Table Trac Q3 2026 net profit falls to $38.2K
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Table Trac, Inc. (TBTC) reported nine-month revenue of $10,565,343, versus $8,010,415 a year earlier, and net income of $2,014,644, versus $985,374. Operating income was $2,305,230, compared with $951,514, and diluted earnings per share were $0.43 versus $0.21. The company delivered nine new systems and upgraded three existing systems during the nine-month period; system revenue was $3,757,051.
Third-quarter revenue was $2,406,120, up from $2,135,636, but net income was $38,219, down from $58,352, and the operating loss was $49,135. Nine-month gross margin was 69.5%, compared with 74.1%, and net cash provided by operating activities was $957,189, versus $1,554,421. Cash and equivalents were $8,436,867 at September 30, 2026, and two systems were in backlog. On November 6, 2026, the board declared a $0.02-per-share cash dividend, payable December 11, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month revenue reached $10,565,343, versus $8,010,415.
- Moderate pointNine-month net income was $2,014,644, versus $985,374.
Negative
- Moderate pointThird-quarter net income fell to $38,219 from $58,352.
- Moderate pointNine-month net cash provided by operating activities was $957,189, versus $1,554,421.
- Moderate pointNine-month gross margin declined to 69.5% from 74.1%.
Filing Explained
As of September thirtieth, about seven hundred twenty-one thousand four hundred seventy dollars for installed systems remained unrecognized pending reassessment of collectability.
On
The company reports it had signed two new system-installation contracts as of the report date; its disclosed backlog was two systems at
Approximately
Key Figures
Key Terms
performance obligation financial
contract asset financial
sales type lease financial
Black-Scholes option-pricing model financial
single reportable segment financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Table Trac’s TBTC results for the first nine months of 2026?
What were TBTC’s third-quarter 2026 results?
When is TBTC’s next dividend payable, and who qualifies?
AI-generated analysis. How Rhea-AI works. Not financial advice.
121
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
For the quarterly period ended
or
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
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| (State or Other Jurisdiction of |
| (I.R.S. Employer |
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
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| N/A |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ |
| | Smaller reporting company |
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| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of November 12, 2026, the registrant had outstanding
Table Trac, Inc.
Index
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| PART I. FINANCIAL INFORMATION |
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| Item 1. Financial Statements |
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| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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| Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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| Item 4. Controls and Procedures |
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| PART II. OTHER INFORMATION |
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| Item 1A. Risk Factors |
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| Item 5. Other Information | |
| Item 6. Exhibits |
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| SIGNATURES |
18 |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TABLE TRAC, INC.
CONTENTS
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| CONDENSED FINANCIAL STATEMENTS (Unaudited) |
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| Condensed Balance Sheets |
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| Condensed Statements of Operations |
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| Condensed Statements of Stockholders’ Equity |
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| Condensed Statements of Cash Flows |
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| Notes to Condensed Financial Statements |
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TABLE TRAC, INC.
CONDENSED BALANCE SHEETS
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Inventory, net | ||||||||
| Prepaid expenses | ||||||||
| Net investment in sales type leases - current | ||||||||
| Income tax receivable | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| LONG-TERM ASSETS | ||||||||
| Accounts receivable - long-term | ||||||||
| Property and equipment, net | ||||||||
| Net investment in sales type leases - long term | ||||||||
| Software development costs, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| TOTAL LONG-TERM ASSETS | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | $ | ||||||
| Customer deposits | ||||||||
| Current portion of operating lease liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| LONG-TERM LIABILITIES | ||||||||
| Operating lease liabilities | ||||||||
| Deferred tax liability | ||||||||
| TOTAL LIABILITIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, $ par value; shares authorized: shares issued; and | ||||||||
| and shares outstanding at September 30, 2026 and December 31, 2025, respectively. | ||||||||
| Additional paid-in capital | ||||||||
| Retained earnings | ||||||||
| STOCKHOLDERS' EQUITY BEFORE TREASURY STOCK | ||||||||
| Treasury stock, and shares (at cost) at September 30, 2026 | ||||||||
| and December 31, 2025, respectively. | ( | ) | ( | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||
See notes to condensed unaudited financial statements.
TABLE TRAC, INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| Gross profit | ||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||
| Income (loss) from operations | ( | ) | ( | ) | ||||||||||||
| Other income | ||||||||||||||||
| Interest income | ||||||||||||||||
| Income before taxes | ||||||||||||||||
| Income tax expense | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Net income per share - basic | $ | $ | $ | $ | ||||||||||||
| Net income per share - diluted | $ | $ | $ | $ | ||||||||||||
| Weighted-average shares outstanding - basic | ||||||||||||||||
| Weighted-average shares outstanding - diluted | ||||||||||||||||
See notes to condensed unaudited financial statements.
