Table Trac Inc 10-K for FY2024

Table Trac Inc (TBTC)

10-K 2025-03-19 For: 2024-12-31

Added on April 06, 2026

About this 10-K

Table Trac Inc filed this 10-K on March 19, 2025, covering the fiscal year ended December 31, 2024 (FY2024).

Headline figures

Fiscal year ended December 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $11.16M; up 17.7% from $9.49M a year earlier
Net income: $1.58M; down 2.3% from net income of $1.61M a year earlier
Diluted EPS: $0.34; down 2.9% from $0.35 a year earlier

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Nevada		88-0336568
(State or other jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

6101 Baker Road, Suite 206, Minnetonka, Minnesota		55345
(Address of principal executive office)		(Zip Code)

Title of each class		Trading Symbol(s)		Name of each exchange on which register
N/A		N/A		N/A

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

		Page
PART I.
Item 1.	Business	1
Item 1A.	Risk Factors	3
Item 1B.	Unresolved Staff Comments	4
Item 1C.	Cybersecurity
Item 2.	Properties	4
Item 3.	Legal Proceedings	4
Item 4.	Mine Safety Disclosures	4

PART II.
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	5
Item 6.	Reserved	5
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	5
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	8
Item 8.	Financial Statements	F-1
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	9
Item 9A.	Controls and Procedures	9
Item 9B.	Other Information	9

PART III.
Item 10.	Directors, Officers and Corporate Governance	9
Item 11.	Executive Compensation	9
Item 12.	Security Ownership of Certain Beneficial Owners and Management	9
Item 13.	Certain Relationships and Related Transactions and Director Independence	9
Item 14.	Principal Accountant Fees and Services	9

PART IV.
Item 15.	Exhibits and Financial Statement Schedules	10
Signatures		11
Certifications and Exhibits

	Year Ended December 31,
	2024		2023		2024			2023
					(percent of revenues)			(percent of revenues)
System	$	1,209,320	$	820,936		10.8	%		8.7	%
Maintenance		1,042,247		929,177		9.3	%		9.8	%
Service and other		1,019,166		686,336		9.1	%		7.2	%
Total cost of sales	$	3,270,733	$	2,436,449		29.2	%		25.7	%
Gross profit	$	7,893,293	$	7,050,404		70.8	%		74.3	%


☒			Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
			For the transition period from to

	o	We tested management’s assessment of collectability by obtaining an understanding of the facts and circumstances considered, and judgments applied.
	o	We tested significant cash receipts to verify the corresponding revenue.


	*December 31,*			*December 31,*
	*2024*			*2023*
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,257,696		$	3,489,771
Short-term investments		4,627,744			1,502,805
Accounts receivable, net		2,343,062			2,109,193
Inventory, net		1,935,679			2,904,158
Prepaid expenses		534,767			364,886
Net investment in sales type leases - current		75,858			64,310
Income tax receivable		50,156			0
TOTAL CURRENT ASSETS		11,824,962			10,435,123

LONG-TERM ASSETS
Accounts receivable - long-term		1,011,355			891,351
Property and equipment, net		149,669			38,357
Net investment in sales type leases - long term		46,924			113,621
Software development costs, net		13,355			16,691
Operating lease right-of-use assets		474,157			243,171
TOTAL LONG-TERM ASSETS		1,695,460			1,303,191
TOTAL ASSETS	$	13,520,422		$	11,738,314

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	216,944		$	305,664
Customer deposits		870,602			785,805
Current portion of operating lease liabilities		80,999			114,294
Income tax payable		0			165,226
TOTAL CURRENT LIABILITIES		1,168,545			1,370,989

LONG-TERM LIABILITIES
Operating lease liabilities		435,796			126,760
Deferred tax liability		454,000			341,000
TOTAL LIABILITIES		2,058,341			1,838,749

STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,756,734 shares issued; and 4,635,568 and 4,634,865 shares outstanding at December 31, 2024 and December 31, 2023, respectively.		4,636			4,635
Additional paid-in capital		2,470,850			2,346,483
Retained earnings		9,209,030			7,771,655
		11,684,516			10,122,773
Treasury stock, 121,166 and 121,869 shares (at cost) at December 31, 2024 and December 31, 2023, respectively.		(222,435	)		(223,208	)
TOTAL STOCKHOLDERS’ EQUITY		11,462,081			9,899,565

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	13,520,422		$	11,738,314

	*For the Year Ended*
	*December 31,*
	*2024*		*2023*

Revenues	$	11,164,026	$	9,486,853
Cost of sales		3,270,733		2,436,449
Gross profit		7,893,293		7,050,404
Operating expenses:
Selling, general and administrative		6,175,668		5,374,687
Income from operations		1,717,625		1,675,717
Other income		2,587		4,283
Interest income		388,716		330,005
Income before taxes		2,108,928		2,010,005
Income tax expense		532,500		397,000
Net income	$	1,576,428	$	1,613,005
Net income per share - basic	$	0.34	$	0.35
Net income per share - diluted	$	0.34	$	0.35
Weighted-average shares outstanding - basic		4,569,933		4,553,080
Weighted-average shares outstanding - diluted		4,623,161		4,619,046

