Investors

Financials

v3.5.0.2
Condensed Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets:    
Cash and cash equivalents $ 1,823,657 $ 570,623
Restricted cash 87,850 97,859
Accounts receivable, net of allowance for bad debts of $27,190 and $30,944 1,937,343 1,828,669
Inventory 484,442 411,700
Deferred tax asset   43,017
Prepaid expense and other 99,905 108,827
Total current assets 4,433,197 3,060,695
Goodwill and other intangible assets, net 13,235,698 14,352,636
Deferred tax assets, net   82,562
Other assets, net 299,918 41,793
Total assets 18,418,176 17,971,048
Current liabilities:    
Accounts payable 563,445 1,421,848
Accrued expenses 976,834 823,964
Income taxes payable 1,106,600 170,331
Deferred revenue 870,628 717,690
Jackpot liabilities 91,602 106,671
Deferred tax liabilities 75,358  
Deferred rent, current portion 12,753 6,197
Current portion of long-term debt and capital lease obligations 909,009 4,707,316
Total current liabilities 4,606,229 7,954,017
Deferred rent, net 42,532 52,643
Capital lease obligations, net 54,898 78,008
Warrant liability 806,698  
Long-term debt, net 9,028,235 7,436,171
Total liabilities 14,538,592 15,520,839
Commitments and Contingencies (See Note 10)
Stockholders’ equity    
Preferred stock, 10,000,000 shares authorized; $.001 par value; 0 shares issued and outstanding, respectively
Common stock, 65,000,000 shares authorized; $.001 par value; 39,315,591 and 39,215,591 shares issued and outstanding, respectively 39,316 39,216
Additional paid-in capital 3,054,847 2,963,841
Accumulated earnings (deficit) 785,421 (792,446)
Accumulated other comprehensive income   239,598
Total stockholders’ equity 3,879,584 2,450,209
Total liabilities and stockholders’ equity 18,418,176 17,971,048
Property Plant and Equipment Excluding Assets Leased to Others    
Current assets:    
Property and equipment, net 244,896 298,877
Products Leased and Held for Lease, Net    
Current assets:    
Property and equipment, net $ 204,467 $ 134,485
v3.5.0.2
Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenue:        
Product leases and royalties $ 3,190,823 $ 2,747,774 $ 9,229,815 $ 8,003,469
Product sales and service 1,146 7,074 10,425 18,073
Total revenue 3,191,969 2,754,848 9,240,240 8,021,542
Costs and expenses:        
Cost of ancillary products and assembled components 26,763 22,890 78,075 70,168
Selling, general and administrative 1,576,480 1,736,024 4,850,785 4,995,984
Research and development 89,513 101,822 270,734 371,251
Depreciation and amortization 419,540 416,918 1,252,860 1,251,614
Share-based compensation 41,075 17,909 91,006 72,850
Total costs and expenses 2,153,371 2,295,563 6,543,460 6,761,867
Income from operations 1,038,598 459,285 2,696,780 1,259,675
Other income (expense):        
Settlement income 697,214   697,214  
Interest expense (227,632) (248,604) (741,045) (799,407)
Loss on extinguishment of debt (87,578)   (87,578)  
Change in estimated fair value of warrant liability 2,933   2,933  
Interest income 56 2,084 202 13,288
Total other expense 384,993 (246,520) (128,274) (786,119)
Income before provision for income taxes 1,423,591 212,765 2,568,506 473,556
Provision for income taxes (602,619) (93,059) (990,639) (219,418)
Net income $ 820,972 $ 119,706 $ 1,577,867 $ 254,138
Net income per share, basic and diluted $ 0.02 $ 0.00 $ 0.04 $ 0.01
Weighted-average shares outstanding:        
Basic 39,315,591 39,040,775 39,372,944 39,040,775
Diluted 39,465,676 39,079,102 39,559,494 39,079,102
v3.5.0.2
Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net income $ 1,577,867 $ 254,138
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,252,860 1,251,614
Amortization of debt issuance costs and debt discount 136,710 156,474
Provision for bad debt expense   40,000
Inventory reserve   47,069
Loss on extinguishment of debt 87,578  
Change in estimated fair value of warrant liability (2,933)  
Deferred income tax provision 54,370 219,418
Share-based compensation 91,006 72,850
Changes in operating assets and liabilities:    
Decrease in restricted cash 10,009 9,392
Increase in accounts receivable (107,969) (197,139)
Decrease in other current assets 43,017 62,314
Increase in inventory (181,319) (125,820)
Decrease (increase) in prepaid expenses and other current assets 6,608 (65,538)
(Decrease) increase in accounts payable (858,954) 495,891
Increase in income tax payable 936,269  
Increase in accrued expenses 141,841 23,037
Increase in deferred revenue 152,938 65,227
Decrease in jackpot liabilities (15,069) (6,296)
Decrease in deferred rent (3,555) (957)
Net cash provided by operating activities 3,321,274 2,301,674
Cash flows from investing activities:    
Acquisition of property and equipment (43,345) (44,980)
Cash flows from financing activities:    
Proceeds received from long-term debt 932,126  
Principal payments on capital lease obligations (51,698) (49,186)
Principal payments on long-term debt (2,873,437) (2,662,699)
Net cash used in financing activities (1,993,009) (2,711,885)
Effect of exchange rate changes on cash (31,886) (1,962)
Net increase (decrease) in cash and cash equivalents 1,253,034 (457,153)
Cash and cash equivalents – beginning of period 570,623 560,184
Cash and cash equivalents – end of period 1,823,657 103,031
Supplemental cash flow information:    
Cash paid for interest 753,250 800,830
Inventory transferred to leased assets 108,577 39,896
Cash paid for income taxes 35,000  
Supplemental non-cash financing activities information:    
Effect of exchange rate on long-term debt payable in foreign currency 336,485 $ 119,414
Issuance of warrants in conjunction with term loan 809,631  
Points paid on term loan $ 262,500