data for the companies accounted for under the equity method for the three and nine months ended September 30, 2021 and 2020, respectively. These results have been compiled from the respective companies' financial statements, reflect certain historical adjustments, and are reported on a one quarter lag basis. Results of operations of the companies are excluded for periods prior to their acquisition, subsequent to their disposition and subsequent to the discontinuation of the equity method of accounting. Historical results are not adjusted when the Company exits, writes-off or discontinues the equity method of accounting. 

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands)

 

Results of Operations:

                

Revenue

 $35,447  $39,388  $106,097  $119,270 

Gross profit

 $23,023  $23,244  $69,124  $73,395 

Net loss

 $(25,390) $(15,650) $(77,092) $(56,684)

 

v3.21.2
Note 3 - Acquisitions of Ownership Interests
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Equity Method and Other Investments Disclosure [Text Block]

3. Acquisitions of Ownership Interests

 

The following is a summary of additional deployments during the nine month period ended  September 30, 2021:

 

During the three months ended September 30, 2021, the Company funded $1.7 million of convertible loans to Aktana, Inc.  The Company had previously deployed an aggregate of $14.2 million.  Aktana helps its customers improve their commercial effectiveness by delivering data-driven insights and suggestions directly to sales reps, coordinating multi-channel actions and providing insight regarding which strategies work best for which customers under which conditions

 

During the nine months ended September 30, 2021, Syapse raised $68 million of preferred equity which reduced the Company's ownership interest to approximately 11%.  The Company recorded a $7.3 million dilution gain as a result of this transaction, which is included in Equity income (loss), net in the Consolidated Statements of Operation.  Syapse drives healthcare transformation through precision medicine, enabling provider systems to improve clinical outcomes, streamline operations, and shift to new payment models.

 

During the nine months ended September 30, 2021, the Company funded an additional $1.0 million of convertible loans to Trice Medical, Inc. The Company had previously deployed an aggregate of $10.8 million. Trice Medical is focused on orthopedic diagnostics using fully integrated camera-enabled technologies to provide clinical solutions to physicians.  During the three months ended September 30, 2021, Trice Medical raised additional preferred equity which reduced the Company's ownership interest to 12.6%.  The Company's existing convertible loans and related interest in Trice Medical were also converted into this new class of preferred equity.  As a result of this transaction, the Company recorded a $2.0 million dilution gain during the three months ended September 30, 2021.  

 

v3.21.2
Note 4 - Fair Value Measurements
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4. Fair Value Measurements

 

The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. 

 

Cash and cash equivalents and accounts payable approximate fair value due to their short term nature.  The Company did not have any Level 2 or Level 3 financial assets or liabilities measured at fair value on a recurring basis as of September 30, 2021 or December 31, 2020.

 

  

Carrying

  

Fair Value Measurement at September 30, 2021

 
  

Value

  

Level 1

  

Level 2

  

Level 3

 
  

(Unaudited - In thousands)

 

Cash and cash equivalents

 $64,211  $64,211  $  $ 
                 

Restricted cash equivalents

 $25  $25  $  $ 
                 

Ownership interests

 $10,792  $10,792  $  $ 
                 

 

  

Carrying

  

Fair Value Measurement at December 31, 2020

 
  

Value

  

Level 1

  

Level 2

  

Level 3

 
  

(Unaudited - In thousands)

 

Cash and cash equivalents

 $15,601  $15,601  $  $ 
                 
                 

 

Ownership interests accounted for at fair value as of September 30, 2021 consist of approximately 1.3 million common shares of Bright Health.  The securities are carried at fair value based on the closing stock price on the last trading day of the reporting period.  The Company is restricted from trading these securities until December 2021 as a result of a six-month lock-up agreement from the Bright Health Group initial public offering.

 

v3.21.2
Note 5 - Stock-based Compensation
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

5. Stock-Based Compensation

 

Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows:  

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands)

 

General and administrative expense

 $484  $452  $1,469  $979 
  $484  $452  $1,469  $979 

 

Stock-based compensation consists of time based awards to employees, liability based awards to employees to be settled in stock, performance based awards to employees, other non-employee grants and liability based awards to Directors for quarterly and annual services.  During the nine months ended September 30, 2021 and 2020, the Company awarded 74 thousand and 79 thousand restricted stock awards, respectively to non-employee directors for compensation.  The Company also issued 45 thousand shares for employee services and 13 thousand shares for non-employee services during the nine months ended September 30, 2021, respectively, based on the terms of service agreements.

