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 March 31, 2018 or
¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number: 001-32987
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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth 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 |
| Emerging growth company ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
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 May 15, 2018, the registrant had outstanding 4,523,465 shares of common stock, $.001 par value per share.
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Table Trac, Inc.
Index
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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 |
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CONDENSED BALANCE SHEETS
| March 31, 2018 (Unaudited) | December 31, 2017 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,296,298 | $ | 1,322,743 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $181,473 at March 31, 2018 and $181,473 at December 31, 2017 | 2,422,406 | 3,053,280 | ||||||
| Inventory | 516,919 | 466,207 | ||||||
| Prepaid expenses and other current assets | 529,659 | 464,385 | ||||||
| TOTAL CURRENT ASSETS | 4,765,282 | 5,306,615 | ||||||
| LONG-TERM ASSETS | ||||||||
| Property and equipment, net | 81,375 | 71,786 | ||||||
| Contract and other long-term assets | 805,285 | 967,092 | ||||||
| Long-term accounts receivable – financed contracts | 1,294,862 | 1,515,120 | ||||||
| TOTAL LONG-TERM ASSETS | 2,181,522 | 2,553,998 | ||||||
| TOTAL ASSETS | $ | 6,946,804 | $ | 7,860,613 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 300,318 | $ | 572,485 | ||||
| Payroll liabilities | 56,392 | 30,085 | ||||||
Customer deposits | 589,814 | 18,168 | ||||||
| Income taxes payable | 169,627 | 62,627 | ||||||
| TOTAL CURRENT LIABILITIES | 1,116,151 | 683,365 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Contract liabilities | 2,373,409 | 3,313,772 | ||||||
| Deferred tax liability | 375,000 | 516,000 | ||||||
| TOTAL LIABILITIES | 3,864,560 | 4,513,137 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock, $0.001 par value; 25,000,000 shares authorized: 4,656,734 shares issued; 4,523,465 and 4,511,965 shares outstanding at March 31, 2018 and December 31, 2017, respectively | 4,523 | 4,512 | ||||||
| Additional paid-in capital | 1,766,256 | 1,809,511 | ||||||
| Retained earnings | 1,499,977 | 1,679,813 | ||||||
| 3,270,756 | 3,493,836 | |||||||
| Treasury stock, 133,269 and 144,769 shares (at cost) at March 31, 2018 and December 31, 2017, respectively | (188,512 | ) | (146,360 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 3,082,244 | 3,347,476 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,946,804 | $ | 7,860,613 | ||||
See notes to condensed unaudited financial statements.
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CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenues | $ | 1,081,268 | $ | 1,100,632 | ||||
| Cost of sales | 303,695 | 321,066 | ||||||
| Gross profit | 777,573 | 779,566 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 1,010,474 | 1,000,140 | ||||||
| Income (loss) from operations | (232,901 | ) | (220,574 | ) | ||||
| Loss on currency exchange | (2,734 | ) | (3,138 | ) | ||||
| Interest income | 21,799 | 33,340 | ||||||
| Income (loss) before taxes | (213,836 | ) | (190,372 | ) | ||||
| Income tax expense (benefit) | (34,000 | ) | (66,000 | ) | ||||
| Net Income (loss) | $ | (179,836 | ) | $ | (124,372 | ) | ||
| Net income (loss) per share - basic | $ | (0.04 | ) | $ | (0.03 | ) | ||
| Net income (loss) per share - diluted | $ | (0.04 | ) | $ | (0.03 | ) | ||
| Weighted-average shares outstanding - basic | 4,486,559 | 4,511,965 | ||||||
| Weighted-average shares outstanding - diluted | 4,532,115 | 4,511,965 | ||||||
See notes to condensed unaudited financial statements.
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CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
| For the Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Income (loss) | $ | (179,836 | ) | $ | (124,372 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 11,027 | 5,428 | ||||||
| Deferred income taxes | (141,000 | ) | (67,000 | ) | ||||
| Stock compensation expense | 7,344 | 0 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 851,132 | 347,007 | ||||||
| Inventory | (50,712 | ) | (289,343 | ) | ||||
| Prepaid expenses and other assets | 96,533 | 236,499 | ||||||
| Accounts payable and accrued expenses | (272,168 | ) | (91,612 | ) | ||||
| Payroll liabilities | 26,307 | 31,159 | ||||||
| Contract liabilities and customer deposits | (368,717 | ) | (84,535 | ) | ||||
| Income taxes payable | 107,000 | 150,516 | ||||||
| Net cash provided by (used in) operating activities | 86,910 | 113,747 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (20,615 | ) | 0 | |||||
| Net cash used in investing activities | (20,615 | ) | 0 | |||||
| FINANCING ACTIVITIES | ||||||||
| Payments on notes payable | 0 | (1,094 | ) | |||||
| Repurchase of common stock | (92,740 | ) | 0 | |||||
| Net cash used in financing activities | (92,740 | ) | (1,094 | ) | ||||
| NET INCREASE (DECREASE) IN CASH | (26,445 | ) | 112,653 | |||||
| CASH | ||||||||
| Beginning of period | 1,322,743 | 102,689 | ||||||
| End of Period | $ | 1,296,298 | $ | 215,342 | ||||
| Non-cash investing and financing activities: | ||||||||
| Treasury stock issued for compensation | $ | 50,599 | $ | 0 | ||||
See notes to condensed unaudited financial statements.
