10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x   Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015 or

¨   Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:   000-28383

Table Trac, Inc.

(Exact Name of Registrant as Specified in its Charter)

Nevada	88-0336568
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

6101 Baker Road, Suite 206, Minnetonka, Minnesota 55345

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (952) 548-8877

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨ No x

As of August 14, 2015, the registrant had outstanding 4,585,085 shares of common stock, $.001 par value per share.

Table Trac, Inc.

Index

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 4. Controls and Procedures	16
PART II. OTHER INFORMATION
Item 6. Exhibits	16
SIGNATURES	17

- 2 -

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TABLE TRAC, INC.

CONTENTS

	Page
CONDENSED FINANCIAL STATEMENTS
Condensed Balance Sheets	4
Condensed Statements of Operations	5
Condensed Statements of Cash Flows	6
Notes to Condensed Financial Statements	7

- 3 -

TABLE TRAC, INC.

CONDENSED BALANCE SHEETS (Unaudited)

	June 30,			December 31,
	2015			2014
ASSETS
CURRENT ASSETS
Cash	$	601,285		$	1,208,201
Accounts receivable, net		3,291,808			2,224,576
Inventory		837,398			893,743
Prepaid expenses and other current assets		88,822			98,607
Income taxes receivable		83,101			16,610
TOTAL CURRENT ASSETS		4,902,414			4,441,737
LONG-TERM ASSETS
Patent, net		2,320			3,003
Property and equipment, net		16,941			2,138
Other long-term assets		776,825			344,816
Deferred tax asset		44,947			19,000
Long-term accounts receivable – financed contracts		1,213,823			675,683
TOTAL LONG-TERM ASSETS		2,054,856			1,044,640
TOTAL ASSETS	$	6,957,270		$	5,486,377
LIABILITIES AND  STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	490,405		$	217,352
Payroll liabilities		77,607			60,726
Deferred revenue - short-term		30,525			38,975
Income taxes payable		0			109,967
Deferred tax liability		732,947			766,947
TOTAL CURRENT LIABILITIES		1,331,484			1,193,967
LONG-TERM LIABILITIES
Deferred revenue - long-term		2,639,224			1,090,746
TOTAL LIABILITIES		3,970,708			2,284,713
STOCKHOLDERS' EQUITY
Common stock, 0.001 par value; 25,000,000 shares authorized: 4,655,734 shares issued and 4,585,085 outstanding at June 30, 2015 and 4,705,734 issued and 4,704,734 outstanding at December 31, 2014		4,656			4,706
Additional paid-in capital		1,801,248			1,845,198
Retained earnings		1,245,825			1,353,182
		3,051,729			3,203,086
Treasury stock, 70,649 and 1,000 shares (at cost) at June 30, 2015 and December 31, 2014		(65,167	)		(1,422	)
TOTAL STOCKHOLDERS’ EQUITY		2,986,562			3,201,664
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	6,957,270		$	5,486,377

See notes to condensed financial statements.

- 4 -

TABLE TRAC, INC.

CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014		2015			2014
Revenues	$	726,135		$	907,302	$	2,073,619		$	2,075,512
Cost of sales		250,322			209,514		650,846			531,548
Gross profit		475,813			697,788		1,422,773			1,543,964
Operating Expenses:
Selling, general and administrative		795,011			642,640		1,614,397			1,392,984
Income (loss) from operations		(319,198	)		55,148		(191,624	)		150,980
Interest income		9,416			11,459		17,004			36,072
Income (loss) before taxes		(309,782	)		66,607		(174,620	)		187,052
Income tax expense (benefit)		(115,000	)		19,000		(67,000	)		63,000
Net income (loss)	$	(194,782	)	$	47,607	$	(107,620	)	$	124,052
Basic earnings (loss) per common share	$	(0.04	)	$	0.01	$	(0.02	)	$	0.03
Weighted-average basic shares outstanding		4,614,517			4,775,876		4,637,187			4,775,344
Diluted earnings (loss) per common share	$	(0.04	)	$	0.01	$	(0.02	)	$	0.03
Weighted-average diluted shares outstanding		4,614,517			4,775,876		4,637,187			4,775,344

See notes to condensed financial statements.

- 5 -

TABLE TRAC, INC.

CONDENSED STATEMENTS OF CASH FLOW (Unaudited)

	For the Six Months Ended June 30,
	2015			2014
OPERATING ACTIVITIES
Net income (loss)	$	(107,620	)	$	124,052
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,087			12,274
Deferred income taxes		(59,947	)		(33,000	)
Stock issued for services		0			6,750
Changes in operating assets and liabilities:
Accounts receivable		(1,605,372	)		954,651
Inventory		56,345			(170,667	)
Prepaid expenses and other assets		(422,224	)		53,735
Accounts payable and accrued expenses		282,065			(401,068	)
Payroll liabilities		16,881			17,681
Deferred revenue		1,540,028			(318,612	)
Income taxes receivable / payable		(176,458	)		84,700
Net cash provided by (used in) operating activities		(473,215	)		330,496
INVESTING ACTIVITIES
Purchase of property and equipment		(17,207	)		(2,185	)
Net cash used in investing activities		(17,207	)		(2,185	)
FINANCING ACTIVITIES
Payments on note payable		0			(5,453	)
Repurchase of common stock		(116,494	)		0
Net cash used in financing activities		(116,494	)		(5,453	)
NET INCREASE (DECREASE) IN CASH		(606,916	)		322,858
CASH
Beginning of year		1,208,201			1,038,288
End of period	$	601,285		$	1,361,146
Cash paid for income taxes	$	(150,000	)	$	0

See notes to condensed financial statements.

- 6 -

TABLE TRAC, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

1.  Nature of Business and Summary of Significant Accounting Policies –

Basis of Presentation

The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The balance sheet as of June 30, 2015 and the statements of operations for the three and six months ended June 30, 2015 and 2014, and the statement of cash flows for the six months ending June 30, 2015 and 2014 are unaudited but include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position at such date and the operating results and cash flows for those periods. Certain information normally included in financial statements and related footnotes prepared in accordance with generally accepted accounting principles has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac Annual Report on Form 10-K for the year ended December 31, 2014.

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has its offices in Minnetonka, Minnesota. The Company has developed and sells an information and management system that automates and monitors various aspects of the operations of casinos.

Table Trac provides system sales and technical support to casinos. System sales include installation, custom casino system configuration, and training. In addition, license and technical support are provided under separate license and service contracts.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates and assumptions in accounting for the following significant matters, among others: revenue recognition, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and other contingencies. Actual results could differ from those estimates.

Revenue Recognition

The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements.