 

v3.21.2
Note 6 - Income Taxes
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

6. Income Taxes

 

The Company recorded no consolidated income tax benefit (expense) for the three and nine months ended September 30, 2021 and 2020. The Company has recorded a valuation allowance to reduce its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the tax provision that would have been recognized in the three and nine months ended September 30, 2021 was offset by changes in the valuation allowance. During the three and nine months ended September 30, 2021, the Company had no material changes in uncertain tax positions.

v3.21.2
Note 7 - Net Income (Loss) Per Share
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Earnings Per Share [Text Block]

7. Net Income (Loss) Per Share

 

The calculations of net income (loss) per share were as follows:

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands, except per share data)

 

Basic:

                

Net income (loss)

 $18,333  $(4,343) $35,638  $(30,262)

Weighted average common shares outstanding

  20,786   20,786   20,847   20,731 

Net income (loss) per share

 $0.88  $(0.21) $1.71  $(1.46)
                 

Diluted:

                

Net income (loss) for dilutive share computation

 $18,333  $(4,343) $35,638  $(30,262)
                 

Number of shares used in basic per share computation

  20,786   20,786   20,847   20,731 

Unvested restricted stock and DSU's

            

Employee stock options

            

Weighted average common shares outstanding

  20,786   20,786   20,847   20,731 
                 

Net income (loss) per dilutive share

 $0.88  $(0.21) $1.71  $(1.46)

 

Basic and diluted average common shares outstanding for purposes of computing net income (loss) per share includes outstanding common shares and vested deferred stock units (DSUs).

 

If an equity method company has dilutive stock options, unvested restricted stock, DSUs or warrants, diluted net income (loss) per share is computed by first deducting the income attributable to the potential exercise of the dilutive securities of the company from net income (loss). Any impact is shown as an adjustment to net income (loss) for purposes of calculating diluted net income (loss) per share.

 

Diluted earnings per share do not reflect the following potential shares of common stock that would have an anti-dilutive effect or have unsatisfied performance or market conditions:

 

 

At September 30, 2021 and 2020, options to purchase 31 thousand and 151 thousand shares of common stock, respectively, at prices ranging from $10.37 to $17.11 and $10.37 to $17.11, respectively, were excluded from the calculations.

   
 

At September 30, 2021 and 2020, unvested restricted stock, performance-based stock units and DSUs convertible into 0.2 million and 0.3 million shares of stock, respectively, were excluded from the calculations.

   
v3.21.2
Note 8 - Segment Reporting
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

8. Segment Reporting

 

The Company operates as one operating segment based upon the similar nature of its technology-driven companies, the functional alignment of the organizational structure, and the reports that are regularly reviewed by the chief operating decision maker for the purpose of assessing performance and allocating resources. As of September 30, 2021, the Company held ownership interests accounted for using the equity method in 9 non-consolidated companies. 

 

Certain of the Company’s ownership interests as of September 30, 2021 included the following:   

 

Company Name

 

Safeguard Primary Ownership as of September 30, 2021

 

Accounting Method

Aktana, Inc.

 15.0% 

Equity

Clutch Holdings, Inc.

 41.7% 

Equity

InfoBionic, Inc.

 25.2% 

Equity

Lumesis, Inc.

 43.2% 

Equity

MediaMath, Inc.

 13.2% 

Other

meQuilibrium

 31.9% 

Equity

Moxe Health Corporation

 27.6% 

Equity

Prognos Health Inc.

 28.5% 

Equity

Syapse, Inc.

 11.1% 

Equity

Trice Medical, Inc.

 12.6% 

Equity

 

As of September 30, 2021 and December 31, 2020, all of the Company’s assets were located in the United States.

v3.21.2
Note 9 - Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

9. Commitments and Contingencies

 

In March 2019, the Company entered into a sublease of its prior corporate headquarters office space beginning in June 2019. The term of the sublease is through April 2026, the same as the Company's underlying lease. Fixed sublease payments to the Company are escalating over the term of the sublease and are reported as a component of general and administrative expenses.

