UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2000
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-28383
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Table Trac, Inc.
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(Exact name of registrant as specified in its charter)
Nevada 88-0336568
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
4200 Kemrich Minnetonka, Minnesota 55345
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(Address of principal executive offices)
(612) 939-9679
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(Registrant's telephone number, including area code)
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
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2,865,688 Shares Of Common Stock were outstanding as of September 30, 2000
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Table Trac, Inc.
I N D E X
Page
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets
September 30, 2000 and 1999 (Unaudited) 1
Statements of Operations
Three months and nine months ended September 30,
2000 and 1999 (Unaudited) 2
Condensed Statements of Cash Flows
Three months and nine months ended September 30,
2000 and 1999 (Unaudited) 3
Selected Notes to Condensed Financial
Statements (Unaudited) 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
PART II. OTHER INFORMATION 6-7
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<TABLE>
<CAPTION>
Part I. FINANCIAL INFORMATION
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Item I. FINANCIAL STATEMENTS
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Table Trac, Inc.
(A Development Stage Company)
Balance Sheets
(Unaudited)
September 30, December 31,
2000 1999
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ASSETS
Current Assets
<S> <C> <C>
Cash $ 138,800 $ 77,621
Total Accounts Receivable 12,576 3,933
Other Current Assets 13,037 3,043
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Total Current Assets 164,413 84,597
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Fixed Assets
Fixed Assets 456 3,576
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Other Assets
Loans To Shareholders 31,630 36,130
Inventory 15,731 22,227
Other Assets 25,888 23,490
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Total Other Assets 73,249 81,847
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TOTAL ASSETS $ 238,118 $ 170,020
========= =========
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable $ 409 $ 1,470
Notes Payable-Stockholders 50,000 50,000
Debentures Payable- Stockholders 72,500 72,500
Total Other Current Liabilities 818 2,127
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Total Current Liabilities 123,727 126,097
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Long Term Liabilities
Convertible Debentures 125,000 0
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Total Liabilities 248,727 126,097
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Equity
Capital Stock 576,854 574,703
Deficit accumulated during
development stage (587,464) (530,780)
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Total Equity (10,609) 43,923
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TOTAL LIABILITIES & EQUITY $ 238,118 $ 170,020
========= =========
See notes to Financial Statements
1
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<TABLE>
<CAPTION>
Table Trac, Inc.
(A Development Stage Company)
Statements Of Operations
(Unaudited)
Three Months Ended Nine Months Ended
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9/30/2000 9/30/1999 9/30/2000 9/30/1999
----------- ----------- ----------- -----------
Ordinary Income/Expenses
<S> <C> <C> <C> <C>
Sales $ 79,497 $ 15,373 $ 141,303 $ 53,121
Cost of Goods Sold 18,809 -- 24,176 19,007
----------- ----------- ----------- -----------
Gross Profit 60,688 15,373 117,127 34,114
Operating Expenses 50,497 49,187 177,733 112,875
----------- ----------- ----------- -----------
Net Ordinary Income (Loss) 10,191 (33,814) (60,606) (78,761)
Other Income (Expense)
Interest Income 1,660 683 3,922 1,070
----------- ----------- ----------- -----------
Net Income (Loss) before Taxes 11,851 (33,131) (56,684) (77,691)
Income Taxes -- -- -- --
----------- ----------- ----------- -----------
Net Income (Loss) $ 11,851 $ (33,131) $ (56,684) (77,691)
=========== =========== =========== ===========
Income/(Loss) Per Share $ 0.01 $ (0.01) $ (0.02) $ (0.03)
=========== =========== =========== ===========
Income/(Loss) Per Common Share Assuming Dilution $ 0.01 $ (0.01) $ (0.02) $ (0.03)
=========== =========== =========== ===========
Weighted Average Outstanding Shares 2,865,668 2,586,999 2,865,668 2,586,999
=========== =========== =========== ===========
See Notes to Financial Statements
2
</TABLE>
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<TABLE>
<CAPTION>
Table Trac, Inc.