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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 March 31, 2018 and the statements of operations for the three months ended March 31, 2018 and 2017, and the statements of cash flows for the three months ending March 31, 2018 and 2017 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, 2017.
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 (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and the valuation of inventory. Actual results could differ from those estimates.
The Company’s significant accounting policies are described in Note 1 of the financial statement included in its Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to the Company’s accounting policies as a result of adopting Accounting Standards Codification (ASC) 606 are discussed below.
Revenue
The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements.
System Sales
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities.
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A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. A majority of the Company’s systems sales have multiple performance obligations including an obligation to deliver a casino management system and another to provide maintenance services. For system sales with multiple performance obligations, the Company allocates revenue to each performance obligation on its SSP. The Company generally determines the SSP based on the price charged to customers. The Company does offer its customers contracts with extended payment terms representing a significant financing component. The Company must evaluate if any extended payment terms in the contract is an indicator of the transaction price not being probable. The Company only includes the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Provided all other revenue recognition steps have been satisfied, the Company recognizes the revenue if payment of a significant portion of the contract consideration is due within 12 months of the delivery of the product. System contracts that do not meet this criteria are deferred and recognized when the uncertainty is resolved, which is consistent with when contractual payments become due. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts which include a financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations without making concessions for determining if revenue should be recognized.
Maintenance revenue
Maintenance revenue is recognized ratably over the contract period. The stand-alone selling price 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 stand-alone selling price for service revenue is established based upon actual selling prices for the services or prior similar arrangements.
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.
The following table summarizes disaggregated revenues by major product line for the three months ended March 31, 2018 and 2017, respectively:
| Three Months Ended March 31, | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (percent of revenues) | ||||||||||||||||
| System sales | $ | 380,867 | $ | 535,199 | 35.2 | % | 48.6 | % | ||||||||
| Maintenance fees | 627,018 | 545,620 | 58.0 | % | 49.6 | % | ||||||||||
| Service and other sales | 73,383 | 19,813 | 6.8 | % | 1.8 | % | ||||||||||
| Total revenues | $ | 1,081,268 | $ | 1,100,632 | 100.0 | % | 100.0 | % | ||||||||
See Major Customers for disaggregated revenue information about primary geographical markets.
The Company recognized approximately $395,000 and $259,000 for the three months ending March 31, 2018 and 2017, respectively, which was in deferred revenue as of the beginning of the respective periods.
Significant Judgments
Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.
Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services.
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In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP.
We evaluated the contractual payment terms of all system sales generated during the year to determine the proper recognition or deferral of revenue was recorded. We believe the 12 month subsequent collection threshold of 67% or greater is the most appropriate for the Company to constrain revenue.
We evaluate the interest rates used in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 4% and we believe those to be appropriate market interest rates for the financing component.
Deferred System Sales Costs
Incremental cost to obtain a contract are deferred and amortized over the related system contract term. Costs to fulfill a contract 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. These costs are the most significant component of other long-term assets on the balance sheet, and are $805,265 and $967,092 as of March 31, 2018 and December 31, 2017, respectively.
Accounts Receivable / Allowance for Doubtful Accounts
Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured 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. Accounts receivable are written off when management determines collection is no longer likely. 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 tables summarize major customer information for the three months ended March 31, 2018 and 2017:
| For the Three Months ended March 31 | ||||||||||||||||
| 2018 | 2017 | |||||||||||||||
| % Revenues | % AR | % Revenues | % AR | |||||||||||||
| A | 15.0 | % | 3.9 | % | 14.8 | % | 18.4 | % | ||||||||
| B | 1.9 | % | 10.4 | % | 3.3 | % | 10.2 | % | ||||||||
| C | 5.2 | % | 14.8 | % | 0.5 | % | 0.2 | % | ||||||||
| All Others | 77.9 | % | 70.9 | % | 81.4 | % | 71.2 | % | ||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
For the three month periods ending March 31, 2018 and 2017, sales to customers in the United States represent 94.0% and 88.1% of total revenues, respectively. The Company does derive a portion of its revenue from foreign customers. For the three month periods ending March 31, 2018 and 2017, sales to customers in South America represent 3.5% and 10.1% of total revenues, respectively.
