Gaming Partners International (GPIC) 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	Gaming Partners International CORP
Entity Central Index Key	918,580
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	GPIC
Entity Common Stock, Shares Outstanding		7,928,594

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 10,505	$ 17,788
Marketable securities	0	3,503
Accounts receivable, net	12,859	10,677
Inventories	15,781	10,199
Prepaid expenses	724	947
Deferred income tax assets	1,798	1,640
Other current assets	2,160	1,576
Total current assets	43,827	46,330
Property and equipment, net	23,283	14,102
Goodwill	10,292	10,292
Intangible assets, net	2,300	2,505
Deferred income tax assets	602	710
Inventories, non-current	609	670
Other assets, non-current	2,663	2,635
Total assets	83,576	77,244
Current Liabilities:
Accounts payable	4,582	4,498
Accrued liabilities	5,538	6,456
Customer deposits and deferred revenue	3,815	2,080
Current portion of long-term debt	1,359	1,343
Income taxes payable	1,501	824
Total current liabilities	16,795	15,201
Long-term debt	6,991	8,002
Deferred income tax liabilities	119	170
Other liabilities, non-current	1,076	83
Total liabilities	24,981	23,456
Commitments and contingencies - see Note 9
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding	0	0
Common stock, authorized 30,000,000 shares, $0.01 par value, 8,219,577 shares issued and 7,928,594 shares outstanding	82	82
Additional paid-in capital	20,016	20,033
Treasury stock at cost: 290,983 shares	(2,263)	(2,263)
Retained earnings	42,258	37,812
Accumulated other comprehensive loss	(1,498)	(1,876)
Total stockholders' equity	58,595	53,788
Total liabilities and stockholders' equity	$ 83,576	$ 77,244

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	8,219,577	8,219,577
Common stock, shares outstanding	7,928,594	7,928,594
Treasury stock, shares	290,983	290,983

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Cost of revenues	15,036	13,391	40,187	37,338
Gross profit	7,523	6,453	18,809	17,411
Marketing and sales	1,613	1,616	4,711	4,800
General and administrative	2,129	2,565	6,821	7,448
Research and development	297	250	955	900
Operating income	3,484	2,022	6,322	4,263
Other income (expense), net	43	127	(32)	59
Income before income taxes	3,527	2,149	6,290	4,322
Income tax provision	1,080	474	1,844	832
Net income	$ 2,447	$ 1,675	$ 4,446	$ 3,490
Earnings per share:
Basic (in dollars per share)	$ 0.31	$ 0.21	$ 0.56	$ 0.44
Diluted (in dollars per share)	$ 0.3	$ 0.21	$ 0.55	$ 0.43
Weighted-average shares of common stock outstanding:
Basic (in thousand of shares)	7,929	7,929	7,929	7,924
Diluted (in thousand of shares)	8,057	8,049	8,039	8,038

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 2,447	$ 1,675	$ 4,446	$ 3,490
Other comprehensive income (loss):
Foreign currency translation adjustment	126	177	378	(1,143)
Other comprehensive income (loss)	126	177	378	(1,143)
Total comprehensive income	$ 2,573	$ 1,852	$ 4,824	$ 2,347

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]
Balance at Dec. 31, 2014	$ 48,265	$ 82	$ 19,886	$ (2,263)	$ 30,881	$ (321)
Balance (in shares) at Dec. 31, 2014		7,916,094
Net income	3,490	$ 0	0	0	3,490	0
Common stock options exercised	87	$ 0	87	0	0	0
Common stock options exercised (in shares)		12,500
Stock compensation expense	66	$ 0	66	0	0	0
Tax impact of stock options	3	0	3	0	0	0
Foreign currency translation adjustment	(1,143)	0	0	0	0	(1,143)
Balance at Sep. 30, 2015	50,768	$ 82	20,042	(2,263)	34,371	(1,464)
Balance (in shares) at Sep. 30, 2015		7,928,594
Balance at Dec. 31, 2015	53,788	$ 82	20,033	(2,263)	37,812	(1,876)
Balance (in shares) at Dec. 31, 2015		7,928,594
Net income	4,446	$ 0	0	0	4,446	0
Stock compensation expense	70	0	70	0	0	0
Tax impact of stock options	(87)	0	(87)	0	0	0
Foreign currency translation adjustment	378	0	0	0	0	378
Balance at Sep. 30, 2016	$ 58,595	$ 82	$ 20,016	$ (2,263)	$ 42,258	$ (1,498)
Balance (in shares) at Sep. 30, 2016		7,928,594

