Galaxy Gaming, Inc. Quarterly report pursuant to sections 13 or 15(d)

Quarterly report pursuant to sections 13 or 15(d)

CORRECTION OF ERRORS AND RESTATEMENTS

CORRECTION OF ERRORS AND RESTATEMENTS

9 Months Ended

Sep. 30, 2013

We have restated our ending balances for September 30, 2012, as well as the balance sheet and statement of cash flows for September 30, 2012 to correct an error in our accounting. The error relates to an adjustment for foreign currency translation of the notes payable balance to Prime Table Games UK, which is recorded in the functional currency pound sterling. The adjustment records an unrealized translation adjustment to the accumulated other comprehensive income (loss) account. There was no effect on the statement of operations.

The following are the previous and corrected balances for the period ended September 30, 2012:

September 30, 2012 Financial Statements	Line Item	Corrected	Previously Stated

Balance Sheet	Notes payable, current portion	2,216,028	2,192,095
Balance Sheet	Notes payable, net of debt discount, net of current portion	18,664,938	18,463,539
Balance Sheet	Total liabilities	22,128,164	21,902,833
Balance Sheet	Accumulated other comprehensive (loss)	(225,331)	-
Balance Sheet	Total shareholders’ equity	158,993	384,324

Statement of Cash Flows	Net cash provided by operating activities	1,353,831	1,384,322
Statement of Cash Flows	Net cash used in investing activities	(22,614)	30,103
Statement of Cash Flows	Net cash used in financing activities	(1,371,914)	(1,267,599)
Statement of Cash Flows	Non-cash investing and financing activities:
	Effect of exchange rate on note payable in foreign currency	225,331	-