System Sales

Revenue from systems that have been demonstrated to meet customer specifications during installation is recognized when evidence of an arrangement exists, the product has been installed, title and risk of loss have transferred to the customer and collection of the resulting receivable is reasonably assured. System sales, which are accounted for as multiple-element arrangements, include multiple products and/or services. For multiple-element arrangements the Company allocates the revenue to each element based on their relative fair estimated value based on vendor specific objective evidence (VSOE) and recognizes the associated revenue when all revenue recognition criteria have been met for each element. If there are contracts the Company does not have VSOE of fair value of all elements, revenue is deferred until the earlier of VSOE being determined or when all elements have been delivered.

- 7 -

The Company does offer its customers contracts with extended payment terms.  The Company must evaluate if any extended payment terms in the contract is an indicator of the revenue not being fixed or determinable.  Provided all other revenue recognition criteria have been satisfied, the Company recognizes the revenue if payment of a significant portion of the systems sales is due within 12 months of the delivery of the product.  The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts without making concessions for determining if revenue should be recognized.  Revenue and associated costs of sales are deferred if contract terms exceed historical collection results or if a substantial portion of the contract is not due within 12 months after delivery of the product.  The Company analyzes each contract for proper revenue recognition based on that contract’s facts and circumstances.  Interest is recorded upon receipt to “other income” on the statements of operations. 

Maintenance revenue

Maintenance revenue is recognized ratably over the contract period. The VSOE for maintenance is based upon the renewal rate for contracted services.

Service revenue

Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The VSOE for service revenue is established based upon the price determined by management having the relative authority when the element is not yet sold separately for the services.

Rental revenue

The Company may offer customers a rental contract.  Revenues are billed monthly on a per-game per-day basis. There is an option to purchase the system after the rental contract expires at a pre-determined residual value.

Deferred System Sales Costs

Deferred system sales costs consist of installed system costs incurred on participation-based contracts. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. At the end of the contract period, the customer will usually receive title to the system.

Accounts Receivable / Allowance for Doubtful Accounts

Accounts receivable are recorded at the invoiced amount. Accounts receivable include regular customer receivables and amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "long-term accounts receivable – financed contracts."  Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position.

Major Customers

The following table summarizes major customer information for the six and three months ended June 30, 2015 and 2014:

	For the Six Months Ended June 30
	2015						2014
	% Sales			% AR			% Sales			% AR
A		37.1	%		14.6	%		7.7	%		12.5	%
B		2.4	%		4.5	%		24.0	%		12.0	%
C		5.6	%		0.0	%		12.7	%		2.6	%
D		5.4	%		7.8	%		3.7	%		15.3	%
E		9.6	%		3.6	%		0.0	%		0.0	%
F		1.5	%		36.9	%		0.0	%		0.0	%
G		1.9	%		0.0	%		5.7	%		2.5	%
H		4.3	%		2.6	%		4.3	%		10.6	%
I		4.6	%		2.0	%		0.0	%		0.0	%
All Others		27.6	%		28.0	%		41.9	%		44.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

- 8 -

For the Three Months Ended June 30
	2015			2014
	% Sales			% Sales
A		10.2	%		8.2	%
B		3.4	%		2.3	%
C		3.8	%		14.5	%
D		7.7	%		4.5	%
E		14.4	%		0.0	%
F		4.4	%		0.0	%
G		2.7	%		10.6	%
H		6.1	%		4.9	%
I		13.0	%		0.0	%
All Others		34.3	%		55.0	%
Total		100.0	%		100.0	%

Inventory

Inventory, consisting of finished goods, is stated at the lower of cost or market. The average cost method, which approximates the first in, first out method, is used to value inventory. Inventory is reviewed annually for the lower of cost or market and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The inventory value as of June 30, 2015 was $837,398, which included work-in-process of $182,002. The Company had no obsolescence reserve at June 30, 2015 or December 31, 2014.

Research and Development

The Company expenses all costs related to research and development as incurred. Research and development expense was $1,278 and $3,585 for the three months ended June 30, 2015 and 2014, and $12,559 and $10,581 for the six months ended June 30, 2015 and 2014, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations.

Accounting Pronouncement

In May 2014, and amended in July 2015, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers.” The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles to a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on the consolidated financial statements.

- 9 -

2.  Accounts Receivable –

Accounts receivable consisted of the following at June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Accounts receivable under normal 30 day terms	$	2,033,770		$	1,406,665
Financed contracts:
Short-term		0			22,754
Current portion of long-term		1,359,117			896,236
Long-term, net of current portion		1,213,823			675,683
Total accounts receivable		4,606,710			3,001,338
Less allowance for doubtful accounts		(101,079	)		(101,079	)
Accounts receivable, net	$	4,505,631		$	2,900,259
Presented on the balance sheet as:
Accounts receivable, net	$	3,291,808		$	2,224,576
Long-term accounts receivable - financed contracts		1,213,823			675,683

The allowance for financed and trade receivable represents management’s estimate of probable losses in our trade and financed receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent of the trade and financed receivables, but that have not been specifically identified.

Accounts receivable includes financed contracts at June 30, 2015 and December 31, 2014 which are $2,572,940 and $1,594,673, respectively, with an offset accounting for deferred revenues on the balance sheet of $2,639,224 and $1,090,746, respectively.

A roll-forward of the Company’s allowance for doubtful accounts is as follows:

	June 30, 2015		December 31, 2014
Accounts receivable allowance, beginning of period	$	101,079	$	112,054
Provision adjustment during year		0		(10,975	)
Write-off		0		0
Accounts receivable allowance, end of period	$	101,079	$	101,079

The allowance for doubtful accounts is $101,079 for the trade receivables and $0 for the financed contracts at both June 30, 2015 and December 31, 2014.

3.  Stockholders’ Equity –

Stock Repurchase Program

On December 23, 2014, the Company’s Board of Directors approved the repurchase of its outstanding shares of up to $100,000 of its common stock from private unsolicited sellers’ paper certificate blocks (non-street name) in the open market until June 30, 2015, which was subsequently extended by the Board of Directors. On March 17, 2015, the Company’s Board of Directors approved another repurchase of up to $75,000 for the same program. The remaining amount approved for repurchasing common stock is approximately $57,700 as of June 30, 2015. Company insiders are prohibited from participating in the stock repurchase program. The Company has repurchased 133,149 shares at an average price of $.88 per share through June 30, 2015.

During the six month period ended June 30, 2015, the Company repurchased and retired 50,000 shares for approximately $44,000 at an average price of $.88 per share, and repurchased 69,649 shares for approximately $63,700 at an average price of $.92 per share for its treasury. As of June 30, 2015, the Company holds 70,649 common shares in treasury at a total cost of $65,166 for future employee issuances under the bonus program, which was part of the recent repurchase of shares.

- 10 -

4. Income Tax –

The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. Deferred tax assets and liabilities represent the future tax consequences of the differences between the financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Under this method, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of the tax rate changes on deferred tax assets and liabilities is recognized in the year that the change is enacted. Management believes that any write-off not allowed for will not have a material impact on the Company's financial position.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, it has concluded that there are no significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2010 through 2014, the tax years that remain subject to examination by major tax jurisdictions as of June 30, 2015. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. In accordance with current guidance, the Company classifies interest and penalties as income tax expense is incurred.

