10-Q

121

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended September 30, 2024

or

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

Commission File Number:   001-32987

(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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which register
N/A	N/A	N/A

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).    Yes ☒ 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 ☒	Smaller reporting company ☒
	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 ☒

As of November 14, 2024, the registrant had outstanding 4,635,568 shares of common stock, $.001 par value per share. 

Table Trac, Inc.

Index

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures About Market Risk	15
Item 4. Controls and Procedures	15
PART II. OTHER INFORMATION
Item 1A.  Risk Factors	16
Item 5. Other Information
Item 6. Exhibits	17
SIGNATURES	18

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TABLE TRAC, INC.

CONTENTS

	Page
CONDENSED FINANCIAL STATEMENTS (Unaudited)
Condensed Balance Sheets	2
Condensed Statements of Operations	3
Condensed Statements of Stockholders’ Equity	4
Condensed Statements of Cash Flows	5
Notes to Condensed Financial Statements	6

1

TABLE TRAC, INC.

CONDENSED BALANCE SHEETS

	(Unaudited)
	September 30,			December 31,
	2024			2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,007,323		$	3,489,771
Short-term investments		4,573,853			1,502,805
Accounts receivable, net		1,866,107			2,109,193
Inventory, net		2,255,003			2,904,158
Prepaid expenses		437,762			364,886
Net investment in sales type leases - current		74,732			64,310
TOTAL CURRENT ASSETS		11,214,780			10,435,123
LONG-TERM ASSETS
Accounts receivable - long-term		1,267,704			891,351
Property and equipment, net		108,941			38,357
Net investment in sales type leases - long term		63,975			113,621
Software development costs, net		14,189			16,691
Operating lease right-of-use assets		501,906			243,171
TOTAL LONG-TERM ASSETS		1,956,715			1,303,191
TOTAL ASSETS	$	13,171,495		$	11,738,314
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	287,688		$	305,664
Customer deposits		942,556			785,805
Current portion of operating lease liabilities		42,042			114,294
Income tax payable		49,444			165,226
TOTAL CURRENT LIABILITIES		1,321,730			1,370,989
LONG-TERM LIABILITIES
Operating lease liabilities		462,662			126,760
Deferred tax liability		397,000			341,000
TOTAL LIABILITIES		2,181,392			1,838,749
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,756,734 shares issued; and 4,635,568 and 4,634,865 shares outstanding at September 30, 2024 and December 31, 2023, respectively.		4,636			4,635
Additional paid-in capital		2,418,333			2,346,483
Retained earnings		8,789,569			7,771,655
	11,212,538			10,122,773
Treasury stock, 121,166 and 121,869 shares (at cost) at September 30, 2024 and December 31, 2023, respectively.		(222,435	)		(223,208	)
TOTAL STOCKHOLDERS’ EQUITY		10,990,103			9,899,565
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	13,171,495		$	11,738,314

See notes to condensed unaudited financial statements.

2

TABLE TRAC, INC.

CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenues	$	2,547,600	$	1,836,204	$	8,024,590	$	6,575,206
Cost of sales		747,293		428,800		2,289,119		1,417,148
Gross profit		1,800,307		1,407,404		5,735,471		5,158,058
Operating expenses:
Selling, general and administrative		1,531,810		1,292,263		4,510,628		4,037,581
Income from operations		268,497		115,141		1,224,843		1,120,477
Other income		0		0		1,006		4,283
Interest income		111,382		78,857		289,261		251,479
Income before taxes		379,879		193,998		1,515,110		1,376,239
Income tax expense		87,500		22,000		404,500		297,000
Net income	$	292,379	$	171,998	$	1,110,610	$	1,079,239
Net income per share - basic	$	0.06	$	0.04	$	0.24	$	0.24
Net income per share - diluted	$	0.06	$	0.04	$	0.24	$	0.23
Weighted-average shares outstanding - basic		4,575,068		4,552,988		4,575,068		4,552,481
Weighted-average shares outstanding - diluted		4,622,938		4,606,488		4,621,840		4,610,786

See notes to condensed unaudited financial statements.

3

TABLE TRAC, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) 

	Common Stock Outstanding				Additional
	Number of		Par		Paid-in			Retained			Treasury
	Shares		Amount		Capital			Earnings			Stock			Total
BALANCE, December 31, 2022		4,621,988	$	4,622	$	2,207,030		$	6,297,639		$	(233,599	)	$	8,275,692
Stock compensation expense		0		0		25,224			0			0			25,224
Stock issued to employee from treasury		10,000		10		(7,552	)		0			7,542			0
Net income		0		0		0			335,861			0			335,861
BALANCE, March 31, 2023		4,631,988	$	4,632	$	2,224,702		$	6,633,500		$	(226,057	)	$	8,636,777
Stock compensation expense		0		0		25,224			0			0			25,224
Cash dividend		0		0		0			(46,325	)		0			(46,325	)
Exercise of employee stock options		1,000		1		2,019			0			990			3,010
Net income		0		0		0			571,380			0			571,380
BALANCE, June 30, 2023		4,632,988	$	4,633	$	2,251,945		$	7,158,555		$	(225,067	)	$	9,190,066
Stock compensation expense		0		0		25,224			0			0			25,224
Cash dividend		0		0		0			(46,330	)		0			(46,330	)
Stock issued for service from treasury		1,877		2		5,760			0			1,859			7,621
Net income		0		0		0			171,998			0			171,998
BALANCE, September 30, 2023		4,634,865		4,635		2,282,929			7,284,223			(223,208	)		9,348,579
BALANCE, December 31, 2023		4,634,865	$	4,635	$	2,346,483		$	7,771,655		$	(223,208	)	$	9,899,565
Stock compensation expense		0		0		25,223			0			0			25,223
Cash dividend declared		0		0		0			(46,347	)		0			(46,347	)
Net income		0		0		0			11,661			0			11,661
BALANCE, March 31, 2024		4,634,865	$	4,635	$	2,371,706		$	7,736,969		$	(223,208	)	$	9,890,102
Stock compensation expense		0		0		25,224			0			0			25,224
Net income		0		0		0			806,570			0			806,570
BALANCE, June 30, 2024		4,634,865	$	4,635	$	2,396,930		$	8,543,539		$	(223,208	)	$	10,721,896
Stock compensation expense		0		0		19,477			0			0			19,477
Cash dividend		0		0		0			(46,349	)		0			(46,349	)
Stock issued for service from treasury		703		1		1,926						773			2,700
Net income		0		0		0			292,379			0			292,379
BALANCE, September 30, 2024		4,635,568	$	4,636	$	2,418,333		$	8,789,569		$	(222,435	)	$	10,990,103

See notes to condensed unaudited financial statements.

4

TABLE TRAC, INC.

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

	For the Nine Months Ended
	September 30,
	2024			2023
OPERATING ACTIVITIES
Net income	$	1,110,610		$	1,079,239
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		11,573			0
Deferred income taxes		56,000			80,000
Provision for credit losses		0			0
Stock issued for services to non-employee		2,700			7,621
Stock compensation expense		69,924			75,672
Accrued interest on short-term investment		(71,048	)		0
Changes in operating assets and liabilities:
Accounts receivable		(133,267	)		346,023
Inventory		649,155			(1,208,733	)
Prepaid expenses		(72,876	)		(36,131	)
Net investment in sales type leases		39,224			41,157
Accounts payable, accrued expenses and other		(133,422	)		(255,328	)
Payroll liabilities		120,361			76,339
Customer deposits		156,751			(667,722	)
Income tax receivable and payable		(115,782	)		202,674
Net cash provided by (used in) operating activities		1,689,903			(259,189	)
INVESTING ACTIVITIES
Capital expenditures		(79,655	)		(25,109	)
Purchase of short-term investment		(4,500,000	)		0
Proceeds from short-term investment		1,500,000			0
Net cash used in investing activities		(3,079,655	)		(25,109	)
FINANCING ACTIVITIES
Proceeds from employee stock options		0			3,010
Payment of dividends		(92,696	)		(92,655	)
Net cash used in financing activities		(92,696	)		(89,645	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(1,482,448	)		(373,943	)
CASH AND CASH EQUIVALENTS
Beginning of period		3,489,771			4,786,923
End of period	$	2,007,323		$	4,412,980
Non-cash investing and financing activities:
Treasury stock cost related to compensation	$	773		$	10,391
Supplemental cash flow information:
Cash paid for income taxes	$	464,300		$	14,300

See notes to condensed unaudited financial statements.

5

TABLE TRAC, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

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

Basis of Presentation

The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The condensed balance sheet as of September 30, 2024 and the condensed statements of operations, stockholders’ equity and cash flows for the three and nine months ended September 30, 2024 and 2023 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, Inc. Annual Report on Form 10-K for the year ended December 31, 2023.

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota, Las Vegas, Nevada and Oklahoma City, Oklahoma. 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 configurations, and training. In addition, license, technical support and other services 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’s use of estimates and assumptions include: for revenue recognition, determining collectibility, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, realizability of accounts receivable, and the valuation of allowance for credit losses, deferred tax assets and liabilities, and inventory. Actual results could differ from those estimates, and the difference could be significant.  For further information about our critical accounting estimates, see the discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

There were no changes in critical accounting estimates or assumptions for the nine months ended September 30, 2024.

The Company’s significant accounting policies are described in Note 1 of the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023.

Concentrations of Risk

The Company maintains its cash balances at two financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times throughout the year, the Company’s cash balances exceeded amounts insured by the FDIC. The Company does not believe it is exposed to any significant credit risk on its cash balances.  Cash equivalents represent money market funds or short-term investments with original maturities of three months or less from the date of purchase.

Stock-Based Compensation

The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees, directors and non-employees.  The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. The compensation expense for the Company’s stock-based payments is based on estimated fair values at the time of the grant.

The Company estimates the fair value of restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period.

For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options.

6

 

Revenue

The Company derives revenues from the sale or leasing of systems, license and maintenance fees and other services.

System Sales

Revenue is recognized upon transfer of control of promised products and 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 based on its SSP. See discussion within the significant judgement paragraph regarding our determination of SSP.  At contract inception, management assesses whether it is probable that the company will collect substantially all of the consideration to determine whether the contract meets the criterion for collectability.  The revenue allocated to the casino management system is recognized upon installation.  The Company occasionally enters into contracts that include multiple sites; management has determined that each site installation is a separate performance obligation. In these instances, the Company recognizes revenue upon completion of each performance obligation. In addition, the Company has a contract with a reseller who purchases and resells the Company’s products; monthly the reseller notifies the Company of their successful installations and submits an invoice to the Company for those installations.  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 significant financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations. 

Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not meet the criterion for collectability.  The balance of these contracts are not included as part of accounts receivable on the balance sheet.  Accordingly, for these contracts whereby the collectability criterion has not been met, revenue will be recognized as payments are received.

Maintenance Revenue

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

Lease Revenue

The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. The Company leases hardware to a customer, and receives monthly payments.

Service Revenue and Other Revenue

Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements.  Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment.  Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears.  During the nine months ended September 30, 2024, the Company recognized variable consideration of $275,000 which resulted in a reduction of revenue in those periods related to the Company paying the one time cash consideration to a customer as a result of certain promotional software not performing in accordance with agreed upon specifications.

The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The SSP for licensing revenue is established based upon actual selling prices for the license. 

