Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net income for the period $ 168,004 $ 19,771
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation expense 34,927 47,845
Amortization expense 1,191,678 1,179,521
Amortization of debt discount 156,474 156,474
Provision for bad debts    15,000
Deferred income tax provision 90,565   
Share-based compensation 4,354 89,701
Impairment of intangible assets 150,000   
Changes in operating assets and liabilities:    
(Increase) in restricted cash (25,123) (187,523)
(Increase) in accounts receivable (193,608) (254,336)
(Increase) decrease in other current assets (42,550) 8,867
(Increase) in inventory (164,136) (29,186)
(Increase) decrease in prepaid expenses (7,744) 29,984
Increase in accounts payable 48,841 54,243
Increase (decrease) in accrued expenses 16,990 (64,585)
Increase in deferred revenue 55,993 101,015
Increase in jackpot liabilities 28,002 187,040
Net cash provided by operating activities 1,512,667 1,353,831
Cash flows from investing activities:    
Acquisition of property and equipment (21,735) (16,584)
Increase in note receivable    (6,030)
Payments received on note receivable 4,963   
Net cash used in investing activities (16,772) (22,614)
Cash flows from financing activities:    
Principal payments on notes payable related party    (469)
Principal payments on notes payable (1,702,937) (1,371,445)
Net cash used in financing activities (1,702,937) (1,371,914)
Effect of exchange rate changes on cash 3,613   
Net decrease in cash and cash equivalents (203,429) (40,697)
Cash and cash equivalents beginning of period 398,424 182,907
Cash and cash equivalents end of period 194,995 142,210
Supplemental cash flow information:    
Cash paid for interest 515,560 505,083
Inventory transferred to leased assets 31,876   
Cash paid for income taxes      
Supplemental non-cash financing activities information:    
Effect of exchange rate on note payable in foreign currency $ 124,400 $ 225,331