5.  Earnings (Loss) Per Share –

The Company computes earnings (loss) per share under two different methods, basic and diluted, and presents per-share data for all periods in which statements of operations are presented. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock and common stock equivalents outstanding.

The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014
Basic earnings per share calculation:
Net income to common stockholders	$	(194,782	)	$	47,607		$	(107,620	)	$	124,052
Weighted average number of common shares outstanding		4,614,517			4,775,876			4,637,187			4,775,344
Basic net income per share	$	(0.04	)	$	0.01		$	(0.02	)	$	0.03
Diluted earnings per share calculation:
Net income	$	(194,782	)	$	47,607		$	(107,620	)	$	124,052
Weighted average number of common shares outstanding		4,614,517			4,775,876			4,637,187			4,775,344
Common stock equivalents:
Stock options		(1	)		(2	)		(1	)		(2	)
Weighted average diluted shares outstanding		4,614,517			4,775,876			4,637,187			4,775,344
Diluted net income per share	$	(0.04	)	$	0.01		$	(0.02	)	$	0.03

Stock options outstanding of (1) 10,000 and (2) 60,000 were not included in the calculation as the stock price is greater than the fair market price.

- 11 -

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth below should be read in conjunction with our audited financial statements, and notes thereto, contained in our Form 10-K filed with the SEC on March 30, 2015 relating to our year ended December 31, 2014.

Forward-Looking Statements

Some of the statements made in this section of our report are forward-looking statements. These forward-looking statements generally relate to and are based upon our current plans, expectations, assumptions and projections about future events.  Our management currently believes that the various plans, expectations, and assumptions reflected in or suggested by these forward-looking statements are reasonable.  Nevertheless, all forward-looking statements involve risks and uncertainties and our actual actions or future results may be materially different from our plans, objectives or expectations, or our assumptions and projections underlying our present plans, objectives and expectations, which are expressed in this report.

In light of the foregoing, prospective investors are cautioned that the forward-looking statements included in this filing may ultimately prove to be inaccurate - even materially inaccurate.  Because of the significant uncertainties inherent in such forward-looking statements, the inclusion of such information should not be regarded as a representation or warranty by Table Trac or any other person that our objectives, plans, expectations or projections that are contained in this filing will be achieved in any specified time frame, if ever.

General Overview

Table Trac, Inc. (the “Company” or “Table Trac”) is a Nevada corporation, formed on June 27, 1995, with principal offices in Minnetonka, Minnesota.

The Company has developed and patented (U.S. patent # 5,957,776) a proprietary information and management system (called our “Table Trac” system) that automates and monitors the operations of casino table game operations. In addition to its table games management system, Table Trac has been adding functionality to related casino system modules for guest rewards and loyalty club, marketing analysis, guest service, promotions, administration / management, vault / cage management and audit / accounting tasks. Aggregated together, all of these modules have become the “Casino Trac” product, a full-featured Casino Management System (CMS) offering what we believe to be a powerful combination of value, efficiency and reliability for casinos seeking to add or upgrade their casino systems.

The Company sells systems and technical support to casinos. The open architecture of the Table Trac system is designed to provide operators with a scalable and flexible system that can interconnect and operate with most third-party software or hardware. Key products and services include modules designed to drive player tracking programs and kiosk promotions, as well as vault and cage controls. The Company’s systems meet strict auditing, accounting and regulatory requirements applicable to the gaming industry. The Company has developed a patented, real-time system that automates and monitors the operations of casino gaming tables. The Company continues to increase its market share by expanding its product offerings to include new system features, and ancillary products.

In the second quarter of 2015, the Company signed three purchase agreements, delivered one system, and continued to install systems for new customers in South America. At the end of the quarter, the Company had casino management systems, table games management systems and ancillary products installed with on-going support and maintenance contracts for 67 casino operators worldwide.

Discussion of Critical Accounting Policies

There were no changes to our accounting policies for the quarter. For our existing policies, see Note 1 in our financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014.

- 12 -

Results of Operations - Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014

During the three months ended June 30, 2015, loss from operations was $319,198 compared to an income from operations of $55,148 for the three months ended June 30, 2014. The major components of revenues, cost of sales and selling, general and administrative expenses are discussed below.

Revenues

Revenues totaled $726,135 for the three months ended June 30, 2015 compared to $907,302 for the three months ended June 30, 2014.  The following table summarizes our revenues for the three months ended June 30, 2015 and 2014, respectively:

	Three Months Ended June 30,
	2015		2014		2015			2014
					(percent of revenues)
System sales	$	312,384	$	413,576		43.0	%		45.6	%
License and maintenance fees		404,212		323,081		55.7	%		35.6	%
Other sales		9,539		170,645		1.3	%		18.8	%
Total revenues	$	726,135	$	907,302		100.0	%		100.0	%

During the three months ended June 30, 2015, the Company delivered one system domestically and additional systems in South America. Most of the revenue for both installations was deferred, and will be recurring in future periods, since a substantial amount is not due within 12 months. During the same period in 2014, one system was delivered with most of the revenue deferred to future periods, but had a higher down payment. Other sales, which include third party products, decreased over 2014 as a result of no kiosk sales.

Cost of Sales

Cost of sales for the three months ended June 30, 2015 increased to $250,322 from $209,514 for the three months ended June 30, 2014.  The following table summarizes our cost of sales for the three months ended June 30, 2015 and 2014, respectively:

	Three Months Ended June 30,
	2015		2014		2015			2014
					(percent of revenues)
System sales	$	221,491	$	129,613		30.6	%		14.3	%
License and maintenance fees		22,068		26,422		3.0	%		2.9	%
Other sales		6,763		53,479		0.9	%		5.9	%
Total cost of sales	$	250,322	$	209,514		34.5	%		23.1	%
Gross profit	$	475,813	$	697,788		65.5	%		76.9	%

The Company's gross profit was 65.5% and 76.9% for the three months ended June 30, 2015 and 2014, respectively. This decrease is primarily due to the mix of hardware sold with our systems.

Selling, General and Administrative Expenses

For the three months ended June 30, 2015, selling, general and administrative expenses were $795,011 compared to $642,640 for the same period in 2014.  Our most significant changes in operating expenses are related to additional contractor fees related to the expanded operations in South America. In addition, bad debt recovery in the second quarter of 2014 lowered SG&A for that three month period.

Interest Income

For the three months ended June 30, 2015, interest income was $9,416 compared to $11,459 for the same period in 2014.  This decrease is primarily related to a lower balance financed through the Company in 2015 compared to the same period in 2014.

- 13 -

Tax Provision

The income tax benefit for the three months ended June 30, 2015 was $115,000, which was calculated at a 37.1% effective rate, compared to an income tax expense of $19,000 for the same period in 2014, which was calculated at a 28.5% effective rate.