The following table summarizes disaggregated revenues by major product line for the three months ended September 30, 2024 and 2023, respectively:

	Three months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	615,160	$	211,775		24.1	%		11.6	%
Maintenance revenue		1,384,407		1,306,258		54.5	%		71.2	%
Service and other revenue		548,033		318,171		21.4	%		17.2	%
Total revenues	$	2,547,600	$	1,836,204		100.0	%		100.0	%

The following table summarizes disaggregated revenues by major product line for the nine months ended September 30, 2024 and 2023, respectively:

	Nine months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	2,954,963	$	1,935,083		36.8	%		29.5	%
Maintenance revenue		3,990,141		3,755,431		49.8	%		57.1	%
Service and other revenue		1,079,486		884,692		13.4	%		13.4	%
Total revenues	$	8,024,590	$	6,575,206		100.0	%		100.0	%

7

 

See Major Customers for disaggregated revenue information about primary geographical markets.

Significant Judgments

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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately. 

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 perform a gross margin analysis using information such as the size of the customer and geographic region in determining the SSP.  

We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. A contract asset is recognized when we have an unconditional right to payment for our performance. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers.  As of September 30, 2024 and December 31, 2023 we recorded a contract asset of approximately $24,000 and $0, respectively, as a component of accounts receivable.  

As of January 1, 2023, the balance of accounts receivable, net and customer deposits were $3,392,281 and $1,485,622, respectively.

The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors.  As of  September 30, 2024 and December 31, 2023, approximately $1,293,900 and $2,392,560 for systems installed under contract have not been recorded as revenue or included in accounts receivable based on the collectability assessment performed by the Company.  In accordance with this assessment, the contracts will be assessed in subsequent quarters at which time they may be deemed collectable and the outstanding remaining system revenue will be recognized accordingly.  During the quarter ending September 30, 2024, a casino, previously included in this assessment, discontinued its business operations resulting in the noted decrease. Subsequent to September 30, 2024 the company has received substantially all of the site's inventory installed.

We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short-term Investments

The Company currently has two certificates of deposit ("CD") being held at a bank; both have original maturities of seven months.   One CD matures in November 2024 and carries an interest rate of 5.25%, while the other matures in February 2025 and has an interest rate of 5.15%.  Certificates of deposit held for investment with an original maturity greater than three months are carried at cost plus accrued interest and reported as short-term investments on the balance sheet.  Interest is paid at maturity.  At times, certain certificates may exceed amounts insured by the FDIC. The Company determines the appropriate classification as short-term or long-term at the time of purchase based on original maturities and management's reasonable redemption expectation. The Company reevaluates such classification at each balance sheet date.

Accounts Receivable / Allowance for credit losses

Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value as of each balance sheet date.  For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt on the statements of operations.  We maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as general and administrative expense in the Condensed Statements of Operations. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider customer-specific information, current market conditions, and reasonable and supportable forecasts of future economic conditions.  Management believes that receivables, net of the allowance for credit losses, are fully collectable. 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 will not have a material impact on the Company’s financial position.  

8

 

Major Customers

The following table summarizes the Company's major customers' information for the three months ended September 30, 2024 and 2023:

	For the Three months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		36.5	%		37.2	%		37.6	%		12.2	%
All Others		63.5	%		62.8	%		62.4	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The following table summarizes the Company's major customers' information for the nine months ended September 30, 2024 and 2023:

	For the Nine months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		38.6	%		37.2	%		22.7	%		12.2	%
All Others		61.4	%		62.8	%		77.3	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the three month periods ending  September 30, 2024 and 2023, sales to customers in the United States represent 94.8% and 89.4%, of total revenues, respectively.  

A major customer is defined as any customer that represents at least 10% of revenue for a given period or 10% of outstanding account receivable at the end of a period.

Inventory

Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method is used to value inventory. Inventory is reviewed quarterly 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 Company had an obsolescence reserve of $7,697 and $8,768 at September 30, 2024 and  December 31, 2023, respectively.  The total inventory value was $2,255,003 and $2,904,158, as of September 30, 2024 and  December 31, 2023, respectively, which included work-in-process of $112,804 and $396,880 as of  September 30, 2024 and  December 31, 2023, respectively, and the remaining amount is comprised of finished goods. At  September 30, 2024 and  December 31, 2023, the Company had $19,710 and $2,348 of prepaid inventory as a component of prepaid expenses, respectively.

Net Investment in Sales Type Lease

Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease. 

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income.

Long-lived Assets

The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Leases

The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used.  Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. 

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company has elected to use the incremental borrowing rate in determining the present value of lease payments for all asset classes. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For lease agreements that contain both lease and non-lease components, the Company has elected to account for the lease and non-lease components as a single lease component. The Company has elected to not apply the requirements of ASC 842 for short-term leases. Short-term leases are defined as leases that, at the commencement date, have lease terms of twelve months or less.

Rent expense, including the effects of lease incentives, is recognized on a straight-line basis over the term of the lease.

Research and Development

Expenditures for research and development costs are expensed as incurred.  Research and development expense were $143,831 and $38,550 for the nine months ended September 30, 2024 and 2023, respectively, and are included in selling, general and administrative expenses on the condensed statements of operations.

Software Development Costs

We expense software development costs, including cost to develop software products to be sold, licensed or marketed to external users, before technological feasibility is reached.  Technological feasibility is typically reached shortly before the release of such products.  As a result, $0 of development costs met these criteria, during 2024 no new costs were capitalized for three and nine months ended September 30, 2024 and 2023.  Capitalized software development costs are currently amortized straight-line over a five year period.

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and restricted stock shares subject to vesting. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. Restricted stock shares are included in basic shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 8).

9

 

2.  Accounts Receivable –

Accounts receivable consisted of the following at:

	September 30,			December 31,
	2024			2023
Accounts receivable - current	$	1,930,791		$	2,177,813
Less allowance for credit losses		(64,684	)		(68,620	)
Accounts receivable current - net	$	1,866,107		$	2,109,193
Accounts receivable - long-term	$	1,267,704		$	891,351

A roll-forward of the Company’s allowance for credit losses for the nine month periods ended  September 30, 2024 and 2023 are as follows:

	September 30,			September 30,
	2024			2023
Allowance for credit losses, beginning of period	$	68,620		$	62,000
Adjustments		(3,936	)		19,100
Write-off		0			(11,619	)
Accounts receivable allowance for credit losses, end of period		64,684			69,481

3. Net Investment in Sales Type Lease –

In January 2021, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded $210,782 in "Net investment in sales type leases" and derecognized $139,521 from “Inventory" on its condensed balance sheet.  As a result of this transaction the Company recognized $25,562 and $27,586 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2024 and 2023, respectively, and for the nine months ended September 30, 2024 and 2023 the Company recognized $2,963 and $5,014, respectively, of interest income in the Company's condensed statements of operations.

In  December 2022, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded a total $98,279 in "Net investment in sales type leases" and derecognized $46,533 from “Inventory" on its balance sheet. As a result of this transaction the Company recognized $12,175 and $11,468 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2024 and 2023 respectively, and for the nine months ended September 30, 2024 and 2023 the Company recognized $3,025 and $3,732. respectively, of interest income in the Company's condensed statements of operations.

The future minimum lease payments receivable for sales type leases are as follows:

	Amount
2024 (remainder)		27,975
2025		71,700
2026		26,875
2027		22,800
Total undiscounted cash flows		149,350
Present value discount		10,643
Net investment in lease as of September 30, 2024	$	138,707

The current portion of $74,732 and $64,310 are included in Current Assets on the condensed balance sheet as of September 30, 2024 and December 31, 2023, respectively, and the long term portion of $63,975 and $113,621 are included in Long-Term Assets on the condensed balance sheet as of September 30, 2024 and December 31, 2023, respectively.  The lease contains a purchase option at the conclusion of the lease, which the Company has determined does not meet the probability criterion.  The Company has not recorded an unguaranteed residual asset.

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4. Operating Leases –

We lease space under non-cancelable operating leases for our three office locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.

Our leases include one or more options to renew. The exercise of lease renewal options are included in our ROU assets and lease liabilities if they are reasonably certain of exercise.

On June 19, 2024, we extended our lease for the Minnesota location.  The term of the extension is 75 months and included a $36,000 tenant improvement allowance, which is offsetting the 2024 lease payments.  The extended lease is expiring  October 31, 2031. On September 20, 2022, we extended our lease for the Oklahoma location.  The term of the extension is 36 months expiring August 31, 2025.  On August 24, 2023, we entered into a lease for the Nevada location.  The terms of the lease is 36 months expiring August 31, 2026.

Maturities of our lease liabilities for all operating leases are as follows as of September 30, 2024:

2024 (remainder)		(4,701	)
2025		113,330
2026		114,919
2027		77,398
2028		80,486
Thereafter		245,784
Total Lease Payments		627,216
Less: Interest		122,512
Present value of lease liabilities	$	504,704

The following table summarizes the Company's operating lease expenses for the nine months ended September 30, 2024 and 2023:

	2024		2023
Operating lease expense		92,127		46,792
Variable lease expense		25,869		24,990
Total lease expense	$	117,996	$	71,782

We cannot determine the interest rate implicit in our leases.  Therefore, the discount rate represents our estimated incremental interest rates to borrow an amount approximating the aggregate lease payments collateralized by the property at the commencement of the lease.

The following table summarizes the Company's operating lease information for the nine months ended September 30, 2024 and 2023:

	2024			2023
Operating cash flow from operating leases		117,996			71,782
Right of use asset in exchange for new lease labilities		349,031			0
Operating leases
Weighted average remaining lease term - operating leases (years)		5.8			2.5
Weighted average discount rate - operating leases		5.6	%		2.9	%

5. Bank Financing –

Revolving Credit Line

The Company has a revolving credit line of up to $500,000 that expires on February 1, 2025. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had no borrowings under the credit line during the nine months ended September 30, 2024. Interest on outstanding borrowings is payable monthly and charged at the Prime Rate, which was 8.0% and 8.25% subject to a floor of 3.75% during the three months ended  September 30, 2024 and 2023, respectively.

6. Stockholders’ Equity –

Cash Dividend

For the nine months ending  September 30, 2024 and 2023 the company has paid cash dividends totaling $92,696 and $92,655, respectively.  The 2024 dividends were declared on March 14 and August 9, 2024 with payment dates of April 4 and September 13, 2024, respectively.  The 2023 dividends were declared on May 17 and August 14, 2023 with payments date of June 22 and September 22, 2023, respectively.  

Stock Compensation

On  May 14, 2021, the Board of Directors of Table Trac, Inc. approved the 2021 Stock Incentive Plan (the "Plan").  The Plan provides for the issuance of incentive and other equity-based awards to its employees. Options issued under the Plan are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plan, with exercise prices equal to the closing price of shares of the Company’s common stock on the OTCQX Exchange at closing on the trading day of the date of award. The Company had 500,000 shares initially available for grant.

