Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net income for the period $ 254,138 $ 347,971
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 128,916 72,450
Amortization expense 1,122,698 1,170,381
Provision for bad debt expense 40,000  
Inventory reserve 47,069  
Amortization of debt discount 156,474 156,474
Deferred income tax provision 219,418 333,584
Share-based compensation 72,850 151,378
Changes in operating assets and liabilities:    
Increase in restricted cash 9,392 149,712
Increase in accounts receivable (197,139) (159,478)
(Increase) decrease in other current assets 62,314 15,691
Increase in inventory (125,820) (80,678)
Increase in prepaid expenses (65,538) (19,374)
Increase in other long-term assets   (41,794)
Increase in accounts payable 495,891 129,885
Increase in accrued expenses 23,037 22,582
Increase in deferred revenue 65,227 97,324
Decrease in jackpot liabilities (6,296) (147,043)
(Decrease) increase in deferred rent (957) 54,477
Net cash provided by operating activities 2,301,674 2,253,542
Cash flows from investing activities:    
Acquisition of property and equipment (44,980) (31,343)
Acquisition of intangible assets   (35,000)
Net cash used in investing activities (44,980) (66,343)
Cash flows from financing activities:    
Principal payments on capital leases (49,186) (24,753)
Principal payments on notes payable (2,662,699) (2,199,935)
Net cash used in financing activities (2,711,885) (2,224,688)
Effect of exchange rate changes on cash (1,962) (6,461)
Net decrease in cash and cash equivalents (457,153) (43,950)
Cash and cash equivalents – beginning of period 560,184 438,502
Cash and cash equivalents – end of period 103,031 394,552
Supplemental cash flow information:    
Cash paid for interest 800,830 678,483
Inventory transferred to leased assets 39,896 71,203
Supplemental non-cash financing activities information:    
Effect of exchange rate on note payable in foreign currency $ 119,414 190,180
Assets acquired by capital leases   $ 243,970