0001090396 Table Trac INC false --12-31 Q3 2025 0.001 0.001 25,000,000 25,000,000 4,756,734 4,756,734 4,641,523 4,635,568 115,211 121,166 1 11 2 7 11 7,697 2 5 0 5 5 5 6 2,521 4 0 0 3.75 10 19,477 58,431 0 2 1 1 December 12, 2025 false false false false 00010903962025-01-012025-09-30 xbrli:shares 00010903962025-11-14 thunderdome:item iso4217:USD 00010903962025-09-30 00010903962024-12-31 iso4217:USDxbrli:shares 00010903962025-07-012025-09-30 00010903962024-07-012024-09-30 00010903962024-01-012024-09-30 0001090396tbtc:CommonStockOutstandingMember2023-12-31 0001090396us-gaap:AdditionalPaidInCapitalMember2023-12-31 0001090396us-gaap:RetainedEarningsMember2023-12-31 0001090396us-gaap:TreasuryStockCommonMember2023-12-31 00010903962023-12-31 0001090396tbtc:CommonStockOutstandingMember2024-01-012024-03-31 0001090396us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-31 0001090396us-gaap:RetainedEarningsMember2024-01-012024-03-31 0001090396us-gaap:TreasuryStockCommonMember2024-01-012024-03-31 00010903962024-01-012024-03-31 0001090396tbtc:CommonStockOutstandingMember2024-03-31 0001090396us-gaap:AdditionalPaidInCapitalMember2024-03-31 0001090396us-gaap:RetainedEarningsMember2024-03-31 0001090396us-gaap:TreasuryStockCommonMember2024-03-31 00010903962024-03-31 0001090396tbtc:CommonStockOutstandingMember2024-04-012024-06-30 0001090396us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-30 0001090396us-gaap:RetainedEarningsMember2024-04-012024-06-30 0001090396us-gaap:TreasuryStockCommonMember2024-04-012024-06-30 00010903962024-04-012024-06-30 0001090396tbtc:CommonStockOutstandingMember2024-06-30 0001090396us-gaap:AdditionalPaidInCapitalMember2024-06-30 0001090396us-gaap:RetainedEarningsMember2024-06-30 0001090396us-gaap:TreasuryStockCommonMember2024-06-30 00010903962024-06-30 0001090396tbtc:CommonStockOutstandingMember2024-07-012024-09-30 0001090396us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-30 0001090396us-gaap:RetainedEarningsMember2024-07-012024-09-30 0001090396us-gaap:TreasuryStockCommonMember2024-07-012024-09-30 0001090396tbtc:CommonStockOutstandingMember2024-09-30 0001090396us-gaap:AdditionalPaidInCapitalMember2024-09-30 0001090396us-gaap:RetainedEarningsMember2024-09-30 0001090396us-gaap:TreasuryStockCommonMember2024-09-30 00010903962024-09-30 0001090396tbtc:CommonStockOutstandingMember2024-12-31 0001090396us-gaap:AdditionalPaidInCapitalMember2024-12-31 0001090396us-gaap:RetainedEarningsMember2024-12-31 0001090396us-gaap:TreasuryStockCommonMember2024-12-31 0001090396tbtc:CommonStockOutstandingMember2025-01-012025-03-31 0001090396us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-31 0001090396us-gaap:RetainedEarningsMember2025-01-012025-03-31 0001090396us-gaap:TreasuryStockCommonMember2025-01-012025-03-31 00010903962025-01-012025-03-31 0001090396tbtc:CommonStockOutstandingMember2025-03-31 0001090396us-gaap:AdditionalPaidInCapitalMember2025-03-31 0001090396us-gaap:RetainedEarningsMember2025-03-31 0001090396us-gaap:TreasuryStockCommonMember2025-03-31 00010903962025-03-31 0001090396tbtc:CommonStockOutstandingMember2025-04-012025-06-30 0001090396us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-30 0001090396us-gaap:RetainedEarningsMember2025-04-012025-06-30 0001090396us-gaap:TreasuryStockCommonMember2025-04-012025-06-30 00010903962025-04-012025-06-30 0001090396tbtc:CommonStockOutstandingMember2025-06-30 0001090396us-gaap:AdditionalPaidInCapitalMember2025-06-30 0001090396us-gaap:RetainedEarningsMember2025-06-30 0001090396us-gaap:TreasuryStockCommonMember2025-06-30 00010903962025-06-30 0001090396tbtc:CommonStockOutstandingMember2025-07-012025-09-30 0001090396us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-30 0001090396us-gaap:RetainedEarningsMember2025-07-012025-09-30 0001090396us-gaap:TreasuryStockCommonMember2025-07-012025-09-30 0001090396tbtc:CommonStockOutstandingMember2025-09-30 0001090396us-gaap:AdditionalPaidInCapitalMember2025-09-30 0001090396us-gaap:RetainedEarningsMember2025-09-30 0001090396us-gaap:TreasuryStockCommonMember2025-09-30 0001090396tbtc:CommonStockIssuedOutOfTreasuryStockMember2025-01-012025-09-30 0001090396tbtc:CommonStockIssuedOutOfTreasuryStockMember2024-01-012024-09-30 0001090396tbtc:TreasuryStockIssuedToEmployeesMember2025-01-012025-09-30 0001090396tbtc:TreasuryStockIssuedToEmployeesMember2024-01-012024-09-30 0001090396tbtc:SystemMember2025-07-012025-09-30 0001090396tbtc:SystemMember2024-07-012024-09-30 xbrli:pure 0001090396us-gaap:MaintenanceMember2025-07-012025-09-30 0001090396us-gaap:MaintenanceMember2024-07-012024-09-30 0001090396tbtc:ServiceAndOtherMember2025-07-012025-09-30 