Quarterly report pursuant to sections 13 or 15(d)


6 Months Ended
Jun. 30, 2012
Debt Disclosure [Abstract]  


Long - term debt consists of the following as of:


    June 30, 2012   December 31, 2011
Note payable - commercial bank   $ 1,135,918     $ 1,148,448  
Notes payable, net of debt discount - asset acquisition     19,927,860       20,722,158  
      21,063,778       21,870,606  
Less: Current portion     (2,071,080 )     (1,835,240 )
    $ 18,992,698     $ 20,035,366  


The note payable is paid to a commercial bank in monthly installments of $9,159 including fixed interest of 7.3%, for ten years, through February 2017, at which time there is a balloon payment of $1,003,230. This liability was assumed with the asset purchase agreement from GGLLC. The note payable financed the purchase of the intellectual property including patents, patent applications, trademarks, trademark applications, copyrights, know-how and trade secrets related to the casino gaming services including but not limited to games, side bets, inventions and ideas. The note agreement with the commercial bank remains in the name of GGLLC and we have no direct obligation to the commercial bank, but rather to GGLLC, a related party.


In October 2011 we closed an asset acquisition from Prime Table Games LLC and Prime Table Games UK. Included within the structure of the $23 million acquisition was a $22.2 million component consisting of two promissory notes, with one of the notes due in the amount of $12.2 million, payable in U.S. funds and a second note in the amount of £6.4 million, payable in British Sterling, which has been converted to $10 million U.S. dollars in our financial presentations at the rate of one (1) U.S. dollar is equal to 0.64 British pounds. The notes were recorded at fair value, net of a debt discount of $1,530,000.


Maturities of our long-term debt are as follows:



Maturities as of June 30,   Total
  2014       2,579,776  
  2015       3,157,689  
  2016       3,824,097  
  2017       5,279,242  
  Thereafter       5,525,420  
  Total long-term debt       20,366,224  
  Less: debt discount       (1,373,526 )
  Long-term debt, net of debt discount     $ 18,992,698