TABLE TRAC, INC.
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)
| Common Stock Outstanding | Additional | |||||||||||||||||||||||
| Number of | Par | Paid-in | Retained | Treasury | ||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Stock | Total | |||||||||||||||||||
| BALANCE, December 31, 2024 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Issuance of common stock out of treasury | ||||||||||||||||||||||||
| Cash dividends declared | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, March 31, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Cash dividends | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, June 30, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Cash dividend | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Exercise of stock options | ||||||||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, September 30, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| BALANCE, December 31, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Issuance of common stock out of treasury | ||||||||||||||||||||||||
| Cash dividend | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, March 31, 2026 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Cash dividend | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, June 30, 2026 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Stock compensation expense | 0 | |||||||||||||||||||||||
| Cash dividend | 0 | ( | ) | ( | ) | |||||||||||||||||||
| Exercise of stock options | ||||||||||||||||||||||||
| Net income | 0 | |||||||||||||||||||||||
| BALANCE, September 30, 2026 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
See notes to condensed unaudited financial statements.
TABLE TRAC, INC.
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Deferred income taxes | ||||||||
| Provision of credit losses | ( | ) | ||||||
| Stock compensation expense | ||||||||
| Accrued interest on short-term investments | ( | ) | ||||||
| Noncash operating lease expense, net | ( | ) | ||||||
| Gain on sale of equipment | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Inventory | ( | ) | ||||||
| Prepaid expenses | ||||||||
| Net investment in sales type leases | ||||||||
| Accounts payable, accrued expenses | ||||||||
| Customer deposits | ( | ) | ( | ) | ||||
| Income tax receivable and payable | ||||||||
| Net cash provided by operating activities | ||||||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | ( | ) | ||||||
| Proceeds from sale of equipment | ||||||||
| Proceeds from short-term investments | ||||||||
| Net cash provided by (used in) investing activities | ( | ) | ||||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from exercise of employee stock options | ||||||||
| Payment of dividends | ( | ) | ( | ) | ||||
| Net cash used in financing activities | ( | ) | ( | ) | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | ||||||||
| CASH AND CASH EQUIVALENTS | ||||||||
| Beginning of period | ||||||||
| End of period | ||||||||
| Non-cash investing and financing activities: | ||||||||
| Common stock issued out of treasury stock for settlement of accrued liabilities | ||||||||
| Supplemental cash flow information: | ||||||||
| Cash paid for income taxes | ||||||||
See notes to condensed unaudited financial statements.
TABLE TRAC, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
| 1. | Nature of Business and Summary of Significant Accounting Policies – |
Basis of Presentation
The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 8-03 of Regulation S-X. Certain information normally included in financial statements and related footnotes prepared in accordance with generally accepted accounting principles has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed balance sheet as of September 30, 2026 and the condensed statements of operations, stockholders’ equity and cash flows for the nine months ended September 30, 2026 and 2025 are unaudited but include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position at such date and the operating results and cash flows for the interim periods presented.
The accompanying condensed financial statements and notes should be read in conjunction with the financial statements and notes included in the Table Trac, Inc. Annual Report on Form 10-K for the year ended December 31, 2025.
Nature of Business
Table Trac was formed under the laws of the State of Nevada in June 1995. The Company has offices in Minnetonka, Minnesota, Las Vegas, Nevada 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.
Table Trac provides system sales and technical support to casinos. System sales include installation, custom casino system configurations, and training. In addition, license, technical support and other services are provided under separate license and service contracts.
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 collectibility, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, realizability of accounts receivable and revenue, and the valuation of allowance for credit losses, deferred tax assets and liabilities, and inventory. Actual results could differ from those estimates, and the difference could be significant. For further information about our critical accounting estimates, see the discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
There were no changes in critical accounting estimates or assumptions for the nine months ended September 30, 2026.
The Company’s significant accounting policies are described in Note 1 of the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2025.
Concentrations of Risk
The Company maintains cash balances with various financial institutions. These balances may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limits. To mitigate this risk, the Company participates in the IntraFi Network DepositsSM (formerly known as CDARS® and ICS®), a program that allows depositors to access multi-million-dollar FDIC insurance coverage on large deposits through a network of participating banks.
Through the IntraFi program, the Company’s funds are placed into deposit accounts at multiple member banks in increments below the FDIC insurance limit of $250,000 per institution, per ownership category. This structure enables full FDIC insurance coverage while maintaining liquidity and risk diversification. All funds placed through IntraFi remain obligations of the originating financial institution, and the Company receives a consolidated statement detailing all covered deposits.
Management believes that participation in the IntraFi Network reduces the concentration and credit risk associated with uninsured deposits and enhances the safety of the Company’s cash holdings.