0001090396tbtc:ServiceAndOtherMember2024-07-012024-09-30 0001090396tbtc:SystemMember2025-01-012025-09-30 0001090396tbtc:SystemMember2024-01-012024-09-30 0001090396us-gaap:MaintenanceMember2025-01-012025-09-30 0001090396us-gaap:MaintenanceMember2024-01-012024-09-30 0001090396tbtc:LeaseMember2025-01-012025-09-30 0001090396tbtc:LeaseMember2024-01-012024-09-30 0001090396tbtc:ServiceAndOtherMember2025-01-012025-09-30 0001090396tbtc:ServiceAndOtherMember2024-01-012024-09-30 00010903962024-01-01 0001090396tbtc:CustomerDepositsMember2024-01-01 0001090396srt:MinimumMember2025-09-30 0001090396srt:MaximumMember2025-09-30 utr:M 0001090396tbtc:CertificateOfDepositMaturingNovember2024Member2025-01-012025-09-30 00010903962024-01-012024-12-31 0001090396srt:MaximumMember2024-01-012024-12-31 0001090396tbtc:CertificateOfDepositMaturingNovember2024Member2024-01-012024-12-31 0001090396tbtc:CertificateOfDepositMaturingFebruary2025Member2024-01-012024-12-31 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2025-07-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2025-07-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2024-07-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2024-07-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2025-07-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2025-07-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2024-07-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2024-07-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2025-01-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2025-01-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2024-01-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembertbtc:MajorCustomersMember2024-01-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2025-01-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2025-01-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2024-01-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:OtherCustomerMember2024-01-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-30 0001090396us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembercountry:US2025-07-012025-09-30 0001090396us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembercountry:US2024-07-012024-09-30 0001090396us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-09-30 0001090396us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-12-31 utr:Y 0001090396tbtc:January2021Member2021-01-31 0001090396tbtc:January2021Member2021-01-012021-01-31 0001090396tbtc:January2021Member2025-01-012025-09-30 0001090396tbtc:January2021Member2024-01-012024-09-30 0001090396tbtc:December2022Member2022-12-31 0001090396tbtc:December2022Member2022-01-012022-12-31 0001090396tbtc:December2022Member2025-01-012025-09-30 0001090396tbtc:December2022Member2024-01-012024-09-30 0001090396tbtc:March2025Member2025-03-31 0001090396tbtc:March2025Member2025-03-012025-03-31 0001090396tbtc:March2025Member2025-01-012025-09-30 0001090396stpr:MN2024-06-19 00010903962024-06-192024-06-19 0001090396stpr:OK2022-09-20 0001090396us-gaap:RevolvingCreditFacilityMembertbtc:GeneralCreditAgreementMember2025-09-30 0001090396us-gaap:RevolvingCreditFacilityMembertbtc:GeneralCreditAgreementMember2024-09-30 0001090396us-gaap:RevolvingCreditFacilityMembertbtc:GeneralCreditAgreementMember2025-01-012025-09-30 0001090396us-gaap:RevolvingCreditFacilityMembertbtc:GeneralCreditAgreementMember2024-01-012024-09-30 0001090396us-gaap:EmployeeStockOptionMembertbtc:The2021StockIncentivePlanMember2021-05-142021-05-14 0001090396us-gaap:EmployeeStockOptionMembertbtc:The2021StockIncentivePlanMember2021-05-14 0001090396us-gaap:RestrictedStockMember2024-09-302024-09-30 0001090396us-gaap:RestrictedStockMember2024-09-30 0001090396tbtc:ExecutiveBonusPlan2024Membersrt:ChiefExecutiveOfficerMember2025-03-052025-03-05 0001090396tbtc:ExecutiveBonusPlan2024Membersrt:ChiefFinancialOfficerMember2025-03-052025-03-05 0001090396tbtc:ExecutiveBonusPlan2024Member2025-03-05 0001090396us-gaap:RestrictedStockMember2025-09-30 0001090396us-gaap:RestrictedStockMember2025-07-012025-09-30 0001090396us-gaap:RestrictedStockMember2025-01-012025-09-30 0001090396us-gaap:RestrictedStockMember2024-07-012024-09-30 0001090396us-gaap:RestrictedStockMember2024-01-012024-09-30 0001090396us-gaap:EmployeeStockOptionMember2025-07-012025-09-30 0001090396us-gaap:EmployeeStockOptionMember2024-07-012024-09-30 0001090396us-gaap:EmployeeStockOptionMember2025-01-012025-09-30 0001090396us-gaap:EmployeeStockOptionMember2024-01-012024-09-30 0001090396tbtc:O2025Q4DividendsMemberus-gaap:SubsequentEventMember2025-11-072025-11-07