 

A summary of the Company's operating lease cash flows at September 30, 2021 follows:

 

  

Operating lease payments

  

Expected sublease receipts

 
  

(Unaudited - In thousands)

 

2021 (three months ending December 31)

 $149  $132 

2022

  601   540 

2023

  607   556 

2024

  613   573 

2025

  619   590 

2026

  207   199 

Thereafter

      

Total future minimum lease payments

  2,796  $2,590 

Less imputed interest

  (658)    

Total operating lease liabilities

 $2,138     

 

 

The Company and the companies in which it holds ownership interests are involved in various claims and legal actions arising in the ordinary course of business. In the current opinion of the Company, it is not reasonably possible that the ultimate disposition of these matters will have a material adverse effect on the Company’s consolidated financial position or results of operations, however, no assurance can be given as to the outcome of these actions, and one or more adverse rulings could have a material adverse effect on the Company’s consolidated financial position and results of operations or that of its companies. The Company records costs associated with legal fees as such services are rendered.

 

The Company has provided a guarantee, which is fully funded by escrowed funds held by a third party, of $3.8 million at September 30, 2021 which related to one of the Company's private equity fund interests.

 

In 2018, the Board of Directors (the “Board”) of the Company adopted a long-term incentive plan, which was amended in February 2019 and June 2020, known as the Amended and Restated Safeguard Scientifics Transaction Bonus Plan, (the “LTIP”). The purpose of the LTIP is to promote the interests of the Company and its shareholders by providing an additional incentive to employees to maximize the value of the Company in connection with the execution of the business strategy that the Company adopted and announced in January 2018. The June 2020 amendment lowered the level of the first threshold and the resulting bonus pool percentage as an incentive to employees to accelerate actions consistent with the business strategy.  Under the LTIP, participants, which include certain current and former employees, have received awards that may result in cash payments in connection with sales of the Company’s ownership interests (“Sale Transaction(s)”). The LTIP provides for a bonus pool corresponding to: (i) specified vesting thresholds or (ii) specified events. In the first case, the bonus pool will range from an amount equal to 0.2% (previously 1.0%) of received proceeds at the first threshold to 1.3% at higher thresholds and no bonus pool will be created if the transaction consideration is less than certain minimum thresholds. In the second case, a minimum pool will be created and paid under specified circumstances. The bonus pool will be allocated and paid to participants in the LTIP based on the product of (i) the participant’s applicable bonus pool percentage and (ii) the bonus pool calculated as of the vesting date, minus any previously paid portion of the bonus pool. Any portion of the bonus pool available as of the applicable vesting date that is reserved will be allocated in connection with each vesting date so that the entire bonus pool available as of such vesting date is allocated and payable to participants. Subject to the terms of the LTIP, payments under the LTIP will be paid in cash within 60 days of the applicable vesting date. All current officers and employees of the Company are eligible to participate in the LTIP. The Board, in its sole discretion, will determine the participants to whom awards are granted under the LTIP. The Company paid $0.4 million during the nine months ended September 30, 2021 and has accrued approximately $2.1 million under the LTIP as of September 30, 2021, all of which is presented as current accrued compensation and was paid in October 2021 in accordance with the terms of the plan. 

 

The Company recorded severance expense for certain employees of $0.8 million during the nine months ended September 30, 2021 in accordance with existing employment arrangements.  During the three and nine months ended September 30, 2021, cash payments of $0.1 and $0.9 million, respectively, were made pursuant to obligations under these arrangements and prior actions.  Remaining amounts to be paid pursuant to severance agreements aggregate to $0.1 million.  Accrued compensation of previously deferred amounts of $0.4 million was also paid during the quarter ended June 30, 2021.  Additional contingent amounts will be paid based on continued participation in prior awards granted pursuant to the LTIP.  The Company has agreements with certain remaining employees that provide for severance payments to the employee in the event the employee is terminated without cause or an employee terminates his employment for “good reason.” The maximum aggregate exposure under employment and severance agreements for remaining employees was approximately $0.6 million at September 30, 2021.

