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MGT Capital Investments Inc Reports Operating Results (10-Q)

November 22, 2010 | About:

MGT Capital Investments Inc (MGT) filed Quarterly Report for the period ended 2010-09-30.

Mgt Capital Investments Inc has a market cap of $7.49 million; its shares were traded at around $0.23 with and P/S ratio of 32.84. Mgt Capital Investments Inc had an annual average earning growth of 2.6% over the past 5 years.

Highlight of Business Operations:

· Revenue from license and other sales was $388 compared to $146 in 2009. Gross profit on revenues was $273 compared with $146 in 2009.

· Net loss attributable to MGT Capital Investments, Inc. decreased 69 % to $6,852 and resulted in a loss per share from continuing operations of $0.20 compared to a net loss of $21,770 and net loss per share from continuing operations of $0.64 in 2009.

Operating losses in the parent holding company for the nine months ended September 30, 2010, are $1,995 (2009: $14,817). For the three months ended September 30, 2010 are $78 (2009: $1,188). For the nine months end September 30, 2010, the largest items of operating expense are people costs, $677, legal and professional Fees, $716, and insurance, $157. In the period, $1,711 was provided for in relation to the Moneygate loan. These appear below operating loss in the consolidated statement of operations.

In 2007 and 2008 we invested $3,000 in Series C preferred shares of XShares Group, Inc. (XShares), an investment advisor that creates, issues and supports exchange traded funds with a particular healthcare specialty. In the year ended December 31, 2009 the Company invested $2,000 in XShares convertible notes with a principal of $2,100. As of December 31, 2009 the equity investment and the convertible notes had been fully impaired. On March 31, 2010 we disposed of all of our equity holdings in XShares for $1 and the convertible notes for $1 resulting in a total gain on sale of $2.

As of September 30, 2010 Medicsights share price was £0.04 ($0.07) compared to £0.08 ($0.13), as of December 31, 2009. This valued the holding at £3,655 ($5,778), compared to £6,794 ($10,821) as of December 31, 2009.

Medicexchange was sold during the nine months ended September 30, 2010 and $1,101 of cash was disposed of as part of this transaction, which is included within investing activities. For consideration of this sale along with other assets sold at the same time MGT was due to receive 4 installments totaling £750 ($1,136). As of September 30, 2010 £250 ($382) had been received. The third payment installment in the original agreement was due on August 30, 2010. At the request of the third party, and in discussion and negotiation with management, it was agreed that the remaining installments would be modified. The revised agreement now includes the following payment installments; October 30, 2010, £75 ($113); December 15, 2010, £175 ($265); and February 28, 2011, £250 ($379).

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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