(A Development Stage Company)
Statements Of Cash Flows
(Unaudited)
Three Months Ended Nine Months Ended
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09/30/2000 09/30/1999 09/30/2000 09/30/1999
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OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net Income (loss) $ 11,851 $ (33,131) $ (56,684) $ (77,691)
Adjustments to reconcile net income (loss)
to net cash provided by operations:
Amortization 1,375 541 103 (1,628)
Depreciation 350 3,469 3,120 3,469
Accounts Payable (9,279) (21,372) (1,061) (2,622)
Accounts Receivable 22,109 13,176 (8,642) 1,169
Inventory 16,395 (1,874) 6,496 (10,835)
Loans to Shareholders 2,500 3,500 4,500 (16,840)
Payroll Liabilities (6) 738 (1,309) (1,680)
Prepaid Expenses -- -- 297 --
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Net Cash provided by Operating Activities 45,295 (34,953) (53,180) (106,658)
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INVESTING ACTIVITIES
Stock Holdings -- -- (2,500) --
Deferred Loan Costs -- -- (10,292) --
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Net cash provide by Investing Activities -- -- (12,792) --
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FINANCING ACTIVITIES
Loan Payable (6,000)
Convertible Debentures 125,000
Capital Stock 3,006 112,500 3,006 278,863
Capital Stock:offering expenses (855) (30,093) (855) (61,563)
---------- ---------- ---------- ----------
Net Cash provided by Financing Activities 2,151 82,407 127,151 211,300
---------- ---------- ---------- ----------
Net cash increase for period 47,446 47,454 61,179 104,642
Cash at beginning of period 91,354 65,848 77,621 8,660
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Cash at end of period $ 138,800 $ 113,302 $ 138,800 $ 113,302
========== ========== ========== ==========
See Notes to Financial Statements
3
</TABLE>
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Table Trac, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
Note 1. Basis of Presentation:
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and
Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been
included. Operating results for the three month period and nine month
period ended September 30, 2000 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2000. For
further information, refer to the financial statements and footnotes
thereto included in the Company's Form 10-KSB for the year ended
December 31, 1999.
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:
One major customer comprised 100% of the Company's revenues from
installation and licensing fees from the installation of the Company's
Table Trac(TM) system through April 2000.
Note 4. Contingent Debenture Interest:
Payment of interest on the debentures payable - stockholders is
contingent on future earnings. If the Company is successful in
achieving profitable operations it will be obligated to pay contingent
debenture interest of $72,500 in addition to the $72,500 in debentures
currently reflected as current in the accompanying financial
statements. It is at least reasonably possible the Company will
achieve profitable operations and will be required to settle this
obligation for $145,000.
Note 5. Convertible Debenture Private Placement:
In 2000 the Company attempted to raise $700,000 through a private
placement of convertible debentures. The Company sold $125,000 of
these convertible debentures. These convertible debentures bear
interest at 10% per year payable monthly. Beginning in the 13th month
the investor will receive monthly payments of interest plus 9% of the
principal. These debentures are convertible into shares of the
Company's common stock at $2 per share.
Note 6. Subsequent Events:
On October 9,2000 the Company began a private placement for the sale
of additional shares by Emergent Financial Group, a NASD member. The
offering consisted of 1 share of restricted common stock and one
two-year warrant to buy an additional share of restricted common stock
at $2.50 per share. The offering has been priced at $1.50 per unit.
The offering is a Minimum of $510,000, and a maximum of $1,500,000. On
October 26,2000 the minimum was completed and the Company received
$512,500.50. The underwriter is continuing to place the remaining
units to complete the maximum.
4
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Table Trac, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Revenues in the three months ended September 30 increased in 2000 to
$79,497 from $15,373 in 1999. There were increased license fees, increased
sales, and decreased consulting fees in 2000 to account for the difference.
Costs of sales in the three months ended September 30 increased in 2000 to
$18,809 from $0 in 1999 as a result of increased custom software in 2000.
Operating expenses in the three months ended September 30, increased in
2000 to $50,497 from $49,187. The major changes were increased sales expense in
2000.
The result was that there was a net profit of $11,851 in the three months
ended September 30 2000, compared to a net loss of $33,131 in 1999. The net
profit per share in the three months ended September 30 2000 was $.01 compared
to a net loss per share of $.01 in 1999.
Revenues in the nine months ended September 30 increased in 2000 to
$141,303 from $53,121 in 1999. There were increased license fees, increased
sales, and decreased consulting fees in 2000 to account for the difference.
Costs of sales in the nine months ended September 30 increased in 2000 to
$24,176 from $19,007 in 1999 as a result of increased custom software in 2000.
Operating expenses in the nine months ended September 30, increased in 2000
to $177,733 from $112,875. The major changes were increased sales expense in
2000.
The result was that there was a net loss of $56,684 in the nine months
ended September 30 2000, compared to a net loss of $77,691 in 1999. The net loss
per share in the nine months ended September 30 2000 was $.02 compared to a net
loss per share of $.03 in 1999.
5
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PART II. OTHER INFORMATION
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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) No reports on Form 8-K were filed during the three months ended
September 30, 2000.
6
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SIGNATURE
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.
Table Trac, Inc.
Date November 2, 2000 By: /s/ Chad Hoehne
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Chad Hoehne
President and Director
