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Related Party Transactions
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 6 –  Related Party Transactions

 

During the six months ended June 30, 2017, sixty (60) 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 $420,000.  The sale reduced the note payable to Mr. Parliament in the amount of $76,000 and a note receivable was established in the amount of $152,000 accruing interest at 8%, maturing in December 2017.  

   

During the three months ended June 30, 2017, forty (40) 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 $280,000.  A note receivable was established in the amount of $152,000 accruing interest at 8%, maturing in December 2017.

 

During the three and six months ended June 30, 2017 the company sold -0- and 10 gaming machines respectively, to Richard A. Kaiser Sr., the parent of the Director, Richard Kaiser for $67,500.  

 

During the three and  six months ended June 30, 2017, twenty (20) and seventy-five (75) gaming machines were sold respectively, to a company controlled by Mr. Doug Brooks, a director of the company, a related party for a total of $140,000 and $525,000 respectively for the periods then ended.  The sale reduced the note payable to Mr. Brooks in the amount of $209,000 and a note receivable was established in the amount of $76,000 accruing interest at 8%, maturing in December 2017.

    

During the three and  six months ended June 30, 2017, GameTouch LLC, a related party, sold equipment and collected the receipts of those sales on behalf of the company in the amount of $504,000 and $1,029,000 respectively, including those sales to related parties listed above.  GameTouch LLC also received from the company commissions in the amount of $68,400 and $139,650 for the three and six months ended June 30, 2017, respectively, related to the sales.

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During the six months ended June 30, 2017 the company purchased 200 gaming machines for resale from Centro de Entretenimiento y Diversion Mombacho S.A., a related party for $900,000 which is to be paid 50% in cash as a note payable and 50% as common stock. 441,176 and 321,429 shares of common stock were issued in April and May 2017 respectively, to pay the $450,000 due in connection with the agreement.

 

During the three and six months ended June 30, 2016, GameTouch LLC, a related party, sold equipment and collected the receipts of those sales on behalf of the company in the amount of $49,000 and $49,000, respectively. GameTouch LLC also received from the company commissions in the amount of $6,650 for the three and six months ended June 30, 2016 related to the sales.

 

During the six months ended June 30, 2016 the company purchased 150 gaming machines for resale from Centro de Entretenimiento y Diversion Mombacho S.A., a related party for $675,000 which is to be paid 50% in cash as a note payable and 50% as common stock. 41,666 shares of common stock were issued during the six months ended June 30, 2016 to pay the $337,500 due in connection with the agreement.

 

Directors Loans consist of four (4) loans from directors at June 30, 2017 and December 31, 2016.  The loans accrue interest at 8% and mature in October 2018.  Directors Loans were $1,074,745 and $1,376,480 at June 30, 2017 and December 31, 2016, respectively.  Interest Expense for the six months ended June 30, 2017 and 2016 was $72,902 and $1,717, respectively. Interest Expense for the three months ended June 30, 2017 and 2016 was $33,724 and $-0-, respectively.

 

Notes payable - related party consists of amounts due to Julios Kosta and Martin Wolfe, both major stockholders of the company. Mr Kosta’s loan accrues interest at 8% and matures in October 2018.  Note payable to Julios Kosta was $462,886 and $457,886 at June 30, 2017 and December 31, 2016, respectively. Mr. Wolfe’s loans both accrue interest at 8% and mature in October and May 2018, respectively.  Notes payable to Martin Wolfe were $211,408 and $27,500 at June 30, 2017 and $211,408 at 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. For the six months ended June 30, 2017 and 2016 the Company prepaid some upcoming expenses in the amount of $1,060 and $-0-, respectively. For the three months ended June 30, 2017 and 2016, the Company prepaid some upcoming expenses in the amount of $1,060 and $-0-, respectively. The Company was invoiced $295 and therefore has a prepaid in the amount of $795 at June 30, 2017.