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net income	$ 4,446	$ 3,490
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property and equipment	1,987	1,950
Amortization of intangible assets	205	218
Provision for bad debt	86	744
Deferred income taxes	(102)	(574)
Stock compensation expense	70	66
Tax impact of stock options	(87)	3
Gain on sale or disposal of property and equipment	0	(12)
Gain on sale of marketable securities	(1)	(5)
Change in operating assets and liabilities:
Accounts receivable	(2,265)	(1,108)
Inventories	(5,421)	(1,743)
Prepaid expenses and other current assets	(331)	(624)
Non-current other assets	16	138
Accounts payable	36	1,022
Accrued liabilities	(2,113)	373
Customer deposits and deferred revenue	1,731	4,258
Income taxes payable	678	515
Net cash (used in) provided by operating activities	(1,065)	8,711
Cash Flows from Investing Activities
Purchases of marketable securities	0	(7,136)
Proceeds from sale of marketable securities	3,584	5,132
Proceeds from sale of property and equipment	0	42
Capital expenditures	(8,921)	(2,299)
Net cash used in investing activities	(5,337)	(4,261)
Cash Flows from Financing Activities
Cash paid for demand line of credit	0	(10,000)
Proceeds from debt obligation	0	10,000
Principal payments on long-term debt	(995)	(325)
Proceeds from exercise of stock options	0	87
Net cash used in financing activities	(995)	(238)
Effect of exchange rate changes on cash	114	(352)
Net (decrease) increase in cash and cash equivalents	(7,283)	3,860
Cash and cash equivalents, beginning of period	17,788	8,969
Cash and cash equivalents, end of period	10,505	12,829
Supplemental disclosures of cash flow information
Cash paid for interest	183	188
Cash paid for income taxes, net of refunds	1,218	560
Supplemental disclosures of non-cash investing and financing activities
Property and equipment acquired through accrued and non-current other liabilities	$ 2,178	$ 46

Nature of Business and Signific

Nature of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Business Description and Accounting Policies [Text Block]	Note 1. Nature of Business and Significant Accounting Policies Organization and Nature of Business Gaming Partners International Corporation (GPIC or the Company) is headquartered in North Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, roulette wheels, and radio frequency identification (RFID) readers and software, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. The Company has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), our maquiladora manufacturing operation in Mexico, and GPI USA Blue Springs, our manufacturing facility in Missouri); Gaming Partners International SAS (GPI SAS); and Gaming Partners International Asia Limited (GPI Asia). Our subsidiaries have the following distribution and product focus: • GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder of our products is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have sales offices in North Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri. • GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico. • GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts that it manufactures in Macau S.A.R. Significant Accounting Policies Basis of Consolidation and Presentation. These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year. Recently Issued Accounting Standards In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-12, Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606)

Dolphin asset acquisition

Dolphin asset acquisition	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	Note 2. Dolphin asset acquisition On May 11, 2016, the Company entered into and closed an Asset Purchase Agreement to purchase certain assets used in the design and manufacture of casino currency from Dolphin Products Limited (Dolphin), a wholly owned subsidiary of Entertainment Gaming Asia Inc. (EGT). The purchased assets were substantially equipment and inventory. The total cost of the acquisition was $ 7.3 4.0 0.5 0.6 1.1 Assets Property and equipment $ 5,625 Inventory 1,688 Total acquired $ 7,313 In connection with the acquisition, the Company and EGT settled and released each other from all claims related to the civil actions initiated by the Company against Dolphin in the High Court of the Hong Kong Special Administrative Region in December 2015, as described further in Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