 

In June 2011, the Company's former ownership interest, Advanced BioHealing, Inc. (“ABH”) was acquired by Shire plc (“Shire”).  Prior to the expiration of the escrow period in March 2012, Shire filed a claim against all amounts held in escrow related to the sale based principally upon a United States Department of Justice (“DOJ”) false claims act investigation relating to ABH (the “Investigation”). In connection with the Investigation, in July 2015 the Company received a Civil Investigation Demand-Documentary Material (“CID”) from the DOJ regarding ABH and Safeguard’s relationship with ABH. Pursuant to the CID, the Company provided the requested materials and information.  To the Company’s knowledge, the CID was related to multiple qui tam (“whistleblower”) actions, one of which was filed in 2014 by an ex-employee of ABH that named the Company and one of the Company’s employees along with other entities and individuals as defendants.  At this time, the DOJ has declined to pursue the qui tam action as it relates to the Company and such Company employee.

v3.21.2
Note 10 - Equity
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

10. Equity

 

In July 2015, the Company's Board of Directors authorized the Company, from time to time and depending on market conditions, to repurchase up to $25.0 million of the Company's outstanding common stock. The Company has not repurchased any shares under such authorization during 2020 or the nine months ended September 30, 2021.

 

In May 2021, the Company's Board of Directors authorized a new $6.0 million share repurchase program using existing funds in accordance with the requirements of Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended.  During the nine months ended September 30, 2021, the Company repurchased 236,159 shares for an aggregate price of $1.6 million at an average cost at $6.94 per share.

 

v3.21.2
Note 11 - Subsequent Event
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]

11. Subsequent Event

 

During October 2021, the Company completed a modified Dutch auction self-tender that resulted in the repurchase of 4.3 million common shares for an aggregate price of $38.7 million, or $9.00 per share.  

 

v3.21.2
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Liquidity, Policy [Policy Text Block]

Liquidity

 

As of September 30, 2021 the Company had $64.2 million of cash and cash equivalents.

 

In January 2018, Safeguard announced that the Company will not deploy any capital into new opportunities and will focus on supporting our existing companies and maximizing monetization opportunities to return value to shareholders. In that context, the Company has, is and will consider initiatives including, among others: the sale of individual ownership interests, the sale of certain or all ownership interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize shareholder value.  As we seek to provide additional funding to existing companies where we have an ownership interest, we may be required to expend our cash or incur debt, which will decrease our liquidity.  From time to time, we are engaged in discussions concerning acquisitions and dispositions which, if consummated, could impact our liquidity, perhaps significantly.  Accordingly, the Company could also pursue other sources of capital in order to maintain its liquidity.    

 

The Company believes that its cash and cash equivalents at September 30, 2021 will be sufficient to fund operations past one year from the issuance of these Consolidated Financial Statements.

 

Investment, Policy [Policy Text Block]

Principles of Accounting for Ownership Interests

 

The Company accounts for its ownership interests, which primarily consist of equity interests in the form of common and preferred equity, using one of the following methods: Equity or Other. The accounting method applied is generally determined by the degree of the Company's influence over the entity, primarily determined by our voting interest in the entity.

 

In addition to holding voting and non-voting equity, the Company also periodically makes advances to its companies in the form of promissory notes which are included in the Ownership interests and advances on the Consolidated Balance Sheets.

 

Equity Method. The Company accounts for ownership interests whose results are not consolidated, but over which it exercises significant influence, under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an ownership interest depends on the evaluation of several factors including, among others, representation on the board of directors and our ownership level, which is generally a 20% to 50% interest in the voting securities of a company, including voting rights associated with the Company’s holdings in common, preferred and other convertible instruments in the company. Under the equity method of accounting, the Company does not reflect a company’s financial statements within our Consolidated Financial Statements; however, our share of the income or loss of such company is reflected in Equity income (loss), net in the Consolidated Statements of Operations. The Company includes the carrying value of equity method companies in Ownership interests and advances on the Consolidated Balance Sheets. Any excess of the Company’s cost over its underlying interest in the net assets of equity method companies that is allocated to intangible assets is amortized over the estimated useful lives of the related intangible assets. The Company reflects its share of the income or loss of the equity method companies on a one quarter lag. This reporting lag could result in a delay in recognition of the impact of changes in the business or operations of these companies.

 

When the Company’s carrying value in an equity method company is reduced to zero, the Company records no further losses in its Consolidated Statements of Operations unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method company. When such equity method company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of the Company’s share of losses not previously recognized.

 

Other Method. We account for ownership interests in companies that are not accounted for under the equity method that do not have a readily determinable fair value under the fair value measurement alternative. Under the fair value measurement alternative, these ownership interests are based on our original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar interest of the same issuer. Under this method, our share of the income or losses of such companies is not included in our Consolidated Statements of Operations, however, the result of observable price changes, if any, are reflected in Other income (loss), net. We include the carrying value of these interests in Ownership interests and advances on the Consolidated Balance Sheets.

