Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:    
Net income (loss) for the period $ 103,797 $ (171,218)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation expense 10,159 17,806
Amortization expense 397,226 393,173
Amortization of debt discount 52,158 52,158
Provision for bad debts    15,000
Deferred income tax provision 48,763   
Share-based compensation 1,451 80,250
Changes in operating assets and liabilities:    
Increase in restricted cash (5,145) (11,488)
Decrease (increase) in accounts receivable 31,325 (72,011)
(Increase) decrease in other current assets (6,264) 105,566
Increase in inventory (98,548) (18,344)
Decrease (increase) in prepaid expenses 10,841 (28,204)
(Decrease) increase in accounts payable (23,048) 32,471
Decrease in accrued expenses (57,824) (54,070)
Increase in deferred revenue 4,023 49,122
Increase in jackpot liabilities 13,772 10,191
Net cash provided by operating activities 482,686 400,402
Cash flows from investing activities:    
Acquisition of property and equipment (2,791)   
Increase in note receivable    (6,060)
Payments received on note receivable 4,177   
Increase in products leased or held for lease (13,231)   
Net cash used in investing activities (11,845) (6,060)
Cash flows from financing activities:    
Principal payments on notes payable - related party    (469)
Principal payments on notes payable (571,048) (454,078)
Net cash used in financing activities (571,048) (454,547)
Effect of exchange rate changes on cash (7,474)   
Net decrease in cash and cash equivalents (107,681) (60,205)
Cash and cash equivalents - beginning of period 398,424 182,907
Cash and cash equivalents - end of period 290,743 122,702
Supplemental cash flow information:    
Cash paid for interest 257,017 111,748
Cash paid for income taxes      
Effect of exchange rate on note payable in foreign currency $ 596,748 $ 242,258