|
UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2003 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________to _____________ Commission File Number 0-28383 Table Trac, Inc.
Nevada - - - - - - - - - - - - - - - - - - -
- - - - -- - - - - - - - - - - - 88-0336568 4625 County Rd 101, (952) 548-8877 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No -- 3,619,034 Shares Of Common Stock were outstanding as of September 30, 2003 |
Table Trac, Inc.
| I N D E X |
| PART I. FINANCIAL INFORMATION |
| Item 1. Financial Statements (Unaudited) |
| Balance Sheets as of September 30, 2003 and December 31, 2002 |
| Statements of Operations for the three months and 9 months ended September 30, 2003 and 2002 |
|
Statements of Cash Flows for the nine |
| Selected Notes to Financial Statements |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
| PART II. OTHER INFORMATION |
| Item 1. Legal Proceedings |
| Item 6. Exhibits and Reports on Form 8-K |
| SIGNATURES |
Part I. FINANCIAL INFORMATION
Item I. FINANCIAL STATEMENTS
Table Trac, Inc.
(A Development Stage Company)
Balance Sheet
(Unaudited)
| September 30, '03 | Dec 31, '02 | ||||
| ASSETS | |||||
| Current Assets | |||||
| Total Checking/Savings | 1,208 | 139 | |||
| Certificates of deposit | 5,795 | 5,637 | |||
| Total Accounts Receivable | 17,413 | 9,966 | |||
| Total Other Current Assets | 678 | 1,674 | |||
| Total Current Assets | $25,094 | $17,416 | |||
| Total Fixed Assets | 0 | 0 | |||
| Total Other Assets | 18,080 | 19,103 | |||
| TOTAL ASSETS | $43,174 | $36,519 | |||
| LIABILITIES & EQUITY | |||||
| Liabilities | |||||
| Current Liabilities | |||||
| Total Accounts Payable | 5,802 | 5,773 | |||
| Total Other Current Liabilities | 13,802 | 7,625 | |||
| Total Current Liabilities | 19,604 | 13,398 | |||
| Long Term Liabilities | |||||
| Convertible Notes Payable | 12,000 | -0- | |||
| Total Long Term Liabilities | $12,000 | -0- | |||
| Total Liabilities | $31,604 | $13,398 | |||
| Equity | |||||
| Capital Stock | 1,278,718 | 1,278,718 | |||
| Preferred A Stock | 3,320 | 3,320 | |||
| Retained Earnings | (1,258,917) | (1,038,347) | |||
| Net Income (Loss) | (11,551) | (220,570) | |||
| Total Equity | $11,570 | $23,121 | |||
| TOTAL LIABILITIES & EQUITY | $43,174 | $36,519 |
Table Trac, Inc.
(A Development Stage Company)
Statements Of Operations
(Unaudited)
| Three Months Ending | Nine Months Ending | |||||
| Sept 30 '03 | Sept 30 '02 | Sept 30 `03 | Sept 30 `02 | |||
| Ordinary Income/Expense | ||||||
| Total Income | 37,962 | 117,276 | 119,039 | 274,027 | ||
| Total COGS | -0- | 19,573 | 853 | 35,407 | ||
| Gross Profit | $37,962 | $97,703 | $118,186 | $238,620 | ||
| Total Operating Expense | 43,617 | 129,805 | 129,896 | 341,140 | ||
| Net Ordinary Income | $(5,655) | $(32,102) | $(11,711) | $(102,520) | ||
| Other Income/Expense | ||||||
| Interest Income | 14 | 285 | 146 | 1,916 | ||
| Net Income Before Taxes | $(5,641) | $(31,817) | $(11,551) | $(100,604) | ||
| Income Taxes | -0- | -0- | -0- | -0- | ||
| Net Income (Loss) | $(5,641) | $(31,817) | $(11,551) | $(100,604) | ||
| Income (Loss) per Share | (0.0015) | (0.0088) | (0.0032) | (0.0297) | ||
| Income/(Loss) Per Common Share Assuming Dilution | (0.0015) | (0.0088) | (0.0032) | (0.0297) | ||
| Weighted Average Outstanding Shares | 3,619,034 | 3,596,425 | 3,619,034 | 3,596,425 | ||
Table Trac, Inc.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
| 9 Months Ended Sept 30 `03 |
9 Months Ended Sept 30 `02 |
|||
| OPERATING ACTIVITIES | ||||
| Net Income | $(11,551) | (100,604) | ||
| Adjustments to reconcile Net Income to net cash provided by operations: | ||||
| Accounts Receivable | (7,447) | (44,046) | ||
| Inventory | (4) | 7,871 | ||
| Loans To Shareholders | 1,000 | 3,859 | ||
| Prepaid Expenses | 55 | 180 | ||
| Accounts Payable | 29 | 7,455 | ||
| Payroll Liabilities | 6,178 | 2,618 | ||
| Patents:Amoritization | 1,023 | 1,023 | ||
| Net cash provided by Operating Activities | $(9,321) | $(121,644) | ||
| FINANCING ACTIVITIES | ||||
| Net cash proided by Financing Act. | 12,000 | -0- | ||
| Net cash increase for period | $1,283 | $(121,644) | ||
| Cash at beginning of period | 5,720 | 160,037 | ||
| Cash at end of period | $7,003 | $38,493 |
Table Trac, Inc.