Cash, Cash Equivalents, and Mar

Cash, Cash Equivalents, and Marketable Securities	9 Months Ended
	Sep. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Marketable Securities [Text Block]	Note 3. Cash, Cash Equivalents, and Marketable Securities September 30, 2016 December 31, 2015 Cash and Marketable Total Cash and Marketable Total Macau S.A.R., China $ 4,996 $ - $ 4,996 $ 4,040 $ - $ 4,040 United States (including Mexico) 3,797 - 3,797 12,861 - 12,861 France 1,712 - 1,712 887 3,503 4,390 Total $ 10,505 $ - $ 10,505 $ 17,788 $ 3,503 $ 21,291 Cost Unrealized Fair Certificates of deposit $ 2,727 $ - $ 2,727 Bond mutual funds 776 - 776 Total marketable securities $ 3,503 $ - $ 3,503 We present our marketable securities at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have determined that all of our marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

Accounts Receivable and Allowan

Accounts Receivable and Allowance for Doubtful Accounts	9 Months Ended
	Sep. 30, 2016
Valuation and Qualifying Accounts [Abstract]
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	Note 4. Accounts Receivable and Allowance for Doubtful Accounts At September 30, 2016, two casino customers accounted for 16 14 balance. At December 33

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 5. Inventories Inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 10,443 $ 7,653 Work in progress 2,493 668 Finished goods 3,454 2,548 Total inventories $ 16,390 $ 10,869 We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our unaudited condensed consolidated balance sheets is as follows (in thousands): September 30, 2016 December 31, 2015 Current $ 15,781 $ 10,199 Non-current 609 670 Total inventories $ 16,390 $ 10,869

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	Note 6. Property and Equipment September 30, 2016 December 31, 2015 Land $ 652 $ 520 Buildings and improvements 7,770 6,839 Equipment and furniture 33,013 26,912 Vehicles 399 403 Construction in progress 4,742 1,403 46,576 36,077 Less accumulated depreciation (23,293) (21,975) Property and equipment, net $ 23,283 $ 14,102 Depreciation expense for the three months ended September 30, 2016 and 2015 was $ 658 633 1,987 1,950

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 7. Goodwill and Intangible Assets We had goodwill valued at $ 10,292,000 September 30, 2016 December 31, 2015 Gross Accum. Net Gross Accum. Net Trademarks $ 1,772 $ (548) $ 1,224 $ 1,772 $ (454) $ 1,318 Customer list 1,323 (324) 999 1,323 (245) 1,078 Patents 542 (525) 17 542 (520) 22 Other intangible assets 372 (312) 60 372 (285) 87 Total intangible assets $ 4,009 $ (1,709) $ 2,300 $ 4,009 $ (1,504) $ 2,505 Amortization expense for intangible assets for the three months ended September 30, 2016 and 2015 was $ 68 69 205 218

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 8. Debt On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank to borrow a combined $ 15.0 10.0 5.0 June 26, 2022 June 26, 2020 Interest on funds borrowed under the Term Loan and the Revolving Loan are charged at a rate per annum equal to LIBOR plus 2.25% Year Ending Long-term Debt 2016 (remaining 3 months) $ 336 2017 1,368 2018 1,407 2019 1,446 2020 1,487 Thereafter 2,306 Total $ 8,350

