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, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net income for the year $ 187,854 $ 21,888
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation expense 178,850 109,809
Amortization expense 1,495,012 1,561,631
Provision for bad debts 33,907  
Inventory reserve 54,696  
Amortization of debt discount 208,632 208,632
Provision for income taxes 251,629 139,745
Share-based compensation 119,677 323,759
Impairment of intangible assets 0 528,233
Changes in operating assets and liabilities:    
Decrease in restricted cash 10,054 136,503
Increase in accounts receivable (389,833) (199,455)
Decrease (increase) in other current assets 60,095 (12,074)
Increase in inventory (288,795) (11,373)
Increase in prepaid expenses (25,898) (45,467)
Increase in other long-term assets   (41,794)
Increase in accounts payable 903,420 276,727
Increase in accrued expenses 304,798 198,209
Increase (decrease) in income taxes payable 109,015 (11,783)
Increase in deferred revenue 70,065 120,703
Decrease in jackpot liabilities (4,689) (135,162)
Increase in deferred rent 2,598 56,242
Net cash provided by operating activities 3,281,087 3,224,973
Cash flows from investing activities:    
Acquisition of property and equipment (45,638) (76,716)
Acquisition of intangible assets   (35,000)
Net cash used in investing activities (45,638) (111,716)
Cash flows from financing activities:    
Principal payments on capital leases (66,273) (40,223)
Principal payments on notes payable (3,147,459) (2,937,709)
Net cash used in financing activities (3,213,732) (2,977,932)
Effect of exchange rate changes on cash (11,278) (13,643)
Net increase in cash and cash equivalents 10,439 121,682
Cash and cash equivalents – beginning of year 560,184 438,502
Cash and cash equivalents – end of year 570,623 560,184
Supplemental cash flow information:    
Cash paid for interest 1,036,288 880,947
Supplemental non-cash investing and financing activities information    
Assets acquired under capital leases   243,700
Assets acquired under note payable   86,634
Inventory transferred to leased assets 55,188 76,064
Offsetting of related party note receivable and note payable 383,298  
Effect of exchange rate on note payable in foreign currency $ 131,014 $ 396,083