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 ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net income $ 1,577,867 $ 254,138
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,252,860 1,251,614
Amortization of debt issuance costs and debt discount 136,710 156,474
Provision for bad debt expense   40,000
Inventory reserve   47,069
Loss on extinguishment of debt 87,578  
Change in estimated fair value of warrant liability (2,933)  
Deferred income tax provision 54,370 219,418
Share-based compensation 91,006 72,850
Changes in operating assets and liabilities:    
Decrease in restricted cash 10,009 9,392
Increase in accounts receivable (107,969) (197,139)
Decrease in other current assets 43,017 62,314
Increase in inventory (181,319) (125,820)
Decrease (increase) in prepaid expenses and other current assets 6,608 (65,538)
(Decrease) increase in accounts payable (858,954) 495,891
Increase in income tax payable 936,269  
Increase in accrued expenses 141,841 23,037
Increase in deferred revenue 152,938 65,227
Decrease in jackpot liabilities (15,069) (6,296)
Decrease in deferred rent (3,555) (957)
Net cash provided by operating activities 3,321,274 2,301,674
Cash flows from investing activities:    
Acquisition of property and equipment (43,345) (44,980)
Cash flows from financing activities:    
Proceeds received from long-term debt 932,126  
Principal payments on capital lease obligations (51,698) (49,186)
Principal payments on long-term debt (2,873,437) (2,662,699)
Net cash used in financing activities (1,993,009) (2,711,885)
Effect of exchange rate changes on cash (31,886) (1,962)
Net increase (decrease) in cash and cash equivalents 1,253,034 (457,153)
Cash and cash equivalents – beginning of period 570,623 560,184
Cash and cash equivalents – end of period 1,823,657 103,031
Supplemental cash flow information:    
Cash paid for interest 753,250 800,830
Inventory transferred to leased assets 108,577 39,896
Cash paid for income taxes 35,000  
Supplemental non-cash financing activities information:    
Effect of exchange rate on long-term debt payable in foreign currency 336,485 $ 119,414
Issuance of warrants in conjunction with term loan 809,631  
Points paid on term loan $ 262,500