Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 24, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TABLE TRAC INC | ||
Entity Central Index Key | 0001090396 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 7,700,000 | ||
Entity Common Stock, Shares Outstanding | 4,506,788 | ||
Entity File Number | 001-32987 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | NV |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,263,762 | $ 1,290,797 |
Accounts receivable, net of allowance for doubtful accounts of $198,623 at December 31, 2019 and $165,840 at December 31, 2018 | 2,537,892 | 2,866,474 |
Inventory | 1,263,589 | 762,165 |
Prepaid expenses and other current assets | 379,982 | 291,837 |
Income tax receivable | 167,673 | 0 |
TOTAL CURRENT ASSETS | 5,612,898 | 5,211,273 |
LONG-TERM ASSETS | ||
Property and equipment, net | 74,149 | 86,656 |
Operating lease right-of-use assets | 77,922 | 0 |
Contract and other long-term assets | 1,037,364 | 528,401 |
Long-term accounts receivable - financed contracts | 2,253,667 | 1,030,354 |
TOTAL LONG-TERM ASSETS | 3,443,102 | 1,645,411 |
TOTAL ASSETS | 9,056,000 | 6,856,684 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 367,730 | 387,868 |
Payroll liabilities | 44,500 | 34,388 |
Current portion of operating lease liabilities | 53,538 | 0 |
Notes payable | 0 | 2,221 |
Customer deposits | 253,709 | 334,784 |
Income taxes payable | 0 | 53,027 |
TOTAL CURRENT LIABILITIES | 719,477 | 812,288 |
LONG-TERM LIABILITIES | ||
Operating lease liabilities | 27,867 | 0 |
Contract liabilities | 3,148,410 | 1,690,660 |
Deferred tax liability | 543,000 | 555,000 |
TOTAL LIABILITIES | 4,438,754 | 3,057,948 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,656,734 shares issued; and 4,506,788 and 4,528,669 shares outstanding at December 31, 2019 and 2018, respectively. | 4,507 | 4,529 |
Additional paid-in capital | 1,847,594 | 1,795,955 |
Retained earnings | 3,010,776 | 2,194,778 |
Stockholders' Equity before Treasury Stock | 4,862,877 | 3,995,262 |
Treasury stock, 149,946 and 128,065 shares (at cost) at December 31, 2019 and 2018, respectively | (245,631) | (196,526) |
TOTAL STOCKHOLDERS' EQUITY | 4,617,246 | 3,798,736 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 9,056,000 | $ 6,856,684 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in dollars) | $ 198,623 | $ 165,840 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 4,656,734 | 4,656,734 |
Common stock, shares outstanding | 4,506,788 | 4,528,669 |
Treasury stock, shares | 149,946 | 128,065 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 7,505,371 | $ 7,818,697 |
Cost of sales | 1,715,054 | 2,500,407 |
Gross profit | 5,790,317 | 5,318,290 |
Operating expenses: | ||
Selling, general and administrative | 4,853,767 | 4,611,097 |
Income from operations | 936,550 | 707,193 |
Loss on currency exchange | 0 | (9,675) |
Interest income | 56,448 | 70,447 |
Income before taxes | 992,998 | 767,965 |
Income tax expense | 177,000 | 253,000 |
Net income | $ 815,998 | $ 514,965 |
Net income per share - basic | $ 0.18 | $ 0.12 |
Net income per share - diluted | $ 0.18 | $ 0.11 |
Weighted-average shares outstanding - basic | 4,491,135 | 4,473,591 |
Weighted-average shares outstanding - diluted | 4,500,027 | 4,490,795 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total |
Balance at Dec. 31, 2017 | $ 4,512 | $ 1,809,511 | $ 1,679,813 | $ (146,360) | $ 3,347,476 |
Balance, shares at Dec. 31, 2017 | 4,511,965 | ||||
Stock compensation expense | $ 0 | 34,438 | 0 | 0 | 34,438 |
Stock compensation expense, shares | 0 | ||||
Stock issued for service | $ 0 | 14,097 | 0 | 0 | 14,097 |
Stock issued for service, shares | 0 | ||||
Shares repurchased into treasury | $ (48) | 0 | 0 | (112,192) | (112,240) |
Shares repurchased into treasury, shares | (48,500) | ||||
Common stock issued to non-employee and employees and board member from treasury | $ 65 | (62,091) | 0 | 62,026 | 0 |
Common stock issued to non-employee and employees and board member from treasury, shares | 65,204 | ||||
Net income | $ 0 | 0 | 514,965 | 0 | 514,965 |
Balance at Dec. 31, 2018 | $ 4,529 | 1,795,955 | 2,194,778 | (196,526) | 3,798,736 |
Balance, shares at Dec. 31, 2018 | 4,528,669 | ||||
Stock compensation expense | $ 0 | 44,562 | 0 | 0 | 44,562 |
Stock compensation expense, shares | 0 | ||||
Stock issued for service | $ 0 | 9,450 | 0 | 0 | 9,450 |
Stock issued for service, shares | 0 | ||||
Shares repurchased into treasury | $ (25) | 0 | 0 | (51,475) | (51,500) |
Shares repurchased into treasury, shares | (25,000) | ||||
Common stock issued to non-employee from treasury | $ 3 | (2,373) | 0 | 2,370 | 0 |
Common stock issued to non-employee from treasury, shares | 3,119 | ||||
Net income | $ 0 | 0 | 815,998 | 0 | 815,998 |
Balance at Dec. 31, 2019 | $ 4,507 | $ 1,847,594 | $ 3,010,776 | $ (245,631) | $ 4,617,246 |
Balance, shares at Dec. 31, 2019 | 4,506,788 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 815,998 | $ 514,965 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 47,952 | 45,845 |
Gain on sale of asset | (25,713) | 0 |
Deferred income taxes | (12,000) | 39,000 |
Bad debt expense | 115,000 | 125,405 |
Stock issued for services | 9,450 | 14,097 |
Stock compensation expense | 44,562 | 34,438 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,021,403) | 546,167 |
Inventory | (501,424) | (295,958) |
Prepaid expenses and other assets | (554,944) | 611,239 |
Accounts payable and accrued expenses | (74,304) | (184,617) |
Payroll liabilities | 10,112 | 4,303 |
Contract liabilities and customer deposits | 1,422,545 | (1,306,496) |
Income taxes receivable(payable) | (220,700) | (9,600) |
Net cash provided by operating activities | 55,131 | 138,788 |
INVESTING ACTIVITIES | ||
Proceeds from sale of Colombian receivables | 7,000 | 0 |
Capital expenditures | (35,445) | (50,715) |
Net cash used in investing activities | (28,445) | (50,715) |
FINANCING ACTIVITIES | ||
Payments on notes payable | (2,221) | (7,779) |
Repurchase of common stock | (51,500) | (112,240) |
Net cash used in financing activities | (53,721) | (120,019) |
NET DECREASE IN CASH | (27,035) | (31,946) |
CASH | ||
Beginning of period | 1,290,797 | 1,322,743 |
End of period | 1,263,762 | 1,290,797 |
Non-cash investing and financing activities: | ||