Net Income (Loss)

Loss before taxes for the three months ended June 30, 2015, was $309,782 compared to income before taxes of $66,607 for same period in 2014. Net loss for the three months ended June 30, 2015 was $194,782 compared to net income of $47,607 for the same period in 2014. The basic loss per share was $0.04 compared to earnings per share of $0.01 for the three months ended June 30, 2015 and 2014, respectively.

Results of Operations - Six Months Ended June 30, 2015 Compared to Six Months Ended June 30, 2014

During the six months ended June 30, 2015, loss from operations was $191,624 compared to an income from operations of $150,980 for the six months ended June 30, 2014. The major components of revenues, cost of sales and selling, general and administrative expenses are discussed below.

Revenues

Revenues for the six months ended June 30, 2015 decreased to $2,073,619 from $2,075,512 for the six months ended June 30, 2014.  The following table summarizes our revenues for the six months ended June 30, 2015 and 2014, respectively:

	Six Months Ended June 30,
	2015		2014		2015			2014
					(percent of revenues)
System sales	$	1,273,783	$	1,077,429		61.4	%		51.9	%
License and maintenance fees		781,429		629,501		37.7	%		30.3	%
Other sales		18,407		368,582		0.9	%		17.8	%
Total revenues	$	2,073,619	$	2,075,512		100.0	%		100.0	%

During the six months ended June 30, 2015, the Company delivered three systems. Most of the revenue for two of the installations was deferred, and will be recurring in future periods, since a substantial amount is not due within 12 months. During the same period in 2014, two systems were delivered with most of the revenue deferred to future periods. Other sales, which include third party products, decreased over 2014 as a result of no kiosk sales.

Cost of Sales

Cost of sales for the six months ended June 30, 2015 increased to $650,846 from $531,548 for the six months ended June 30, 2014.  The following table summarizes our cost of sales for the six months ended June 30, 2015 and 2014, respectively:

	Six Months Ended June 30,
	2015		2014		2015			2014
					(percent of revenues)
System sales	$	598,068	$	358,035		28.8	%		17.3	%
License and maintenance fees		44,136		51,926		2.1	%		2.5	%
Other sales		8,642		121,586		0.4	%		5.9	%
Total cost of sales	$	650,846	$	531,548		31.4	%		25.7	%
Gross profit	$	1,422,773	$	1,543,964		68.6	%		74.4	%

The Company's gross profit was 68.6% and 74.4% for the six months ended June 30, 2015 and 2014, respectively. This decrease is primarily due to the mix of hardware sold with our systems.

- 14 -

Selling, General and Administrative Expenses

For the six months ended June 30, 2015, selling, general and administrative expenses were $1,614,397 compared to $1,392,984 for the same period in 2014.  Our most significant changes in operating expenses are related to additional contractor fees related to the expansion in South America. In addition, bad debt recovery in the second quarter of 2014 lowered SG&A for that six month period.

Interest Income

For the six months ended June 30, 2015, interest income was $17,004 compared to $36,072 for the same period in 2014.  This decrease is primarily related to a lower balance financed through the Company in 2015 compared to the same period in 2014.

Tax Provision

The income tax benefit for the six months ended June 30, 2015 was $67,000, which was calculated at a 38.4% effective rate, compared to an expense of $63,000 for the same period in 2014, which was calculated at a 33.7% effective rate.

Net Income (Loss)

Loss before taxes for the six months ended June 30, 2015, was $174,620 compared to an income before taxes of $187,052 for same period in 2014. Net loss for the six months ended June 30, 2015 was $107,620 compared to a net income of $124,052 for the same period in 2014. The basic loss per share was $0.02 compared to earnings per share of $0.03 for the six months ended June 30, 2015 and 2014, respectively.

Backlog

The Company’s backlog generally consists of incomplete system installations and expansion of offerings for currently installed and supported systems.

The Company had two installation projects for a casino management system in its backlog at June 30, 2015.

The Company is currently serving gaming establishments in ten U.S. states, as well as countries in Central and South America, and the Caribbean. The Company aims to pursue opportunities and strategic partnerships.

Liquidity and Capital Resources

At June 30, 2015, the Company had cash of $601,285 compared to cash of $1,361,146 on June 30, 2014. Decrease in cash flows provided by operating activities related primarily to deferred income taxes, and changes in operating assets and liabilities, including accounts receivable, interest receivable, inventory, income taxes receivable, deferred system sales costs, accrued payroll and related withholding liabilities and deferred revenue. 

We do not know of any trends, events or uncertainties that are likely to have a material impact on our short or long-term liquidity or our capital resources. We expect that our primary source of liquidity in both the short and long-term will be system sales and the resulting license and maintenance fees generated from existing systems. We anticipate we will be able to manage expenses and cash flow in order to satisfy our monthly expense obligations with cash flow from operations. We believe the Company has adequate cash for at least the next twelve months to meet its obligations and continue operations for both existing and future customers as well as ongoing sales efforts and product development.

Off-Balance Sheet Arrangements

The Company had no off-balance sheet arrangements as of June 30, 2015.

- 15 -

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in our reports filed pursuant to the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

As of June 30, 2015, our Chief Executive Officer / Chief Financial Officer carried out an evaluation of the effectiveness of our disclosure controls and procedures as such term is defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934. Based on that evaluation, our Chief Executive Officer / Chief Financial Officer concluded our disclosure controls and procedures are effective as of June 30, 2015.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 6. Exhibits

Exhibit	Description
3.1	Articles of Incorporation, filed with the Nevada Secretary of State on June 2, 1995 (incorporated by reference to Exhibit 3 to the registrant’s registration statement on Form 10SB-12G filed on December 6, 1999).
3.2	Amendment to Articles of Incorporation, filed with the Nevada Secretary of State on January 26, 2012 (incorporated by reference to Exhibit 3.2 to the registrant’s annual report on Form 10-K filed on June 30, 2011).
3.3	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to the registrant’s annual report on Form 10-K filed on June 30, 2011).
31	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith ).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

- 16 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 14, 2015		Table Trac, Inc.
		(Registrant)
	By:	/s/ Brian Hinchley
		Brian Hinchley (Principal Executive Officer and Principal Financial and Accounting Officer)

- 17 -

EX-31

EXHIBIT 31

SECTION 302 CERTIFICATION

I, Brian Hinchley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Table Trac, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2015	/s/ Brian Hinchley
	Brian Hinchley
	Chief Executive and Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Table Trac, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian Hinchley, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1 The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brian Hinchley

Brian Hinchley

Chief Executive and Chief Financial Officer

August 14, 2015

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Income Tax

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

4. Income Tax –

The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. Deferred tax assets and liabilities represent the future tax consequences of the differences between the financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Under this method, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of the tax rate changes on deferred tax assets and liabilities is recognized in the year that the change is enacted. Management believes that any write-off not allowed for will not have a material impact on the Company's financial position.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, it has concluded that there are no significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2010 through 2014, the tax years that remain subject to examination by major tax jurisdictions as of June 30, 2015. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. In accordance with current guidance, the Company classifies interest and penalties as income tax expense is incurred.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

3.  Stockholders’ Equity –

Stock Repurchase Program

On December 23, 2014, the Company’s Board of Directors approved the repurchase of its outstanding shares of up to $100,000 of its common stock from private unsolicited sellers’ paper certificate blocks (non-street name) in the open market until June 30, 2015, which was subsequently extended by the Board of Directors. On March 17, 2015, the Company’s Board of Directors approved another repurchase of up to $75,000 for the same program. The remaining amount approved for repurchasing common stock is approximately $57,700 as of June 30, 2015. Company insiders are prohibited from participating in the stock repurchase program. The Company has repurchased 133,149 shares at an average price of $.88 per share through June 30, 2015.