 

The Company accounts for ownership interests that are not accounted for under the equity method and have a readily determinable fair value at fair value based on the closing stock price on the last trading day of the reporting period.  As of September 30, 2021 those ownership interests consist of approximately 1.3 million shares of Bright Health Group ("Bright Health") common shares valued at $10.8 million.  The Company is restricted from trading these securities until December 2021 as a result of a six-month lock-up agreement resulting from the Bright Health Group initial public offering.

 

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Ownership Interests and Advances

 

On a periodic basis, but no less frequently than quarterly, the Company evaluates the carrying value of its ownership interests and advances for possible impairment based on achievement of business plan objectives and milestones, the estimated fair value of each company relative to its carrying value, the financial condition and prospects of the company and other relevant factors. The business plan objectives and milestones the Company considers include, among others, those related to financial performance, such as achievement of planned financial results or completion of capital raising activities, and those that are not primarily financial in nature, such as hiring of key employees or the establishment of strategic relationships.

 

Management then determines whether there has been an other than temporary decline in the value of its ownership interest in the company. Impairment is measured as the amount by which the carrying value of an asset exceeds its estimated fair value.

 

The estimated fair value of privately held companies is generally determined based on the value at which independent third parties have invested or have committed to invest in these companies or based on other valuation methods, including discounted cash flows, valuation of comparable public companies and the valuation of acquisitions of similar companies.

 

Impairment charges related to ownership interests in companies and funds accounted for under the equity method are included in Equity income (loss), net in the Consolidated Statements of Operations. Impairment charges related to ownership interests and funds accounted for at fair value or the fair value measurement alternative are included in Other income (loss), net in the Consolidated Statements of Operations.

 

The reduced cost basis of a previously impaired company accounted for using the Equity method is not written-up even if circumstances suggest the value of the company has subsequently recovered.

 

v3.21.2
Note 2 - Ownership Interests and Advances (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block]
  

September 30, 2021

  

December 31, 2020

 
  

(Unaudited - In thousands)

 

Equity Method:

        

Companies

 $23,828  $27,550 

Private equity funds

  117   271 
   23,945   27,821 

Other Method:

        

Companies, fair value

  10,792    

Companies, fair value measurement alternative

  514   19,683 

Private equity funds, fair value measurement alternative

  258   268 
   11,564   19,951 

Advances to companies

  775   2,626 
  $36,284  $50,398 
Equity Method Investments [Table Text Block]
  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands)

 

Results of Operations:

                

Revenue

 $35,447  $39,388  $106,097  $119,270 

Gross profit

 $23,023  $23,244  $69,124  $73,395 

Net loss

 $(25,390) $(15,650) $(77,092) $(56,684)
v3.21.2
Note 4 - Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
  

Carrying

  

Fair Value Measurement at September 30, 2021

 
  

Value

  

Level 1

  

Level 2

  

Level 3

 
  

(Unaudited - In thousands)

 

Cash and cash equivalents

 $64,211  $64,211  $  $ 
                 

Restricted cash equivalents

 $25  $25  $  $ 
                 

Ownership interests

 $10,792  $10,792  $  $ 
                 
  

Carrying

  

Fair Value Measurement at December 31, 2020

 
  

Value

  

Level 1

  

Level 2

  

Level 3

 
  

(Unaudited - In thousands)

 

Cash and cash equivalents

 $15,601  $15,601  $  $ 
                 
                 
v3.21.2
Note 5 - Stock-based Compensation (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Share-based Payment Arrangement, Activity [Table Text Block]
  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands)

 

General and administrative expense

 $484  $452  $1,469  $979 
  $484  $452  $1,469  $979 
v3.21.2
Note 7 - Net Income (Loss) Per Share (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2021

  

2020

  

2021

  

2020

 
  

(Unaudited - In thousands, except per share data)

 

Basic:

                

Net income (loss)

 $18,333  $(4,343) $35,638  $(30,262)

Weighted average common shares outstanding

  20,786   20,786   20,847   20,731 

Net income (loss) per share

 $0.88  $(0.21) $1.71  $(1.46)
                 

Diluted:

                

Net income (loss) for dilutive share computation

 $18,333  $(4,343) $35,638  $(30,262)
                 

Number of shares used in basic per share computation

  20,786   20,786   20,847   20,731 

Unvested restricted stock and DSU's

            

Employee stock options

            

Weighted average common shares outstanding

  20,786   20,786   20,847   20,731 
                 

Net income (loss) per dilutive share

 $0.88  $(0.21) $1.71  $(1.46)
v3.21.2
Note 8 - Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Schedule of Partner Company Ownership Interest [Table Text Block]

Company Name

 

Safeguard Primary Ownership as of September 30, 2021

 

Accounting Method

Aktana, Inc.