Treasury stock cost related to compensation | 2,370 | 62,026 |
Note from sale of Colombian receivables | 800 | 0 |
Capital expenditure financed with a note payable | 0 | 10,000 |
Supplemental cash flow information: | ||
Operating cash outflow for operating leases | $ 65,166 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Company Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota and Oklahoma City, Oklahoma. The Company has developed and sells an information and management system that automates and monitors various aspects of the operations of casinos. The Company provides system sales and technical support to casinos. System sales include installation, custom casino system configuration and training. In addition, license and technical support are provided under an annual license and service contract. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company's use of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price ("SSP") of performance obligations, variable consideration, and other obligations, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and inventory valuation. Actual results could differ from those estimates and the difference could be significant. Concentrations of Risk Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash balances at three financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times throughout the year, the Company's cash balances may exceed amounts insured by the FDIC. The Company doesn't believe it is exposed to any significant credit risk on its cash balances. Major Customers For the year ended December 31, 2019, two customers comprised approximately 32% of revenue compared to two customers who accounted for approximately 38% for the year ended December 31, 2018. At December 31, 2019, two customers comprised approximately 50% of accounts receivable compared to three customers accounting for approximately 46% at December 31, 2018. The following table summarizes major customer's information for the years ended December 31, 2019 and 2018: For the Years ended December 31 2019 2018 % Revenues % AR % Revenues % AR Major 32.0 % 50.2 % 37.7 % 45.6 % All Others 68.0 % 49.8 % 62.3 % 54.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % A major customer is defined as any customer that represents at least 10% of revenue or outstanding account receivable for a given period. Revenue Recognition The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. A majority of the Company's systems sales have multiple performance obligations including an obligation to deliver a casino management system and another to provide maintenance services. For system sales with multiple performance obligations, the Company allocates revenue to each performance obligation based on its SSP. The Company generally determines the SSP based on the price charged to customers. The Company does offer its customers contracts with extended payment terms representing a significant financing component. The Company must evaluate if any extended payment terms in the contract is an indicator of the transaction price not being probable. The Company only includes the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company occasionally enters into a contract that includes multiple sites; management has determined that each site installation is a separate performance obligation. In these instances the Company recognizes revenue upon completion of each performance obligation. In addition, the Company has a contract with a reseller who purchases and resells the Company's products; monthly the reseller notifies the Company of their successful installations, and submits an invoice to the Company for those installations. Provided all other revenue recognition steps have been satisfied, the Company recognizes the revenue if payment of a significant portion of the contract consideration is due within 12 months of the delivery of the product. System contracts that do not meet this criteria are deferred and recognized when the uncertainty is resolved, which is consistent with when contractual payments become due. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts which include a financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations without making concessions for determining if revenue should be recognized. Maintenance Revenue Maintenance revenue is recognized ratably over the contract period. The stand-alone selling price for maintenance is based upon the renewal rate for contracted services. Service Revenue and Other Revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The stand-alone selling price for service revenue is established based upon actual selling prices for the services or prior similar arrangements. The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The stand-alone selling price for licensing revenue is established based upon actual selling prices for the license. The Company may offer customers a rental contract. Revenues are billed monthly on a per-game per-day basis. There is an option to purchase the system after the rental contract expires at a pre-determined residual value. The following table summarizes disaggregated revenues by major product line for the years ended December 31, 2019 and 2018, respectively: Years ended December 31, 2019 2018 2019 2018 (percent of revenues) System revenue $ 3,259,684 $ 4,953,871 43.4 % 63.4 % Maintenance revenue 2,829,740 2,635,122 37.7 % 33.7 % Service and other revenue 1,415,947 229,704 18.9 % 2.9 % Total revenues $ 7,505,371 $ 7,818,697 100.0 % 100.0 % Significant Judgments Contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. We evaluated the contractual payment terms of all system sales generated during the year to determine the proper recognition or deferral of revenue. We believe the 12 month subsequent collection threshold of 67% or greater is the most appropriate for the Company to constrain revenue. We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component. Geographic Concentrations The Company sells its technologies and services to casinos in the United States, Australia, Japan, the Caribbean and countries in both Central and South America. For 2019 and 2018, 73% and 92% of the Company's revenues were from the United States, 16% and 0% from Japan, 5% and 0% from Australia, 1% and 4% from the Caribbean, 4% and 2% from Central America, and 1% and 2% from South America, respectively. As of December 31, 2019 and 2018, 94% and 89% of the Company's accounts receivable were from the United States, 1% and 0% from Australia, 1% and 5% from the Caribbean, 3% and 4% from Central America, and 1% and 2% from South America, respectively. Deferred System Sales Costs Incremental cost to obtain and fulfil a contract are deferred and amortized over the related system contract term. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. These costs are the most significant component included in other long-term assets on the balance sheet, and are $1,037,364 and $528,401 as of December 31, 2019 and 2018, respectively. Fair Value of Financial Instruments The Company's financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses and debt. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "Long-term accounts receivable – financed contracts." Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. Accounts receivable are written off when management determines collection is no longer likely. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position. Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method (which approximates the first in, first out method) is used to value inventory. Inventory is reviewed annually for the lower of cost or net realizable value and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The total inventory value was $1,263,589 and $762,165 as of December 31, 2019 and 2018, respectively, which included work-in-process of $7,442 and $50,824 as of December 31, 2019 and 2018, respectively, and the remaining amount is comprised of finished goods. The Company had no obsolescence reserve at December 31, 2019 and 2018. At December 31, 2019 the Company recorded a prepayment for inventory yet to be received of approximately $102,000 as a component of prepaid expenses and other current assets. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. Long-lived Assets The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Income Taxes The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. Deferred tax assets and liabilities represent the future tax consequences of the differences between the financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Under this method, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of the tax rate changes on deferred tax assets and liabilities is recognized in the year that the change is enacted. Management believes that any write-off not allowed will not have a material impact on the Company's financial position. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, the Company believes that it has no significant unrecognized tax positions. The Company's evaluation was performed for the tax years ended December 31, 2016 through 2019, which are the tax years that remain subject to examination by major tax jurisdictions as of December 31, 2019. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. In accordance with current guidance, the Company classifies interest and penalties as income tax expense is incurred. Research and Development Expenditures for research and product development costs are expensed as incurred. Research and development expenses were $272,156 and $118,765 for the years ended December 31, 2019 and 2018, respectively, and is included in selling, general and administrative expenses on the statements of operations. Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. The compensation expense for the Company's stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based awards on the date of grant using the closing sales price on that date. The Company's stock-based compensation awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the vesting terms. Foreign Currency Transactions Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Foreign currency differences arising on retranslation are recognized in profit or loss. Basic and Diluted Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and restricted stock shares subject to vesting. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. Restrictive stock shares are included in dilutive shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 7). Recently Adopted Accounting Pronouncements Effective January 1, 2019, we adopted the FASB Accounting Standards Update ('ASU') 2016-02, Leases Targeted Improvements to ASC 842 Leases |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 2. ACCOUNTS RECEIVABLE December 31, December 31, Accounts receivable under normal 30 day terms $ 1,649,695 $ 2,165,820 Financed contracts: Current portion of long-term 1,086,820 866,494 Long-term, net of current portion 2,253,667 1,030,354 Total accounts receivable 4,990,182 4,062,668 Less allowance for doubtful accounts (198,623 ) (165,840 ) Accounts receivable, net $ 4,791,559 $ 3,896,828 Presented on the balance sheet as: Accounts receivable, net $ 2,537,892 $ 2,866,474 Long-term accounts receivable - financed contracts 2,253,667 1,030,354 The allowance for financed and trade receivable represents management's estimate of probable losses in our trade and financed receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent of the trade and financed receivables, but that have not been specifically identified. Included in accounts receivable - Financed contracts at December 31, 2019 and 2018 is $3,340,487 and $1,896,848, respectively, with an offset to contract liabilities on the balance sheet of $3,148,410 and $1,690,660 at December 31, 2019 and 2018, respectively. A roll-forward of the Company's allowance for doubtful accounts for the years ended is as follows: December 31, December 31, Accounts receivable allowance, beginning of year $ 165,840 $ 181,473 Provision adjustment 115,000 125,405 Write-off (82,217 ) (141,038 ) Accounts receivable allowance, end of year $ 198,623 $ 165,840 The allowance for doubtful accounts as of December 31, 2019 is $42,623 for the trade receivables and $156,000 for financed contracts. The allowance for doubtful accounts as of December 31, 2018 is $104,040 for the trade receivables and $61,800 for financed contracts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3. PROPERTY AND EQUIPMENT Property and equipment consists of the following at: December 31, December 31, Office equipment $ 49,294 $ 49,294 Vehicles 211,465 176,021 Total 260,759 225,315 Less: accumulated depreciation (186,610 ) (138,659 ) Property and equipment, net $ 74,149 $ 86,656 Depreciation expense totaled $47,952 and $45,845 for the years ended December 31, 2019 and 2018, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