During the six month period ended June 30, 2015, the Company repurchased and retired 50,000 shares for approximately $44,000 at an average price of $.88 per share, and repurchased 69,649 shares for approximately $63,700 at an average price of $.92 per share for its treasury. As of June 30, 2015, the Company holds 70,649 common shares in treasury at a total cost of $65,166 for future employee issuances under the bonus program, which was part of the recent repurchase of shares.

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CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 601,285	$ 1,208,201
Accounts receivable, net	3,291,808	2,224,576
Inventory	837,398	893,743
Prepaid expenses and other current assets	88,822	98,607
Income taxes receivable	83,101	16,610
TOTAL CURRENT ASSETS	4,902,414	4,441,737
LONG-TERM ASSETS
Patent, net	2,320	3,003
Property and equipment, net	16,941	2,138
Other long-term assets	776,825	344,816
Deferred tax asset	44,947	19,000
Long-term accounts receivable - financed contracts	1,213,823	675,683
TOTAL LONG-TERM ASSETS	2,054,856	1,044,640
TOTAL ASSETS	6,957,270	5,486,377
CURRENT LIABILITIES
Accounts payable and accrued expenses	490,405	217,352
Payroll liabilities	77,607	60,726
Deferred revenue - short-term	30,525	38,975
Income taxes payable	0	109,967
Deferred tax liability	732,947	766,947
TOTAL CURRENT LIABILITIES	1,331,484	1,193,967
LONG-TERM LIABILITIES
Deferred revenue - long-term	2,639,224	1,090,746
TOTAL LIABILITIES	3,970,708	2,284,713
STOCKHOLDERS' EQUITY
Common stock, 0.001 par value; 25,000,000 shares authorized: 4,655,734 shares issued and 4,585,085 outstanding at June 30, 2015 and 4,705,734 issued and 4,704,734 outstanding at December 31, 2014	4,656	4,706
Additional paid-in capital	1,801,248	1,845,198
Retained earnings	1,245,825	1,353,182
Stockholders' Equity before Treasury Stock	3,051,729	3,203,086
Treasury stock, 70,649 and 1,000 shares (at cost) at June 30, 2015 and December 31, 2014	(65,167)	(1,422)
TOTAL STOCKHOLDERS’ EQUITY	2,986,562	3,201,664
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 6,957,270	$ 5,486,377

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Nature of Business and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

1.  Nature of Business and Summary of Significant Accounting Policies –

Basis of Presentation

The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The balance sheet as of June 30, 2015 and the statements of operations for the three and six months ended June 30, 2015 and 2014, and the statement of cash flows for the six months ending June 30, 2015 and 2014 are unaudited but include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position at such date and the operating results and cash flows for those periods. Certain information normally included in financial statements and related footnotes prepared in accordance with generally accepted accounting principles has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac Annual Report on Form 10-K for the year ended December 31, 2014.

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has its offices in Minnetonka, Minnesota. The Company has developed and sells an information and management system that automates and monitors various aspects of the operations of casinos.

Table Trac provides system sales and technical support to casinos. System sales include installation, custom casino system configuration, and training. In addition, license and technical support are provided under separate license and service contracts.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates and assumptions in accounting for the following significant matters, among others: revenue recognition, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and other contingencies. Actual results could differ from those estimates.

Revenue Recognition

The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements.

System Sales

Revenue from systems that have been demonstrated to meet customer specifications during installation is recognized when evidence of an arrangement exists, the product has been installed, title and risk of loss have transferred to the customer and collection of the resulting receivable is reasonably assured. System sales, which are accounted for as multiple-element arrangements, include multiple products and/or services. For multiple-element arrangements the Company allocates the revenue to each element based on their relative fair estimated value based on vendor specific objective evidence (VSOE) and recognizes the associated revenue when all revenue recognition criteria have been met for each element. If there are contracts the Company does not have VSOE of fair value of all elements, revenue is deferred until the earlier of VSOE being determined or when all elements have been delivered.

The Company does offer its customers contracts with extended payment terms.  The Company must evaluate if any extended payment terms in the contract is an indicator of the revenue not being fixed or determinable.  Provided all other revenue recognition criteria have been satisfied, the Company recognizes the revenue if payment of a significant portion of the systems sales is due within 12 months of the delivery of the product.  The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts without making concessions for determining if revenue should be recognized.  Revenue and associated costs of sales are deferred if contract terms exceed historical collection results or if a substantial portion of the contract is not due within 12 months after delivery of the product.  The Company analyzes each contract for proper revenue recognition based on that contract’s facts and circumstances.  Interest is recorded upon receipt to “other income” on the statements of operations. 

Maintenance revenue

Maintenance revenue is recognized ratably over the contract period. The VSOE for maintenance is based upon the renewal rate for contracted services.

Service revenue

Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The VSOE for service revenue is established based upon the price determined by management having the relative authority when the element is not yet sold separately for the services.

Rental revenue

The Company may offer customers a rental contract.  Revenues are billed monthly on a per-game per-day basis. There is an option to purchase the system after the rental contract expires at a pre-determined residual value.

Deferred System Sales Costs

Deferred system sales costs consist of installed system costs incurred on participation-based contracts. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. At the end of the contract period, the customer will usually receive title to the system.

Accounts Receivable / Allowance for Doubtful Accounts

Accounts receivable are recorded at the invoiced amount. Accounts receivable include regular customer receivables and amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "long-term accounts receivable – financed contracts."  Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position.