	*Common Stock Outstanding*				*Additional*
	*Number of*		*Par*		*Paid-in*			*Retained*			*Treasury*
	*Shares*		*Amount*		*Capital*			*Earnings*			*Stock*			*Total*
BALANCE, December 31, 2022		4,621,988	$	4,622	$	2,207,030		$	6,297,639		$	(233,599	)	$	8,275,692
Stock compensation expense		0		0		139,226			0			0			139,226
Cash dividends		0		0		0			(138,989	)		0			(138,989	)
Exercise of employee stock options		1,000		1		2,019			0			990			3,010
Stock issued to employees from treasury		10,000		10		(7,552	)					7,542			0
Stock issued for service from treasury		1,877		2		5,760			0			1,859			7,621
Net income		0		0		0			1,613,005			0			1,613,005
BALANCE, December 31, 2023		4,634,865	$	4,635	$	2,346,483		$	7,771,655		$	(223,208	)	$	9,899,565
Stock compensation expense		0		0		122,441			0			0			122,441
Cash dividends		0		0		0			(139,053	)		0			(139,053	)
Stock issued for service from treasury		703		1		1,926			0			773			2,700
Net income		0		0		0			1,576,428			0			1,576,428
BALANCE, December 31, 2024		4,635,568	$	4,636	$	2,470,850		$	9,209,030		$	(222,435	)	$	11,462,081

	*For the Years ended December 31,*
	*2024*						*2023*
	*% Revenues*			*% AR*			*% Revenues*			*% AR*
Major		33.9	%		47.5	%		19.2	%		0.0	%
All Others		66.1	%		52.5	%		80.8	%		100.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	*Years ended December 31,*
	*2024*		*2023*		*2024*			*2023*
					(percent of revenues)
System revenue	$	4,090,263	$	3,330,158		36.6	%		35.1	%
Maintenance revenue		5,378,620		4,985,415		48.2	%		52.6	%
Service and other revenue		1,695,143		1,171,280		15.2	%		12.3	%
Total revenues	$	11,164,026	$	9,486,853		100.0	%		100.0	%

	Amount
2025	$	81,750
2026		26,875
2027		22,800
Total undiscounted cash flows		131,425
Present value discount		8,643
Net investment in lease as of December 31, 2024	$	122,782


2025	$	113,330
2026		114,919
2027		77,398
2028		80,486
2029		83,958
Thereafter		154,965
Total Lease Payments		625,056
Less: Interest		108,261
Present value of lease liabilities	$	516,795

	*For the Year Ended*
	*December 31,*
	*2024*			*2023*
OPERATING ACTIVITIES
Net income	$	1,576,428		$	1,613,005
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		21,099			1,065
Deferred income taxes		113,000			10,000
Provision for credit losses		5,108			46,934
Stock issued for services to non-employee		2,700			7,621
Stock compensation expense		122,441			139,226
Accrued interest on short-term investment		(124,939	)		(2,805	)
Noncash lease expense		44,755			0
Gain on sale of equipment		(18,000	)		0

Changes in operating assets and liabilities:
Accounts receivable		(358,981	)		344,803
Inventory		968,479			(1,343,983	)
Prepaid expenses		(169,881	)		52,368
Net investment in sales type leases		55,149			57,686
Accounts payable, accrued expenses and other		(164,326	)		(109,922	)
Payroll liabilities		75,606			(10,665	)
Customer deposits		84,797			(699,817	)
Income tax receivable and payable		(215,382	)		289,424
Net cash provided by operating activities		2,018,053			394,940
INVESTING ACTIVITIES
Capital expenditures		(129,075	)		(39,422	)
Proceeds from sale of equipment		18,000			0
Purchase of short-term investment		(6,561,614	)		(1,500,000	)
Proceeds from short-term investment		3,561,614			0
Capitalized software development costs		0			(16,691	)
Net cash used in investing activities		(3,111,075	)		(1,556,113	)
FINANCING ACTIVITIES
Proceeds from employee stock options		0			3,010
Payment of dividends		(139,053	)		(138,989	)
Net cash used in financing activities		(139,053	)		(135,979	)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(1,232,075	)		(1,297,152	)

CASH AND CASH EQUIVALENTS

	*December 31,*		*December 31,*
	*2024*		*2023*

Allowance for credit losses, beginning of year	$	68,620	$	62,000
Adjustments		5,108		46,934
Write-off		0		(40,314	)
Accounts receivable allowance for credit losses, end of year		73,728		68,620

	*2024*		*2023*
Operating lease expense	$	132,406	$	85,228
Variable lease expense		35,303		33,555
Total lease expense	$	167,709	$	118,783

	*2024*			*2023*

Operating cash flow from operating leases	$	87,651		$	118,783
Right of use asset in exchange for new lease liabilities	$	398,194		$	160,915
Operating leases
Weighted average remaining lease term - operating leases (years)		5.0			2.16
Weighted average discount rate - operating leases		5.7	%		5.1	%