OPERATING LEASES | NOTE 4. OPERATING LEASES We lease space under non-cancelable operating leases for our two office locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Our leases include one or more options to renew. The exercise of lease renewal options are included in our ROU assets and lease liabilities if they are reasonably certain of exercise. Our leases do not provide an implicit rate; we use our incremental borrowing rate of 5% which is based on the information available at the date of adoption in determining the present value of the lease payments. The cost components of our operating leases were $65,166 and $52,583 for the year ended December 31, 2019 and 2018, respectively. Maturities of our lease liabilities for all operating leases are as follows as of December 31, 2019: Leased 2020 $ 57,436 2021 28,632 Total Lease Payments 86,068 Less: Interest (4,663 ) Present value of lease liabilities $ 81,405 The weighted average remaining lease terms equals 1.47 years as of December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 5. STOCKHOLDERS' EQUITY Common Stock As of December 31, 2019, and 2018, the Company holds 149,946 and 128,065 common stock shares in treasury at a total cost of $245,631 and $196,526 respectively for future employee and professional service provider's issuances under the bonus program which was part of both 2018 and 2014 repurchase of shares. Stock Repurchase Program On January 7, 2018, the Company's Board of Directors approved the repurchase of its outstanding shares, using management's discretion, of its common stock from private unsolicited sellers' in the open market. On May 10, 2018, the Company's Board of Directors approved the repurchase of its outstanding common shares in an aggregate amount of up to 200,000 shares not to exceed $600,000, in both private unsolicited and open market transactions, until December 31, 2019. Company insiders are prohibited from participating in the stock repurchase program. The Company repurchased 25,000 shares totaling approximately $51,500 at an average price of $2.06 per share for its treasury during 2019. Stock Compensation On January 8, 2018, the Board of Directors of Table Trac Inc. appointed Randy Gilbert as the Company's Chief Financial Officer and awarded him 50,000 Restricted Stock shares. These shares are subject to a four year vesting schedule as follows: 20,000 shares in year one; 10,000 shares in each subsequent year. Grant date fair value of $117,500 will be recognized over the vesting period as stock compensation expense as a component of selling, general and administration expense. Additionally, on December 12, 2018, the Board of Directors of Table Trac Inc. approved a resolution which awarded 9,000 Restricted Stock shares to employees and the new Board of Directors. These shares are subject to a one year vesting period. The Company awarded approximately 3,000 and 6,000 shares approximating $9,500 and $14,000 to a non-employee in exchanges for services during 2019 and 2018, respectively. The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately two years. As of December 31, 2019, the remaining unrecognized stock compensation expense approximated $58,800. The Company has no stock options outstanding as of December 31, 2019 and 2018. The Company has 30,000 shares of restricted stock outstanding as of December 31, 2019, 10,000 of which vested on January 8, 2020. There were 59,000 shares of restricted stock outstanding at December 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES The income tax provision (benefit) consists of the following for the years ended December 31: 2019 2018 Current tax expense $ 189,000 $ 214,000 Deferred tax (benefit) (12,000 ) 39,000 Total income tax expense $ 177,000 $ 253,000 The reconciliation between expected federal income tax rates and the Company's effective federal tax rates is as follows: 2019 2018 Amount Percent Amount Percent Expected federal tax $ 208,500 21.0 % $ 161,300 21.0 % Permanent differences (1,700 ) (0.2 %) 9,100 1.2 % State income tax, net of federal tax benefit 22,200 2.2 % 30,900 4.0 % Foreign tax credit 0 0.0 % (3,100 ) (0.4 %) Research and Development tax credit (29,000 ) (2.9 %) 0 0.0 % Other (23,000 ) (2.3 %) 54,800 7.1 % Total $ 177,000 17.8 % $ 253,000 32.9 % The following table summarizes the Company's deferred tax assets and liabilities at December 31: 2019 2018 Current deferred tax asset (liabilities): Accounts payable and accrued expenses $ 73,000 $ 82,000 Accounts receivable (1,156,000 ) (1,026,000 ) Allowance for doubtful accounts 43,000 46,000 Prepaid expenses (88,000 ) (75,000 ) Deferred revenue 551,000 376,000 Net current deferred tax liability (577,000 ) (597,000 ) Long-term deferred tax asset (liabilities): NOL - federal - - NOL - State 7,000 4,000 Foreign tax credit 40,000 38,000 Book - Tax depreciation (13,000 ) 0 Net long-term deferred tax asset 34,000 42,000 Net deferred tax liability $ (543,000 ) $ (555,000 ) The company has various state net operating loss carryforwards of approximately $91,000 which expire between 2026 and 2035 if not used. An allowance for net operating loss carryforward is recorded when the Company believes the amount may not be collected or fully utilized. Management believes the state net operating loss carryforward is fully collectible or will be fully utilized. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7. EARNINGS PER SHARE Earnings per share is computed under two different methods, basic and diluted, and is presented for all periods in which statements of operations are presented. Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share: For the Years Ended 2019 2018 Basic and diluted earnings per share calculation: Net income to common stockholders $ 815,998 $ 514,965 Weighted average number of common shares outstanding - basic 4,491,135 4,473,591 Basic net income per share $ 0.18 $ 0.12 Weighted average number of common shares outstanding - diluted 4,500,027 4,490,795 Diluted net income per share $ 0.18 $ 0.11 For the year ended December 31, 2019 there were common stock equivalents that had a dilutive effect of approximately 8,900 shares. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | NOTE 8. COMMITMENT AND CONTINGENCIES The Company has lease commitments for its Minnesota and Oklahoma offices with future minimum lease payments of approximately $86,000 through July 2021 (see Note 4). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Company | Company Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota and Oklahoma City, Oklahoma. The Company has developed and sells an information and management system that automates and monitors various aspects of the operations of casinos. The Company provides system sales and technical support to casinos. System sales include installation, custom casino system configuration and training. In addition, license and technical support are provided under an annual license and service contract. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company's use of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price ("SSP") of performance obligations, variable consideration, and other obligations, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and inventory valuation. Actual results could differ from those estimates and the difference could be significant. |
Concentrations of Risk | Concentrations of Risk Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash balances at three financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times throughout the year, the Company's cash balances may exceed amounts insured by the FDIC. The Company doesn't believe it is exposed to any significant credit risk on its cash balances. |
Major Customers | Major Customers For the year ended December 31, 2019, two customers comprised approximately 32% of revenue compared to two customers who accounted for approximately 38% for the year ended December 31, 2018. At December 31, 2019, two customers comprised approximately 50% of accounts receivable compared to three customers accounting for approximately 46% at December 31, 2018. The following table summarizes major customer's information for the years ended December 31, 2019 and 2018: For the Years ended December 31 2019 2018 % Revenues % AR % Revenues % AR Major 32.0 % 50.2 % 37.7 % 45.6 % All Others 68.0 % 49.8 % 62.3 % 54.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % A major customer is defined as any customer that represents at least 10% of revenue or outstanding account receivable for a given period. |
Revenue Recognition | Revenue Recognition The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. A majority of the Company's systems sales have multiple performance obligations including an obligation to deliver a casino management system and another to provide maintenance services. For system sales with multiple performance obligations, the Company allocates revenue to each performance obligation based on its SSP. The Company generally determines the SSP based on the price charged to customers. The Company does offer its customers contracts with extended payment terms representing a significant financing component. The Company must evaluate if any extended payment terms in the contract is an indicator of the transaction price not being probable. The Company only includes the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company occasionally enters into a contract that includes multiple sites; management has determined that each site installation is a separate performance obligation. In these instances the Company recognizes revenue upon completion of each performance obligation. In addition, the Company has a contract with a reseller who purchases and resells the Company's products; monthly the reseller notifies the Company of their successful installations, and submits an invoice to the Company for those installations. Provided all other revenue recognition steps have been satisfied, the Company recognizes the revenue if payment of a significant portion of the contract consideration is due within 12 months of the delivery of the product. System contracts that do not meet this criteria are deferred and recognized when the uncertainty is resolved, which is consistent with when contractual payments become due. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts which include a financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations without making concessions for determining if revenue should be recognized. Maintenance Revenue Maintenance revenue is recognized ratably over the contract period. The stand-alone selling price for maintenance is based upon the renewal rate for contracted services. Service Revenue and Other Revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The stand-alone selling price for service revenue is established based upon actual selling prices for the services or prior similar arrangements. The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The stand-alone selling price for licensing revenue is established based upon actual selling prices for the license. The Company may offer customers a rental contract. Revenues are billed monthly on a per-game per-day basis. There is an option to purchase the system after the rental contract expires at a pre-determined residual value. The following table summarizes disaggregated revenues by major product line for the years ended December 31, 2019 and 2018, respectively: Years ended December 31, 2019 2018 2019 2018 (percent of revenues) System revenue $ 3,259,684 $ 4,953,871 43.4 % 63.4 % Maintenance revenue 2,829,740 2,635,122 37.7 % 33.7 % Service and other revenue 1,415,947 229,704 18.9 % 2.9 % Total revenues $ 7,505,371 $ 7,818,697 100.0 % 100.0 % Significant Judgments Contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. We evaluated the contractual payment terms of all system sales generated during the year to determine the proper recognition or deferral of revenue. We believe the 12 month subsequent collection threshold of 67% or greater is the most appropriate for the Company to constrain revenue. We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component. |