Major Customers

The following table summarizes major customer information for the six and three months ended June 30, 2015 and 2014:

	For the Six Months Ended June 30
	2015						2014
	% Sales			% AR			% Sales			% AR
A		37.1	%		14.6	%		7.7	%		12.5	%
B		2.4	%		4.5	%		24.0	%		12.0	%
C		5.6	%		0.0	%		12.7	%		2.6	%
D		5.4	%		7.8	%		3.7	%		15.3	%
E		9.6	%		3.6	%		0.0	%		0.0	%
F		1.5	%		36.9	%		0.0	%		0.0	%
G		1.9	%		0.0	%		5.7	%		2.5	%
H		4.3	%		2.6	%		4.3	%		10.6	%
I		4.6	%		2.0	%		0.0	%		0.0	%
All Others		27.6	%		28.0	%		41.9	%		44.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the Three Months Ended June 30
	2015			2014
	% Sales			% Sales
A		10.2	%		8.2	%
B		3.4	%		2.3	%
C		3.8	%		14.5	%
D		7.7	%		4.5	%
E		14.4	%		0.0	%
F		4.4	%		0.0	%
G		2.7	%		10.6	%
H		6.1	%		4.9	%
I		13.0	%		0.0	%
All Others		34.3	%		55.0	%
Total		100.0	%		100.0	%

Inventory

Inventory, consisting of finished goods, is stated at the lower of cost or market. The average cost method, which approximates the first in, first out method, is used to value inventory. Inventory is reviewed annually for the lower of cost or market and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The inventory value as of June 30, 2015 was $837,398, which included work-in-process of $182,002. The Company had no obsolescence reserve at June 30, 2015 or December 31, 2014.

Research and Development

The Company expenses all costs related to research and development as incurred. Research and development expense was $1,278 and $3,585 for the three months ended June 30, 2015 and 2014, and $12,559 and $10,581 for the six months ended June 30, 2015 and 2014, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations.

Accounting Pronouncement

In May 2014, and amended in July 2015, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers.” The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles to a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on the consolidated financial statements

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Earnings (Loss) Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	10,000	60,000	10,000	60,000

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Accounts Receivable

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Accounts Receivable [Text Block]

2.  Accounts Receivable –

Accounts receivable consisted of the following at June 30, 2015 and December 31, 2014:

	June 30, 2015		December 31, 2014
Accounts receivable under normal 30 day terms	$	2,033,770	$	1,406,665
Financed contracts:
Short-term		0		22,754
Current portion of long-term		1,359,117		896,236
Long-term, net of current portion		1,213,823		675,683
Total accounts receivable		4,606,710		3,001,338
Less allowance for doubtful accounts		(101,079)		(101,079)
Accounts receivable, net	$	4,505,631	$	2,900,259
Presented on the balance sheet as:
Accounts receivable, net	$	3,291,808	$	2,224,576
Long-term accounts receivable - financed contracts		1,213,823		675,683

The allowance for financed and trade receivable represents management’s estimate of probable losses in our trade and financed receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent of the trade and financed receivables, but that have not been specifically identified.

Accounts receivable includes financed contracts at June 30, 2015 and December 31, 2014 which are $2,572,940 and $1,594,673, respectively, with an offset accounting for deferred revenues on the balance sheet of $2,639,224 and $1,090,746, respectively.

A roll-forward of the Company’s allowance for doubtful accounts is as follows:

	June 30, 2015		December 31, 2014
Accounts receivable allowance, beginning of period	$	101,079	$	112,054
Provision adjustment during year		0		(10,975)
Write-off		0		0
Accounts receivable allowance, end of period	$	101,079	$	101,079

The allowance for doubtful accounts is $101,079 for the trade receivables and $0 for the financed contracts at both June 30, 2015 and December 31, 2014.

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CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	4,655,734	4,705,734
Common stock, shares outstanding	4,585,085	4,704,734
Treasury stock, shares	70,649	1,000

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Accounts Receivable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable under normal 30 day terms	$ 2,033,770	$ 1,406,665
Financed contracts:
Short-term	0	22,754
Current portion of long-term	1,359,117	896,236
Long-term, net of current portion	1,213,823	675,683
Total accounts receivable	4,606,710	3,001,338
Less allowance for doubtful accounts	(101,079)	(101,079)
Accounts receivable, net	4,505,631	2,900,259
Presented on the balance sheet as:
Accounts receivable, net	3,291,808	2,224,576
Long-term accounts receivable - financed contracts	$ 1,213,823	$ 675,683

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 14, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Registrant Name	TABLE TRAC INC
Entity Central Index Key	0001090396
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	TBTC
Entity Common Stock, Shares Outstanding		4,585,085

XML

Accounts Receivable (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable allowance, beginning of period	$ 101,079	$ 112,054
Provision adjustment during year	0	(10,975)
Write-off	0	0
Accounts receivable allowance, end of period	$ 101,079	$ 101,079

XML

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 726,135	$ 907,302	$ 2,073,619	$ 2,075,512
Cost of sales	250,322	209,514	650,846	531,548
Gross profit	475,813	697,788	1,422,773	1,543,964
Operating Expenses:
Selling, general and administrative	795,011	642,640	1,614,397	1,392,984
Income (loss) from operations	(319,198)	55,148	(191,624)	150,980
Interest income	9,416	11,459	17,004	36,072
Income (loss) before taxes	(309,782)	66,607	(174,620)	187,052
Income tax expense (benefit)	(115,000)	19,000	(67,000)	63,000
Net income (loss)	$ (194,782)	$ 47,607	$ (107,620)	$ 124,052
Basic earnings (loss) per common share (in dollar per share)	$ (0.04)	$ 0.01	$ (0.02)	$ 0.03
Weighted-average basic shares outstanding (in shares)	4,614,517	4,775,876	4,637,187	4,775,344
Diluted earnings (loss) per common share (in dollar per share)	$ (0.04)	$ 0.01	$ (0.02)	$ 0.03
Weighted-average diluted shares outstanding (in shares)	4,614,517	4,775,876	4,637,187	4,775,344

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Nature of Business and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Revenue from External Customers by Geographic Areas [Table Text Block]

The following table summarizes major customer information for the six and three months ended June 30, 2015 and 2014:

	For the Six Months Ended June 30
	2015						2014
	% Sales			% AR			% Sales			% AR
A		37.1	%		14.6	%		7.7	%		12.5	%
B		2.4	%		4.5	%		24.0	%		12.0	%
C		5.6	%		0.0	%		12.7	%		2.6	%
D		5.4	%		7.8	%		3.7	%		15.3	%
E		9.6	%		3.6	%		0.0	%		0.0	%
F		1.5	%		36.9	%		0.0	%		0.0	%
G		1.9	%		0.0	%		5.7	%		2.5	%
H		4.3	%		2.6	%		4.3	%		10.6	%
I		4.6	%		2.0	%		0.0	%		0.0	%
All Others		27.6	%		28.0	%		41.9	%		44.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the Three Months Ended June 30
	2015			2014
	% Sales			% Sales
A		10.2	%		8.2	%
B		3.4	%		2.3	%
C		3.8	%		14.5	%
D		7.7	%		4.5	%
E		14.4	%		0.0	%
F		4.4	%		0.0	%
G		2.7	%		10.6	%
H		6.1	%		4.9	%
I		13.0	%		0.0	%
All Others		34.3	%		55.0	%
Total		100.0	%		100.0	%

XML

Nature of Business and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

Basis of Presentation

The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The balance sheet as of June 30, 2015 and the statements of operations for the three and six months ended June 30, 2015 and 2014, and the statement of cash flows for the six months ending June 30, 2015 and 2014 are unaudited but include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position at such date and the operating results and cash flows for those periods. Certain information normally included in financial statements and related footnotes prepared in accordance with generally accepted accounting principles has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac Annual Report on Form 10-K for the year ended December 31, 2014.