Expected volatility	77.6	%
Expected life (years)	2.5
Risk-free interest rate	5.51	%
Expected dividend yield	1.11	%

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
115,750		4.18	$	3.28	$	74,895		115,750	$	3.28	$	74,895

	2024					2023
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding at beginning of year		119,500		$	3.11		101,250		$	2.97
Granted		19,250			3.60		19,750			3.85
Exercised		0			0		(1000	)		3.01
Expired		(23,000	)		2.63		(500	)		5.29
Balance at December 31:		115,750		$	3.28		119,500		$	3.11

Options Exercisable at December 31:		115,750		$	3.28		107,250		$	3.20

	*2024*		*2023*

Current tax expense	$	419,500	$	387,000
Deferred tax		113,000		10,000
Total income tax expense	$	532,500	$	397,000

	*2024*			*2023*
Current deferred tax asset (liabilities):
Accounts payable and accrued expenses	$	31,000			57,000
Accounts receivable, net		(792,000	)		(727,000	)
Inventory obsolescence		2,000			2,000
Prepaid expenses		(110,000	)		(83,000	)
Operating lease liability		10,000			-
Customer deposits		198,000			180,000
Net current deferred tax liability		(661,000	)		(571,000	)

Long-term deferred tax asset (liabilities):
NOL - State		4,000			4,000
Foreign tax credit		15,000			14,000
R&D tax credit		41,000			75,000
Book - Tax depreciation		(34,000	)		(9,000	)
Section 174 capitalization		105,000			73,000
Stock compensation		63,000			60,000
Investment impairment		13,000			13,000
Net long-term deferred tax asset		207,000			230,000
Net deferred tax liability	$	(454,000	)	$	(341,000	)

	*For the Years Ended*
	*December 31,*
	*2024*		*2023*
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	1,576,428	$	1,613,005
Weighted average number of common shares outstanding - basic		4,569,933		4,553,080
Basic net income per share	$	0.34	$	0.35
Weighted average number of common shares outstanding - diluted		4,623,161		4,619,046
Diluted net income per share	$	0.34	$	0.35

Exhibit No.		Description
3.1		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).
3.2		Amendment to Articles of Incorporation, filed with the Nevada Secretary of State on January 26, 2013 (incorporated by reference to Exhibit 3.2 to the registrant’s annual report on Form 10-K filed on March 31, 2011).
3.3		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).
3.4		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).
4.1		Description of Table Trac, Inc. Common Stock (incorporated by reference to Exhibit 4.1 to the registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2019).
10.1		Offer Letter by and between Table Trac Inc. and Randy W. Gilbert (incorporated by reference to Exhibit 10.1 to the registrant’s current report on Form 8-K filed on January 12, 2018).
10.2		Table Trac, Inc. 2021 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to registrant’s current report on Form 8-K filed on May 20, 2021
10.3		Form of Non-Qualified Stock Option Agreement (incorporated by reference to Exhibit 10.2 to registrant’s quarterly report on Form 10-Q filed on August 12, 2021).
10.4		Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.5 to registrant's annual report on Form 10-K for the fiscal year end December 31. 2022.
10.5		Letter Agreement between Table Trac Inc. and Robert Siqveland, dated December 15, 2022 (incorporated by reference to Exhibit 10.1 to registrant’s current report on Form 8-K filed on December 20, 2022
19.1		Insider Trading Policy (filed herewith)
23.1		Consent of Boulay PLLP (filed herewith)
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

Dated: March 19, 2025

TABLE TRAC, INC.

/s/ Chad Hoehne
Chad Hoehne, Chief Executive Officer
(principal executive officer)

/s/ Chad Hoehne
Chad Hoehne, Chief Executive Officer and Director
(principal executive officer)

/s/ Randy Gilbert
Randy Gilbert, Chief Financial Officer (principal financial and accounting officer)

/s/ William Martinez
William Martinez, Director

/s/ Thomas Mertens
Thomas Mertens, Director

/s/ Andrew Berger
Andrew Berger, Director

	●	Projections of future earnings or losses or other earnings guidance
	●	Earnings that are inconsistent with the consensus expectations of the investment community
	●	A pending or proposed merger, acquisition or tender offer or an acquisition or disposition of significant assets
	●	A change or pending change in management
	●	Major events regarding the Company’s securities, including the declaration of a stock split or the offering of additional securities
	●	Severe financial liquidity problems
	●	Actual or threatened major litigation, or the resolution of such litigation, and
	●	New major contracts, orders, suppliers, customers or finance sources, or the loss thereof.

	-	Two days before each quarter/year end ending
	-	One day after one full day after we have released our earnings to the SEC.

	1.	Imprisonment for up to 20 years.
	2.	Criminal fines of up to $5 million
	3.	Civil fines of up to three times the profit gained or loss avoided.

Date: March 19, 2025	/s/ Chad Hoehne
	Chad Hoehne
	Chief Executive Officer

Date: March 19, 2025	/s/ Randy Gilbert
	Randy Gilbert
	Chief Financial Officer