(A Development Stage Company)
SELECTED NOTES TO FINANCIAL STATEMENTS
June 30, 2003
Note 1. Condensed Financial Statements:
The condensed balance sheet as of Sept 30, 2003, the statement of
operations for the periods ended Sept, 2003 and 2002, and the condensed
statement of cash flows for the periods then ended have been prepared by the
Company, without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and changes in cash flows at Sept 30,
2003 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2002 audited financial statements. The results of operations for the period ended Sept 30, 2003 are not necessarily indicative of the operating results for the full year.
Note 2. Revenue Recognition: Revenues are recorded at the time of shipment of products or performance of services. Monthly license fees are recorded over the lives of the respective contracts or as earned.
Note 3. Customer Concentration: Five major customers comprised 95% of the Company's revenues from installation and licensing fees from the installation of the Company's Table Trac(TM) system through Sept 30 2003.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:
Table Trac, Inc.'s patented real-time management system product automates and monitors the operations of casino table games (blackjack, craps, etc.) The Table Trac(TM) system (patent number 5,957,776) is available for an installation and monthly license fee from the Company. The system is operating in 5 midwest casinos. With the system developed, site tested and commercial viability established, the Company has turned its focus to sales and marketing as wells as development of complimentary products such as Self Service Kiosks.
Results of Operations:
Revenues in the quarter ended September 30, 2003 of $37,962 are lower than the $117,276 posted in 2002. Although license and maintenance fees increased in 2003, a system sale in 2002 accounts for the difference. All of the Company's revenues from installation and licensing fees from the installation of the Company's Table Trac(TM) system were from seven customers through September 2003. Costs of sales in the quarter ended September 30 decreased in 2003 to $-0- from $19,573 in 2002 as none of the 2003 revenues were the result of hardware sales. Operating expenses in the quarter ended September 30 substantially reduced in 2003, to $43,617 from $129,805 in 2002. The major changes were decreased payroll and decreased employee benefit expenses in 2003 compared to 2002. The result was that there was a net loss of ($-5,641) in the third quarter 2003 compared to a net loss of $(31,817) in the third quarter 2002. The net loss per share was $(-0.0015) in the third quarter 2003 compared to a net loss per share of $0.0088 in the third quarter 2002.
Liquidity and Capital Resources:
In the second quarter the Company recieved a bridge loan of $12,000 from Emergent Financial which will convert to stock at not less than $0.08. The company presently has no plans to offer furhter notes or other securities. The Company's current operations are supported using the monies provided from current contracts. The Company continues to pursue opportunities for additional installations, but there can be no assurances that the Company will be successful in its efforts.
Safe Harbor:
The Private Securities Litigation Reform Act of 1995 provides "safe harbor" for forward-looking statements. Certain information included in this Form 10-QSB and other materials filed or to be filed by the Company with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by the Company) contain statements that are forward-looking, such as statements relating to plans for sales and marketing, liquidity, and other business activities and developments. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, dependence on a limited number of customers, general economic conditions, or changes in federal or state laws or regulations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is aware of no legal proceeding that is pending or threatened to which the Company is a party or of which its property is subject.
Item 6. Exhibits and Reports on Form 8-K (b): NONE.
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Table Trac, Inc.
Date October 21, 2003
By: /s/ Chad
Hoehne
President CEO
CERTIFICATIONS
I, Chad Hoehne, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Table Trac, Inc.;
2. Based on my knowledge, this quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report;
4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures 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 quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
| Date: October 21, 2003 |
| Signed: /s/Chad Hoehne |
| Name Chad Hoehne |
| Title: Chief Executive Officer and principal financial officer |
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Chad Hoehne, the Chief Executive Officer and principal financial officer of Table Trac, Inc. (the "Company") in compliance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that, the Company's Quarterly Report on Form 10-QSB for the period ended September 30, 2003 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: Oct 21, 2003 |
| Signed: /s/Chad Hoehne |
| Name Chad Hoehne |
| Title: Chief Executive Officer and principal financial officer |