Geographic Concentrations | Geographic Concentrations The Company sells its technologies and services to casinos in the United States, Australia, Japan, the Caribbean and countries in both Central and South America. For 2019 and 2018, 73% and 92% of the Company's revenues were from the United States, 16% and 0% from Japan, 5% and 0% from Australia, 1% and 4% from the Caribbean, 4% and 2% from Central America, and 1% and 2% from South America, respectively. As of December 31, 2019 and 2018, 94% and 89% of the Company's accounts receivable were from the United States, 1% and 0% from Australia, 1% and 5% from the Caribbean, 3% and 4% from Central America, and 1% and 2% from South America, respectively. |
Deferred System Sales Costs | Deferred System Sales Costs Incremental cost to obtain and fulfil a contract are deferred and amortized over the related system contract term. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. These costs are the most significant component included in other long-term assets on the balance sheet, and are $1,037,364 and $528,401 as of December 31, 2019 and 2018, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses and debt. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable / Allowance for Doubtful Accounts | Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "Long-term accounts receivable – financed contracts." Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. Accounts receivable are written off when management determines collection is no longer likely. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position. |
Inventory | Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method (which approximates the first in, first out method) is used to value inventory. Inventory is reviewed annually for the lower of cost or net realizable value and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The total inventory value was $1,263,589 and $762,165 as of December 31, 2019 and 2018, respectively, which included work-in-process of $7,442 and $50,824 as of December 31, 2019 and 2018, respectively, and the remaining amount is comprised of finished goods. The Company had no obsolescence reserve at December 31, 2019 and 2018. At December 31, 2019 the Company recorded a prepayment for inventory yet to be received of approximately $102,000 as a component of prepaid expenses and other current assets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. |
Long-lived Assets | Long-lived Assets The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Income Taxes | Income Taxes The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. Deferred tax assets and liabilities represent the future tax consequences of the differences between the financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Under this method, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of the tax rate changes on deferred tax assets and liabilities is recognized in the year that the change is enacted. Management believes that any write-off not allowed will not have a material impact on the Company's financial position. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, the Company believes that it has no significant unrecognized tax positions. The Company's evaluation was performed for the tax years ended December 31, 2016 through 2019, which are the tax years that remain subject to examination by major tax jurisdictions as of December 31, 2019. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. In accordance with current guidance, the Company classifies interest and penalties as income tax expense is incurred. |
Research and Development | Research and Development Expenditures for research and product development costs are expensed as incurred. Research and development expenses were $272,156 and $118,765 for the years ended December 31, 2019 and 2018, respectively, and is included in selling, general and administrative expenses on the statements of operations. |
Stock-based Compensation | Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. The compensation expense for the Company's stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based awards on the date of grant using the closing sales price on that date. The Company's stock-based compensation awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the vesting terms. |
Foreign Currency Transactions | Foreign Currency Transactions Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Foreign currency differences arising on retranslation are recognized in profit or loss. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and restricted stock shares subject to vesting. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. Restrictive stock shares are included in dilutive shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 7). |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2019, we adopted the FASB Accounting Standards Update ('ASU') 2016-02, Leases Targeted Improvements to ASC 842 Leases |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of major customer's information | For the Years ended December 31 2019 2018 % Revenues % AR % Revenues % AR Major 32.0 % 50.2 % 37.7 % 45.6 % All Others 68.0 % 49.8 % 62.3 % 54.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Schedule of disaggregation of revenue | Years ended December 31, 2019 2018 2019 2018 (percent of revenues) System revenue $ 3,259,684 $ 4,953,871 43.4 % 63.4 % Maintenance revenue 2,829,740 2,635,122 37.7 % 33.7 % Service and other revenue 1,415,947 229,704 18.9 % 2.9 % Total revenues $ 7,505,371 $ 7,818,697 100.0 % 100.0 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Accounts receivable under normal 30 day terms $ 1,649,695 $ 2,165,820 Financed contracts: Current portion of long-term 1,086,820 866,494 Long-term, net of current portion 2,253,667 1,030,354 Total accounts receivable 4,990,182 4,062,668 Less allowance for doubtful accounts (198,623 ) (165,840 ) Accounts receivable, net $ 4,791,559 $ 3,896,828 Presented on the balance sheet as: Accounts receivable, net $ 2,537,892 $ 2,866,474 Long-term accounts receivable - financed contracts 2,253,667 1,030,354 |