Cash equivalents represent money market funds or short-term investments with original maturities of three months or less from the date of purchase.
Stock-Based Compensation
The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees, directors and non-employees. 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 determines the fair value of restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period.
For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options.
Revenues
The Company derives revenues from the sale or leasing of systems, licenses and maintenance fees and other services.
System Sales
Revenue is recognized upon transfer of control of promised products and 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. See discussion within the Significant Judgements paragraph regarding our determination of SSP. At contract inception, management assesses whether it is probable that the Company will collect substantially all of the consideration to determine whether the contract meets the criterion for collectability. The revenue allocated to the casino management system is recognized upon installation. The Company occasionally enters into contracts that include 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. 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 significant financing component which is usually a market interest rate. The associated interest income is reflected accordingly on the statement of operations.
Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not meet the criterion for collectability. The balance of these contracts are not included as part of accounts receivable on the balance sheet. Accordingly, for these contracts whereby the collectability criterion has not been met, revenue will be recognized as payments are received.
Maintenance Revenues
Maintenance revenue is recognized ratably over the contract period of five years. The SSP for maintenance is based upon the renewal rate for contracted services.
Lease Revenues
The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. The Company leases hardware to a customer and receives monthly payments. Revenue is recognized ratably over the contract period.
Service Revenues and Other Revenues
Other revenue includes DataTrac, KioskTrac and Kiosks, SlotSUITE and other promotional programs and sales of equipment. Service revenue is recognized upon completion of the services and are billed in arrears. Revenue is recognized for DataTrac, SlotSUITE and other promotional programs ratably over the contract period. Revenue is recognized for kiosks and sales of equipment upon shipment. The SSP 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 SSP selling price for licensing revenue is established based upon actual selling prices for the license.
The following table summarizes disaggregated revenues by major product line for the three and nine months ended September 30, 2026 and 2025, respectively:
| Three months ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (percent of revenues) | ||||||||||||||||
| System revenue | $ | $ | % | % | ||||||||||||
| Maintenance revenue | % | % | ||||||||||||||
| Service and other revenue | % | % | ||||||||||||||
| Total revenues | $ | $ | % | % | ||||||||||||
| Nine months ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (percent of revenues) | ||||||||||||||||
| System revenue | $ | $ | % | % | ||||||||||||
| Maintenance revenue | % | % | ||||||||||||||
| Lease revenue | % | % | ||||||||||||||
| Service and other revenue | % | % | ||||||||||||||
| Total revenues | $ | $ | % | % | ||||||||||||
See Major Customers for disaggregated revenue information about primary geographical markets.
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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately.
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 perform a gross margin analysis using information such as the size of the customer and geographic region in determining the SSP.
We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers. As of September 30, 2026 and December 31, 2025 we recorded a contract asset of approximately $
As of January 1, 2025, the balance of accounts receivable, net and customer deposits were $
The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors. As of September 30, 2026 and December 31, 2025, approximately $
We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately
Fair Value of Financial Instruments
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The Company considers the carrying amounts of these financial instruments to approximate their fair values due to their short-term nature. 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.
Long-term receivables are initially recorded at present value based on expected future cash flows using an appropriate discount rate. The resulting discount is accreted over the term of the receivable.
Cash and Cash Equivalents
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 credit losses
Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet at net realizable value as of each balance sheet date. For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt in the statements of operations. We maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as general and administrative expense in the Condensed Statements of Operations. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider customer-specific information, current market conditions, and reasonable and supportable forecasts of future economic conditions. Management believes that receivables, net of the allowance for credit losses, are fully collectable. 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 will not have a material impact on the Company’s financial position.
Major Customers
The following table summarizes the Company's major customers' information for the three and nine months ended September 30, 2026 and 2025:
| For the Three months ended September 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| % Revenues | % AR | % Revenues | % AR | |||||||||||||
| Major | % | % | % | % | ||||||||||||
| All Others | % | % | % | % | ||||||||||||
| Total | % | % | % | % | ||||||||||||
| For the Nine months ended September 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| % Revenues | % AR | % Revenues | % AR | |||||||||||||
| Major | % | % | % | % | ||||||||||||
| All Others | % | % | % | % | ||||||||||||
| Total | % | % | % | % | ||||||||||||
For the three month periods ended September 30, 2026 and 2025, sales to customers in the United States represent
A major customer is defined as any customer that represents at least 10% of revenue for a given period or 10% of outstanding accounts receivable at the end of a period.
Inventory
Inventory, consisting primarily of finished goods, is stated at the lower of cost or net realizable value. The average cost method is used to value inventory. Inventory is reviewed quarterly for the lower of cost or net realizable value and obsolescence. Any material cost found to be above net realizable value or considered obsolete is written down accordingly. The Company had an obsolescence reserve of $
Net Investment in Sales Type Lease
Net investment in leases is recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease.