 15.0% 

Equity

Clutch Holdings, Inc.

 41.7% 

Equity

InfoBionic, Inc.

 25.2% 

Equity

Lumesis, Inc.

 43.2% 

Equity

MediaMath, Inc.

 13.2% 

Other

meQuilibrium

 31.9% 

Equity

Moxe Health Corporation

 27.6% 

Equity

Prognos Health Inc.

 28.5% 

Equity

Syapse, Inc.

 11.1% 

Equity

Trice Medical, Inc.

 12.6% 

Equity

v3.21.2
Note 9 - Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
  

Operating lease payments

  

Expected sublease receipts

 
  

(Unaudited - In thousands)

 

2021 (three months ending December 31)

 $149  $132 

2022

  601   540 

2023

  607   556 

2024

  613   573 

2025

  619   590 

2026

  207   199 

Thereafter

      

Total future minimum lease payments

  2,796  $2,590 

Less imputed interest

  (658)    

Total operating lease liabilities

 $2,138     
v3.21.2
Note 1 - General (Details Textual) - USD ($)
$ in Thousands, shares in Millions
Sep. 30, 2021
Dec. 30, 2020
Cash and Cash Equivalents, at Carrying Value, Ending Balance $ 64,211 $ 15,601
Debt Securities, Trading, and Equity Securities, FV-NI, Total $ 10,792 $ 0
Bright Health [Member]    
Investment Owned, Balance, Shares (in shares) 1.3  
Debt Securities, Trading, and Equity Securities, FV-NI, Total $ 10,800  
v3.21.2
Note 2 - Ownership Interests and Advances (Details Textual) - USD ($)
$ in Thousands, shares in Millions
3 Months Ended 9 Months Ended 24 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2021
Sep. 30, 2023
Dec. 31, 2020
Equity Securities without Readily Determinable Fair Value, Amount $ 11,564   $ 11,564   $ 19,951
Impairment of Other Method Securities 2,500   2,500    
Preferred Equity in Acquiror in Connection with Sale of Zipnosis, Inc [Member]          
Equity Securities without Readily Determinable Fair Value, Amount $ 15,300   15,300    
Zipnosis [Member]          
Proceeds from Sale of Equity Method Investments     3,500    
Equity Method Investment, Realized Gain (Loss) on Disposal, Total     $ 17,300    
Investment Owned, Balance, Shares (in shares)   1.3      
Bright Health [Member]          
Investment Owned, Balance, Shares (in shares) 1.3   1.3    
Trading Security, Unrealized Gain (Loss) $ (11,900) $ 7,400      
Flashtalking [Member]          
Proceeds From Sale of Other Method Investment     $ 44,800    
Other Method Investment, Realized Gain (Loss)     32,300    
Flashtalking [Member] | Forecast [Member]          
Contingent Proceeds from Other Method Investment       $ 700  
WebLinc, Inc. [Member]          
Proceeds from Sale of Equity Method Investments     3,600    
Equity Method Investment, Realized Gain (Loss) on Disposal, Total     $ 100    
Disposal Group, Including Discontinued Operation, Period of Contingent Proceeds (Month)     15 months    
T-Rex Group, Inc [Member]          
Equity Method Investment, Realized Gain (Loss) on Disposal, Total     $ 900    
Proceeds From Sale of Other Method Investment     3,000    
Velano Vascular [Member]          
Proceeds from Sale of Equity Method Investments     3,500    
Equity Method Investment, Realized Gain (Loss) on Disposal, Total     $ 1,900    
Disposal Group, Including Discontinued Operation, Period of Contingent Proceeds (Month)     12 months    
v3.21.2
Note 2 - Ownership Interests and Advances - Schedule of Carrying Value of Ownership Interests (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Dec. 30, 2020
Equity Method Companies $ 23,945 $ 27,821  
Ownership interests 10,792   $ 0
Other Method, fair value measurement alternative 11,564 19,951  
Advances to companies 775 2,626  
Investments and Advances to Affiliates, Current and Noncurrent 36,284 50,398  
Partnership Interest [Member]      
Equity Method Companies 23,828 27,550  
Ownership interests 10,792 0  
Other Method, fair value measurement alternative 514 19,683  
Private Equity Funds [Member]      
Equity Method Companies 117 271  
Other Method, fair value measurement alternative $ 258 $ 268  
v3.21.2
