Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net income (loss) for the period $ 188,987 $ (109,705)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation expense 21,440 33,059
Amortization expense 794,452 786,347
Amortization of debt discount 104,316 104,316
Provision for bad debts    15,000
Deferred income tax provision 88,510   
Share-based compensation 2,902 88,249
Changes in operating assets and liabilities:    
Increase in restricted cash (18,253) (23,597)
Increase in accounts receivable (22,902) (121,937)
(Increase) decrease in other current assets (4,481) 6,505
Increase in inventory (104,609) (26,753)
(Increase) in prepaid expenses (45,365) (14,258)
Increase in accounts payable 4,583 36,019
(Decrease) increase in accrued expenses (38,649) 18,570
Increase in deferred revenue 40,370 86,411
Increase in jackpot liabilities 16,254 24,193
Net cash provided by operating activities 1,027,555 902,419
Cash flows from investing activities:    
Acquisition of property and equipment (18,347)   
Increase in note receivable    (7,383)
Payments received on note receivable 4,177   
Increase in products leased or held for lease (27,898)   
Net cash used in investing activities (42,068) (7,383)
Cash flows from financing activities:    
Principal payments on notes payable - related party    (469)
Principal payments on notes payable (1,135,014) (911,144)
Net cash used in financing activities (1,135,014) (911,613)
Effect of exchange rate changes on cash (5,728)   
Net decrease in cash and cash equivalents (155,255) (16,577)
Cash and cash equivalents – beginning of period 398,424 182,907
Cash and cash equivalents – end of period 243,169 166,330
Supplemental cash flow information:    
Cash paid for interest 515,560 445,114
Cash paid for income taxes      
Effect of exchange rate on note payable in foreign currency   $ 192,522