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 to 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 group to future undiscounted net cash flows expected to be generated by the asset groups. If such asset groups 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.
Leases
The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company has elected to use the incremental borrowing rate in determining the present value of lease payments for all asset classes. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For lease agreements that contain both lease and non-lease components, the Company has elected to account for the lease and non-lease components as a single lease component. The Company has elected to not apply the requirements of ASC 842 for short-term leases. Short-term leases are defined as leases that, at the commencement date, have lease terms of twelve months or less.
Software Development Costs
Research and Development
Expenditures for research and product development costs, before technological feasibility is reached are expensed as incurred. Research and development expenses were $
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. Restricted stock shares are included in basic shares as of the beginning of the period in which the vesting conditions are satisfied. (See Note 7).
| 2. | Accounts Receivable – |
Accounts receivable consisted of the following at:
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Accounts receivable - current | $ | $ | ||||||
| Contract receivable - current | ||||||||
| Less allowance for credit losses | ( | ) | ( | ) | ||||
| Accounts receivable current - net | $ | $ | ||||||
| Accounts receivable - long-term | $ | $ | ||||||
| Contract receivable - long-term | ||||||||
| Accounts receivable long term | $ | $ | ||||||
A roll-forward of the Company’s allowance for credit losses for the nine month periods ended September 30, 2026 and 2025 are as follows:
| September 30, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Allowance for credit losses, beginning of period | $ | $ | ||||||
| Current period provision | ( | ) | ||||||
| Write-offs | ( | ) | ( | ) | ||||
| Allowance for credit losses, end of period | $ | $ | ||||||
| 3. | Net Investment in Sales-Type Lease – |
In January 2021, the Company entered into a year lease with a customer for hardware which had an implied interest rate of
At inception, the Company recorded $
In December 2022, the Company entered into a year lease with a customer for hardware which had an implied interest rate of
At inception, the Company recorded $
The future minimum lease payments receivable for sales type leases are as follows:
| Amount | ||||
| 2026 (remainder) | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Total undiscounted cash flows | ||||
| Present value discount | ||||
| Net investment in lease as of September 30, 2026 | $ | |||
The current portion of $
| 4. | Operating Leases – |
We lease space under non-cancelable operating leases for our three 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.
On June 19, 2024, we extended our lease for the Minnesota location. The term of the extension is
Maturities of our lease liabilities for all operating leases are as follows as of September 30, 2026 for the years ended:
| 2026 (remainder) | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total lease payments | ||||
| Less: Interest | ( | ) | ||
| Present value of lease liabilities | $ | |||
The following table summarizes the Company's operating lease expenses for the nine months ended September 30:
| 2026 | 2025 | |||||||
| Operating lease expense | $ | $ | ||||||
| Variable lease expense | ||||||||
| Total lease expense | $ | $ | ||||||
We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our estimated incremental interest rates to borrow an amount approximating the aggregate lease payments collateralized by the property at the commencement of the lease.
The following table summarizes the Company's operating lease information for the nine months ended September 30:
| 2026 | 2025 | |||||||
| Operating cash flow from operating leases | $ | $ | ||||||
| Right of use asset in exchange for new operating lease liabilities | ||||||||
| Weighted average remaining lease term - operating leases (years) | ||||||||
| Weighted average discount rate - operating leases | % | % | ||||||
| 5. | Bank Financing – |
Revolving Credit Line
The Company has a revolving credit line of up to $
| 6. | Stockholders’ Equity – |
Cash Dividend
The Company's common stock contains rights to participate in earnings, dividends, and voting.
Dividend dates and amounts for the nine month period ended September 30, 2026 are listed in the table below:
| Date Declared | Dividend Declared Per Share | Total Dividend Amount | Date Dividend Paid | ||||||
| January 23, 2026 | $ | $ | | ||||||
| February 26, 2026 | $ | | |||||||
| May 9, 2026 | $ | | |||||||
| August 7, 2026 | $ | | |||||||
| Totals | $ | $ | |||||||
Dividend dates and amounts for the nine month period ended September 30, 2025 are listed in the table below:
| Date Declared | Dividend Declared Per Share | Total Dividend Amount | Date Dividend Paid | ||||||
| February 28, 2025 | $ | $ | | ||||||
| May 5, 2025 | $ | | |||||||
| August 7, 2025 | $ | | |||||||
| Totals | $ | $ | |||||||
Stock Compensation
On May 14, 2021, the Company's Board of Directors approved the 2021 Stock Incentive Plan (the "Plan"). The Plan provides for the issuance of incentive and other equity-based awards to its employees. Options issued under the Plan are exercisable for periods not to exceed years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plan, with exercise prices equal to the closing price of shares of the Company’s common stock on the OTCQX at closing on the trading day of the date of award. The Company had
On March 5, 2025 Chad Hoehne and Randy Gilbert elected to be paid in the form of
On December 19, 2025, the Company awarded
On March 5, 2026 Chad Hoehne and Randy Gilbert elected to be paid in the form of
On August 7, 2026, the Company's Board of Directors granted
The Company has
For the three and nine months ending September 30, 2026 and 2025, the Company recorded compensation expense related to stock options granted of $
Stock-based compensation expense for stock options is recognized on a straight-line basis over the requisite service period of the awards, including awards with graded vesting provisions.