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Inventory
Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. 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 net realizable value and obsolescence. Any material cost found to be above net realizable value or considered obsolete is written down accordingly. The inventory value as of March 31, 2018 was $516,919, which included work-in-process of $40,755. The inventory value was $466,207 as of December 31, 2017, which included work-in-process of $0. The Company had no obsolescence reserve at March 31, 2018 or December 31, 2017. At March 31, 2018 the Company recorded a prepayment for inventory yet to be received of approximately $377,000 as a component of prepaid expenses and other current assets.
Research and Development
The Company expenses all costs related to research and development as incurred. Research and development expense was $40,965 and $7,733 for the three months ended March 31, 2018 and 2017, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations.
Recently Adopted Accounting Pronouncements
In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
We adopted the standard effective January 1, 2018, using the modified retrospective method, which did not required us to restate each prior reporting period presented. We elected the available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption.
| 2. | Accounts Receivable – |
Accounts receivable consisted of the following at:
| March 31, 2018 | December 31, 2017 | |||||||
| Accounts receivable under normal 30 day terms | $ | 1,068,836 | $ | 1,493,084 | ||||
| Financed contracts: | ||||||||
| Current portion of long-term | 1,535,043 | 1,741,669 | ||||||
| Long-term, net of current portion | 1,294,862 | 1,515,120 | ||||||
| Total accounts receivable | 3,898,741 | 4,749,873 | ||||||
| Less allowance for doubtful accounts | (181,473 | ) | (181,473 | ) | ||||
| Accounts receivable, net | $ | 3,717,268 | $ | 4,568,400 | ||||
| Presented on the balance sheet as: | ||||||||
| Accounts receivable, net | $ | 2,422,406 | $ | 3,053,280 | ||||
| Long-term accounts receivable - financed contracts | 1,294,862 | 1,515,120 | ||||||
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 March 31, 2018 and December 31, 2017 which are $2,829,905 and $3,256,789, respectively, offset by contract liabilities on the balance sheets of $2,937,855 and $3,313,772, respectively.
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A roll-forward of the Company’s allowance for doubtful accounts for the periods presented is as follows:
| March 31, 2018 | December 31, 2017 | |||||||
| Accounts receivable allowance, beginning of year | $ | 181,473 | $ | 200,266 | ||||
| Provision adjustment | 0 | (18,793 | ) | |||||
| Write-off | 0 | 0 | ||||||
| Accounts receivable allowance, end of period | $ | 181,473 | $ | 181,473 | ||||
The allowance for doubtful accounts is $181,473 for both of the trade receivables at March 31, 2018 and December 31, 2017, respectively, and $0 for the financed contracts at March 31, 2018 and December 31, 2017, respectively.
| 3. | Stockholders’ Equity – |
Stock Repurchase Program
On January 7, 2018, The Company’s Board of Directors approved the repurchase of its outstanding shares, using management’s discretion, of its common stock from private unsolicited sellers’ in the open market. On May 10, 2018, the Company’s Board of Directors approved the repurchase of its outstanding common shares in an aggregate amount of up to 200,000 shares not to exceed $600,000, in both private unsolicited and open –market transactions, until December 31, 2018. Company insiders are prohibited from participating in the stock repurchase program.
During the three month period ended March 31, 2018, the Company repurchased 38,500 shares totaling approximately $92,740 at an average price of $2.41 per share for its treasury.
Stock Compensation
In January, the Company awarded 50,000 shares at a price of $2.35 per share from its treasury to its new CFO. These shares are subject to a four year vesting schedule as follows: 20,000 shares in year one; 10,000 shares in each subsequent year. Grant date fair value of $117,500 will be recognized equally over the next sixteen quarters as stock compensation expense as a component of selling, general and administration expense. As of March 31, 2018, the remaining unrecognized stock compensation expense approximated $110,000. As of March 31, 2018, the Company holds 133,269 common shares in treasury for future employee issuances for potential bonuses. Such common shares in treasury include shares repurchased pursuant to the stock repurchase program.
| 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, the Company believes that it has no significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2014 through 2017, which are the tax years that remain subject to examination by major tax jurisdictions as of March 31, 2018. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 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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| 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 earnings (loss) per share for the three months ended March 31, 2018 and 2017:
| For the Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| Basic and diluted earnings per share calculation: | ||||||||
| Net income (loss) to common stockholders | $ | (179,836 | ) | $ | (124,372 | ) | ||
| Weighted average number of common shares outstanding - basic | 4,486,559 | 4,511,965 | ||||||
| Basic net income (loss) per share | $ | (0.04 | ) | $ | (0.03 | ) | ||
| Weighted average number of common shares outstanding - diluted | 4,532,115 | 4,511,965 | ||||||
| Diluted net income (loss) per share | $ | (0.04 | ) | $ | (0.03 | ) | ||
The Company had no common stock equivalents outstanding for the periods ending March 31, 2018 or 2017.