Business Description and Accounting Policies [Text Block]

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has its offices in Minnetonka, Minnesota. The Company has developed and sells an information and management system that automates and monitors various aspects of the operations of casinos.

Table Trac provides system sales and technical support to casinos. System sales include installation, custom casino system configuration, and training. In addition, license and technical support are provided under separate license and service contracts.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates and assumptions in accounting for the following significant matters, among others: revenue recognition, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and other contingencies. Actual results could differ from those estimates.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements.

System Sales

Revenue from systems that have been demonstrated to meet customer specifications during installation is recognized when evidence of an arrangement exists, the product has been installed, title and risk of loss have transferred to the customer and collection of the resulting receivable is reasonably assured. System sales, which are accounted for as multiple-element arrangements, include multiple products and/or services. For multiple-element arrangements the Company allocates the revenue to each element based on their relative fair estimated value based on vendor specific objective evidence (VSOE) and recognizes the associated revenue when all revenue recognition criteria have been met for each element. If there are contracts the Company does not have VSOE of fair value of all elements, revenue is deferred until the earlier of VSOE being determined or when all elements have been delivered.

The Company does offer its customers contracts with extended payment terms.  The Company must evaluate if any extended payment terms in the contract is an indicator of the revenue not being fixed or determinable.  Provided all other revenue recognition criteria have been satisfied, the Company recognizes the revenue if payment of a significant portion of the systems sales is due within 12 months of the delivery of the product.  The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts without making concessions for determining if revenue should be recognized.  Revenue and associated costs of sales are deferred if contract terms exceed historical collection results or if a substantial portion of the contract is not due within 12 months after delivery of the product.  The Company analyzes each contract for proper revenue recognition based on that contract’s facts and circumstances.  Interest is recorded upon receipt to “other income” on the statements of operations. 

Maintenance revenue

Maintenance revenue is recognized ratably over the contract period. The VSOE for maintenance is based upon the renewal rate for contracted services.

Service revenue

Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The VSOE for service revenue is established based upon the price determined by management having the relative authority when the element is not yet sold separately for the services.

Rental revenue

The Company may offer customers a rental contract.  Revenues are billed monthly on a per-game per-day basis. There is an option to purchase the system after the rental contract expires at a pre-determined residual value.

Deferred System Sales Costs [Policy Text Block]

Deferred System Sales Costs

Deferred system sales costs consist of installed system costs incurred on participation-based contracts. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. At the end of the contract period, the customer will usually receive title to the system.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable / Allowance for Doubtful Accounts

Accounts receivable are recorded at the invoiced amount. Accounts receivable include regular customer receivables and amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "long-term accounts receivable – financed contracts."  Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position.

Major Customers, Policy [Policy Text Block]

Major Customers

The following table summarizes major customer information for the six and three months ended June 30, 2015 and 2014:

	For the Six Months Ended June 30
	2015						2014
	% Sales			% AR			% Sales			% AR
A		37.1	%		14.6	%		7.7	%		12.5	%
B		2.4	%		4.5	%		24.0	%		12.0	%
C		5.6	%		0.0	%		12.7	%		2.6	%
D		5.4	%		7.8	%		3.7	%		15.3	%
E		9.6	%		3.6	%		0.0	%		0.0	%
F		1.5	%		36.9	%		0.0	%		0.0	%
G		1.9	%		0.0	%		5.7	%		2.5	%
H		4.3	%		2.6	%		4.3	%		10.6	%
I		4.6	%		2.0	%		0.0	%		0.0	%
All Others		27.6	%		28.0	%		41.9	%		44.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the Three Months Ended June 30
	2015			2014
	% Sales			% Sales
A		10.2	%		8.2	%
B		3.4	%		2.3	%
C		3.8	%		14.5	%
D		7.7	%		4.5	%
E		14.4	%		0.0	%
F		4.4	%		0.0	%
G		2.7	%		10.6	%
H		6.1	%		4.9	%
I		13.0	%		0.0	%
All Others		34.3	%		55.0	%
Total		100.0	%		100.0	%

Inventory, Policy [Policy Text Block]

Inventory

Inventory, consisting of finished goods, is stated at the lower of cost or market. The average cost method, which approximates the first in, first out method, is used to value inventory. Inventory is reviewed annually for the lower of cost or market and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The inventory value as of June 30, 2015 was $837,398, which included work-in-process of $182,002. The Company had no obsolescence reserve at June 30, 2015 or December 31, 2014.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

The Company expenses all costs related to research and development as incurred. Research and development expense was $1,278 and $3,585 for the three months ended June 30, 2015 and 2014, and $12,559 and $10,581 for the six months ended June 30, 2015 and 2014, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncement

In May 2014, and amended in July 2015, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers.” The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles to a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on the consolidated financial statements.

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Accounts Receivable (Details Textual) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable, Current	$ 101,079	$ 101,079
Accounts Receivable, Net, Current, Total	3,291,808	2,224,576
Deferred Revenue, Noncurrent	2,639,224	1,090,746
Trade Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable, Current	101,079	101,079
Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable, Current	0	0
Accounts Receivable, Net, Current, Total	$ 2,572,940	$ 1,594,673

XML

Nature of Business and Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net [Member] | Customer A [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	10.20%	8.20%	37.10%	7.70%
Sales Revenue, Net [Member] | Customer B [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	3.40%	2.30%	2.40%	24.00%
Sales Revenue, Net [Member] | Customer C [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	3.80%	14.50%	5.60%	12.70%
Sales Revenue, Net [Member] | Customer D [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	7.70%	4.50%	5.40%	3.70%
Sales Revenue, Net [Member] | Customer E [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	14.40%	0.00%	9.60%	0.00%
Sales Revenue, Net [Member] | Customer F [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	4.40%	0.00%	1.50%	0.00%
Sales Revenue, Net [Member] | Customer G [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	2.70%	10.60%	1.90%	5.70%
Sales Revenue, Net [Member] | Customer H [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	6.10%	4.90%	4.30%	4.30%
Sales Revenue, Net [Member] | Customer I [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	13.00%	0.00%	4.60%	0.00%
Sales Revenue, Net [Member] | All Others [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR	34.30%	55.00%	27.60%	41.90%
Accounts Receivable [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			100.00%	100.00%
Accounts Receivable [Member] | Customer A [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			14.60%	12.50%
Accounts Receivable [Member] | Customer B [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			4.50%	12.00%
Accounts Receivable [Member] | Customer C [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			0.00%	2.60%
Accounts Receivable [Member] | Customer D [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			7.80%	15.30%
Accounts Receivable [Member] | Customer E [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			3.60%	0.00%
Accounts Receivable [Member] | Customer F [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			36.90%	0.00%
Accounts Receivable [Member] | Customer G [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			0.00%	2.50%
Accounts Receivable [Member] | Customer H [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			2.60%	10.60%
Accounts Receivable [Member] | Customer I [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			2.00%	0.00%
Accounts Receivable [Member] | All Others [Member]
Revenue, Major Customer [Line Items]
% Sales and % AR			28.00%	44.50%