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Note 9. Commitments and Contingencies Operating Lease Commitments The Company has various operating leases related primarily to equipment and manufacturing and office space. On January 1, 2016, the Company commenced payments on a lease for its new corporate headquarters with payments of approximately $ 16,000 Minimum Lease Year Ending Payments 2016 (remaining 3 months) $ 263 2017 949 2018 763 2019 310 2020 267 Thereafter 427 Total $ 2,979 Legal Proceedings and Contingencies From time to time we are engaged in disputes and claims that arose in the normal course of business. We believe the ultimate outcome of these proceedings will not have a material adverse impact on our consolidated financial position or results of operations, but the outcome of these actions is inherently difficult to predict. There can be no assurance that we will prevail in any such litigation. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred. See also the discussion at Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

Geographic and Product Line Inf

Geographic and Product Line Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 10. Geographic and Product Line Information We manufacture and sell casino table game equipment in one operating segment - casino table game products. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit. Our chief operating decision maker is our Chief Executive Officer (CEO). The CEO manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France, and Macau S.A.R.; that is, the individual locations do not have “segment” or “product line” managers who report to our CEO. Three Months Ended September 30, 2016 2015 Revenues The Americas $ 13,650 60.6 % $ 13,360 67.4 % Asia-Pacific 8,695 38.5 % 4,968 25.0 % Europe and Africa 214 0.9 % 1,516 7.6 % Total $ 22,559 100.0 % $ 19,844 100.0 % Nine Months Ended September 30, 2016 2015 Revenues The Americas $ 42,144 71.5 % $ 38,947 71.1 % Asia-Pacific 14,052 23.8 % 13,173 24.1 % Europe and Africa 2,800 4.7 % 2,629 4.8 % Total $ 58,996 100.0 % $ 54,749 100.0 % Three Months Ended September 30, 2016 2015 Casino currency without RFID $ 2,999 13.3 % $ 6,476 32.6 % Casino currency with RFID 5,797 25.7 % 850 4.3 % Total casino currency 8,796 39.0 % 7,326 36.9 % Playing cards 6,876 30.4 % 6,628 33.4 % Table accessories and other products 1,961 8.7 % 1,804 9.1 % Table layouts 1,231 5.4 % 1,630 8.2 % Gaming furniture 1,053 4.7 % 390 2.0 % RFID solutions 1,052 4.7 % 485 2.4 % Dice 672 3.0 % 706 3.6 % Shipping 918 4.1 % 875 4.4 % Total $ 22,559 100.0 % $ 19,844 100.0 % Nine Months Ended September 30, 2016 2015 Casino currency without RFID $ 11,478 19.5 % $ 13,102 23.9 % Casino currency with RFID 9,322 15.8 % 5,507 10.1 % Total casino currency 20,800 35.3 % 18,609 34.0 % Playing cards 19,922 33.8 % 18,255 33.4 % Table accessories and other products 5,114 8.6 % 5,372 9.8 % Table layouts 3,947 6.7 % 4,754 8.7 % RFID solutions 2,576 4.4 % 1,939 3.5 % Dice 2,101 3.6 % 2,043 3.7 % Gaming furniture 2,090 3.5 % 1,353 2.5 % Shipping 2,446 4.1 % 2,424 4.4 % Total $ 58,996 100.0 % $ 54,749 100.0 % For the nine month periods ended September 30, 2016, and September 30, 2015, no customer accounted for more than 10% of the Company’s revenues. September 30, 2016 December 31, 2015 United States $ 10,780 $ 7,000 Mexico 7,033 3,249 France 5,143 3,544 Asia 327 309 Total $ 23,283 $ 14,102 September 30, 2016 December 31, 2015 Intangible assets, net: United States $ 1,830 $ 2,006 Asia 470 497 France - 2 Total $ 2,300 $ 2,505

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 11. Earnings per Share Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted-average number of common shares outstanding - basic 7,929 7,929 7,929 7,924 Potential dilution from equity options granted 128 120 110 114 Weighted-average number of common shares outstanding - diluted 8,057 8,049 8,039 8,038 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Outstanding anti-dilutive options 16 36 39 47