Schedule of allowance for doubtful accounts | December 31, December 31, Accounts receivable allowance, beginning of year $ 165,840 $ 181,473 Provision adjustment 115,000 125,405 Write-off (82,217 ) (141,038 ) Accounts receivable allowance, end of year $ 198,623 $ 165,840 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, Office equipment $ 49,294 $ 49,294 Vehicles 211,465 176,021 Total 260,759 225,315 Less: accumulated depreciation (186,610 ) (138,659 ) Property and equipment, net $ 74,149 $ 86,656 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of maturities of lease liabilities for operating leases | Leased 2020 $ 57,436 2021 28,632 Total Lease Payments 86,068 Less: Interest (4,663 ) Present value of lease liabilities $ 81,405 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision (benefit) | 2019 2018 Current tax expense $ 189,000 $ 214,000 Deferred tax (benefit) (12,000 ) 39,000 Total income tax expense $ 177,000 $ 253,000 |
Schedule of Effective Income Tax Rate Reconciliation | 2019 2018 Amount Percent Amount Percent Expected federal tax $ 208,500 21.0 % $ 161,300 21.0 % Permanent differences (1,700 ) (0.2 %) 9,100 1.2 % State income tax, net of federal tax benefit 22,200 2.2 % 30,900 4.0 % Foreign tax credit 0 0.0 % (3,100 ) (0.4 %) Research and Development tax credit (29,000 ) (2.9 %) 0 0.0 % Other (23,000 ) (2.3 %) 54,800 7.1 % Total $ 177,000 17.8 % $ 253,000 32.9 % |
Schedule of deferred tax assets and liabilities | 2019 2018 Current deferred tax asset (liabilities): Accounts payable and accrued expenses $ 73,000 $ 82,000 Accounts receivable (1,156,000 ) (1,026,000 ) Allowance for doubtful accounts 43,000 46,000 Prepaid expenses (88,000 ) (75,000 ) Deferred revenue 551,000 376,000 Net current deferred tax liability (577,000 ) (597,000 ) Long-term deferred tax asset (liabilities): NOL - federal - - NOL - State 7,000 4,000 Foreign tax credit 40,000 38,000 Book - Tax depreciation (13,000 ) 0 Net long-term deferred tax asset 34,000 42,000 Net deferred tax liability $ (543,000 ) $ (555,000 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | For the Years Ended 2019 2018 Basic and diluted earnings per share calculation: Net income to common stockholders $ 815,998 $ 514,965 Weighted average number of common shares outstanding - basic 4,491,135 4,473,591 Basic net income per share $ 0.18 $ 0.12 Weighted average number of common shares outstanding - diluted 4,500,027 4,490,795 Diluted net income per share $ 0.18 $ 0.11 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
% Revenues [Member] | ||
Total | 100.00% | 100.00% |
% Revenues [Member] | Major [Member] | ||
Total | 32.00% | 37.70% |
% Revenues [Member] | All Others [Member] | ||
Total | 68.00% | 62.30% |
% AR [Member] | ||
Total | 100.00% | 100.00% |
% AR [Member] | Major [Member] | ||
Total | 50.20% | 45.60% |
% AR [Member] | All Others [Member] | ||
Total | 49.80% | 54.40% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 7,505,371 | $ 7,818,697 |
Revenues [Member] | ||
Total revenues | $ 7,505,371 | $ 7,818,697 |
Percent of revenues | 100.00% | 100.00% |
Revenues [Member] | System revenue [Member] | ||
Total revenues | $ 3,259,684 | $ 4,953,871 |
Percent of revenues | 43.40% | 63.40% |
Revenues [Member] | Maintenance revenue [Member] | ||
Total revenues | $ 2,829,740 | $ 2,635,122 |
Percent of revenues | 37.70% | 33.70% |
Revenues [Member] | Service and other revenue [Member] | ||
Total revenues | $ 1,415,947 | $ 229,704 |
Percent of revenues | 18.90% | 2.90% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Other assets, noncurrent | $ 1,037,364 | $ 528,401 |
Inventory, net | 1,263,589 | 762,165 |
Inventory, work in process, gross | 7,442 | 50,824 |
Research and development expense | 272,156 | $ 118,765 |
Prepaid expenses and other current assets | $ 102,000 | |
Outstanding receivable | 10.00% | |
Technologies and services description | 73% and 92% of the Company’s revenues were from the United States, 16% and 0% from Japan, 5% and 0% from Australia, 1% and 4% from the Caribbean, 4% and 2% from Central America, and 1% and 2% from South America | |
Minimum [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Interest variable rate | 1.00% | |
Maximum [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Interest variable rate | 6.00% | |
Sales Revenue, Net [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 100.00% | 100.00% |
Sales Revenue, Net [Member] | Two Customers [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 32.00% | 38.00% |
Accounts Receivable [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 100.00% | 100.00% |
Accounts Receivable [Member] | Customer in United States [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 94.00% | 89.00% |
Accounts Receivable [Member] | Customer In Australia [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 1.00% | 5.00% |
Accounts Receivable [Member] | Customer In Central America [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 1.00% | 2.00% |
Accounts Receivable [Member] | Three Customers [Member] | ||
Nature of Business and Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 50.00% | 46.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable under normal 30 day terms | $ 1,649,695 | $ 2,165,820 |
Financed contracts: | ||
Current portion of long-term | 1,086,820 | 866,494 |
Long-term, net of current portion | 2,253,667 | 1,030,354 |
Total accounts receivable | 4,990,182 | 4,062,668 |
Less allowance for doubtful accounts | (198,623) | (165,840) |
Accounts receivable, net | 4,791,559 | 3,896,828 |
Presented on the balance sheet as: | ||
Accounts receivable, net | 2,537,892 | 2,866,474 |
Long-term accounts receivable - financed contracts | $ 2,253,667 | $ 1,030,354 |
Accounts Receivable (Details 1)
Accounts Receivable (Details 1) - Trade Accounts Receivable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable allowance, beginning of year | $ 165,840 | $ 181,473 |
Provision adjustment | 115,000 | 125,405 |
Write-off | (82,217) | (141,038) |
Accounts receivable allowance, end of period | $ 198,623 | $ 165,840 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable (Textual) | ||
Allowance for doubtful accounts | $ 198,623 | $ 165,840 |
Accounts receivable | 2,537,892 | 2,866,474 |
Contract liabilities | 3,148,410 | 1,690,660 |
Trade Receivables [Member] | ||
Accounts Receivable (Textual) | ||
Allowance for doubtful accounts | 42,623 | 104,040 |
Financed Contracts [Member] | ||