On  May 14, 2021, the Board of Directors of Table Trac, Inc. awarded 70,000 stock options as follows: 20,000 to Chad Hoehne; 20,000 to former COO Robert Siqveland and 30,000 to Randy Gilbert. These shares are subject to a vesting schedule as follows: 25% immediately and 25% in each subsequent year. Grant date fair value of $128,726 will be recognized over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  March 25, 2022, the Board of Directors of Table Trac, Inc. awarded Randy Gilbert 87,500 Restricted Stock shares and former COO Robert Siqveland 12,500 Restricted Stock shares. These shares are subject to a five-year vesting schedule as follows: 20,000 shares vest annually beginning on  March 25, 2023.  Grant date fair value of $349,000 will be recognized ratably over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  December 15, 2022, former COO Robert Siqveland agreed to and accepted a separation agreement from the Company. Included in this agreement were terms which immediately vested the remaining unvested 12,500 Restricted Stock shares from the  March 25, 2022 grant and the unvested stock options to purchase 20,000 shares that were awarded to him on  May 14, 2021.  In addition, this agreement modified the exercise period of the stock options which now expire on  March 31, 2024.  This was determined to be a modification under ASC 718 and the incremental compensation costs of $39,000 and $37,000, respectively, for the restricted stock and options were recognized immediately in 2022 as a component of selling, general and administrative expenses.  Lastly, Mr. Siqveland received twelve months of severance in two payments.  $100,500 on  April 15, 2023 and $33,500 on  January 15, 2024.  

On  December 16, 2022, management of Table Trac, Inc. awarded 16,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $37,969 was recognized during 2022 as stock compensation expense as a component of selling, general and administration expense.

On March 12, 2023, the Company awarded 10,000 Restricted Stock shares to an employee out of treasury stock. These shares are subject to a three year vesting period.  Grant date fair value of $50,500 was recognized over the vesting period as stock compensation expense as a component of selling, general and administrative expense. 

On September 30, 2023, the Company awarded 1,877 Restricted Stock shares to a non-employee out of treasury stock. These shares are subject not subject to a vesting period.  Grant date fair value of $7,620 was recognized as legal expense as a component of selling, general and administrative expense.

On  December 19, 2023, management of Table Trac, Inc. awarded 19,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $38,331 was recognized during 2023 as stock compensation expense as a component of selling, general and administration expense.

On September 30, 2024 the Company awarded 703 Restricted Stock shares to a non-employee out of treasury stock. These shares are subject not subject to a vesting period.  Grant date fair value of $2,700 was recognized as legal expense as a component of selling, general and administrative expense.

The Company has 60,500 shares of restricted stock outstanding as of September 30, 2024. There were 80,000 shares of restricted stock outstanding at September 30, 2023.  

For the three months and nine months ending  September 30, 2024 and 2023, the Company recorded compensation expense related to restricted stock granted of $19,478 and $58,430, respectively as a component of selling, general and administrative expenses.  

For the three months and nine months ending  September 30, 2024 and 2023, the Company recorded compensation expense related to stock options granted of $0 and $11,494, respectively as a component of selling, general and administrative expenses.    

The fair value of the Company’s stock options issued was estimated using a Black-Scholes option pricing model with the following weighted-average assumptions:

The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately three years. As of  September 30, 2024 and 2023, the remaining unrecognized stock compensation expense for stock options and restricted stock was approximately $173,730 and $268,880, respectively.

The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2024:

Options Outstanding							Options Exercisable
Options Outstanding	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value		Options Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
99,750		4.98	$	3.25	$	86,260		99,750	$	3.25	$	86,260

The following table summarizes the activity of all stock options outstanding for the nine months ended September 30, 2024 and 2023.

	2024					2023
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding at beginning of year		119,750		$	2.97		101,500		$	2.97
Granted		0			0		-			0
Exercised		0			0		(1000	)		3.01
Forfeited		(20,000	)		2.42		(500	)		5.29
Balance at September 30:		99,750		$	3.25		100,000		$	2.96
Options Exercisable at September 30:		99,750		$	3.25		87,500		$	3.04

7. 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, 2021 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2024. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

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

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8.  Earnings Per Share –

The Company computes earnings 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 per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income 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 per share for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	292,379	$	171,998
Weighted average number of common shares outstanding - basic		4,575,068		4,552,988
Basic net income per share	$	0.06	$	0.04
Weighted average number of common shares outstanding - diluted		4,622,938		4,606,488
Diluted net income per share	$	0.06	$	0.04

	For the Nine Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	1,110,610	$	1,079,239
Weighted average number of common shares outstanding - basic		4,575,068		4,552,481
Basic net income per share	$	0.24	$	0.24
Weighted average number of common shares outstanding - diluted		4,621,840		4,610,786
Diluted net income per share	$	0.24	$	0.23

For the three and nine month period ended  September 30, 2024 and 2023, there were common stock equivalents that had a dilutive effect of approximately 47,870 and 46,772, and 53,500 and 58,300 shares, respectively.  

9. Subsequent Event –

On November 8, 2024, Table Trac Inc. announced that its Board of Directors declared a cash dividend of $0.01 per share on the company’s common stock. The dividend will be payable on December 13, 2024, to shareholders of record at the close of business on November 29, 2024.

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 unaudited financial statements, and notes thereto, contained in this Quarterly Report on Form 10-Q, as well as our audited financial statements, and notes thereto, contained in our Form 10-K filed with the SEC on March 29,2024 relating to our year ended December 31, 2023.

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. The words “anticipate,” “intend,” “plan,” “believe,” “could,” “project,” “estimate,” “expect,” “strategy,” “likely,” “may,” “should,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.  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, as a result of many factors, including, but not limited to, those set forth under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and in our other filings with the Securities and Exchange Commission.

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 its principal office 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 developed a highly secure, unified, and stable Casino Management System (“CMS”) offering end-to-end casino resort functionality for guest rewards and loyalty marketing operations, marketing analysis, guest service, promotions, administration / management, vault / cage management and audit / accounting tasks, altogether a powerful, elegant technology ecosystem of value, efficiency and reliability for casinos seeking to add or upgrade their casino management systems.

In August of 2022 and September of 2020, the Company was granted Patents (U.S. patent #11,417,169) on its April 2017 application 16/984755 “SYSTEMS AND METHODS OF FACILITATING INTERACTIONS BETWEEN AN ELECTRONIC GAMING MACHINE, GAME PLAYER, AND A CONTROL SYSTEM” and (U.S. patent #10,769,885 B2) on its April 2017 application 15/946,227 “SYSTEMS AND METHODS OF FACILITATING INTERACTIONS BETWEEN AN ELECTRONIC GAMING MACHINE, GAME PLAYER, AND A CONTROL SYSTEM”. 

In June of 2021, the Company was granted a Patent (U.S. patent #11,024,116) on its May 2020 application 16/884731 “DYNAMIC AUTOMATED SOCIAL DISTANCING ON ELECTRONIC GAMING MACHINES”.  In addition, the Company renewed its Trademark claim for “Table Trac” which was granted July 31, 2018 Reg. No. 5,529,779 and made a new Trademark claim on its “CasinoTrac” brand.

The Company sells and leases systems and technical support to casinos. The open architecture of CasinoTrac is designed to provide operators with a secure, 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 third quarter of 2024, the Company delivered two systems.  At the end of the quarter, the Company had casino management systems, table games management systems, DataTrac, KioskTrac, KioskTrac Mobile, SlotSUITE, RePrintEnroll kiosks installed with on-going support and maintenance contracts with over 115 casino operators in over 300 casinos worldwide.  Sales to customers in the United States represented 95.8% of the Company’s total revenues for the three month period ending September 30, 2024.

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Results of Operations – Three Months Ended September 30, 2024 Compared to Three months ended September 30, 2023

During the three months ended September 30, 2024, income from operations was $268,497 compared to $115,141, for the three months ended September 30, 2023. 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 $2,547,600 for the three months ended September 30, 2024 compared to $ 1,836,204, for the three months ended September 30, 2023.  

Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers

During the three months ended September 30, 2024, the Company delivered two new systems. During the same period in 2023, the Company delivered four new system and expanded one existing customer and our exclusive supplier installed our system in multiple locations in Australia.

Cost of Sales and Gross Profit

Cost of sales increased to $747,293 for the three months ended September 30, 2024 from $428,800, for the three months ended September 30, 2023 due to the Company installing a greater number of hardware items during the three months ended September 30, 2024.  The following table summarizes our cost of sales for the three months ended September 30, 2024 and 2023, respectively:

	Three Months Ended September 30,
	2024		2023		2024			2023
					(percent of revenues)			(percent of revenues)
System	$	214,176	$	33,430		8.4	%		1.8	%
Maintenance		237,535		239,609		9.3	%		13.0	%
Service and other		295,582		155,761		11.6	%		8.5	%
Total cost of sales	$	747,293	$	428,800		29.3	%		23.3	%
Gross profit	$	1,800,307	$	1,407,404		70.7	%		76.7	%

The Company’s gross profit was 70.7% and 76.7% for the three months ended September 30, 2024 and 2023, respectively. This decrease is a result of increased labor and equipment costs associated with the systems installed in the quarter.

Selling, General and Administrative Expenses

For the three months ended September 30, 2024, selling, general and administrative expenses were $1,531,810 compared to $1,292,263 for the same period in 2023.  This increase is a result of the company's increase in sales and marketing efforts.

Interest Income

For the three months ended September 30, 2024, interest income was $111,382 compared to $78,857 for the same period in 2023. 

Tax Provision

The income tax expense for the three months ended September 30, 2024 was $87,500 as compared to $22,000, for the three months ended September 30, 2023. The effective rate fluctuates significantly due to fluctuations in periodic net income, changes in state apportionment rates and availability of research and development and foreign tax credits.

Net Income

Income before taxes for the three months ended September 30, 2024 was $379,879 compared to income before taxes for the three months ended September 30, 2023 of $193,998.  Net income for the three months ended September 30, 2024 was $292,379 compared to net income of $171,998 for the three months ended September 30, 2023. The basic and diluted income per share was $0.06 compared to basic and diluted income per share of $0.04 for the three months ended September 30, 2024 and 2023, respectively.

13

Results of Operations – Nine Months Ended September 30, 2024 Compared to Nine months ended September 30, 2023

During the nine months ended September 30, 2024, income from operations was $1,224,843 compared to $1,120,477, for the nine months ended September 30, 2023. 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 $ 8,024,590 for the nine months ended September 30, 2024 compared to $ 6,575,206, for the nine months ended September 30, 2023.  

Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers

During the nine months ended September 30, 2024, the Company delivered six new systems, expanded one of our current customers and our exclusive supplier installed our system in multiple locations in Australia. During the same period in 2023, the Company delivered nine new system and expanded one existing customer and our exclusive supplier installed our system in multiple locations in Australia.

Cost of Sales and Gross Profit

Cost of sales increased to $2,289,119 for the nine months ended September 30, 2024 from $1,417,148, for the nine months ended September 30, 2023 due to the Company installing a greater number of hardware items during the nine months ended September 30, 2024.  The following table summarizes our cost of sales for the nine months ended September 30, 2024 and 2023, respectively:

	Nine Months Ended September 30,
	2024		2023		2024			2023
					(percent of revenues)			(percent of revenues)
System	$	855,330	$	330,584		10.7	%		5.0	%
Maintenance		726,110		626,271		9.0	%		9.5	%
Service and other		707,679		460,293		8.8	%		7.0	%
Total cost of sales	$	2,289,119	$	1,417,148		28.5	%		21.6	%
Gross profit	$	5,735,471	$	5,158,058		71.5	%		78.4	%

The Company’s gross profit was 71.5% and 78.4% for the nine months ended September 30, 2024 and 2023, respectively. This decrease is a result of increased labor and equipment costs associated with the systems installed in the quarter and the decrease to other revenue as a result of a one time payment of $275,000 to a customer as a result of a Company installed promotional product which did not originally function as intended, the promotional product was subsequently corrected.