Nature of Business and Signif19

Nature of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Basis of Consolidation and Presentation. These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-12, Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606)

Dolphin asset acquisition (Tabl

Dolphin asset acquisition (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The acquisition was treated as an asset acquisition. The total cost of the acquisition was $ 7.3 4.0 0.5 0.6 1.1 Assets Property and equipment $ 5,625 Inventory 1,688 Total acquired $ 7,313

Cash, Cash Equivalents, and M21

Cash, Cash Equivalents, and Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents and Marketable Securities [Table Text Block]	We hold our cash, cash equivalents, and marketable securities in various financial institutions in the countries shown below. Substantially all accounts have balances in excess of government-insured limits. The following table summarizes our holdings (in thousands): September 30, 2016 December 31, 2015 Cash and Marketable Total Cash and Marketable Total Macau S.A.R., China $ 4,996 $ - $ 4,996 $ 4,040 $ - $ 4,040 United States (including Mexico) 3,797 - 3,797 12,861 - 12,861 France 1,712 - 1,712 887 3,503 4,390 Total $ 10,505 $ - $ 10,505 $ 17,788 $ 3,503 $ 21,291
Available-for-sale Securities [Table Text Block]	Available-for-sale marketable securities as of 31 December, 2015 consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands): Cost Unrealized Fair Certificates of deposit $ 2,727 $ - $ 2,727 Bond mutual funds 776 - 776 Total marketable securities $ 3,503 $ - $ 3,503

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 10,443 $ 7,653 Work in progress 2,493 668 Finished goods 3,454 2,548 Total inventories $ 16,390 $ 10,869
Schedule of Inventory, Noncurrent [Table Text Block]	We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our unaudited condensed consolidated balance sheets is as follows (in thousands): September 30, 2016 December 31, 2015 Current $ 15,781 $ 10,199 Non-current 609 670 Total inventories $ 16,390 $ 10,869

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment consists of the following (in thousands): September 30, 2016 December 31, 2015 Land $ 652 $ 520 Buildings and improvements 7,770 6,839 Equipment and furniture 33,013 26,912 Vehicles 399 403 Construction in progress 4,742 1,403 46,576 36,077 Less accumulated depreciation (23,293) (21,975) Property and equipment, net $ 23,283 $ 14,102

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets consist of the following (in thousands): September 30, 2016 December 31, 2015 Gross Accum. Net Gross Accum. Net Trademarks $ 1,772 $ (548) $ 1,224 $ 1,772 $ (454) $ 1,318 Customer list 1,323 (324) 999 1,323 (245) 1,078 Patents 542 (525) 17 542 (520) 22 Other intangible assets 372 (312) 60 372 (285) 87 Total intangible assets $ 4,009 $ (1,709) $ 2,300 $ 4,009 $ (1,504) $ 2,505

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt [Table Text Block]	At September 30, 2016, estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands): Year Ending Long-term Debt 2016 (remaining 3 months) $ 336 2017 1,368 2018 1,407 2019 1,446 2020 1,487 Thereafter 2,306 Total $ 8,350

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	At September 30, 2016, minimum lease payment obligations are as follows (in thousands): Minimum Lease Year Ending Payments 2016 (remaining 3 months) $ 263 2017 949 2018 763 2019 310 2020 267 Thereafter 427 Total $ 2,979