The fair value of the Company’s stock options issued during the three months ending September 30, 2026 was estimated using a Black-Scholes option pricing model with the following weighted-average assumptions:
| Expected volatility | % | |||
| Expected life (years) | ||||
| Risk-free interest rate | % | |||
| Expected dividend yield | % |
The expected volatility was estimated based on the Company's calculated historical volatility.
The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately one year. As of September 30, 2026 and 2025, the remaining unrecognized stock compensation expense for stock options and restricted stock was approximately $
The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2026:
| Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
| Options Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | Options Exercisable | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||
The following table summarizes the activity of all stock options outstanding for the nine months ended September 30, 2026 and 2025.
| 2026 | 2025 | |||||||||||||||
| Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||
| Options outstanding at beginning of period | $ | $ | ||||||||||||||
| Granted | ||||||||||||||||
| Exercised | ( | ) | ( | ) | ||||||||||||
| Expired | ( | ) | ( | ) | ||||||||||||
| Balance at September 30: | $ | $ | ||||||||||||||
| Options Exercisable at September 30: | $ | $ | ||||||||||||||
| 7. | Earnings Per Share – |
The Company computes earnings per share under two different methods, basic and diluted, and presents per-share data 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 three and nine months ended September 30, 2026 and 2025:
| For the Three Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Basic and diluted earnings per share calculation: | ||||||||
| Net income to common stockholders | $ | $ | ||||||
| Weighted average number of common shares outstanding - basic | ||||||||
| Basic net income per share | $ | $ | ||||||
| Weighted average number of common shares outstanding - diluted | ||||||||
| Diluted net income per share | $ | $ | ||||||
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Basic and diluted earnings per share calculation: | ||||||||
| Net income to common stockholders | $ | $ | ||||||
| Weighted average number of common shares outstanding - basic | ||||||||
| Basic net income per share | $ | $ | ||||||
| Weighted average number of common shares outstanding - diluted | ||||||||
| Diluted net income per share | $ | $ | ||||||
| 8. | Income Tax – |
| For the Three Months Ended, September 30, | ||||||||
| 2026 | 2025 | |||||||
| Income before provision for income taxes | $ | $ | ||||||
| Provision for income taxes | ||||||||
| Effective tax rates | % | % | ||||||
| For the Nine Months Ended, September 30, | ||||||||
| 2026 | 2025 | |||||||
| Income before provision for income taxes | $ | $ | ||||||
| Provision for income taxes | ||||||||
| Effective tax rates | % | % | ||||||
The effective tax rate increased for the three months ended September 30, 2026, as compared to the same period in 2025. The increase was primarily due to an increase due to a true up of estimates in our state tax apportionment.
The effective tax rate decreased for the nine months ended September 30, 2026, as compared to the same period in 2025. The decrease was primarily due to higher permanent differences in the prior-year period (decreasing the rate by approximately
| 9. | Segment Information – |
The Company conducts its business activities and reports financial results as a single reportable segment, the casino products segment. Using the management approach, qualitative and quantitative criteria established by ASC 280, the Company has determined it has a reportable segment. The Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing segment performance in a manner consistent with the way the Company operates its business and evaluates its financial results. There are no reconciling items to the statement of operations. The measurement of segment assets is reported on the balance sheet as total assets. The CODM uses income before taxes to evaluate income generated from segment assets (return on assets) and assesses significant expenses such as hardware, labor and installation costs in deciding whether to reinvest profits into the casino products segment. The Company’s CODM is the Chief Executive Officer. All of the Company’s customers are based in the United States. The nature of business and accounting policies of the casino products segment are the same as described in the organization and nature of business and summary of significant accounting policies.
| 10. | Subsequent Event – |
On
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth below should be read in conjunction with our unaudited financial statements, and notes thereto, contained in this Quarterly Report on Form 10-Q, as well as our audited financial statements, and notes thereto, contained in our Form 10-K filed with the SEC on March 24, 2026 relating to our year ended December 31, 2025.
