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Related Party Transactions
3 Months Ended
Mar. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 6 –  Related Party Transactions   


During the three months ended March 31, 2017, twenty (20) gaming machines were sold to a company controlled by Mr. Paul Parliament the company’s chief executive officer, a related party for a total of $140,000.  The sale reduced the note payable to Mr. Parliament in the amount of $76,000.  During the three months ended March 31, 2017 the company sold 10 gaming machines to Richard A. Kaiser Sr., the parent of the Director, Richard Kaiser for $67,500.  During the three months ended March 31, 2017, forty-five (45) gaming machines were sold to a company controlled by Mr. Doug Brooks, a director of the company, a related party for a total of $315,000.  The sale reduced the note payable to Mr. Brooks in the amount of $171,000.  In another transaction the company also sold 10 gaming machines to Mr. Brooks, a director of the company, a related party for a total of $70,000.  The sale reduced the note payable to Mr. Brooks in the amount of $38,000.

 


During the three months ended March 31, 2017 GameTouch LLC a related party, sold equipment and collected the receipts of those sales on behalf of the company in the amount of $525,000, including those sales to related parties listed above.  GameTouch LLC also received from the company commissions in the amount of $71,250 for the three months ended March 31, 2017 related to the sales.

 


During the three months ended March 31, 2017 the company purchased 100 gaming machines for resale from Centro de Entretenimiento y Diversion Mombacho S.A., a related party for $450,000 which is to be paid 50% in cash as a note payable and 50% as common stock. The number of stock to be delivered to pay the $225,000 is due on demand and will be valued at low closing price on demand date.

 


During the three months ended March 31, 2016 the company did not own any inventory and therefore had $-0- sales.

 


Directors Loans consist of four (4) loans from directors at March 31, 2017 and December 31, 2016.  The loans accrue interest at 8% and mature in October 2018.  Directors Loans were $1,076,229 and $1,376,480 at March 31, 2017 and December 31, 2016, respectively.  Interest Expense for the three months ended March 31, 2017 and 2016 was $39,176 and $1,258, respectively.

 


Note payable - related party consists of amounts due to Julios Kosta and Martin Wolfe, both major stockholders of the company. Both loans accrue interest at 8% and mature in October 2018.  Note payable to Julios Kosta was $462,886 and $457,886 at March 31, 2017 and December 31, 2016, respectively. Note payable to Martin Wolfe was $211,408 at March 31, 2017 and December 31, 2016.

 


The Company utilizes the services of Yes International Inc., which is controlled by Mr. Richard Kaiser who is a member of the Board of Directors.  Yes International provides all services at no cost except for press release wire services.