Geographic and Product Line I27

Geographic and Product Line Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenue from Foreign Countries by Geographic Area [Table Text Block]	The following tables present our net sales by geographic area (dollars in thousands): Three Months Ended September 30, 2016 2015 Revenues The Americas $ 13,650 60.6 % $ 13,360 67.4 % Asia-Pacific 8,695 38.5 % 4,968 25.0 % Europe and Africa 214 0.9 % 1,516 7.6 % Total $ 22,559 100.0 % $ 19,844 100.0 % Nine Months Ended September 30, 2016 2015 Revenues The Americas $ 42,144 71.5 % $ 38,947 71.1 % Asia-Pacific 14,052 23.8 % 13,173 24.1 % Europe and Africa 2,800 4.7 % 2,629 4.8 % Total $ 58,996 100.0 % $ 54,749 100.0 %
Schedule of Product Revenue [Table Text Block]	The following tables present our net sales by product line (dollars in thousands): Three Months Ended September 30, 2016 2015 Casino currency without RFID $ 2,999 13.3 % $ 6,476 32.6 % Casino currency with RFID 5,797 25.7 % 850 4.3 % Total casino currency 8,796 39.0 % 7,326 36.9 % Playing cards 6,876 30.4 % 6,628 33.4 % Table accessories and other products 1,961 8.7 % 1,804 9.1 % Table layouts 1,231 5.4 % 1,630 8.2 % Gaming furniture 1,053 4.7 % 390 2.0 % RFID solutions 1,052 4.7 % 485 2.4 % Dice 672 3.0 % 706 3.6 % Shipping 918 4.1 % 875 4.4 % Total $ 22,559 100.0 % $ 19,844 100.0 % Nine Months Ended September 30, 2016 2015 Casino currency without RFID $ 11,478 19.5 % $ 13,102 23.9 % Casino currency with RFID 9,322 15.8 % 5,507 10.1 % Total casino currency 20,800 35.3 % 18,609 34.0 % Playing cards 19,922 33.8 % 18,255 33.4 % Table accessories and other products 5,114 8.6 % 5,372 9.8 % Table layouts 3,947 6.7 % 4,754 8.7 % RFID solutions 2,576 4.4 % 1,939 3.5 % Dice 2,101 3.6 % 2,043 3.7 % Gaming furniture 2,090 3.5 % 1,353 2.5 % Shipping 2,446 4.1 % 2,424 4.4 % Total $ 58,996 100.0 % $ 54,749 100.0 %
Schedule of Property Plant and Equipment by Geographic Area [Table Text Block]	The following table presents our property and equipment by geographic area (in thousands): September 30, 2016 December 31, 2015 United States $ 10,780 $ 7,000 Mexico 7,033 3,249 France 5,143 3,544 Asia 327 309 Total $ 23,283 $ 14,102
Schedule of Intangible Assets and Goodwill [Table Text Block]	The following table presents our intangible assets by geographic area (in thousands): September 30, 2016 December 31, 2015 Intangible assets, net: United States $ 1,830 $ 2,006 Asia 470 497 France - 2 Total $ 2,300 $ 2,505

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares [Table Text Block]	Shares used to compute basic and diluted earnings per share from operations are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted-average number of common shares outstanding - basic 7,929 7,929 7,929 7,924 Potential dilution from equity options granted 128 120 110 114 Weighted-average number of common shares outstanding - diluted 8,057 8,049 8,039 8,038
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	We have certain outstanding stock options to purchase common stock which have exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted net income per share (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Outstanding anti-dilutive options 16 36 39 47

Dolphin asset acquisition (Deta

Dolphin asset acquisition (Details) - Dolphin Asset Acquisition [Member] $ in Thousands	Sep. 30, 2016USD ($)
Property and equipment	$ 5,625
Inventory	1,688
Total acquired	$ 7,313

Dolphin asset acquisition (De30

Dolphin asset acquisition (Details Textual) - Dolphin Asset Acquisition [Member] - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2016	Aug. 31, 2016	May 31, 2016	May 11, 2018	May 11, 2017
Business Combination, Consideration Transferred			$ 7.3
Payments to Acquire Businesses, Gross		$ 0.5	$ 4
Business Combination, Acquisition Related Costs	$ 0.6
Scenario, Forecast [Member]
Business Combination, Contingent Consideration, Liability, Noncurrent				$ 1.1	$ 1.1