Selling, General and Administrative Expenses

For the nine months ended September 30, 2024, selling, general and administrative expenses were $4,510,628 compared to $4,037,581 for the same period in 2023.  This increase is a result of the company's increase in sales and marketing efforts.

Interest Income

For the nine months ended September 30, 2024, interest income was $289,261 compared to $251,479 for the same period in 2023. 

Tax Provision

The income tax expense for the nine months ended September 30, 2024 was $404,500 as compared to $297,000, for the nine months ended September 30, 2023. The effective rate fluctuates significantly due to fluctuations in periodic net income, changes in state apportionment rates and availability of research and development and foreign tax credits.

Net Income

Income before taxes for the nine months ended September 30, 2024 was $1,515,110 compared to income before taxes for the nine months ended September 30, 2023 of $1,376,239.  Net income for the nine months ended September 30, 2024 was $1,110,610 compared to net income of $1,079,239 for the nine months ended September 30, 2023. The basic and diluted income per share was $0.24, compared to basic and diluted income per share of $0.24 and $0.23 for the nine months ended September 30, 2024 and 2023, 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 five projects in its backlog at September 30, 2024. The Company had five projects in its backlog as of September 30, 2023.  As of the filing date of this report, the Company has signed one additional new contract.

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

14

Liquidity and Capital Resources

Management believes that the Company has adequate cash to meet its obligations and continue operations for both existing customer contracts and ongoing product development for at least the next 12 months from the date of this filing.  The Company has a $500,000 line of credit and as of September 30, 2024, there were no borrowings outstanding under the line of credit.  The Company’s primary sources of liquidity are cash and cash equivalents, short-term investments, receivables and future cash generated from operations.  As of September 30, 2024, the Company had total cash and cash equivalents of $2,007,323 and short-term investments of $4,573,853  Management is not aware of any trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way.

Net cash provided by operations for the nine months ended September 30, 2024 was $1,689,903 compared to net cash used of $(259,189) for the nine month period ending September 30, 2023. This increase was a result of a number of factors including an increase in net income, prepaid insurance and customer deposits, a decrease in inventory, offset partially by an increase in accounts receivable. 

For the nine months ended September 30, 2024 net cash used in investing activities was $3,079,655 compared to $25,109 for the same period in 2023.  This increase was a result of the Company investing in certificates of deposit and the capital expenditures related to the opening of the Las Vegas office.

For the nine months ended September 30, 2024 net cash used in financing activities was $92,696 compared to $89,645 for the same period in 2023, which was the primarily the payment of cash dividends. 

Off-Balance Sheet Arrangements

The Company had no off-balance sheet arrangements as of September 30, 2024.

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  (proposed - getting feed back from the lawyers)

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 September 30, 2024, 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 September 30, 2024.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting during the quarter ended September 30, 2024 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

15

PART II. OTHER INFORMATION

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully review the risks discussed in our Annual Report on Form 10-K filed with the SEC on March 29, 2024 relating to our year ended December 31, 2023 before making an investment decision.  The risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2023 do not include all of the risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results of operations. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

Item 5. Other Information

None

16

Item 6. Exhibits

Exhibit	Description
3.1	Articles of Incorporation, filed with the Nevada Secretary of State on June 2, 1995 (incorporated by reference to Exhibit 3 to the registrant’s registration statement on Form 10SB-12G filed on December 6, 1999).
3.2	Amendment to Articles of Incorporation, filed with the Nevada Secretary of State on January 26, 2010 (incorporated by reference to Exhibit 3.2 to the registrant’s annual report on Form 10-K filed on March 31, 2011).
3.3	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to the registrant’s annual report on Form 10-K filed on March 31, 2011).
3.4	Amendment No. 1 to Bylaws dated March 9, 2016 (incorporated by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed on March 15, 2016).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

17

SIGNATURES

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

Dated: November 14, 2024	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)

18

EX-31.1

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: November 14, 2024	/s/ Chad Hoehne
	Chad Hoehne
	Chief Executive Officer

EX-31.2

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:  November 14, 2024	/s/ Randy Gilbert
	Randy Gilbert
	Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Table Trac, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 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:  November 14, 2024	/s/ Chad Hoehne
	Chad Hoehne
	Chief Executive Officer
Date:  November 14, 2024	/s/ Randy Gilbert
	Chief Financial Officer

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 14, 2024
Document Information [Line Items]
Entity Central Index Key	0001090396
Entity Registrant Name	Table Trac INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-32987
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	88-0336568
Entity Address, Address Line One	6101 Baker Road, Suite 206
Entity Address, City or Town	Minnetonka
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55345
City Area Code	952
Local Phone Number	548-8877
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,635,568

XML

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 2,007,323	$ 3,489,771
Short-term investments	4,573,853	1,502,805
Accounts receivable, net	1,866,107	2,109,193
Inventory, net	2,255,003	2,904,158
Prepaid expenses	437,762	364,886
Net investment in sales type leases - current	74,732	64,310
TOTAL CURRENT ASSETS	11,214,780	10,435,123
LONG-TERM ASSETS
Accounts receivable - long-term	1,267,704	891,351
Property and equipment, net	108,941	38,357
Net investment in sales type leases - long term	63,975	113,621
Software development costs, net	14,189	16,691
Operating lease right-of-use assets	501,906	243,171
TOTAL LONG-TERM ASSETS	1,956,715	1,303,191
TOTAL ASSETS	13,171,495	11,738,314
CURRENT LIABILITIES
Accounts payable and accrued expenses	287,688	305,664
Customer deposits	942,556	785,805
Current portion of operating lease liabilities	42,042	114,294
Income tax payable	49,444	165,226
TOTAL CURRENT LIABILITIES	1,321,730	1,370,989
LONG-TERM LIABILITIES
Operating lease liabilities	462,662	126,760
Deferred tax liability	397,000	341,000
TOTAL LIABILITIES	2,181,392	1,838,749
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,756,734 shares issued; and 4,635,568 and 4,634,865 shares outstanding at September 30, 2024 and December 31, 2023, respectively.	4,636	4,635
Additional paid-in capital	2,418,333	2,346,483
Retained earnings	8,789,569	7,771,655
Stockholders' Equity before Treasury Stock	11,212,538	10,122,773
Treasury stock, 121,166 and 121,869 shares (at cost) at September 30, 2024 and December 31, 2023, respectively.	(222,435)	(223,208)
TOTAL STOCKHOLDERS’ EQUITY	10,990,103	9,899,565
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 13,171,495	$ 11,738,314

XML

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	4,756,734	4,756,734
Common stock, shares outstanding (in shares)	4,635,568	4,634,865
Treasury stock, shares (in shares)	121,166	121,869

XML

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 2,547,600	$ 1,836,204	$ 8,024,590	$ 6,575,206
Cost of sales	747,293	428,800	2,289,119	1,417,148
Gross profit	1,800,307	1,407,404	5,735,471	5,158,058
Operating expenses:
Selling, general and administrative	1,531,810	1,292,263	4,510,628	4,037,581
Income from operations	268,497	115,141	1,224,843	1,120,477
Other income	0	0	1,006	4,283
Interest income	111,382	78,857	289,261	251,479
Income before taxes	379,879	193,998	1,515,110	1,376,239
Income tax expense	87,500	22,000	404,500	297,000
Net income	$ 292,379	$ 171,998	$ 1,110,610	$ 1,079,239
Net income per share - basic (in dollars per share)	$ 0.06	$ 0.04	$ 0.24	$ 0.24
Diluted net income per share (in dollars per share)	$ 0.06	$ 0.04	$ 0.24	$ 0.23
Weighted-average shares outstanding - basic (in shares)	4,575,068	4,552,988	4,575,068	4,552,481
Weighted-average shares outstanding - diluted (in shares)	4,622,938	4,606,488	4,621,840	4,610,786

XML

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock Outstanding [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Balance (in shares) at Dec. 31, 2022	4,621,988
Balance at Dec. 31, 2022	$ 4,622	$ 2,207,030	$ 6,297,639	$ (233,599)	$ 8,275,692
Stock compensation expense (in shares)	0
Stock compensation expense	$ 0	25,224	0	0	25,224
Stock issued to employee from treasury (in shares)	10,000
Stock issued to employee from treasury	$ 10	(7,552)	0	7,542	0
Net income	$ 0	0	335,861	0	335,861
Balance (in shares) at Mar. 31, 2023	4,631,988
Balance at Mar. 31, 2023	$ 4,632	2,224,702	6,633,500	(226,057)	8,636,777
Balance (in shares) at Dec. 31, 2022	4,621,988
Balance at Dec. 31, 2022	$ 4,622	2,207,030	6,297,639	(233,599)	8,275,692
Net income					$ 1,079,239
Exercise of employee stock options (in shares)					1,000
Balance (in shares) at Sep. 30, 2023	4,634,865
Balance at Sep. 30, 2023	$ 4,635	2,282,929	7,284,223	(223,208)	$ 9,348,579
Balance (in shares) at Mar. 31, 2023	4,631,988
Balance at Mar. 31, 2023	$ 4,632	2,224,702	6,633,500	(226,057)	8,636,777
Stock compensation expense (in shares)	0
Stock compensation expense	$ 0	25,224	0	0	25,224
Net income	0	0	571,380	0	571,380
Cash dividend	$ 0	0	(46,325)	0	(46,325)
Exercise of employee stock options (in shares)	1,000
Exercise of employee stock options	$ 1	2,019	0	990	3,010
Balance (in shares) at Jun. 30, 2023	4,632,988
Balance at Jun. 30, 2023	$ 4,633	2,251,945	7,158,555	(225,067)	9,190,066
Stock compensation expense	$ 0	25,224	0	0	25,224
Stock issued to employee from treasury (in shares)	1,877
Stock issued to employee from treasury	$ 2	5,760	0	1,859	7,621
Net income	0	0	171,998	0	171,998
Cash dividend	$ 0	0	(46,330)	0	(46,330)
Balance (in shares) at Sep. 30, 2023	4,634,865
Balance at Sep. 30, 2023	$ 4,635	2,282,929	7,284,223	(223,208)	9,348,579
Balance (in shares) at Dec. 31, 2023	4,634,865
Balance at Dec. 31, 2023	$ 4,635	2,346,483	7,771,655	(223,208)	9,899,565
Stock compensation expense	0	25,223	0	0	25,223
Net income	$ 0	0	11,661	0	11,661
Cash dividend		0	(46,347)	0	(46,347)
Balance (in shares) at Mar. 31, 2024	4,634,865
Balance at Mar. 31, 2024	$ 4,635	2,371,706	7,736,969	(223,208)	9,890,102
Balance (in shares) at Dec. 31, 2023	4,634,865
Balance at Dec. 31, 2023	$ 4,635	2,346,483	7,771,655	(223,208)	9,899,565
Net income					$ 1,110,610
Exercise of employee stock options (in shares)					(0)
Balance (in shares) at Sep. 30, 2024	4,635,568
Balance at Sep. 30, 2024	$ 4,636	2,418,333	8,789,569	(222,435)	$ 10,990,103
Balance (in shares) at Mar. 31, 2024	4,634,865
Balance at Mar. 31, 2024	$ 4,635	2,371,706	7,736,969	(223,208)	9,890,102
Stock compensation expense	0	25,224	0	0	25,224
Net income	$ 0	0	806,570	0	806,570
Balance (in shares) at Jun. 30, 2024	4,634,865
Balance at Jun. 30, 2024	$ 4,635	2,396,930	8,543,539	(223,208)	10,721,896
Stock compensation expense	$ 0	19,477	0	0	19,477
Stock issued to employee from treasury (in shares)	703
Stock issued to employee from treasury	$ 1	1,926		773	2,700
Net income	0	0	292,379	0	292,379
Cash dividend	$ 0	0	(46,349)	0	(46,349)
Balance (in shares) at Sep. 30, 2024	4,635,568
Balance at Sep. 30, 2024	$ 4,636	$ 2,418,333	$ 8,789,569	$ (222,435)	$ 10,990,103