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Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts receivable consisted of the following at June 30, 2015 and December 31, 2014:

	June 30, 2015		December 31, 2014
Accounts receivable under normal 30 day terms	$	2,033,770	$	1,406,665
Financed contracts:
Short-term		0		22,754
Current portion of long-term		1,359,117		896,236
Long-term, net of current portion		1,213,823		675,683
Total accounts receivable		4,606,710		3,001,338
Less allowance for doubtful accounts		(101,079)		(101,079)
Accounts receivable, net	$	4,505,631	$	2,900,259
Presented on the balance sheet as:
Accounts receivable, net	$	3,291,808	$	2,224,576
Long-term accounts receivable - financed contracts		1,213,823		675,683

Schedule of Allowance Accounts Receivable [Table Text Block]

A roll-forward of the Company’s allowance for doubtful accounts is as follows:

	June 30, 2015		December 31, 2014
Accounts receivable allowance, beginning of period	$	101,079	$	112,054
Provision adjustment during year		0		(10,975)
Write-off		0		0
Accounts receivable allowance, end of period	$	101,079	$	101,079

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
Basic earnings per share calculation:
Net income to common stockholders	$	(194,782)	$	47,607	$	(107,620)	$	124,052
Weighted average number of common shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Basic net income per share	$	(0.04)	$	0.01	$	(0.02)	$	0.03
Diluted earnings per share calculation:
Net income	$	(194,782)	$	47,607	$	(107,620)	$	124,052
Weighted average number of common shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Common stock equivalents:
Stock options		(1)		(2)		(1)		(2)
Weighted average diluted shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Diluted net income per share	$	(0.04)	$	0.01	$	(0.02)	$	0.03

Stock options outstanding of (1) 10,000 and (2) 60,000 were not included in the calculation as the stock price is greater than the fair market price.

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Nature of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Summary Of Significant Accounting Policies [Line Items]
Research and Development Expense	$ 1,278	$ 3,585	$ 12,559	$ 10,581
Inventory, Net, Total	837,398		837,398		$ 893,743
Inventory, Work in Process, Gross	$ 182,002		$ 182,002

XML

Earnings (Loss) Per Share (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic earnings per share calculation:
Net income to common stockholders		$ (194,782)	$ 47,607	$ (107,620)	$ 124,052
Weighted average number of common shares outstanding (in shares)		4,614,517	4,775,876	4,637,187	4,775,344
Basic net income per share (in dollars per share)		$ (0.04)	$ 0.01	$ (0.02)	$ 0.03
Diluted earnings per share calculation:
Net income		$ (194,782)	$ 47,607	$ (107,620)	$ 124,052
Weighted average number of common shares outstanding (in shares)		4,614,517	4,775,876	4,637,187	4,775,344
Common stock equivalents:
Stock options	[1]
Weighted average diluted shares outstanding (in shares)		4,614,517	4,775,876	4,637,187	4,775,344
Diluted net income per share (in dollars per share)		$ (0.04)	$ 0.01	$ (0.02)	$ 0.03

[1] Stock options outstanding of (1) 10,000 and (2) 60,000 were not included in the calculation as they would have been anti-dilutive.

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CONDENSED STATEMENTS OF CASH FLOW - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (107,620)	$ 124,052
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,087	12,274
Deferred income taxes	(59,947)	(33,000)
Stock issued for services	0	6,750
Changes in operating assets and liabilities:
Accounts receivable	(1,605,372)	954,651
Inventory	56,345	(170,667)
Prepaid expenses and other assets	(422,224)	53,735
Accounts payable and accrued expenses	282,065	(401,068)
Payroll liabilities	16,881	17,681
Deferred revenue	1,540,028	(318,612)
Income taxes receivable / payable	(176,458)	84,700
Net cash provided by (used in) operating activities	(473,215)	330,496
INVESTING ACTIVITIES
Purchase of property and equipment	(17,207)	(2,185)
Net cash used in investing activities	(17,207)	(2,185)
FINANCING ACTIVITIES
Payments on note payable	0	(5,453)
Repurchase of common stock	(116,494)	0
Net cash used in financing activities	(116,494)	(5,453)
NET INCREASE (DECREASE) IN CASH	(606,916)	322,858
CASH
Beginning of year	1,208,201	1,038,288
End of period	601,285	$ 1,361,146
Cash paid for income taxes	$ (150,000)

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

5.  Earnings (Loss) Per Share –

The Company computes earnings (loss) per share under two different methods, basic and diluted, and presents per-share data for all periods in which statements of operations are presented. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock and common stock equivalents outstanding.

The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
Basic earnings per share calculation:
Net income to common stockholders	$	(194,782)	$	47,607	$	(107,620)	$	124,052
Weighted average number of common shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Basic net income per share	$	(0.04)	$	0.01	$	(0.02)	$	0.03
Diluted earnings per share calculation:
Net income	$	(194,782)	$	47,607	$	(107,620)	$	124,052
Weighted average number of common shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Common stock equivalents:
Stock options		(1)		(2)		(1)		(2)
Weighted average diluted shares outstanding		4,614,517		4,775,876		4,637,187		4,775,344
Diluted net income per share	$	(0.04)	$	0.01	$	(0.02)	$	0.03

Stock options outstanding of (1) 10,000 and (2) 60,000 were not included in the calculation as the stock price is greater than the fair market price.

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Stockholders’ Equity (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Mar. 17, 2015	Dec. 31, 2014	Dec. 23, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock, Shares	70,649		1,000
Treasury Stock, Value	$ 65,167		$ 1,422
Stock Repurchase Program, Authorized Amount		$ 75,000		$ 100,000
Stock Repurchased During Period, Shares	133,149
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 57,700
Stock Repurchased and Retired During Period, Shares	50,000
Stock Repurchased and Retired During Period, Value	$ 44,000
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)	$ 0.88
Share Repurchases, Price Paid Per Share (in dollars per share)	$ 0.88
Treasury Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchased During Period, Shares	69,649
Stock Repurchased During Period, Value	$ 63,700
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)	$ 0.92