Accounts Receivable (Textual) | ||
Allowance for doubtful accounts | 156,000 | 61,800 |
Accounts receivable | $ 3,340,487 | $ 1,896,848 |
Property and equipment (Details
Property and equipment (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 260,759 | $ 225,315 |
Less: accumulated depreciation | (186,610) | (138,659) |
Property and equipment, net | 74,149 | 86,656 |
Office Equipment [Member] | ||
Property and equipment, gross | 49,294 | 49,294 |
Vehicles [Member] | ||
Property and equipment, gross | $ 211,465 | $ 176,021 |
Property and equipment (Detai_2
Property and equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment (Textual) | ||
Depreciation | $ 47,952 | $ 45,845 |
Operating Leases (Details)
Operating Leases (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 57,436 |
2021 | 28,632 |
Total Lease Payments | 86,068 |
Less: Interest | (4,663) |
Present value of lease liabilities | $ 81,405 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leases (Textual) | ||
Lease space, description | We lease space under non-cancelable operating leases for our two office locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. | |
Operating leases | $ 65,166 | $ 52,583 |
Weighted average lease terms | 1 year 5 months 20 days | |
Borrowing rate | 5.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jan. 08, 2020 | Dec. 12, 2018 | Jan. 08, 2018 | Jan. 07, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity (Textual) | ||||||
Description of share- based award terms | The Board of Directors of Table Trac Inc. approved a resolution which awarded 9,000 Restricted Stock shares to employees and the new Board of Directors. These shares are subject to a one year vesting period. | The Board of Directors of Table Trac Inc. appointed Randy Gilbert as the Company’s Chief Financial Officer and awarded him 50,000 Restricted Stock shares. These shares are subject to a four year vesting schedule as follows: 20,000 shares in year one; 10,000 shares in each subsequent year. Grant date fair value of $117,500 will be recognized equally over the vesting period as stock compensation expense as a component of selling, general and administration expense. | ||||
Weighted average period | 2 years | |||||
Number of stock repurchased during period, shares | 25,000 | |||||
Number of stock repurchased during period, value | $ 51,500 | |||||
Treasury stock acquired, average cost per share | $ 2.06 | |||||
Restricted stock outstanding | 30,000 | 59,000 | ||||
Number of shares vested | 10,000 | |||||
Treasury stock, shares | 149,946 | 128,065 | ||||
Treasury stock, value | $ 245,631 | $ 196,526 | ||||
Board of Directors [Member] | ||||||
Stockholders' Equity (Textual) | ||||||
Stock repurchase program, description | The Company’s Board of Directors approved the repurchase of its outstanding shares, using management’s discretion, of its common stock from private unsolicited sellers’ in the open market. On May 10, 2018, the Company’s Board of Directors approved the repurchase of its outstanding common shares in an aggregate amount of up to 200,000 shares not to exceed $600,000, in both private unsolicited and open market transactions, until December 31, 2019. Company insiders are prohibited from participating in the stock repurchase program. | |||||
Non-employee [Member] | ||||||
Stockholders' Equity (Textual) | ||||||
Number of shares issued for services | 3,000 | 6,000 | ||||
Number of shares isued for services, value | $ 9,500 | $ 14,000 |
Income tax (Details)
Income tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 189,000 | $ 214,000 |
Deferred tax (benefit) | (12,000) | 39,000 |
Total income tax expense | $ 177,000 | $ 253,000 |
Income tax (Details 1)
Income tax (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Expected federal tax, Amount | $ 208,500 | $ 161,300 |
Permanent differences, Amount | (1,700) | 9,100 |
State income tax, net of federal tax benefit, Amount | 22,200 | 30,900 |
Foreign tax credit, Amount | 0 | (3,100) |
Research and Development tax credit | (29,000) | 0 |
Other, Amount | (23,000) | 54,800 |
Total income tax expense (benefit) | $ 177,000 | $ 253,000 |
Expected federal tax, Percenage | 21.00% | 21.00% |
Permanent differences, Percentage | (0.20%) | 1.20% |
State income tax, net of federal tax benefit, Percentage | 2.20% | 4.00% |
Foreign tax credit, Percentage | (0.00%) | (0.40%) |
Research and Development tax credit | (2.90%) | 0.00% |
Other, Percentage | (2.30%) | 7.10% |
Total, Percent | 17.80% | 32.90% |
Income tax (Details 2)
Income tax (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current deferred tax asset (liabilities): | ||
Accounts payable and accrued expenses | $ 73,000 | $ 82,000 |
Accounts receivable | (1,156,000) | (1,026,000) |
Allowance for doubtful accounts | 43,000 | 46,000 |
Prepaid expenses | (88,000) | (75,000) |
Deferred revenue | 551,000 | 376,000 |
Net current deferred tax liability | (577,000) | (597,000) |
Long-term deferred tax asset (liabilities): | ||
NOL - federal | ||
NOL - State | 7,000 | 4,000 |
Foreign tax credit | 40,000 | 38,000 |
Book - Tax depreciation | (13,000) | 0 |
Net long-term deferred tax asset | 34,000 | 42,000 |
Net deferred tax liability | $ (543,000) | $ (555,000) |
Income tax (Details Textual)
Income tax (Details Textual) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Loss Carryforwards Expiration Date1 | expire between 2026 and 2035 if not used |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | $ 91,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Basic and diluted earnings per share calculation: | ||
Net income to common stockholders | $ 815,998 | $ 514,965 |
Weighted average number of common shares outstanding - basic | 4,491,135 | 4,473,591 |
Basic net income per share | $ 0.18 | $ 0.12 |
Weighted average number of common shares outstanding - diluted | 4,500,027 | 4,490,795 |
Diluted net income per share | $ 0.18 | $ 0.11 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) | 12 Months Ended |
Dec. 31, 2019shares | |
Earnings Per Share (Textual) | |
Common stock equivalents dilutive effect | 8,900 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | Dec. 31, 2019USD ($) |
Commitment and Contingencies (Textual) | |
Operating Leases, Future Minimum Payments Due | $ 86,000 |