XML

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net income	$ 1,110,610	$ 1,079,239
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	11,573	0
Deferred income taxes	56,000	80,000
Provision for credit losses	0	0
Stock issued for services to non-employee	2,700	7,621
Stock compensation expense	69,924	75,672
Accrued interest on short-term investment	(71,048)	0
Changes in operating assets and liabilities:
Accounts receivable	(133,267)	346,023
Inventory	649,155	(1,208,733)
Prepaid expenses	(72,876)	(36,131)
Net investment in sales type leases	39,224	41,157
Accounts payable, accrued expenses and other	(133,422)	(255,328)
Payroll liabilities	120,361	76,339
Customer deposits	156,751	(667,722)
Income tax receivable and payable	(115,782)	202,674
Net cash provided by (used in) operating activities	1,689,903	(259,189)
INVESTING ACTIVITIES
Capital expenditures	(79,655)	(25,109)
Purchase of short-term investment	(4,500,000)	0
Proceeds from short-term investment	1,500,000	0
Net cash used in investing activities	(3,079,655)	(25,109)
FINANCING ACTIVITIES
Proceeds from employee stock options	0	3,010
Payment of dividends	(92,696)	(92,655)
Net cash used in financing activities	(92,696)	(89,645)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,482,448)	(373,943)
CASH AND CASH EQUIVALENTS
Beginning of period	3,489,771	4,786,923
End of period	2,007,323	4,412,980
Non-cash investing and financing activities:
Treasury stock cost related to compensation	773	10,391
Supplemental cash flow information:
Cash paid for income taxes	$ 464,300	$ 14,300

XML

Note 1 - Nature of Business and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

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

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

Basis of Presentation

The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The condensed balance sheet as of September 30, 2024 and the condensed statements of operations, stockholders’ equity and cash flows for the three and nine months ended September 30, 2024 and 2023 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, Inc. Annual Report on Form 10-K for the year ended December 31, 2023.

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota, Las Vegas, Nevada and Oklahoma City, Oklahoma. 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 configurations, and training. In addition, license, technical support and other services 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’s use of estimates and assumptions include: for revenue recognition, determining collectibility, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, realizability of accounts receivable, and the valuation of allowance for credit losses, deferred tax assets and liabilities, and inventory. Actual results could differ from those estimates, and the difference could be significant.  For further information about our critical accounting estimates, see the discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

There were no changes in critical accounting estimates or assumptions for the nine months ended September 30, 2024.

The Company’s significant accounting policies are described in Note 1 of the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023.

Concentrations of Risk

The Company maintains its cash balances at two financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times throughout the year, the Company’s cash balances exceeded amounts insured by the FDIC. The Company does not believe it is exposed to any significant credit risk on its cash balances.  Cash equivalents represent money market funds or short-term investments with original maturities of three months or less from the date of purchase.

Stock-Based Compensation

The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees, directors and non-employees.  The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. The compensation expense for the Company’s stock-based payments is based on estimated fair values at the time of the grant.

The Company estimates the fair value of restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period.

For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options.

Revenue

The Company derives revenues from the sale or leasing of systems, license and maintenance fees and other services.

System Sales

Revenue is recognized upon transfer of control of promised products and 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 based on its SSP. See discussion within the significant judgement paragraph regarding our determination of SSP.  At contract inception, management assesses whether it is probable that the company will collect substantially all of the consideration to determine whether the contract meets the criterion for collectability.  The revenue allocated to the casino management system is recognized upon installation.  The Company occasionally enters into contracts that include multiple sites; management has determined that each site installation is a separate performance obligation. In these instances, the Company recognizes revenue upon completion of each performance obligation. In addition, the Company has a contract with a reseller who purchases and resells the Company’s products; monthly the reseller notifies the Company of their successful installations and submits an invoice to the Company for those installations.  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 significant financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations. 

Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not meet the criterion for collectability.  The balance of these contracts are not included as part of accounts receivable on the balance sheet.  Accordingly, for these contracts whereby the collectability criterion has not been met, revenue will be recognized as payments are received.

Maintenance Revenue

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

Lease Revenue

The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. The Company leases hardware to a customer, and receives monthly payments.

Service Revenue and Other Revenue

Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements.  Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment.  Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears.  During the nine months ended September 30, 2024, the Company recognized variable consideration of $275,000 which resulted in a reduction of revenue in those periods related to the Company paying the one time cash consideration to a customer as a result of certain promotional software not performing in accordance with agreed upon specifications.

The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The SSP for licensing revenue is established based upon actual selling prices for the license. 

The following table summarizes disaggregated revenues by major product line for the three months ended September 30, 2024 and 2023, respectively:

	Three months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	615,160	$	211,775		24.1	%		11.6	%
Maintenance revenue		1,384,407		1,306,258		54.5	%		71.2	%
Service and other revenue		548,033		318,171		21.4	%		17.2	%
Total revenues	$	2,547,600	$	1,836,204		100.0	%		100.0	%

The following table summarizes disaggregated revenues by major product line for the nine months ended September 30, 2024 and 2023, respectively:

	Nine months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	2,954,963	$	1,935,083		36.8	%		29.5	%
Maintenance revenue		3,990,141		3,755,431		49.8	%		57.1	%
Service and other revenue		1,079,486		884,692		13.4	%		13.4	%
Total revenues	$	8,024,590	$	6,575,206		100.0	%		100.0	%

See Major Customers for disaggregated revenue information about primary geographical markets.

Significant Judgments

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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately. 

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 perform a gross margin analysis using information such as the size of the customer and geographic region in determining the SSP.  

We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. A contract asset is recognized when we have an unconditional right to payment for our performance. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers.  As of September 30, 2024 and December 31, 2023 we recorded a contract asset of approximately $24,000 and $0, respectively, as a component of accounts receivable.  

As of January 1, 2023, the balance of accounts receivable, net and customer deposits were $3,392,281 and $1,485,622, respectively.

The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors.  As of  September 30, 2024 and December 31, 2023, approximately $1,293,900 and $2,392,560 for systems installed under contract have not been recorded as revenue or included in accounts receivable based on the collectability assessment performed by the Company.  In accordance with this assessment, the contracts will be assessed in subsequent quarters at which time they may be deemed collectable and the outstanding remaining system revenue will be recognized accordingly.  During the quarter ending September 30, 2024, a casino, previously included in this assessment, discontinued its business operations resulting in the noted decrease. Subsequent to September 30, 2024 the company has received substantially all of the site's inventory installed.

We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short-term Investments

The Company currently has two certificates of deposit ("CD") being held at a bank; both have original maturities of seven months.   One CD matures in November 2024 and carries an interest rate of 5.25%, while the other matures in February 2025 and has an interest rate of 5.15%.  Certificates of deposit held for investment with an original maturity greater than three months are carried at cost plus accrued interest and reported as short-term investments on the balance sheet.  Interest is paid at maturity.  At times, certain certificates may exceed amounts insured by the FDIC. The Company determines the appropriate classification as short-term or long-term at the time of purchase based on original maturities and management's reasonable redemption expectation. The Company reevaluates such classification at each balance sheet date.

Accounts Receivable / Allowance for credit losses

Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value as of each balance sheet date.  For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt on the statements of operations.  We maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as general and administrative expense in the Condensed Statements of Operations. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider customer-specific information, current market conditions, and reasonable and supportable forecasts of future economic conditions.  Management believes that receivables, net of the allowance for credit losses, are fully collectable. 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 will not have a material impact on the Company’s financial position.  

Major Customers

The following table summarizes the Company's major customers' information for the three months ended September 30, 2024 and 2023:

	For the Three months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		36.5	%		37.2	%		37.6	%		12.2	%
All Others		63.5	%		62.8	%		62.4	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The following table summarizes the Company's major customers' information for the nine months ended September 30, 2024 and 2023:

	For the Nine months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		38.6	%		37.2	%		22.7	%		12.2	%
All Others		61.4	%		62.8	%		77.3	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the three month periods ending  September 30, 2024 and 2023, sales to customers in the United States represent 94.8% and 89.4%, of total revenues, respectively.  

A major customer is defined as any customer that represents at least 10% of revenue for a given period or 10% of outstanding account receivable at the end of a period.

Inventory

Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method is used to value inventory. Inventory is reviewed quarterly 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 Company had an obsolescence reserve of $7,697 and $8,768 at September 30, 2024 and  December 31, 2023, respectively.  The total inventory value was $2,255,003 and $2,904,158, as of September 30, 2024 and  December 31, 2023, respectively, which included work-in-process of $112,804 and $396,880 as of  September 30, 2024 and  December 31, 2023, respectively, and the remaining amount is comprised of finished goods. At  September 30, 2024 and  December 31, 2023, the Company had $19,710 and $2,348 of prepaid inventory as a component of prepaid expenses, respectively.

Net Investment in Sales Type Lease

Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease. 

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income.

Long-lived Assets

The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Leases

The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used.  Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. 

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company has elected to use the incremental borrowing rate in determining the present value of lease payments for all asset classes. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For lease agreements that contain both lease and non-lease components, the Company has elected to account for the lease and non-lease components as a single lease component. The Company has elected to not apply the requirements of ASC 842 for short-term leases. Short-term leases are defined as leases that, at the commencement date, have lease terms of twelve months or less.

Rent expense, including the effects of lease incentives, is recognized on a straight-line basis over the term of the lease.

Research and Development

Expenditures for research and development costs are expensed as incurred.  Research and development expense were $143,831 and $38,550 for the nine months ended September 30, 2024 and 2023, respectively, and are included in selling, general and administrative expenses on the condensed statements of operations.

Software Development Costs

We expense software development costs, including cost to develop software products to be sold, licensed or marketed to external users, before technological feasibility is reached.  Technological feasibility is typically reached shortly before the release of such products.  As a result, $0 of development costs met these criteria, during 2024 no new costs were capitalized for three and nine months ended September 30, 2024 and 2023.  Capitalized software development costs are currently amortized straight-line over a five year period.

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and restricted stock shares subject to vesting. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. Restricted stock shares are included in basic shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 8).

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Note 2 - Accounts Receivable

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

2.  Accounts Receivable –

Accounts receivable consisted of the following at:

	September 30,			December 31,
	2024			2023
Accounts receivable - current	$	1,930,791		$	2,177,813
Less allowance for credit losses		(64,684	)		(68,620	)
Accounts receivable current - net	$	1,866,107		$	2,109,193
Accounts receivable - long-term	$	1,267,704		$	891,351

A roll-forward of the Company’s allowance for credit losses for the nine month periods ended  September 30, 2024 and 2023 are as follows:

	September 30,			September 30,
	2024			2023
Allowance for credit losses, beginning of period	$	68,620		$	62,000
Adjustments		(3,936	)		19,100
Write-off		0			(11,619	)
Accounts receivable allowance for credit losses, end of period		64,684			69,481

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Note 3 - Net Investment in Sales Type Lease

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessor, Sales-type Leases [Text Block]

3. Net Investment in Sales Type Lease –

In January 2021, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded $210,782 in "Net investment in sales type leases" and derecognized $139,521 from “Inventory" on its condensed balance sheet.  As a result of this transaction the Company recognized $25,562 and $27,586 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2024 and 2023, respectively, and for the nine months ended September 30, 2024 and 2023 the Company recognized $2,963 and $5,014, respectively, of interest income in the Company's condensed statements of operations.

