Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net income for the period $ 260,542 $ 188,987
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 42,744 21,440
Amortization expense 779,132 794,452
Amortization of debt discount 104,316 104,316
Deferred income tax provision    88,510
Share-based compensation 114,823 2,902
Changes in operating assets and liabilities:    
Increase in restricted cash (20,500) (18,253)
(Increase) decrease in accounts receivable (150,414) (22,902)
Decrease (increase) in other current assets 17,743 (4,481)
Increase in inventory (52,079) (132,507)
(Increase) decrease in prepaid expenses (59,804) (45,365)
(Increase) in other long-term assets (40,889)   
Increase (decrease) in accounts payable 94,346 4,583
Increase (decrease) in accrued expenses 49,695 (38,649)
Increase in income taxes payable 122,266   
Increase in deferred revenue 70,287 40,370
Increase in jackpot liabilities 23,021 16,254
Increase in deferred rent 52,724   
Net cash provided by operating activities 1,407,953 999,657
Cash flows from investing activities:    
Acquisition of property and equipment (8,791) (18,347)
Acquisition of intangible assets (35,000)   
Payments received on note receivable    4,177
Net cash (used in) provided by investing activities (43,791) (14,170)
Cash flows from financing activities:    
Principal payments on capital leases (9,352)   
Principal payments on notes payable (1,360,143) (1,135,014)
Net cash used in financing activities (1,369,495) (1,135,014)
Effect of exchange rate changes on cash 1,438 (5,728)
Net decrease in cash and cash equivalents (3,895) (155,255)
Cash and cash equivalents beginning of period 438,502 398,424
Cash and cash equivalents end of period 434,607 243,169
Supplemental cash flow information:    
Cash paid for interest 283,237 515,560
Inventory transferred to leased assets 36,550 27,898
Cash paid for income taxes      
Supplemental non-cash financing activities information:    
Assets acquired by capital lease 243,970   
Effect of exchange rate on note payable in foreign currency $ 74,935 $ 603,774