Note 2 - Ownership Interests and Advances - Schedule of Results of Operations (Details) - Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenue $ 35,447 $ 39,388 $ 106,097 $ 119,270
Gross profit 23,023 23,244 69,124 73,395
Net loss $ (25,390) $ (15,650) $ (77,092) $ (56,684)
v3.21.2
Note 3 - Acquisitions of Ownership Interests (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Dec. 31, 2020
Equity Method Investments $ 23,945 $ 23,945 $ 27,821
Syapse, Inc. [Member]      
Proceeds from Issuance of Preferred Stock and Preference Stock   68,000  
Aktana, Inc. [Member]      
Convertible Bridge Loan 1,700    
Equity Method Investments $ 14,200 $ 14,200  
Equity Method Investment, Ownership Percentage 15.00% 15.00%  
Syapse, Inc. [Member]      
Equity Method Investment, Dilution Gain   $ 7,300  
Equity Method Investment, Ownership Percentage 11.10% 11.10%  
Trice Medical [Member]      
Convertible Bridge Loan   $ 1,000  
Equity Method Investments $ 10,800 $ 10,800  
Equity Method Investment, Dilution Gain $ 2,000    
Equity Method Investment, Ownership Percentage 12.60% 12.60%  
v3.21.2
Note 4 - Fair Value Measurements (Details Textual)
shares in Millions
Sep. 30, 2021
shares
Bright Health [Member]  
Investment Owned, Balance, Shares (in shares) 1.3
v3.21.2
Note 4 - Fair Value Measurements - Fair Value of Assets and Liabilities Measured On Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Reported Value Measurement [Member]    
Cash and cash equivalents $ 64,211 $ 15,601
Restricted cash equivalents 25  
Ownership interests 10,792  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and cash equivalents 64,211 15,601
Restricted cash equivalents 25  
Ownership interests 10,792  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Cash and cash equivalents 0 0
Restricted cash equivalents 0  
Ownership interests 0  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Cash and cash equivalents 0 $ 0
Restricted cash equivalents 0  
Ownership interests $ 0  
v3.21.2
Note 5 - Stock-based Compensation (Details Textual) - Share-based Payment Arrangement, Nonemployee [Member] - shares
shares in Thousands
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) 45 13
Restricted Stock [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) 74 79
v3.21.2
Note 5 - Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
General and administrative expense $ 484 $ 452 $ 1,469 $ 979
General and Administrative Expense [Member]        
General and administrative expense $ 484 $ 452 $ 1,469 $ 979
v3.21.2
Note 6 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Tax Expense (Benefit), Total $ 0 $ 0 $ 0 $ 0
v3.21.2
Note 7 - Net Income (Loss) Per Share (Details Textual) - $ / shares
shares in Thousands
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Share-based Payment Arrangement, Option [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 31 151
Share-based Payment Arrangement, Option [Member] | Minimum [Member]    
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) $ 10.37 $ 10.37
Share-based Payment Arrangement, Option [Member] | Maximum [Member]    
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) $ 17.11 $ 17.11
Restricted Stock, Performance-based Stock Units, and Deferred Stock Units [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 200 300
v3.21.2
Note 7 - Net Income (Loss) Per Share - Calculations of Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Basic:                
Net income (loss) $ 18,333 $ (320) $ 17,625 $ (4,343) $ (9,911) $ (16,008) $ 35,638 $ (30,262)
Basic (in shares) 20,786     20,786     20,847 20,731
Basic (in dollars per share) $ 0.88     $ (0.21)     $ 1.71 $ (1.46)
Diluted:                
Net income (loss) $ 18,333 $ (320) $ 17,625 $ (4,343) $ (9,911) $ (16,008) $ 35,638 $ (30,262)
Basic (in shares) 20,786     20,786     20,847 20,731
Unvested restricted stock and DSU's (in shares) 0     0     0 0
Employee stock options (in shares) 0     0     0 0
Diluted (in shares) 20,786     20,786     20,847 20,731
