Quarterly report pursuant to Section 13 or 15(d)

Condensed Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net income for the period $ 756,894 $ 134,432
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 88,696 84,311
Amortization expense 744,625 750,386
Provision for bad debt expense   40,000
Inventory reserve   47,069
Amortization of debt discount 104,316 104,316
Deferred income tax provision 388,020 202,506
Share-based compensation 49,931 54,942
Changes in operating assets and liabilities:    
Decrease (increase) in restricted cash 26,786 (28,408)
Decrease (increase) in accounts receivable 71,287 (51,744)
Decrease (increase) in other current assets 328 (8,156)
Increase in inventory (137,704) (20,348)
Decrease (increase) in prepaid expenses 9,156 (117,860)
(Decrease) increase in accounts payable (241,190) 286,986
Increase in income taxes payable 349,450  
Increase in accrued expenses 327,090 14,837
Increase in deferred revenue 134,169 35,086
(Decrease) increase in jackpot liabilities (16,598) 28,464
(Decrease) increase in deferred rent (913) 1,685
Net cash provided by operating activities 2,654,343 1,558,504
Cash flows from investing activities:    
Acquisition of property and equipment (28,832) (44,066)
Net cash used in investing activities (28,832) (44,066)
Cash flows from financing activities:    
Principal payments on capital leases (35,233) (32,464)
Principal payments on notes payable (2,488,778) (1,800,231)
Net cash used in financing activities (2,524,011) (1,832,695)
Effect of exchange rate changes on cash (29,385) 5,233
Net increase (decrease) in cash and cash equivalents 72,115 (313,024)
Cash and cash equivalents – beginning of period 570,623 560,184
Cash and cash equivalents – end of period 642,738 247,160
Supplemental cash flow information:    
Cash paid for interest 530,660 446,487
Inventory transferred to leased assets 45,137 11,034
Cash paid for income taxes 20,000  
Supplemental non-cash financing activities information:    
Effect of exchange rate on note payable in foreign currency $ 24,318 $ 152,523