glxz-8ka_20170402.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K/A

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  April 2, 2017

 

GALAXY GAMING, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

 

000-30653

20-8143439

(Commission File Number)

(I.R.S. Employer Identification No.)

 

 

6767 Spencer Street

Las Vegas, Nevada 89119

(Address of principal executive offices)

 

(702) 939-3254

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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Item 2.02

Results of Operations and Financial Condition

 

On April 3, 2017, Galaxy Gaming, Inc., (the “Company”) filed a Current Report on Form 8-K to provide disclosures required under Item 4.02, Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review, related to the Company’s financial statements previously issued for the fiscal year ended December 31, 2015, and for the quarters ended March 31, June 30, and September 30, 2016, due to two accounting errors noted during the preparation of the financial statements for the year ended December 31, 2016.  This Amended Current Report on Form 8-K/A is filed to provide updated information about the Company’s providing restated financial information as discussed below.

 

On April 17, 2017, the Company filed its annual report on Form 10-K for the fiscal year ended December 31, 2016, and on May 15, 2017, the Company filed its quarterly report on Form 10-Q for the period ended March 31, 2017, in which the accounting errors were corrected in the comparative 2016 periods. The restatements to reflect the correction of both errors are referred to herein collectively as the "Restatement."

 

In the original Current Report on Form 8-K, the Company disclosed its intention to amend its previously filed quarterly reports on Form 10-Q for the periods ended June 30 and September 30, 2016.  However, after careful consideration, the Company’s management and the Board of Directors have determined that amending the quarterly reports for the periods ended June 30 and September 30, 2016, is not necessary because the Company will provide the corrected comparative 2016 financial information in the reports to be filed for the corresponding periods in 2017.  Accordingly, the Company will restate the financial statements for the three and six months ended June 30, 2016, in its quarterly report on Form 10-Q for the period ended June 30, 2017, to be filed on or before August 14, 2017. Similarly, the Company will restate the financial statements for the three and nine months ended September 30, 2016, in its quarterly report on Form 10-Q for the period ended September 30, 2017, to be filed on or before November 14, 2017.  

 

Notwithstanding the foregoing, the tables below set forth the amounts as originally reported for the categories presented in the Company’s financial statements that were affected by the Restatement, the effect of the Restatement and the restated amounts for the periods presented.

 

As of and for the quarterly period ended June 30, 2016

 

Balance Sheet

 

As originally

reported

 

 

Impact of

restatement

 

 

As restated

 

Deferred tax asset - current

 

$

-

 

 

$

43,017

 

 

$

43,017

 

Deferred tax asset - net of current portion

 

 

-

 

 

 

393,321

 

 

 

393,321

 

Total assets

 

 

17,140,459

 

 

 

436,338

 

 

 

17,576,797

 

Income taxes payable

 

 

519,781

 

 

 

156,586

 

 

 

676,367

 

Accrued expenses

 

 

1,158,864

 

 

 

26,928

 

 

 

1,185,792

 

Deferred tax liability

 

 

75,358

 

 

 

(75,358

)

 

 

-

 

Total current liabilities

 

 

7,925,536

 

 

 

108,156

 

 

 

8,033,692

 

(Accumulated deficit) retained earnings

 

 

(35,552

)

 

 

738,646

 

 

 

703,094

 

Accumulated other comprehensive income

 

 

410,464

 

 

 

(410,464

)

 

 

-

 

Total stockholders' equity

 

 

3,428,000

 

 

 

328,182

 

 

 

3,756,182

 

Total liabilities and stockholders' equity

 

 

17,140,459

 

 

 

436,338

 

 

 

17,576,797

 

 


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Three Months Ended

June 30,2016

 

 

Six Months Ended

June 30,2016

 

Statements of Income

 

As originally

reported

 

 

Impact of

restatement

 

 

As

restated

 

 

As originally

reported

 

 

Impact of

restatement

 

 

As

restated

 

Selling, general and administrative

 

$

1,622,105

 

 

$

10,479

 

 

$

1,632,584

 

 

$

3,274,304

 

 

$

(8,489

)

 

$

3,265,815

 

Provision for income taxes

 

 

(231,057

)

 

 

(51,273

)

 

 

(282,330

)

 

 

(388,020

)

 

 

(134,335

)

 

 

(522,355

)

Foreign currency exchange gain

 

 

-

 

 

 

247,664

 

 

 

247,664

 

 

 

-

 

 

 

360,226

 

 

 

360,226

 

Net income

 

 

377,527

 

 

 

185,912

 

 

 

563,439

 

 

 

756,894

 

 

 

234,380

 

 

 

991,274

 

 

Statement of Cash Flow

 

As originally

reported

 

 

Impact of

restatement

 

 

As restated

 

Net income

 

$

756,894

 

 

$

234,380

 

 

$

991,274

 

Deferred income tax provision

 

 

