Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net income for the period $ 347,971 $ 168,004
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation expense 72,450 34,927
Amortization expense 1,170,381 1,191,678
Amortization of debt discount 156,474 156,474
Deferred income tax provision 333,584 90,565
Share-based compensation 139,378 4,354
Impairment of intangible assets    150,000
Changes in operating assets and liabilities:    
Decrease (increase) in restricted cash 149,712 (25,123)
(Increase) in accounts receivable (159,478) (193,608)
Decrease (increase) in other current assets 15,691 (42,550)
(Increase) in inventory (80,678) (164,136)
(Increase) in prepaid expenses (19,374) (7,744)
(Increase) in other long-term assets (41,794)   
Increase in accounts payable 141,885 48,841
Increase in accrued expenses 22,582 16,990
Increase in deferred revenue 97,324 55,993
(Decrease) increase in jackpot liabilities (147,043) 28,002
Increase in deferred rent 54,477   
Net cash provided by operating activities 2,253,542 1,512,667
Cash flows from investing activities:    
Acquisition of property and equipment (31,343) (21,735)
Acquisition of intangible assets (35,000)   
Payments received on note receivable    4,963
Net cash used in investing activities (66,343) (16,772)
Cash flows from financing activities:    
Principal payments on capital leases (24,753)   
Principal payments on notes payable (2,199,935) (1,702,937)
Net cash used in financing activities (2,224,688) (1,702,937)
Effect of exchange rate changes on cash (6,461) 3,613
Net decrease in cash and cash equivalents (43,950) (203,429)
Cash and cash equivalents beginning of period 438,502 398,424
Cash and cash equivalents end of period 394,552 194,995
Supplemental cash flow information:    
Cash paid for interest 678,483 515,560
Cash paid for income taxes      
Supplemental non-cash financing activities information:    
Assets acquired by capital lease 243,970   
Inventory transferred to leased assets 71,203 31,876
Effect of exchange rate on note payable in foreign currency $ 190,180 $ 124,400