Forward-Looking Statements
Some of the statements made in this section of our report are forward-looking statements. These forward-looking statements generally relate to and are based upon our current plans, expectations, assumptions and projections about future events. The words “anticipate,” “intend,” “plan,” “believe,” “could,” “project,” “estimate,” “expect,” “strategy,” “likely,” “may,” “should,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our management currently believes that the various plans, expectations, and assumptions reflected in or suggested by these forward-looking statements are reasonable. Nevertheless, all forward-looking statements involve risks and uncertainties and our actual actions or future results may be materially different from our plans, objectives or expectations, or our assumptions and projections underlying our present plans, objectives and expectations, as a result of many factors, including, but not limited to, those set forth under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other filings with the Securities and Exchange Commission.
In light of the foregoing, prospective investors are cautioned that the forward-looking statements included in this filing may ultimately prove to be inaccurate - even materially inaccurate. Because of the significant uncertainties inherent in such forward-looking statements, the inclusion of such information should not be regarded as a representation or warranty by Table Trac or any other person that our objectives, plans, expectations or projections that are contained in this filing will be achieved in any specified time frame, if ever.
General Overview
Table Trac, Inc. is a Nevada corporation, formed on June 27, 1995, with its principal office in Minnetonka, Minnesota.
In August 2022 and September 2020, the Company was granted U.S. Patents No. 11,417,169 and No. 10,769,885 B2, respectively, relating to its April 2017 patent applications (Application Nos. 16/984,755 and 15/946,227), titled “Systems and Methods of Facilitating Interactions Between an Electronic Gaming Machine, Game Player, and a Control System.”
In June 2021, the Company was granted U.S. Patent No. 11,024,116 related to its May 2020 application (Application No. 16/884,731), titled “Dynamic Automated Social Distancing on Electronic Gaming Machines.”
In addition, the Company renewed its trademark for “Table Trac” (Registration No. 5,529,779), originally granted July 31, 2018, and obtained a trademark registration for “CasinoTrac,” which was registered on July 23, 2019.
The Company continues to expand its intellectual property portfolio with ongoing patent development initiatives designed to support its core casino management and gaming technology platforms.
The Company has filed an additional patent application relating to a new artificial intelligence–based system to assist with back-office functions of casinos. This patent application reflects the Company’s ongoing focus on innovation and the development of proprietary solutions to enhance casino operations and data-driven decision-making. Earlier in the year, the Company filed additional patent applications relating to new and enhanced technologies, including an artificial intelligence–based training system for pit bosses, a system for managing gaming tickets, and a system for tracking progressive jackpots. These technologies incorporate data-driven and artificial intelligence–based technologies intended to improve operational visibility and processing efficiency. These patent applications reflect the Company’s ongoing focus on innovation and the development of proprietary solutions to enhance casino operations and data-driven decision-making.
The Company sells and leases systems and technical support to casinos. The open architecture of CasinoTrac is designed to provide operators with a secure, scalable, and flexible system that can interconnect and operate with most third-party software or hardware. Key products and services include modules designed to drive player tracking programs and kiosk promotions, as well as vault and cage controls. The Company’s systems are designed to meet strict auditing, accounting and regulatory requirements applicable to the gaming industry. The Company has developed a patented, real-time system that automates and monitors the operations of casino gaming tables. The Company continues to increase its market share by expanding its product offerings to include new system features, and ancillary products.
During the third quarter of 2026, the Company did not deliver any new systems. At the end of the quarter, the Company had casino management systems, table games management systems, DataTrac, KioskTrac, KioskTrac Mobile, SlotSUITE, RePrintEnroll kiosks installed with on-going support and maintenance contracts with over 115 casino operators in over 300 casinos worldwide. Sales to customers in the United States represented 91.3% of the Company’s total revenues for the three month period ending September 30, 2026.
Results of Operations – Three Months Ended September 30, 2026 Compared to Three months ended September 30, 2025
During the three months ended September 30, 2026, loss from operations was $49,135 compared to loss from operations of $47,530, for the three months ended September 30, 2025. The major components of revenues, cost of sales and selling, general and administrative expenses, and the reasons for changes in each, are discussed below.
Revenues
Revenues totaled $2,406,120 for the three months ended September 30, 2026 compared to $ 2,135,636, for the three months ended September 30, 2025.
Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers
During the three months ended September 30, 2026, the Company did not deliver any new systems. During the same period in 2025, the Company did not deliver any new systems .
