Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net income for the period $ 134,432 $ 260,542
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 84,311 42,744
Amortization expense 750,386 779,133
Provision for bad debt expense 40,000  
Inventory reserve 47,069  
Amortization of debt discount 104,316 104,316
Deferred income tax provision 202,506  
Share-based compensation 54,942 114,823
Changes in operating assets and liabilities:    
Increase in restricted cash (28,408) (20,500)
Increase in accounts receivable (51,744) (150,414)
(Increase) decrease in other current assets (8,156) 17,743
Increase in inventory (20,348) (52,079)
Increase in prepaid expenses (117,860) (59,804)
Decrease in other long-term assets   (40,889)
Increase in accounts payable 286,986 94,345
Increase in accrued expenses 14,837 49,695
Increase in income taxes payable   122,266
Increase in deferred revenue 35,086 70,287
Increase in jackpot liabilities 28,464 23,021
Increase in deferred rent 1,685 52,724
Net cash provided by operating activities 1,558,504 1,407,953
Cash flows from investing activities:    
Acquisition of property and equipment (44,066) (8,791)
Acquisition of intangible assets   (35,000)
Net cash used in investing activities (44,066) (43,791)
Cash flows from financing activities:    
Principal payments on capital leases (32,464) (9,352)
Principal payments on notes payable (1,800,231) (1,360,143)
Net cash used in financing activities (1,832,695) (1,369,495)
Effect of exchange rate changes on cash 5,233 1,438
Net decrease in cash and cash equivalents (313,024) (3,895)
Cash and cash equivalents – beginning of period 560,184 438,502
Cash and cash equivalents – end of period 247,160 434,607
Supplemental cash flow information:    
Cash paid for interest 446,487 563,682
Inventory transferred to leased assets 11,034 36,550
Supplemental non-cash financing activities information:    
Effect of exchange rate on note payable in foreign currency $ 152,523 74,935
Assets acquired by capital leases   $ 243,970