| 6. | Foreign Currency Exchange Rate Risk - |
The Company is exposed to foreign currency risks that arise from some of its foreign customers in Colombia, transacted in Colombia pesos. In addition, exchange rate fluctuations may cause our international results to fluctuate when translated into U.S. dollars. These risks may change over time as business practices evolve and could have an impact on the Company’s financial results in the future due to the long term nature of the Company’s accounts receivable in Colombia, which totaled approximately $238,363 and $314,000 at March 31, 2018 and December 31, 2017, respectively. The Company monitors its risk associated with the volatility of certain foreign currencies against the U.S. dollar.
| 7. | Commitment and Contingencies - |
The Company has an agreement with a contractor to design and execute on a sales and marketing strategy for the Company in key Latin American and Caribbean gaming jurisdictions. The agreement expired December 31, 2017. As of March 31, 2018, the agreement is continuing on a month to month arrangement.
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, 2018 relating to our year ended December 31, 2017.
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.
| - 12 - |
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. 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 are designed to 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.
During the first quarter of 2018, the Company did not deliver any casino management systems. 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 with 86 casino operators in over 130 casinos worldwide.
Results of Operations - Three Months Ended March 31, 2018 Compared to Three months ended March 31, 2017
During the three months ended March 31, 2018, loss from operations was $232,901 compared to a loss from operations of $220,754 for the three months ended March 31, 2017. The major components of revenues, cost of sales and selling, general and administrative expenses, and the reasons for changes in each, are discussed below.
Revenues
Revenues totaled $1,081,268 for the three months ended March 31, 2018 compared to $1,100,632 for the three months ended March 31, 2017.
Refer to Note 1 – Revenue, disaggregated revenues by major product line table
During the three months ended March 31, 2018, the Company did not deliver any systems. During the same period in 2017, the Company delivered one system, of which the revenue for that system sale was deferred to future periods. In the periods presented, the Company continues to recognize revenue as payments become due for systems that were previously installed and for which revenue was deferred.
| - 13 - |
Cost of Sales
Cost of sales decreased to $303,695 for the three months ended March 31, 2018 from $321,066 for the three months ended March 31, 2017 due to decreased corresponding sales. The following table summarizes our cost of sales for the three months ended March 31, 2018 and 2017, respectively:
| Three Months Ended March 31, | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (percent of revenues) | ||||||||||||||||
| System sales | $ | 233,698 | $ | 283,799 | 21.6 | % | 25.8 | % | ||||||||
| Maintenance fees | 24,970 | 26,761 | 2.3 | % | 2.4 | % | ||||||||||
Service and other sales | 45,027 | 10,506 | 4.2 | % | 1.0 | % | ||||||||||
| Total cost of sales | $ | 303,695 | $ | 321,066 | 28.1 | % | 29.2 | % | ||||||||
| Gross profit | $ | 777,573 | $ | 779,566 | 71.9 | % | 70.8 | % | ||||||||
Selling, General and Administrative Expenses
For the three months ended March 31, 2018, selling, general and administrative expenses were $1,010,474 compared to $1,000,140 for the same period in 2017. These expenses held steady due to the fact they generally do not vary with the level of revenue.
Interest Income
For the three months ended March 31, 2018, interest income was $21,799 compared to $33,340 for the same period in 2017. This decrease is primarily related to having fewer contracts that have financed payment plans in the current period.
Tax Provision
The income tax benefit for the three months ended March 31, 2018 was $34,000, which was calculated at a 15.9% effective rate, compared to an income tax benefit of $66,000 for the same period in 2017, which was calculated at a 34.7% effective rate.
Net Loss
Loss before taxes for the three months ended March 31, 2018, was $213,836 compared to a loss before taxes of $190,372 for the same period in 2017. Net loss for the three months ended March 31, 2018 was $179,836 compared to net loss of $124,372 for the same period in 2017. The basic loss per share was $0.04 compared to a loss per share of $0.03 for the three months ended March 31, 2018 and 2017, respectively. There were no outstanding options or commons stock equivalents for the three months ended March 31, 2018 and 2017, 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 projects in its backlog at March 31, 2018. The Company had five projects in its backlog as of March 31, 2017.
Subsequent to March 31, 2018, the Company has signed two new contracts.
The Company is currently serving gaming establishments in eleven U.S. states, as well as countries in Central and South America, and the Caribbean. The Company aims to pursue further opportunities and strategic partnerships.
| - 14 - |
Liquidity and Capital Resources
The decrease in cash flows for the three months ended March 31, 2018, compared with the same period in 2017 is related primarily to the increase in net loss, decrease in contract liabilities and the repurchase of common stock, offset by changes in other working capital items, primarily customer deposits and work-in-process inventory.
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 12 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 March 31, 2018.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.