Cost of Sales and Gross Profit
Cost of sales increased to $680,983 for the three months ended September 30, 2026, compared to $561,048, for the three months ended September 30, 2025 , primarily due to increased labor costs resulting from a greater allocation of personnel resources to customer service and support activities during the 2026 period.
| Three Months Ended September 30, |
||||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| (percent of revenues) |
(percent of revenues) |
|||||||||||||||
| System |
$ | 1,801 | $ | 4,786 | 0.1 | % | 0.2 | % | ||||||||
| Maintenance |
424,005 | 320,675 | 17.6 | % | 15.0 | % | ||||||||||
| Service and other |
255,177 | 235,587 | 10.6 | % | 11.0 | % | ||||||||||
| Total cost of sales |
$ | 680,983 | $ | 561,048 | 28.3 | % | 26.2 | % | ||||||||
| Gross profit |
$ | 1,725,137 | $ | 1,574,588 | 71.7 | % | 73.8 | % | ||||||||
The Company’s gross profit was 71.7% and 73.7% for the three months ended September 30, 2026 and 2025, respectively. This decrease was primarily attributable to increased labor costs resulting from the allocation of additional personnel resources to customer service and support activities in the three months ended September 30, 2026.
Selling, General and Administrative Expenses
For the three months ended September 30, 2026, selling, general and administrative expenses were $1,774,272 compared to $1,622,118 for the same period in 2025. This increase was primarily due to the timing of the G2E tradeshow, which occurred September 28 through October 1, 2026.
Interest Income
For the three months ended September 30, 2026, interest income was $104,859 compared to $116,532 for the same period in 2025. This decrease was a result of the company having no short-term investments and lower interest rates during 2026.
Tax Provision
The income tax expense for the three months ended September 30, 2026 was $28,000 as compared to $11,000, for the three months ended September 30, 2025. See Note 8 for an explanation of the increase in the effective tax rate.
Net Income
Income before taxes for the three months ended September 30, 2026 was $66,219 compared to income before taxes for the three months ended September 30, 2025 of $69,352. Net income for the three months ended September 30, 2026 was $38,219 compared to net income of $58,352 for the three months ended September 30, 2025. The basic and diluted income per share was $0.01 compared to basic and diluted income per share of $0.01 for the three months ended September 30, 2026 and 2025, respectively.
Results of Operations – Nine Months Ended September 30, 2026 Compared to Nine months ended September 30, 2025
During the nine months ended September 30, 2026, income from operations was $2,305,230 compared to income from operations of $951,514, for the nine months ended September 30, 2025. The major components of revenues, cost of sales and selling, general and administrative expenses, and the reasons for changes in each, are discussed below.
Revenues
Revenues totaled $ 10,565,343 for the nine months ended September 30, 2026 compared to $ 8,010,415, for the nine months ended September 30, 2025.
Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers
During the nine months ended September 30, 2026, the Company delivered nine new systems and upgraded three existing systems. During the same period in 2025, the Company delivered six systems and expanded three existing customers.
Cost of Sales and Gross Profit
Cost of sales increased to $3,217,914 for the nine months ended September 30, 2026 from $2,072,672, for the nine months ended September 30, 2025 due primarily to the size of each install completed during the nine months ended September 30, 2026. The following table summarizes our cost of sales for the nine months ended September 30, 2026 and 2025, respectively:
| Nine Months Ended September 30, |
||||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| (percent of revenues) |
(percent of revenues) |
|||||||||||||||
| System |
$ | 1,139,786 | $ | 573,361 | 10.8 | % | 7.2 | % | ||||||||
| Maintenance |
1,100,026 | 871,815 | 10.4 | % | 10.9 | % | ||||||||||
| Lease |
0 | 31,740 | 0.0 | % | 0.4 | % | ||||||||||
| Service and other |
978,102 | 595,756 | 9.3 | % | 7.4 | % | ||||||||||
| Total cost of sales |
$ | 3,217,914 | $ | 2,072,672 | 30.5 | % | 25.9 | % | ||||||||
| Gross profit |
$ | 7,347,429 | $ | 5,937,743 | 69.5 | % | 74.1 | % | ||||||||
The Company’s gross profit was 69.5% and 74.1% for the nine months ended September 30, 2026 and 2025, respectively. This decrease is a result of the increased material costs associated and the added complexities associated with the systems that were installed in the nine months ended September 30, 2026.
Selling, General and Administrative Expenses
For the nine months ended September 30, 2026, selling, general and administrative expenses were $5,042,199 compared to $4,986,229 for the same period in 2025. The increase was primarily due to greater utilization of contract labor during the 2026 period, which more than offset lower employee compensation costs resulting from a reduced headcount.
Interest Income
For the nine months ended September 30, 2026, interest income was $301,201 compared to $359,784 for the same period in 2025. This decrease was a result of the Company having no short-term investments and lower interest rates in the 2026 period.
Tax Provision
The income tax expense for the nine months ended September 30, 2026 was $603,000 as compared to $333,000, for the nine months ended September 30, 2025. See Note 8 for an explanation of the decrease in the effective tax rate.