Cash, Cash Equivalents, and M31

Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	$ 10,505	$ 17,788	$ 12,829	$ 8,969
Marketable Securities	0	3,503
Total	10,505	21,291
United States (including Mexico) [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	3,797	12,861
Marketable Securities	0	0
Total	3,797	12,861
France [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	1,712	887
Marketable Securities	0	3,503
Total	1,712	4,390
Macau S.A.R., China [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	4,996	4,040
Marketable Securities	0	0
Total	$ 4,996	$ 4,040

Cash, Cash Equivalents, and M32

Cash, Cash Equivalents, and Marketable Securities (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost		$ 3,503
Unrealized Gain/(Loss)	$ 0
Fair Value		3,503
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		2,727
Unrealized Gain/(Loss)	0
Fair Value		2,727
Bond Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		776
Unrealized Gain/(Loss)	$ 0
Fair Value		$ 776

Accounts Receivable and Allow33

Accounts Receivable and Allowance for Doubtful Accounts (Details Textual)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	100.00%	100.00%
One Casino Customer [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	16.00%		33.00%
Two Casino Customer [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	14.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 10,443	$ 7,653
Work in progress	2,493	668
Finished goods	3,454	2,548
Total inventories	$ 16,390	$ 10,869

Inventories (Details 1)

Inventories (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current	$ 15,781	$ 10,199
Non-current	609	670
Total inventories	$ 16,390	$ 10,869

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Land	$ 652	$ 520
Buildings and improvements	7,770	6,839
Equipment and furniture	33,013	26,912
Vehicles	399	403
Construction in progress	4,742	1,403
Property, Plant and Equipment, Gross	46,576	36,077
Less accumulated depreciation	(23,293)	(21,975)
Property and equipment, net	$ 23,283	$ 14,102

Property and Equipment (Detai37

Property and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 658	$ 633	$ 1,987	$ 1,950

Goodwill and Intangible Asset38

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 4,009	$ 4,009
Intangible assets, Accumulated Amortization	(1,709)	(1,504)
Intangible assets, Net Carrying Amount	2,300	2,505
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	1,772	1,772
Intangible assets, Accumulated Amortization	(548)	(454)
Intangible assets, Net Carrying Amount	1,224	1,318
Customer list [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	1,323	1,323
Intangible assets, Accumulated Amortization	(324)	(245)
Intangible assets, Net Carrying Amount	999	1,078
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	542	542
Intangible assets, Accumulated Amortization	(525)	(520)
Intangible assets, Net Carrying Amount	17	22
Other intangible assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	372	372
Intangible assets, Accumulated Amortization	(312)	(285)
Intangible assets, Net Carrying Amount	$ 60	$ 87

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization Of Intangible Assets	$ 68	$ 69	$ 205	$ 218
Goodwill	$ 10,292		$ 10,292		$ 10,292

Debt (Details)

Debt (Details) $ in Thousands	Sep. 30, 2016USD ($)
Principal Balance
2016 (remaining 3 months)	$ 336
2,017	1,368
2,018	1,407
2,019	1,446
2,020	1,487
Thereafter	2,306
Total	$ 8,350

Debt (Details Textual)

Debt (Details Textual) $ in Millions	1 Months Ended
	Jun. 26, 2015USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	LIBOR plus 2.25%
Nevada State Bank [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 15
Long-term Debt [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 10
Line of Credit Facility, Expiration Date	Jun. 26, 2022
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 5
Line of Credit Facility, Expiration Date	Jun. 26, 2020

Commitments and Contingencies42

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2016USD ($)
Operating Leases, Future Minimum Payments
2016 (remaining 3 months)	$ 263
2,017	949
2,018	763
2,019	310
2,020	267
Thereafter	427
Total	$ 2,979

Commitments and Contingencies43

Commitments and Contingencies (Details Textual)	1 Months Ended
	Jan. 31, 2016USD ($)
Commitments and Contingencies [Line Items]
Operating Leases, Rent Expense, Minimum Rentals	$ 16,000