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 March 31, 2018, our Chief Executive Officer and 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 and Chief Financial Officer concluded our disclosure controls and procedures were effective as of March 31, 2018. There were no changes in our internal controls over financial reporting during our most recently completed reporting period that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Unregister Sales of Equity Securities
In January 2018, the Company awarded 50,000 shares of restricted stock to its new Chief Financial Officer. The shares are subject to a four year vesting schedule as follows: 20,000 shares in year one; 10,000 shares in each subsequent year. The shares were issued pursuant to the exemption set forth in Section 4(a)(2) of the Securities Act on the basis that the shares were issued in a transaction not involving any public offering.
| - 15 - |
Company Repurchases of Registered Common Stock
The Company made the following repurchases of registered common stock during the period covered by this report:
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||
| Jan-18 | 26,000 | $ | 2.50 | 266,269 | 174,000 | |||||||||||
| Feb-18 | 0 | $ | 266,269 | 174,000 | ||||||||||||
| Mar-18 | 12,500 | $ | 2.22 | 278,769 | 161,000 | |||||||||||
On January 7, 2018, The Company’s Board of Directors approved the repurchase of its outstanding shares, using management’s discretion, of its common stock from private unsolicited sellers’ in the open market. On May 10, 2018, the Company’s Board of Directors approved the repurchase of its outstanding common shares in an aggregate amount of up to 200,000 shares not to exceed $600,000, in both private unsolicited and open-market transactions, until December 31, 2018. Company insiders are prohibited from participating in the stock repurchase program.
| - 16 - |
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: May 15, 2018
| Table Trac, Inc. | ||
| (Registrant) | ||
| By: | /s/ Chad Hoehne | |
|
Chad Hoehne Chief Executive Officer (principal executive officer) | ||
| By: | /s/ Randy Gilbert | |
|
Randy Gilbert Chief Financial Officer (principal financial and accounting officer) | ||
| - 17 - |
EXHIBIT 31.1
SECTION 302 CERTIFICATION
I, Chad Hoehne, 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: May 15, 2018 | /s/ Chad Hoehne | ||
| Chad Hoehne | |||
| Chief Executive Officer |
EXHIBIT 31.2
SECTION 302 CERTIFICATION
I, Randy Gilbert, 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: May 15, 2018 | /s/ Randy Gilbert | ||
| Randy Gilbert | |||
| Chief Financial Officer |
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 March 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Chad Hoehne, Chief Executive Officer of the Company and I, Randy Gilbert, 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. |
| Date: May 15, 2018 | /s/ Chad Hoehne | ||
| Chad Hoehne | |||
| Chief Executive Officer |
| Date: May 15, 2018 | /s/ Randy Gilbert | ||
| Randy Gilbert | |||
| Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2018 |
May 15, 2018 |
|
| Document Information [Line Items] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Mar. 31, 2018 | |
| Document Fiscal Year Focus | 2018 | |
| Document Fiscal Period Focus | Q1 | |
| 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 | 4,523,465 |
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Allowance for doubtful accounts (in dollars) | $ 181,473 | $ 181,473 |
| 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 | 4,656,734 | 4,656,734 |
| Common stock, shares outstanding | 4,523,465 | 4,511,965 |
| Treasury stock, shares | 133,269 | 144,769 |
CONDENSED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
| Revenues | $ 1,081,268 | $ 1,100,632 |
| Cost of sales | 303,695 | 321,066 |
| Gross profit | 777,573 | 779,566 |
| Operating expenses: | ||
| Selling, general and administrative | 1,010,474 | 1,000,140 |
| Income (loss) from operations | (232,901) | (220,574) |
| Loss on currency exchange | (2,734) | (3,138) |
| Interest income | 21,799 | 33,340 |
| Income (loss) before taxes | (213,836) | (190,372) |
| Income tax expense (benefit) | (34,000) | (66,000) |
| Net Income (loss) | $ (179,836) | $ (124,372) |
| Net income (loss) per share - basic | $ (0.04) | $ (0.03) |
| Net income (loss) per share - diluted | $ (0.04) | $ (0.03) |
| Weighted-average shares outstanding - basic | 4,486,559 | 4,511,965 |
| Weighted-average shares outstanding - diluted | 4,532,115 | 4,511,965 |
Nature of Business and Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation, Basis of Presentation, Business Description and 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 March 31, 2018 and the statements of operations for the three months ended March 31, 2018 and 2017, and the statements of cash flows for the three months ending March 31, 2018 and 2017 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, 2017. 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 (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and the valuation of inventory. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 of the financial statement included in its Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to the Company’s accounting policies as a result of adopting Accounting Standards Codification (ASC) 606 are discussed below. Revenue The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. A majority of the Company’s systems sales have multiple performance obligations including an obligation to deliver a casino management system and another to provide maintenance services. For system sales with multiple performance obligations, the Company allocates revenue to each performance obligation on its SSP. The Company generally determines the SSP based on the price charged to customers. The Company does offer its customers contracts with extended payment terms representing a significant financing component. The Company must evaluate if any extended payment terms in the contract is an indicator of the transaction price not being probable. The Company only includes the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Provided all other revenue recognition steps have been satisfied, the Company recognizes the revenue if payment of a significant portion of the contract consideration is due within 12 months of the delivery of the product. System contracts that do not meet this criteria are deferred and recognized when the uncertainty is resolved, which is consistent with when contractual payments become due. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts which include a financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations without making concessions for determining if revenue should be recognized. Maintenance revenue Maintenance revenue is recognized ratably over the contract period. The stand-alone selling price 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 stand-alone selling price for service revenue is established based upon actual selling prices for the services or prior similar arrangements. 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. The following table summarizes disaggregated revenues by major product line for the three months ended March 31, 2018 and 2017, respectively:
See Major Customers for disaggregated revenue information about primary geographical markets. The Company recognized approximately $395,000 and $259,000 for the three months ending March 31, 2018 and 2017, respectively, which was in deferred revenue as of the beginning of the respective periods. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. We evaluate the interest rates used in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 4% and we believe those to be appropriate market interest rates for the financing component. Deferred System Sales Costs Incremental cost to obtain a contract are deferred and amortized over the related system contract term. Costs to fulfill a contract 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. These costs are the most significant component of other long-term assets on the balance sheet, and are $805,265 and $967,092 as of March 31, 2018 and December 31, 2017, respectively. Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured 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. Accounts receivable are written off when management determines collection is no longer likely. 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 tables summarize major customer information for the three months ended March 31, 2018 and 2017:
For the three month periods ending March 31, 2018 and 2017, sales to customers in the United States represent 94.0% and 88.1% of total revenues, respectively. The Company does derive a portion of its revenue from foreign customers. For the three month periods ending March 31, 2018 and 2017, sales to customers in South America represent 3.5% and 10.1% of total revenues, respectively. Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. 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 net realizable value and obsolescence. Any material cost found to be above net realizable value or considered obsolete is written down accordingly. The inventory value as of March 31, 2018 was $516,919, which included work-in-process of $40,755. The inventory value was $466,207 as of December 31, 2017, which included work-in-process of $0. The Company had no obsolescence reserve at March 31, 2018 or December 31, 2017. At March 31, 2018 the Company recorded a prepayment for inventory yet to be received of approximately $377,000 as a component of prepaid expenses and other current assets. Research and Development The Company expenses all costs related to research and development as incurred. Research and development expense was $40,965 and $7,733 for the three months ended March 31, 2018 and 2017, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted the standard effective January 1, 2018, using the modified retrospective method, which did not required us to restate each prior reporting period presented. We elected the available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. |
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| Accounts Receivable [Text Block] |
Accounts receivable consisted of the following at:
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 March 31, 2018 and December 31, 2017 which are $2,829,905 and $3,256,789, respectively, offset by contract liabilities on the balance sheets of $2,937,855 and $3,313,772, respectively. A roll-forward of the Company’s allowance for doubtful accounts for the periods presented is as follows:
The allowance for doubtful accounts is $181,473 for both of the trade receivables at March 31, 2018 and December 31, 2017, respectively, and $0 for the financed contracts at March 31, 2018 and December 31, 2017, respectively. |
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Stockholders' Equity |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2018 | ||||
| Equity [Abstract] | ||||
| Stockholders' Equity Note Disclosure [Text Block] |
Stock Repurchase Program On January 7, 2018, The Company’s Board of Directors approved the repurchase of its outstanding shares, using management’s discretion, of its common stock from private unsolicited sellers’ in the open market. On May 10, 2018, the Company’s Board of Directors approved the repurchase of its outstanding common shares in an aggregate amount of up to 200,000 shares not to exceed $600,000, in both private unsolicited and open –market transactions, until December 31, 2018. Company insiders are prohibited from participating in the stock repurchase program. During the three month period ended March 31, 2018, the Company repurchased 38,500 shares totaling approximately $92,740 at an average price of $2.41 per share for its treasury. Stock Compensation In January, the Company awarded 50,000 shares at a price of $2.35 per share from its treasury to its new CFO. These shares are subject to a four year vesting schedule as follows: 20,000 shares in year one; 10,000 shares in each subsequent year. Grant date fair value of $117,500 will be recognized equally over the next sixteen quarters as stock compensation expense as a component of selling, general and administration expense. As of March 31, 2018, the remaining unrecognized stock compensation expense approximated $110,000. As of March 31, 2018, the Company holds 133,269 common shares in treasury for future employee issuances for potential bonuses. Such common shares in treasury include shares repurchased pursuant to the stock repurchase program. |
Income Tax |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2018 | ||||
| Income Tax Disclosure [Abstract] | ||||
| Income Tax Disclosure [Text Block] |
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, the Company believes that it has no significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2014 through 2017, which are the tax years that remain subject to examination by major tax jurisdictions as of March 31, 2018. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 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. |
