Annual report pursuant to section 13 and 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net income for the year $ 563,317 $ 621,726
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 45,562 50,488
Amortization expense 1,588,905 1,564,969
Amortization of debt discount 208,632 208,632
Bad debt expense    35,000
Deferred income tax provision 69,767 (341,823)
Share-based compensation 5,805 91,152
Impairment of intangible assets 150,000   
Changes in operating assets and liabilities:    
Increase in restricted cash (27,452) (199,743)
Increase in accounts receivable (246,809) (218,440)
(Increase) decrease in other current assets (8,135) 70,138
Increase in inventory (138,997) (48,026)
(Increase) decrease in prepaid expenses (5,530) 28,207
(Decrease) increase in accounts payable (45,260) 12,407
Increase (decrease) in accrued expenses 70,345 (86,245)
Increase in income taxes payable 34,655   
Increase in deferred revenue 86,580 104,294
Increase in jackpot liabilities 24,413 200,759
Net cash provided by operating activities 2,375,798 2,093,495
Cash flows from investing activities:    
Acquisition of property and equipment (22,653) (18,467)
Payments received on note receivable 4,963 3,679
Net cash used in investing activities (17,690) (14,788)
Cash flows from financing activities:    
Principal payments on notes payable (2,323,599) (1,866,471)
Net cash used in provided by financing activities (2,323,599) (1,866,471)
Effect of exchange rate changes on cash 5,569 3,281
Net increase in cash and cash equivalents 40,078 215,517
Cash and cash equivalents beginning of year 398,424 182,907
Cash and cash equivalents end of year 438,502 398,424
Supplemental cash flow information:    
Cash paid for interest 825,486 673,915
Cash paid for income taxes      
Supplemental non-cash investing and financing activities information:    
Inventory transferred to leased assets 59,288 47,416
Effect of exchange rate on note payable in foreign currency $ 79,030 $ 225,331