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Related Party Transactions
9 Months Ended
Sep. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 6 –  Related Party Transactions

 

During the three and nine months ended September 30, 2017, firty (50) and one hundred ten (110) gaming machines were sold respectively, to a company controlled by Mr. Paul Parliament the company’s chief executive officer, a related party for a total of $350,000 and $770,000, respectively for the periods then ended.  For the three and nine months ended September 30, 2017 the above mentioned sales were financed by a notes receivable in the amount of $190,000 and $342,000, respectively.  The notes receivable accrue interest at 8% and mature in December 2017.  For the three and nine months ended September 30, 2017 the above mentioned sales were financed by reducing Mr. Parliaments note payable to the company in the amount of $-0- and $76,000, respectively.    

   

During the three and nine months ended September 30, 2017 the company sold 10 and 20 gaming machines respectively, to Richard A. Kaiser Sr., the parent of the Director, Richard Kaiser for $66,000 and $133,500, respectively for the periods then ended.  

    

During the nine months ended September 30, 2017, seventy-five (75) gaming machines were sold, to a company controlled by Mr. Doug Brooks, a director of the company, a related party for a total of $525,000.  During the nine months ended September 30, 2017 the sales 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  nine months ended September 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 $350,000 and $1,379,000 respectively, including those sales to related parties listed above.  GameTouch LLC also received from the company commissions in the amount of $47,500 and $187,150 for the three and nine months ended September 30, 2017, respectively, related to the sales.

 

During the nine months ended September 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 nine months ended September 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 $-0- and $49,000, respectively. GameTouch LLC also received from the company commissions in the amount of $-0- and $6,650, respectively, for the three and nine months ended September 30, 2016 related to the sales.

 

During the nine months ended September 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 nine months ended September 30, 2016 to pay the $337,500 due in connection with the agreement.

 

Directors Loans consist of four (4) loans from directors at September 30, 2017 and December 31, 2016. The loans accrue interest at 8% and mature in October 2018.  Directors Loans were $948,086 and $1,376,480 at September 30, 2017 and December 31, 2016, respectively.  Interest Expense for the nine months ended September 30, 2017 and 2016 was $108,977 and $18,283, respectively.  Interest Expense for the three months ended September 30, 2017 and 2016 was $35,857 and $16,566, 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 September 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 $20,247 at September 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 nine months ended September 30, 2017 and 2016 the Company prepaid some upcoming expenses in the amount of $587 and $-0-, respectively, which are included in prepaid expenses at September 30, 2017.  For the three months ended September 30, 2017 and 2016, the Company prepaid some upcoming expenses in the amount of $587 and $-0-, respectively, which are included in prepaid expenses at September 30, 2017.