In  December 2022, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded a total $98,279 in "Net investment in sales type leases" and derecognized $46,533 from “Inventory" on its balance sheet. As a result of this transaction the Company recognized $12,175 and $11,468 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2024 and 2023 respectively, and for the nine months ended September 30, 2024 and 2023 the Company recognized $3,025 and $3,732. respectively, of interest income in the Company's condensed statements of operations.

The future minimum lease payments receivable for sales type leases are as follows:

	Amount
2024 (remainder)		27,975
2025		71,700
2026		26,875
2027		22,800
Total undiscounted cash flows		149,350
Present value discount		10,643
Net investment in lease as of September 30, 2024	$	138,707

The current portion of $74,732 and $64,310 are included in Current Assets on the condensed balance sheet as of September 30, 2024 and December 31, 2023, respectively, and the long term portion of $63,975 and $113,621 are included in Long-Term Assets on the condensed balance sheet as of September 30, 2024 and December 31, 2023, respectively.  The lease contains a purchase option at the conclusion of the lease, which the Company has determined does not meet the probability criterion.  The Company has not recorded an unguaranteed residual asset.

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Note 4 - Operating Leases

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

4. Operating Leases –

We lease space under non-cancelable operating leases for our three office locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.

Our leases include one or more options to renew. The exercise of lease renewal options are included in our ROU assets and lease liabilities if they are reasonably certain of exercise.

On June 19, 2024, we extended our lease for the Minnesota location.  The term of the extension is 75 months and included a $36,000 tenant improvement allowance, which is offsetting the 2024 lease payments.  The extended lease is expiring  October 31, 2031. On September 20, 2022, we extended our lease for the Oklahoma location.  The term of the extension is 36 months expiring August 31, 2025.  On August 24, 2023, we entered into a lease for the Nevada location.  The terms of the lease is 36 months expiring August 31, 2026.

Maturities of our lease liabilities for all operating leases are as follows as of September 30, 2024:

2024 (remainder)		(4,701	)
2025		113,330
2026		114,919
2027		77,398
2028		80,486
Thereafter		245,784
Total Lease Payments		627,216
Less: Interest		122,512
Present value of lease liabilities	$	504,704

The following table summarizes the Company's operating lease expenses for the nine months ended September 30, 2024 and 2023:

	2024		2023
Operating lease expense		92,127		46,792
Variable lease expense		25,869		24,990
Total lease expense	$	117,996	$	71,782

We cannot determine the interest rate implicit in our leases.  Therefore, the discount rate represents our estimated incremental interest rates to borrow an amount approximating the aggregate lease payments collateralized by the property at the commencement of the lease.

The following table summarizes the Company's operating lease information for the nine months ended September 30, 2024 and 2023:

	2024			2023
Operating cash flow from operating leases		117,996			71,782
Right of use asset in exchange for new lease labilities		349,031			0
Operating leases
Weighted average remaining lease term - operating leases (years)		5.8			2.5
Weighted average discount rate - operating leases		5.6	%		2.9	%

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Note 5 - Bank Financing

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

5. Bank Financing –

Revolving Credit Line

The Company has a revolving credit line of up to $500,000 that expires on February 1, 2025. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had no borrowings under the credit line during the nine months ended September 30, 2024. Interest on outstanding borrowings is payable monthly and charged at the Prime Rate, which was 8.0% and 8.25% subject to a floor of 3.75% during the three months ended  September 30, 2024 and 2023, respectively.

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Note 6 - Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Equity [Text Block]

6. Stockholders’ Equity –

Cash Dividend

For the nine months ending  September 30, 2024 and 2023 the company has paid cash dividends totaling $92,696 and $92,655, respectively.  The 2024 dividends were declared on March 14 and August 9, 2024 with payment dates of April 4 and September 13, 2024, respectively.  The 2023 dividends were declared on May 17 and August 14, 2023 with payments date of June 22 and September 22, 2023, respectively.  

Stock Compensation

On  May 14, 2021, the Board of Directors of Table Trac, Inc. approved the 2021 Stock Incentive Plan (the "Plan").  The Plan provides for the issuance of incentive and other equity-based awards to its employees. Options issued under the Plan are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plan, with exercise prices equal to the closing price of shares of the Company’s common stock on the OTCQX Exchange at closing on the trading day of the date of award. The Company had 500,000 shares initially available for grant.

On  May 14, 2021, the Board of Directors of Table Trac, Inc. awarded 70,000 stock options as follows: 20,000 to Chad Hoehne; 20,000 to former COO Robert Siqveland and 30,000 to Randy Gilbert. These shares are subject to a vesting schedule as follows: 25% immediately and 25% in each subsequent year. Grant date fair value of $128,726 will be recognized over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  March 25, 2022, the Board of Directors of Table Trac, Inc. awarded Randy Gilbert 87,500 Restricted Stock shares and former COO Robert Siqveland 12,500 Restricted Stock shares. These shares are subject to a five-year vesting schedule as follows: 20,000 shares vest annually beginning on  March 25, 2023.  Grant date fair value of $349,000 will be recognized ratably over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  December 15, 2022, former COO Robert Siqveland agreed to and accepted a separation agreement from the Company. Included in this agreement were terms which immediately vested the remaining unvested 12,500 Restricted Stock shares from the  March 25, 2022 grant and the unvested stock options to purchase 20,000 shares that were awarded to him on  May 14, 2021.  In addition, this agreement modified the exercise period of the stock options which now expire on  March 31, 2024.  This was determined to be a modification under ASC 718 and the incremental compensation costs of $39,000 and $37,000, respectively, for the restricted stock and options were recognized immediately in 2022 as a component of selling, general and administrative expenses.  Lastly, Mr. Siqveland received twelve months of severance in two payments.  $100,500 on  April 15, 2023 and $33,500 on  January 15, 2024.  

On  December 16, 2022, management of Table Trac, Inc. awarded 16,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $37,969 was recognized during 2022 as stock compensation expense as a component of selling, general and administration expense.

On March 12, 2023, the Company awarded 10,000 Restricted Stock shares to an employee out of treasury stock. These shares are subject to a three year vesting period.  Grant date fair value of $50,500 was recognized over the vesting period as stock compensation expense as a component of selling, general and administrative expense. 

On September 30, 2023, the Company awarded 1,877 Restricted Stock shares to a non-employee out of treasury stock. These shares are subject not subject to a vesting period.  Grant date fair value of $7,620 was recognized as legal expense as a component of selling, general and administrative expense.

On  December 19, 2023, management of Table Trac, Inc. awarded 19,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $38,331 was recognized during 2023 as stock compensation expense as a component of selling, general and administration expense.

On September 30, 2024 the Company awarded 703 Restricted Stock shares to a non-employee out of treasury stock. These shares are subject not subject to a vesting period.  Grant date fair value of $2,700 was recognized as legal expense as a component of selling, general and administrative expense.

The Company has 60,500 shares of restricted stock outstanding as of September 30, 2024. There were 80,000 shares of restricted stock outstanding at September 30, 2023.  

For the three months and nine months ending  September 30, 2024 and 2023, the Company recorded compensation expense related to restricted stock granted of $19,478 and $58,430, respectively as a component of selling, general and administrative expenses.  

For the three months and nine months ending  September 30, 2024 and 2023, the Company recorded compensation expense related to stock options granted of $0 and $11,494, respectively as a component of selling, general and administrative expenses.    

The fair value of the Company’s stock options issued was estimated using a Black-Scholes option pricing model with the following weighted-average assumptions:

The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately three years. As of  September 30, 2024 and 2023, the remaining unrecognized stock compensation expense for stock options and restricted stock was approximately $173,730 and $268,880, respectively.

The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2024:

Options Outstanding							Options Exercisable
Options Outstanding	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value		Options Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
99,750		4.98	$	3.25	$	86,260		99,750	$	3.25	$	86,260

The following table summarizes the activity of all stock options outstanding for the nine months ended September 30, 2024 and 2023.

	2024					2023
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding at beginning of year		119,750		$	2.97		101,500		$	2.97
Granted		0			0		-			0
Exercised		0			0		(1000	)		3.01
Forfeited		(20,000	)		2.42		(500	)		5.29
Balance at September 30:		99,750		$	3.25		100,000		$	2.96
Options Exercisable at September 30:		99,750		$	3.25		87,500		$	3.04

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Note 7 - Income Tax

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. 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, 2021 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2024. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

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

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Note 8 - Earnings Per Share

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

8.  Earnings Per Share –

The Company computes earnings 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 per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income 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 per share for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	292,379	$	171,998
Weighted average number of common shares outstanding - basic		4,575,068		4,552,988
Basic net income per share	$	0.06	$	0.04
Weighted average number of common shares outstanding - diluted		4,622,938		4,606,488
Diluted net income per share	$	0.06	$	0.04

	For the Nine Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	1,110,610	$	1,079,239
Weighted average number of common shares outstanding - basic		4,575,068		4,552,481
Basic net income per share	$	0.24	$	0.24
Weighted average number of common shares outstanding - diluted		4,621,840		4,610,786
Diluted net income per share	$	0.24	$	0.23

For the three and nine month period ended  September 30, 2024 and 2023, there were common stock equivalents that had a dilutive effect of approximately 47,870 and 46,772, and 53,500 and 58,300 shares, respectively.  

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Note 9 - Subsequent Events

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Subsequent Events [Text Block]

9. Subsequent Event –

On November 8, 2024, Table Trac Inc. announced that its Board of Directors declared a cash dividend of $0.01 per share on the company’s common stock. The dividend will be payable on December 13, 2024, to shareholders of record at the close of business on November 29, 2024.

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Insider Trading Arrangements

9 Months Ended

Sep. 30, 2024

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

Item 5. Other Information

None

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy 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 condensed balance sheet as of September 30, 2024 and the condensed statements of operations, stockholders’ equity and cash flows for the three and nine months ended September 30, 2024 and 2023 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, Inc. Annual Report on Form 10-K for the year ended December 31, 2023.

Nature of Business [Policy Text Block]

Nature of Business

Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota, Las Vegas, Nevada and Oklahoma City, Oklahoma. 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 configurations, and training. In addition, license, technical support and other services are provided under separate license and service contracts.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (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’s use of estimates and assumptions include: for revenue recognition, determining collectibility, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, realizability of accounts receivable, and the valuation of allowance for credit losses, deferred tax assets and liabilities, and inventory. Actual results could differ from those estimates, and the difference could be significant.  For further information about our critical accounting estimates, see the discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

There were no changes in critical accounting estimates or assumptions for the nine months ended September 30, 2024.

The Company’s significant accounting policies are described in Note 1 of the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Risk

The Company maintains its cash balances at two financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times throughout the year, the Company’s cash balances exceeded amounts insured by the FDIC. The Company does not believe it is exposed to any significant credit risk on its cash balances.  Cash equivalents represent money market funds or short-term investments with original maturities of three months or less from the date of purchase.

Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees, directors and non-employees.  The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. The compensation expense for the Company’s stock-based payments is based on estimated fair values at the time of the grant.

The Company estimates the fair value of restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period.

For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options.

Revenue [Policy Text Block]

Revenue

The Company derives revenues from the sale or leasing of systems, license and maintenance fees and other services.

System Sales

Revenue is recognized upon transfer of control of promised products and 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 based on its SSP. See discussion within the significant judgement paragraph regarding our determination of SSP.  At contract inception, management assesses whether it is probable that the company will collect substantially all of the consideration to determine whether the contract meets the criterion for collectability.  The revenue allocated to the casino management system is recognized upon installation.  The Company occasionally enters into contracts that include multiple sites; management has determined that each site installation is a separate performance obligation. In these instances, the Company recognizes revenue upon completion of each performance obligation. In addition, the Company has a contract with a reseller who purchases and resells the Company’s products; monthly the reseller notifies the Company of their successful installations and submits an invoice to the Company for those installations.  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 significant financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations. 

Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not meet the criterion for collectability.  The balance of these contracts are not included as part of accounts receivable on the balance sheet.  Accordingly, for these contracts whereby the collectability criterion has not been met, revenue will be recognized as payments are received.

Maintenance Revenue

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

Lease Revenue

The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. The Company leases hardware to a customer, and receives monthly payments.

Service Revenue and Other Revenue

Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements.  Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment.  Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears.  During the nine months ended September 30, 2024, the Company recognized variable consideration of $275,000 which resulted in a reduction of revenue in those periods related to the Company paying the one time cash consideration to a customer as a result of certain promotional software not performing in accordance with agreed upon specifications.

The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The SSP for licensing revenue is established based upon actual selling prices for the license. 

The following table summarizes disaggregated revenues by major product line for the three months ended September 30, 2024 and 2023, respectively:

	Three months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	615,160	$	211,775		24.1	%		11.6	%
Maintenance revenue		1,384,407		1,306,258		54.5	%		71.2	%
Service and other revenue		548,033		318,171		21.4	%		17.2	%
Total revenues	$	2,547,600	$	1,836,204		100.0	%		100.0	%

The following table summarizes disaggregated revenues by major product line for the nine months ended September 30, 2024 and 2023, respectively:

	Nine months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	2,954,963	$	1,935,083		36.8	%		29.5	%
Maintenance revenue		3,990,141		3,755,431		49.8	%		57.1	%
Service and other revenue		1,079,486		884,692		13.4	%		13.4	%
Total revenues	$	8,024,590	$	6,575,206		100.0	%		100.0	%

See Major Customers for disaggregated revenue information about primary geographical markets.

Significant Judgments

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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately. 

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 perform a gross margin analysis using information such as the size of the customer and geographic region in determining the SSP.  

We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. A contract asset is recognized when we have an unconditional right to payment for our performance. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers.  As of September 30, 2024 and December 31, 2023 we recorded a contract asset of approximately $24,000 and $0, respectively, as a component of accounts receivable.  

As of January 1, 2023, the balance of accounts receivable, net and customer deposits were $3,392,281 and $1,485,622, respectively.

The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors.  As of  September 30, 2024 and December 31, 2023, approximately $1,293,900 and $2,392,560 for systems installed under contract have not been recorded as revenue or included in accounts receivable based on the collectability assessment performed by the Company.  In accordance with this assessment, the contracts will be assessed in subsequent quarters at which time they may be deemed collectable and the outstanding remaining system revenue will be recognized accordingly.  During the quarter ending September 30, 2024, a casino, previously included in this assessment, discontinued its business operations resulting in the noted decrease. Subsequent to September 30, 2024 the company has received substantially all of the site's inventory installed.

We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Investment, Policy [Policy Text Block]

Short-term Investments

The Company currently has two certificates of deposit ("CD") being held at a bank; both have original maturities of seven months.   One CD matures in November 2024 and carries an interest rate of 5.25%, while the other matures in February 2025 and has an interest rate of 5.15%.  Certificates of deposit held for investment with an original maturity greater than three months are carried at cost plus accrued interest and reported as short-term investments on the balance sheet.  Interest is paid at maturity.  At times, certain certificates may exceed amounts insured by the FDIC. The Company determines the appropriate classification as short-term or long-term at the time of purchase based on original maturities and management's reasonable redemption expectation. The Company reevaluates such classification at each balance sheet date.

Receivable [Policy Text Block]

Accounts Receivable / Allowance for credit losses

Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value as of each balance sheet date.  For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt on the statements of operations.  We maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as general and administrative expense in the Condensed Statements of Operations. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider customer-specific information, current market conditions, and reasonable and supportable forecasts of future economic conditions.  Management believes that receivables, net of the allowance for credit losses, are fully collectable. 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 will not have a material impact on the Company’s financial position.  

Major Customers [Policy Text Block]

Major Customers

The following table summarizes the Company's major customers' information for the three months ended September 30, 2024 and 2023:

	For the Three months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		36.5	%		37.2	%		37.6	%		12.2	%
All Others		63.5	%		62.8	%		62.4	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The following table summarizes the Company's major customers' information for the nine months ended September 30, 2024 and 2023:

	For the Nine months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		38.6	%		37.2	%		22.7	%		12.2	%
All Others		61.4	%		62.8	%		77.3	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the three month periods ending  September 30, 2024 and 2023, sales to customers in the United States represent 94.8% and 89.4%, of total revenues, respectively.  

A major customer is defined as any customer that represents at least 10% of revenue for a given period or 10% of outstanding account receivable at the end of a period.

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 is used to value inventory. Inventory is reviewed quarterly 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 Company had an obsolescence reserve of $7,697 and $8,768 at September 30, 2024 and  December 31, 2023, respectively.  The total inventory value was $2,255,003 and $2,904,158, as of September 30, 2024 and  December 31, 2023, respectively, which included work-in-process of $112,804 and $396,880 as of  September 30, 2024 and  December 31, 2023, respectively, and the remaining amount is comprised of finished goods. At  September 30, 2024 and  December 31, 2023, the Company had $19,710 and $2,348 of prepaid inventory as a component of prepaid expenses, respectively.

Lessor, Leases [Policy Text Block]

Net Investment in Sales Type Lease

Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease. 

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-lived Assets

The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Lessee, Leases [Policy Text Block]

Leases

The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used.  Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. 

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company has elected to use the incremental borrowing rate in determining the present value of lease payments for all asset classes. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For lease agreements that contain both lease and non-lease components, the Company has elected to account for the lease and non-lease components as a single lease component. The Company has elected to not apply the requirements of ASC 842 for short-term leases. Short-term leases are defined as leases that, at the commencement date, have lease terms of twelve months or less.

Rent expense, including the effects of lease incentives, is recognized on a straight-line basis over the term of the lease.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Expenditures for research and development costs are expensed as incurred.  Research and development expense were $143,831 and $38,550 for the nine months ended September 30, 2024 and 2023, respectively, and are included in selling, general and administrative expenses on the condensed statements of operations.

Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block]

Software Development Costs

We expense software development costs, including cost to develop software products to be sold, licensed or marketed to external users, before technological feasibility is reached.  Technological feasibility is typically reached shortly before the release of such products.  As a result, $0 of development costs met these criteria, during 2024 no new costs were capitalized for three and nine months ended September 30, 2024 and 2023.  Capitalized software development costs are currently amortized straight-line over a five year period.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and restricted stock shares subject to vesting. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. Restricted stock shares are included in basic shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 8).

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Note 1 - Nature of Business and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	615,160	$	211,775		24.1	%		11.6	%
Maintenance revenue		1,384,407		1,306,258		54.5	%		71.2	%
Service and other revenue		548,033		318,171		21.4	%		17.2	%
Total revenues	$	2,547,600	$	1,836,204		100.0	%		100.0	%

	Nine months ended September 30,
	2024		2023		2024			2023
					(percent of revenues)
System revenue	$	2,954,963	$	1,935,083		36.8	%		29.5	%
Maintenance revenue		3,990,141		3,755,431		49.8	%		57.1	%
Service and other revenue		1,079,486		884,692		13.4	%		13.4	%
Total revenues	$	8,024,590	$	6,575,206		100.0	%		100.0	%

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	For the Three months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		36.5	%		37.2	%		37.6	%		12.2	%
All Others		63.5	%		62.8	%		62.4	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	For the Nine months ended September 30,
	2024						2023
	% Revenues			% AR			% Revenues			% AR
Major		38.6	%		37.2	%		22.7	%		12.2	%
All Others		61.4	%		62.8	%		77.3	%		87.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

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Note 2 - Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

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

	September 30,			December 31,
	2024			2023
Accounts receivable - current	$	1,930,791		$	2,177,813
Less allowance for credit losses		(64,684	)		(68,620	)
Accounts receivable current - net	$	1,866,107		$	2,109,193
Accounts receivable - long-term	$	1,267,704		$	891,351

Accounts Receivable, Allowance for Credit Loss [Table Text Block]

	September 30,			September 30,
	2024			2023
Allowance for credit losses, beginning of period	$	68,620		$	62,000
Adjustments		(3,936	)		19,100
Write-off		0			(11,619	)
Accounts receivable allowance for credit losses, end of period		64,684			69,481

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Note 3 - Net Investment in Sales Type Lease (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Sales-Type and Direct Financing Leases, Payment to be Received, Maturity [Table Text Block]

	Amount
2024 (remainder)		27,975
2025		71,700
2026		26,875
2027		22,800
Total undiscounted cash flows		149,350
Present value discount		10,643
Net investment in lease as of September 30, 2024	$	138,707

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Note 4 - Operating Leases (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

2024 (remainder)		(4,701	)
2025		113,330
2026		114,919
2027		77,398
2028		80,486
Thereafter		245,784
Total Lease Payments		627,216
Less: Interest		122,512
Present value of lease liabilities	$	504,704

Lease, Cost [Table Text Block]

	2024		2023
Operating lease expense		92,127		46,792
Variable lease expense		25,869		24,990
Total lease expense	$	117,996	$	71,782

	2024			2023
Operating cash flow from operating leases		117,996			71,782
Right of use asset in exchange for new lease labilities		349,031			0
Operating leases
Weighted average remaining lease term - operating leases (years)		5.8			2.5
Weighted average discount rate - operating leases		5.6	%		2.9	%

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Note 6 - Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]

Options Outstanding							Options Exercisable
Options Outstanding	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value		Options Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
99,750		4.98	$	3.25	$	86,260		99,750	$	3.25	$	86,260

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]

	2024					2023
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding at beginning of year		119,750		$	2.97		101,500		$	2.97
Granted		0			0		-			0
Exercised		0			0		(1000	)		3.01
Forfeited		(20,000	)		2.42		(500	)		5.29
Balance at September 30:		99,750		$	3.25		100,000		$	2.96
Options Exercisable at September 30:		99,750		$	3.25		87,500		$	3.04

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Note 8 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

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

	For the Three Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	292,379	$	171,998
Weighted average number of common shares outstanding - basic		4,575,068		4,552,988
Basic net income per share	$	0.06	$	0.04
Weighted average number of common shares outstanding - diluted		4,622,938		4,606,488
Diluted net income per share	$	0.06	$	0.04

	For the Nine Months Ended
	September 30,
	2024		2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	1,110,610	$	1,079,239
Weighted average number of common shares outstanding - basic		4,575,068		4,552,481
Basic net income per share	$	0.24	$	0.24
Weighted average number of common shares outstanding - diluted		4,621,840		4,610,786
Diluted net income per share	$	0.24	$	0.23