Net Income
Income before taxes for the nine months ended September 30, 2026 was $2,617,644 compared to income before taxes for the nine months ended September 30, 2025 of $1,318,374. Net income for the nine months ended September 30, 2026 was $2,014,644 compared to net income of $985,374 for the nine months ended September 30, 2025. The basic and diluted income per share was $0.44 and $0.43 compared to basic and diluted income per share of $0.21 for the nine months ended September 30, 2026 and 2025, respectively.
Backlog
The Company’s backlog generally consists of incomplete system installation and expansion of offerings for currently installed and supported systems.
The Company had two systems in its backlog at September 30, 2026. The Company had one system installation in its backlog as of September 30, 2025. As of the filing date of this report, the Company has signed two new contracts for system installations.
The Company is currently serving gaming establishments in seventeen U.S. states, as well as countries in Central and South America, the Caribbean and Australia. The Company aims to pursue further opportunities and strategic partnerships.
Liquidity and Capital Resources
Management believes that the Company has adequate cash to meet its obligations and continue operations for both existing customer contracts and ongoing product development for at least the next 12 months from the date of this filing. The Company has a $500,000 line of credit and as of September 30, 2026, there were no borrowings outstanding under the line of credit. The Company’s primary sources of liquidity are cash and cash equivalents, receivables and future cash generated from operations. As of September 30, 2026, the Company had total cash and cash equivalents of $8,436,867. Management is not aware of any trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way.
Net cash provided by operations for the nine months ended September 30, 2026 was $957,189 compared to $1,554,421 for the nine month period ending September 30, 2025. This decrease was a result of a number of factors including an increase in accounts receivable, inventory and a decrease in customer deposits offset by an increase in net income.
For the nine months ended September 30, 2026 net cash used for investing activities was $19,905 compared to cash provided by investing activities of $2,570,085 for the same period in 2025. This decrease was primarily a result of the Company not having certificates of deposit maturing in the nine months ended September 30, 2026.
For the nine months ended September 30, 2026 net cash used in financing activities was $736,205 compared to $270,549 for the same period in 2025, This increase was due to the payment of a special cash dividend in the nine months ended September 30, 2026.
See Note 10, “Subsequent Event” of the Notes to Condensed Financial Statements in Part I, Item 1, “Financial Statements,” for information regarding our cash dividend following the end of the fiscal quarter. The declaration, amount and payment of any future cash dividends on the Company’s common stock will be at the discretion of the Board of Directors.
Off-Balance Sheet Arrangements
The Company had no off-balance sheet arrangements as of September 30, 2026.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in our reports filed pursuant to the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
As of September 30, 2026 our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of our disclosure controls and procedures as such term is defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded our disclosure controls and procedures were effective as of September 30, 2026.
Changes in Internal Control over Financial Reporting
There were no changes in our internal controls over financial reporting during the quarter ended September 30, 2026 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1A. Risk Factors
In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully review the risks discussed in our Annual Report on Form 10-K filed with the SEC on March 24, 2026 relating to our year ended December 31, 2025 before making an investment decision. The risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2025 do not include all of the risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results of operations. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
Item 5. Other Information
Item 6. Exhibits
| Exhibit |
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Description |
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| 3.1 |
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Articles of Incorporation, filed with the Nevada Secretary of State on June 2, 1995 (incorporated by reference to Exhibit 3 to the registrant’s registration statement on Form 10SB-12G filed on December 6, 1999). |
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| 3.2 |
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Amendment to Articles of Incorporation, filed with the Nevada Secretary of State on January 26, 2010 (incorporated by reference to Exhibit 3.2 to the registrant’s annual report on Form 10-K filed on March 31, 2011). |
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| 3.3 |
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Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to the registrant’s annual report on Form 10-K filed on March 31, 2011). |
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| 3.4 |
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Amendment No. 1 to Bylaws dated March 9, 2016 (incorporated by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed on March 15, 2016). |
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| 31.1 |
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Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith). |
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| 32 |
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Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
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| 101.INS |
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Inline XBRL Instance Document |
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| 101.SCH |
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Inline XBRL Taxonomy Extension Schema Document |
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| 101.CAL |
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Inline XBRL Taxonomy Extension Calculation Linkbase Document |
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| 101.DEF |
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Inline XBRL Taxonomy Extension Definition Linkbase Document |
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| 101.LAB |
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Inline XBRL Taxonomy Extension Label Linkbase Document |
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| 101.PRE |
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Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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, thereunto duly authorized.
| Dated: November 12, 2026 |
Table Trac, Inc. |
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(Registrant) |
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By: |
/s/ Randy Gilbert |
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Randy Gilbert Chief Executive Officer and Chief Financial Officer (principal executive officer and principal financial officer) |
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