Geographic and Product Line I44

Geographic and Product Line Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Revenues, Percentage			100.00%	100.00%
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
The Americas [Member]
Segment Reporting Information [Line Items]
Revenues	$ 13,650	$ 13,360	$ 42,144	$ 38,947
The Americas [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	60.60%	67.40%	71.50%	71.10%
Asia-Pacific [Member]
Segment Reporting Information [Line Items]
Revenues	$ 8,695	$ 4,968	$ 14,052	$ 13,173
Asia-Pacific [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	38.50%	25.00%	23.80%	24.10%
Europe and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	$ 214	$ 1,516	$ 2,800	$ 2,629
Europe and Africa [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	0.90%	7.60%	4.70%	4.80%

Geographic and Product Line I45

Geographic and Product Line Information (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Revenues, Percentage			100.00%	100.00%
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
Casino currency without RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 2,999	$ 6,476	$ 11,478	$ 13,102
Revenues, Percentage			19.50%	23.90%
Casino currency without RFID [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	13.30%	32.60%
Casino currency with RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 5,797	$ 850	$ 9,322	$ 5,507
Revenues, Percentage			15.80%	10.10%
Casino currency with RFID [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	25.70%	4.30%
Total casino currency [Member]
Segment Reporting Information [Line Items]
Revenues	$ 8,796	$ 7,326	$ 20,800	$ 18,609
Revenues, Percentage			35.30%	34.00%
Total casino currency [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	39.00%	36.90%
Playing Cards [Member]
Segment Reporting Information [Line Items]
Revenues	$ 6,876	$ 6,628	$ 19,922	$ 18,255
Revenues, Percentage			33.80%	33.40%
Playing Cards [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	30.40%	33.40%
Table layouts [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,231	$ 1,630	$ 3,947	$ 4,754
Revenues, Percentage			6.70%	8.70%
Table layouts [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	5.40%	8.20%
Table accessories and other products [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,961	$ 1,804	$ 5,114	$ 5,372
Revenues, Percentage			8.60%	9.80%
Table accessories and other products [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	8.70%	9.10%
Dice [Member]
Segment Reporting Information [Line Items]
Revenues	$ 672	$ 706	$ 2,101	$ 2,043
Revenues, Percentage			3.60%	3.70%
Dice [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	3.00%	3.60%
Gaming furniture [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,053	$ 390	$ 2,090	$ 1,353
Revenues, Percentage			3.50%	2.50%
Gaming furniture [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.70%	2.00%
RFID solutions [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,052	$ 485	$ 2,576	$ 1,939
Revenues, Percentage			4.40%	3.50%
RFID solutions [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.70%	2.40%
Shipping [Member]
Segment Reporting Information [Line Items]
Revenues	$ 918	$ 875	$ 2,446	$ 2,424
Revenues, Percentage			4.10%	4.40%
Shipping [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.10%	4.40%

Geographic and Product Line I46

Geographic and Product Line Information (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Property and equipment, net	$ 23,283	$ 14,102
United States [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	10,780	7,000
France [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	5,143	3,544
Mexico [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	7,033	3,249
Asia [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	$ 327	$ 309

Geographic and Product Line I47

Geographic and Product Line Information (Details 3) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Intangible assets, net	$ 2,300	$ 2,505
United States [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	1,830	2,006
France [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	0	2
Asia [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	$ 470	$ 497

Earnings per Share (Details)

Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic and Diluted Earnings Per Share [Line Items]
Weighted-average number of common shares outstanding - basic	7,929	7,929	7,929	7,924
Potential dilution from equity options granted	128	120	110	114
Weighted-average number of common shares outstanding - diluted	8,057	8,049	8,039	8,038

Earnings per Share (Details 1)

Earnings per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic and Diluted Earnings Per Share [Line Items]
Outstanding anti-dilutive options	16	36	39	47