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Note 1 - Nature of Business and Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jan. 01, 2023 USD ($)
Variable Consideration, Revenue Recognition			$ 275,000
Contract with Customer, Asset, after Allowance for Credit Loss, Current	$ 24,000	$ 0	24,000	$ 24,000	$ 0
Accounts Receivable, after Allowance for Credit Loss								$ 3,392,281
Contract with Customer, Asset, Allowance for Credit Loss	1,293,900		1,293,900	$ 1,293,900			$ 2,392,560
Number of Certificates of Deposit				2
Certificates of Deposit, Term (Month)				7 months
Inventory Valuation Reserves	7,697		7,697	$ 7,697			8,768
Inventory, Net	2,255,003		2,255,003	2,255,003			2,904,158
Inventory, Work in Process, Gross	$ 112,804		$ 112,804	112,804			396,880
Research and Development Expense				$ 143,831	38,550
Capitalized Contract Cost, Gross		$ 0			$ 0	$ 0
Capitalized Contract Cost, Amortization Period (Year)	5 years		5 years	5 years
Prepaid Expenses and Other Current Assets [Member]
Prepaid Supplies	$ 19,710		$ 19,710	$ 19,710			$ 2,348
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES
Concentration Risk, Percentage	94.80%	89.40%
Certificate of Deposit Maturing November 2024 [Member]
Certificates of Deposit, Interest Rate				5.25%
Certificate of Deposit Maturing February 2025 [Member]
Certificates of Deposit, Interest Rate				5.15%
Minimum [Member]
Contract with Customer, Liability, Interest Rate	1.00%		1.00%	1.00%
Property, Plant and Equipment, Useful Life (Year)	2 years		2 years	2 years
Maximum [Member]
Contract with Customer, Liability, Interest Rate	6.00%		6.00%	6.00%
Property, Plant and Equipment, Useful Life (Year)	5 years		5 years	5 years
Customer Deposits [Member]
Contract with Customer, Liability								$ 1,485,622

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Note 1 - Nature of Business and Summary of Significant Accounting Policies - Disaggregated Revenues by Major Product Line (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenues	$ 2,547,600	$ 1,836,204	$ 8,024,590	$ 6,575,206
Percent of revenues	100.00%	100.00%	100.00%	100.00%
System [Member]
Total revenues	$ 615,160	$ 211,775	$ 2,954,963	$ 1,935,083
Percent of revenues	24.10%	11.60%	36.80%	29.50%
Maintenance [Member]
Total revenues	$ 1,384,407	$ 1,306,258	$ 3,990,141	$ 3,755,431
Percent of revenues	54.50%	71.20%	49.80%	57.10%
Service and Other [Member]
Total revenues	$ 548,033	$ 318,171	$ 1,079,486	$ 884,692
Percent of revenues	21.40%	17.20%	13.40%	13.40%

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Note 1 - Nature of Business and Summary of Significant Accounting Policies - Major Customers (Details) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue Benchmark [Member]
Percent of revenue	100.00%	100.00%	100.00%	100.00%
Revenue Benchmark [Member] | Major Customers [Member]
Percent of revenue	36.50%	37.60%	38.60%	22.70%
Revenue Benchmark [Member] | Other Customer [Member]
Percent of revenue	63.50%	62.40%	61.40%	77.30%
Accounts Receivable [Member]
Percent of revenue	100.00%	100.00%	100.00%	100.00%
Accounts Receivable [Member] | Major Customers [Member]
Percent of revenue	37.20%	12.20%	37.20%	12.20%
Accounts Receivable [Member] | Other Customer [Member]
Percent of revenue	62.80%	87.80%	62.80%	87.80%

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Note 2 - Accounts Receivable - Accounts Receivable (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Accounts receivable - current	$ 1,930,791	$ 2,177,813
Less allowance for credit losses	(64,684)	(68,620)
Accounts receivable current - net	1,866,107	2,109,193
Accounts receivable - long-term	$ 1,267,704	$ 891,351

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Note 2 - Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Allowance for credit losses, beginning of period	$ 68,620	$ 62,000
Adjustments	(3,936)	19,100
Write-off	0	(11,619)
Accounts receivable allowance for credit losses, end of period	$ 64,684	$ 69,481

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Note 3 - Net Investment in Sales Type Lease (Details Textual) - USD ($)	1 Months Ended	9 Months Ended		12 Months Ended
	Jan. 31, 2021	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2023
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss, Current		$ 74,732			$ 64,310
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss, Noncurrent		63,975			$ 113,621
January 2021 [Member]
Lessor, Sales-type Lease, Term of Contract (Year)	5 years
Lessor, Sales-type Lease, Implied Interest Rate	6.00%
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss	$ 210,782
Inventory Derecognized for Sales-type Leases	$ 139,521
Sales-type Lease, Lease Income		25,562	$ 27,586
Sales-type Lease, Interest Income		2,963	5,014
December 2022 [Member]
Lessor, Sales-type Lease, Term of Contract (Year)				5 years
Lessor, Sales-type Lease, Implied Interest Rate				6.00%
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss				$ 98,279
Inventory Derecognized for Sales-type Leases				$ 46,533
Sales-type Lease, Lease Income		12,175	11,468
Sales-type Lease, Interest Income		$ 3,025	$ 3,732

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Note 3 - Net Investment in Sales Type Lease - Future Minimum Lease Payments Receivable (Details)	Sep. 30, 2024 USD ($)
2024 (remainder)	$ 27,975
2025	71,700
2026	26,875
2027	22,800
Total undiscounted cash flows	149,350
Present value discount	10,643
Net investment in lease as of September 30, 2024	$ 138,707

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Note 4 - Operating Leases (Details Textual) - USD ($)	Jun. 19, 2024	Sep. 20, 2022
Lessee, Operating Lease, Tenant Improvement Allowance	$ 36,000
MINNESOTA
Lessee, Operating Lease, Term of Contract (Month)	75 months
OKLAHOMA
Lessee, Operating Lease, Term of Contract (Month)		36 months

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Note 4 - Operating Leases - Maturities of Lease (Details)	Sep. 30, 2024 USD ($)
2024 (remainder)	$ (4,701)
2025	113,330
2026	114,919
2027	77,398
2028	80,486
Thereafter	245,784
Total Lease Payments	627,216
Less: Interest	122,512
Present value of lease liabilities	$ 504,704

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Note 4 - Operating Leases - Schedule of Lease Expenses (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating lease expense	$ 92,127	$ 46,792
Variable lease expense	25,869	24,990
Total lease expense	117,996	71,782
Operating cash flow from operating leases	117,996	71,782
Right of use asset in exchange for new lease labilities	$ 349,031	$ 0
Weighted average remaining lease term - operating leases (years) (Year)	5 years 9 months 18 days	2 years 6 months
Weighted average discount rate - operating leases	5.60%	2.90%

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Note 5 - Bank Financing (Details Textual) - Revolving Credit Facility [Member] - General Credit Agreement [Member] - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Line of Credit Facility, Maximum Borrowing Capacity			$ 500,000
Long-term Line of Credit, Total			$ 0
Debt Instrument, Basis Spread on Variable Rate	8.00%	8.25%
Debt Instrument, Prime Rate Floor	3.75%

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Note 6 - Stockholders' Equity (Details Textual) - USD ($)											3 Months Ended		9 Months Ended
	Sep. 30, 2024	Jan. 15, 2024	Dec. 19, 2023	Sep. 30, 2023	Apr. 15, 2023	Mar. 12, 2023	Dec. 16, 2022	Dec. 15, 2022	Mar. 25, 2022	May 14, 2021	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Payments of Ordinary Dividends, Common Stock													$ 92,696	$ 92,655
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)			19,500				16,500			70,000			0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value										$ 128,726
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 173,730			$ 268,880							$ 173,730	$ 268,880	$ 173,730	$ 268,880
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value			$ 38,331				$ 37,969
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	60,500			80,000							60,500	80,000	60,500	80,000
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)										20,000
Robert Siqveland [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)								20,000		20,000
Severance Costs		$ 33,500			$ 100,500
Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)										30,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense											$ 0	$ 11,494		$ 11,494
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)													3 years
Share-Based Payment Arrangement, Option [Member] | Vesting Immediately [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage										25.00%
Share-Based Payment Arrangement, Option [Member] | Vesting Each Subsequent Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage										25.00%
Share-Based Payment Arrangement, Option [Member] | Robert Siqveland [Member]
Share-Based Payment Arrangement, Expense								$ 37,000
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	703			1,877		10,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)						3 years
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 2,700			$ 7,620		$ 50,500					2,700	7,620	$ 2,700	7,620
Share-Based Payment Arrangement, Expense											$ 19,478	$ 58,430	$ 19,478	$ 58,430
Restricted Stock [Member] | Robert Siqveland [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)								12,500	12,500
Share-Based Payment Arrangement, Expense								$ 39,000
Restricted Stock [Member] | Chief Financial Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)									87,500
Restricted Stock [Member] | Chief Financial Officer and Corporate Secretary [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)									5 years
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total									$ 349,000
Restricted Stock [Member] | Chief Financial Officer and Corporate Secretary [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)									20,000
The 2021 Stock Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)										10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)										500,000

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Note 6 - Stockholders' Equity - Summary of Additional Information About Stock Options Outstanding and Exercisable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	99,750	119,750	100,000	101,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)	4 years 11 months 23 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.25	$ 2.97	$ 2.96	$ 2.97
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 86,260
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares)	99,750		87,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.25		$ 3.04
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value	$ 86,260

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Note 6 - Stockholders' Equity - Share-based Compensation by Award (Details) - $ / shares				9 Months Ended
	Dec. 19, 2023	Dec. 16, 2022	May 14, 2021	Sep. 30, 2024	Sep. 30, 2023
Options outstanding (in shares)				119,750	101,500
Options outstanding, weighted average exercise price (in dollars per share)				$ 2.97	$ 2.97
Granted (in shares)	19,500	16,500	70,000	0	0
Granted, weighted average exercise price (in dollars per share)				$ 0	$ 0
Exercised (in shares)				0	(1,000)
Exercised, weighted average exercise price (in dollars per share)				$ 0	$ 3.01
Forfeited (in shares)				(20,000)	(500)
Forfeited, weighted average exercise price (in dollars per share)				$ 2.42	$ 5.29
Options outstanding (in shares)				99,750	100,000
Options outstanding, weighted average exercise price (in dollars per share)				$ 3.25	$ 2.96
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares)				99,750	87,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share)				$ 3.25	$ 3.04

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Note 8 - Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Weighted Average Number of Shares Outstanding, Diluted, Adjustment (in shares)	47,870	53,500	46,772	58,300

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Note 8 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic and diluted earnings per share calculation:
Net income to common stockholders	$ 292,379	$ 171,998	$ 1,110,610	$ 1,079,239
Weighted average number of common shares outstanding - basic (in shares)	4,575,068	4,552,988	4,575,068	4,552,481
Basic net income per share (in dollars per share)	$ 0.06	$ 0.04	$ 0.24	$ 0.24
Weighted average number of common shares outstanding - diluted (in shares)	4,622,938	4,606,488	4,621,840	4,610,786
Diluted net income per share (in dollars per share)	$ 0.06	$ 0.04	$ 0.24	$ 0.23

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Note 9 - Subsequent Events (Details Textual)	Nov. 09, 2024 $ / shares
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.01