Diluted (in dollars per share) $ 0.88     $ (0.21)     $ 1.71 $ (1.46)
v3.21.2
Note 8 - Segment Reporting (Details Textual)
9 Months Ended
Sep. 30, 2021
Number of Operating Segments 1
v3.21.2
Note 8 - Segment Reporting - Schedule of Active Partner Companies by Segment (Details)
Sep. 30, 2021
Aktana, Inc. [Member]  
Ownership Interest 15.00%
Clutch Holdings [Member]  
Ownership Interest 41.70%
InfoBionic, Inc. [Member]  
Ownership Interest 25.20%
Lumesis, Inc. [Member]  
Ownership Interest 43.20%
MediaMath, Inc. [Member]  
Ownership Interest 13.20%
meQuilibrium [Member]  
Ownership Interest 31.90%
Moxe Health Corporation [Member]  
Ownership Interest 27.60%
Prognos Health, Inc. [Member]  
Ownership Interest 28.50%
Syapse, Inc. [Member]  
Ownership Interest 11.10%
Trice Medical, Inc. [Member]  
Ownership Interest 12.60%
v3.21.2
Note 9 - Commitments and Contingencies (Details Textual) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2021
Dec. 31, 2020
Long-term Incentive Plan, Payments     $ 0.4  
Deferred Compensation Liability, Current and Noncurrent, Total $ 2.1   2.1  
Supplemental Unemployment Benefits, Severance Benefits 0.1   0.1  
Payments for Postemployment Benefits   $ 0.4    
Employee and Severance Agreement, Maximum Aggregate Exposure 0.6   0.6  
Employee Severance [Member]        
Restructuring Charges, Total     0.8  
Payments for Restructuring 0.1   $ 0.9  
Minimum [Member]        
Long-term Incentive Plan, Bonus Pool Percent     0.20% 1.00%
Maximum [Member]        
Long-term Incentive Plan, Bonus Pool Percent     1.30%  
Private Equity Funds [Member]        
Guarantor Obligations, Current Carrying Value $ 3.8   $ 3.8  
v3.21.2
Note 9 - Commitments and Contingencies - Operating Lease Cash Flow (Details)
$ in Thousands
Sep. 30, 2021
USD ($)
2021 (three months ending December 31) $ 149
2021 (three months ending December 31) 132
2022, Operating lease payments 601
2022), Expected sublease receipts 540
2023, Operating lease payments 607
2023), Expected sublease receipts 556
2024, Operating lease payments 613
2024), Expected sublease receipts 573
2025, Operating lease payments 619
2025), Expected sublease receipts 590
2026, Operating lease payments 207
2026), Expected sublease receipts 199
Total future minimum lease payments, Operating lease payments 2,796
Total future minimum lease payments, Expected sublease receipt 2,590
Less imputed interest, Operating lease payments (658)
Total operating lease liabilities, Operating lease payments $ 2,138
v3.21.2
Note 10 - Equity (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2021
Dec. 31, 2020
May 31, 2021
Jul. 31, 2015
Treasury Stock, Value, Acquired, Cost Method $ 51 $ 1,588        
Share Repurchase Program Authorized in July 2015 [Member]            
Stock Repurchase Program, Authorized Amount           $ 25,000
Treasury Stock, Shares, Acquired (in shares)     0 0    
Share Repurchase Program Authorized in May 2021 [Member]            
Stock Repurchase Program, Authorized Amount         $ 6,000  
Treasury Stock, Shares, Acquired (in shares)     236,159      
Treasury Stock, Value, Acquired, Cost Method     $ 1,600      
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)     $ 6.94      
v3.21.2
Note 11 - Subsequent Event (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Oct. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2021
Treasury Stock, Value, Acquired, Cost Method   $ 51 $ 1,588  
Share Repurchase Program Authorized in May 2021 [Member]        
Treasury Stock, Shares, Acquired (in shares)       236,159
Treasury Stock, Value, Acquired, Cost Method       $ 1,600
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)       $ 6.94
Subsequent Event [Member] | Share Repurchase Program Authorized in May 2021 [Member]        
Treasury Stock, Shares, Acquired (in shares) 4,300,000      
Treasury Stock, Value, Acquired, Cost Method $ 38,700      
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) $ 9.00