Earnings (Loss) Per Share |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings (Loss) Per Share [Text Block] |
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 earnings (loss) per share for the three months ended March 31, 2018 and 2017:
The Company had no common stock equivalents outstanding for the periods ending March 31, 2018 or 2017. |
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Foreign Currency Exchange Rate Risk |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2018 | ||||
| Foreign Currency [Abstract] | ||||
| Foreign Currency Disclosure [Text Block] |
The Company is exposed to foreign currency risks that arise from some of its foreign customers in Colombia, transacted in Colombia pesos. In addition, exchange rate fluctuations may cause our international results to fluctuate when translated into U.S. dollars. These risks may change over time as business practices evolve and could have an impact on the Company’s financial results in the future due to the long term nature of the Company’s accounts receivable in Colombia, which totaled approximately $238,363 and $314,000 at March 31, 2018 and December 31, 2017, respectively. The Company monitors its risk associated with the volatility of certain foreign currencies against the U.S. dollar. |
Commitment and Contingencies |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2018 | ||||
| Commitments and Contingencies Disclosure [Abstract] | ||||
| Commitments and Contingencies Disclosure [Text Block] |
The Company has an agreement with a contractor to design and execute on a sales and marketing strategy for the Company in key Latin American and Caribbean gaming jurisdictions. The agreement expired December 31, 2017. As of March 31, 2018, the agreement is continuing on a month to month arrangement. |
Nature of Business and Summary of Significant Accounting Policies (Policies) |
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| 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 March 31, 2018 and the statements of operations for the three months ended March 31, 2018 and 2017, and the statements of cash flows for the three months ending March 31, 2018 and 2017 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, 2017. |
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| 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. |
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| Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and the valuation of inventory. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 of the financial statement included in its Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to the Company’s accounting policies as a result of adopting Accounting Standards Codification (ASC) 606 are discussed below. |
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| Revenue Recognition, Policy [Policy Text Block] | Revenue The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. A majority of the Company’s systems sales have multiple performance obligations including an obligation to deliver a casino management system and another to provide maintenance services. For system sales with multiple performance obligations, the Company allocates revenue to each performance obligation on its SSP. The Company generally determines the SSP based on the price charged to customers. The Company does offer its customers contracts with extended payment terms representing a significant financing component. The Company must evaluate if any extended payment terms in the contract is an indicator of the transaction price not being probable. The Company only includes the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Provided all other revenue recognition steps have been satisfied, the Company recognizes the revenue if payment of a significant portion of the contract consideration is due within 12 months of the delivery of the product. System contracts that do not meet this criteria are deferred and recognized when the uncertainty is resolved, which is consistent with when contractual payments become due. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts which include a financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations without making concessions for determining if revenue should be recognized. Maintenance revenue Maintenance revenue is recognized ratably over the contract period. The stand-alone selling price 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 stand-alone selling price for service revenue is established based upon actual selling prices for the services or prior similar arrangements. 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. The following table summarizes disaggregated revenues by major product line for the three months ended March 31, 2018 and 2017, respectively:
See Major Customers for disaggregated revenue information about primary geographical markets. The Company recognized approximately $395,000 and $259,000 for the three months ending March 31, 2018 and 2017, respectively, which was in deferred revenue as of the beginning of the respective periods. |
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| Significant Judgments [Policy Text Block] | Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. We evaluate the interest rates used in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 4% and we believe those to be appropriate market interest rates for the financing component. |
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| Deferred System Sales Costs [Policy Text Block] | Deferred System Sales Costs Incremental cost to obtain a contract are deferred and amortized over the related system contract term. Costs to fulfill a contract 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. These costs are the most significant component of other long-term assets on the balance sheet, and are $805,265 and $967,092 as of March 31, 2018 and December 31, 2017, respectively. |
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| Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured 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. Accounts receivable are written off when management determines collection is no longer likely. 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. |
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| Major Customers, Policy [Policy Text Block] | Major Customers The following tables summarize major customer information for the three months ended March 31, 2018 and 2017:
For the three month periods ending March 31, 2018 and 2017, sales to customers in the United States represent 94.0% and 88.1% of total revenues, respectively. The Company does derive a portion of its revenue from foreign customers. For the three month periods ending March 31, 2018 and 2017, sales to customers in South America represent 3.5% and 10.1% of total revenues, respectively. |
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| Inventory, Policy [Policy Text Block] | Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. 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 net realizable value and obsolescence. Any material cost found to be above net realizable value or considered obsolete is written down accordingly. The inventory value as of March 31, 2018 was $516,919, which included work-in-process of $40,755. The inventory value was $466,207 as of December 31, 2017, which included work-in-process of $0. The Company had no obsolescence reserve at March 31, 2018 or December 31, 2017. At March 31, 2018 the Company recorded a prepayment for inventory yet to be received of approximately $377,000 as a component of prepaid expenses and other current assets. |
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| 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 $40,965 and $7,733 for the three months ended March 31, 2018 and 2017, respectively. Research and development expenses are included in selling, general and administrative expenses on the statements of operations. |
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| New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted the standard effective January 1, 2018, using the modified retrospective method, which did not required us to restate each prior reporting period presented. We elected the available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. |
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Nature of Business and Summary of Significant Accounting Policies (Tables) |
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| Disaggregation of Revenue [Table Text Block] | The following table summarizes disaggregated revenues by major product line for the three months ended March 31, 2018 and 2017, respectively:
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| Revenue from External Customers by Geographic Areas [Table Text Block] | The following tables summarize major customer information for the three months ended March 31, 2018 and 2017:
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Accounts Receivable (Tables) |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following at:
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| Schedule of Allowance Accounts Receivable [Table Text Block] | A roll-forward of the Company’s allowance for doubtful accounts for the periods presented is as follows:
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Earnings (Loss) Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 earnings (loss) per share for the three months ended March 31, 2018 and 2017:
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Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
| Revenues, Total | $ 1,081,268 | $ 1,100,632 |
| Sales Revenue, Net [Member] | ||
| Revenues, Total | $ 1,081,268 | $ 1,100,632 |
| Concentration Risk, Percentage | 100.00% | 100.00% |
| System sales [Member] | Sales Revenue, Net [Member] | ||
| Revenues, Total | $ 380,867 | $ 535,199 |
| Concentration Risk, Percentage | 35.20% | 48.60% |
| Maintenance fees [Member] | Sales Revenue, Net [Member] | ||
| Revenues, Total | $ 627,018 | $ 545,620 |
| Concentration Risk, Percentage | 58.00% | 49.60% |
| Service and other sales [Member] | Sales Revenue, Net [Member] | ||
| Revenues, Total | $ 73,383 | $ 19,813 |
| Concentration Risk, Percentage | 6.80% | 1.80% |
Accounts Receivable (Details) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable under normal 30 day terms | $ 1,068,836 | $ 1,493,084 |
| Financed contracts: | ||
| Current portion of long-term | 1,535,043 | 1,741,669 |
| Long-term, net of current portion | 1,294,862 | 1,515,120 |
| Total accounts receivable | 3,898,741 | 4,749,873 |
| Less allowance for doubtful accounts | (181,473) | (181,473) |
| Accounts receivable, net | 3,717,268 | 4,568,400 |
| Presented on the balance sheet as: | ||
| Accounts receivable, net | 2,422,406 | 3,053,280 |
| Long-term accounts receivable - financed contracts | $ 1,294,862 | $ 1,515,120 |
Accounts Receivable (Details 1) - Accounts Receivable [Member] - USD ($) |
3 Months Ended | 12 Months Ended |
|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
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| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable allowance, beginning of year | $ 181,473 | $ 200,266 |
| Provision adjustment | 0 | (18,793) |
| Write-off | 0 | 0 |
| Accounts receivable allowance, end of period | $ 181,473 | $ 181,473 |
Accounts Receivable (Details Textual) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Allowance for Doubtful Accounts Receivable, Current | $ 181,473 | $ 181,473 |
| Accounts Receivable, Net, Current, Total | 2,422,406 | 3,053,280 |
| Contract with Customer, Liability, Noncurrent | 2,373,409 | 3,313,772 |
| Trade Receivable [Member] | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Allowance for Doubtful Accounts Receivable, Current | 181,473 | 181,473 |
| Financing Receivable [Member] | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Allowance for Doubtful Accounts Receivable, Current | 0 | 0 |
| Accounts Receivable, Net, Current, Total | $ 2,829,905 | $ 3,256,789 |
Earnings (Loss) Per Share (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
| Basic and diluted earnings per share calculation: | ||
| Net income (loss) to common stockholders | $ (179,836) | $ (124,372) |
| Weighted average number of common shares outstanding - basic | 4,486,559 | 4,511,965 |
| Basic net income (loss) per share | $ (0.04) | $ (0.03) |
| Diluted earnings per share calculation: | ||
| Weighted average number of common shares outstanding - diluted | 4,532,115 | 4,511,965 |
| Diluted net income (loss) per share | $ (0.04) | $ (0.03) |
Foreign Currency Exchange Rate Risk (Details Textual) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts Receivable, Gross, Noncurrent | $ 1,294,862 | $ 1,515,120 |
| Colombia [Member] | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts Receivable, Gross, Noncurrent | $ 238,363 | $ 314,000 |
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