388,020

 

 

 

(388,020

)

 

 

-

 

Decrease in accounts receivable

 

 

71,287

 

 

 

2,784

 

 

 

74,071

 

Decrease in accounts payable

 

 

(241,190

)

 

556

 

 

 

(240,634

)

Increase in income taxes payable

 

 

349,450

 

 

 

166,807

 

 

 

516,257

 

Increase in accrued expenses

 

 

327,090

 

 

 

7,811

 

 

 

334,901

 

Net cash provided by operating activities

 

 

2,654,343

 

 

 

24,318

 

 

 

2,678,661

 

Principal payments on notes payable

 

 

(2,488,778

)

 

 

(24,318

)

 

 

(2,513,096

)

Net cash used in financing activities

 

 

(2,524,011

)

 

 

(24,318

)

 

 

(2,548,329

)

 

As of and for the quarterly period ended September 30, 2016

 

Balance Sheet

 

As originally

reported

 

 

Impact of

restatement

 

 

As restated

 

Deferred tax asset - current

 

$

-

 

 

$

43,017

 

 

$

43,017

 

Deferred tax asset - net of current portion

 

 

-

 

 

 

393,321

 

 

 

393,321

 

Total assets

 

 

18,418,176

 

 

 

436,338

 

 

 

18,854,514

 

Income taxes payable

 

 

1,106,600

 

 

 

(94,623

)

 

 

1,011,977

 

Accrued expenses

 

 

976,834

 

 

 

26,928

 

 

 

1,003,762

 

Deferred tax liabilities

 

 

75,358

 

 

 

(75,358

)

 

 

-

 

Total current liabilities

 

 

4,606,229

 

 

 

(143,053

)

 

 

4,463,176

 

Retained earnings

 

 

785,421

 

 

 

579,391

 

 

 

1,364,812

 

Total stockholders' equity

 

 

3,879,584

 

 

 

579,391

 

 

 

4,458,975

 

Total liabilities and stockholders' equity

 

 

18,418,176

 

 

 

436,338

 

 

 

18,854,514

 

 


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Three Months Ended

September 30,2016

 

 

Nine Months Ended

September 30,2016

 

Statements of Income

 

As originally

reported

 

 

Impact of

restatement

 

 

As

restated

 

 

As originally

reported

 

 

Impact of

restatement

 

 

As

restated

 

Selling, general and administrative

 

$

1,576,480

 

 

$

(22,924

)

 

$

1,553,556

 

 

$

4,850,785

 

 

$

(31,412

)

 

$

4,819,373

 

Provision for income taxes

 

 

(602,619

)

 

 

251,207

 

 

 

(351,412

)

 

 

(990,639

)

 

 

116,871

 

 

 

(873,768

)

Foreign currency exchange (loss) gain

 

 

-

 

 

 

(5,926

)

 

 

(5,926

)

 

 

-

 

 

 

354,301

 

 

 

354,301

 

Loss on extinguishment of debt

 

 

(87,578

)

 

 

(427,459

)

 

 

(515,037

)

 

 

(87,578

)

 

 

(427,459

)

 

 

(515,037

)

Net income

 

 

820,972

 

 

 

(159,254

)

 

 

661,718

 

 

 

1,577,867

 

 

 

75,125

 

 

 

1,652,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flow

 

As originally

reported

 

 

Impact of

restatement

 

 

As restated

 

Net income

 

$

1,577,867

 

 

$

75,125

 

 

$

1,652,992

 

Loss on extinguishment of debt

 

 

87,578

 

 

 

427,459

 

 

 

515,037

 

Deferred income tax provision

 

 

54,370

 

 

 

(54,370

)

 

 

-

 

Increase in accounts receivable

 

 

(107,969

)

 

 

(705

)

 

 

(108,674

)

Decrease in other current assets

 

 

43,017

 

 

 

(43,017

)

 

 

-

 

Decrease in prepaid expenses and other current assets

 

 

6,608

 

 

 

2,314

 

 

 

8,922

 

Decrease in accounts payable

 

 

(858,954

)

 

550

 

 

 

(858,404

)

Increase in income taxes payable

 

 

936,269

 

 

 

(81,901

)

 

 

854,368

 

Increase in accrued expenses

 

 

141,841

 

 

 

11,030

 

 

 

152,871

 

Net cash provided by operating activities

 

 

3,321,274

 

 

 

336,485

 

 

 

3,657,759

 

Principal payments on long-term debt

 

 

(2,873,437

)

 

 

(336,485

)

 

 

(3,209,922

)

Net cash used in financing activities

 

 

(1,993,009

)

 

 

(336,485

)

 

 

(2,329,494

)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated:  August 4, 2017

 

GALAXY GAMING, INC.

 

 

        

 

By:

/s/ Harry C. Hagerty

 

 

Harry C. Hagerty

 

 

Chief Financial Officer

 

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