121

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended September 30, 2025

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

Commission File Number: 001-32987

(Exact Name of Registrant as Specified in its Charter)

Nevada		88-0336568
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)

6101 Baker Road, Suite 206, Minnetonka, Minnesota 55345

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (952) 548-8877

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 register
N/A		N/A		N/A

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. Yes ☒ No ☐

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). Yes ☒ No ☐

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 ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	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 ☐ No ☒

As of November 14, 2025, the registrant had outstanding 4,641,523 shares of common stock, $.001 par value per share.

Table Trac, Inc.

Index

	Page
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements	1

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3. Quantitative and Qualitative Disclosures About Market Risk	15

Item 4. Controls and Procedures	15

PART II. OTHER INFORMATION

Item 1A. Risk Factors	16

Item 5. Other Information

Item 6. Exhibits	17

SIGNATURES	18

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TABLE TRAC, INC.

CONTENTS

	Page
CONDENSED FINANCIAL STATEMENTS (Unaudited)

Condensed Balance Sheets	2

Condensed Statements of Operations	3

Condensed Statements of Stockholders’ Equity	4

Condensed Statements of Cash Flows	5

Notes to Condensed Financial Statements	6

TABLE TRAC, INC.

CONDENSED BALANCE SHEETS

	(Unaudited)
	*September 30,*			*December 31,*
	*2025*			*2024*
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	6,111,653		$	2,257,696
Short-term investments		2,144,728			4,627,744
Accounts receivable, net		1,783,148			2,343,062
Inventory, net		1,883,361			1,935,679
Prepaid expenses		393,432			534,767
Net investment in sales type leases - current		59,765			75,858
Income tax receivable		0			50,156
TOTAL CURRENT ASSETS		12,376,087			11,824,962

LONG-TERM ASSETS
Accounts receivable - long-term		633,629			1,011,355
Property and equipment, net		121,472			149,669
Net investment in sales type leases - long term		62,431			46,924
Software development costs, net		10,853			13,355
Operating lease right-of-use assets		430,891			474,157
TOTAL LONG-TERM ASSETS		1,259,276			1,695,460
TOTAL ASSETS	$	13,635,363		$	13,520,422

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	265,944		$	216,944
Customer deposits		113,751			870,602
Current portion of operating lease liabilities		113,762			80,999
Income tax payable		27,936			0
TOTAL CURRENT LIABILITIES		521,393			1,168,545

LONG-TERM LIABILITIES
Operating lease liabilities		385,673			435,796
Deferred tax liability		479,000			454,000
TOTAL LIABILITIES		1,386,066			2,058,341

STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,756,734 shares issued; and 4,641,523 and 4,635,568 shares outstanding at September 30, 2025 and December 31, 2024, respectively.		4,642			4,636
Additional paid-in capital		2,545,003			2,470,850
Retained earnings		9,915,995			9,209,030
		12,465,640			11,684,516
Treasury stock, 115,211 and 121,166 shares (at cost) at September 30, 2025 and December 31, 2024, respectively.		(216,343	)		(222,435	)
TOTAL STOCKHOLDERS’ EQUITY		12,249,297			11,462,081

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	13,635,363		$	13,520,422

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,*
	*2025*			*2024*		*2025*		*2024*

Revenues	$	2,135,636		$	2,547,600	$	8,010,415	$	8,024,590
Cost of sales		561,048			747,293		2,072,672		2,289,119
Gross profit		1,574,588			1,800,307		5,937,743		5,735,471
Operating expenses:
Selling, general and administrative		1,622,118			1,531,810		4,986,229		4,510,628
Income (loss) from operations		(47,530	)		268,497		951,514		1,224,843
Other income		350			0		7,076		1,006
Interest income		116,532			111,382		359,784		289,261
Income before taxes		69,352			379,879		1,318,374		1,515,110
Income tax expense		11,000			87,500		333,000		404,500
Net income	$	58,352		$	292,379	$	985,374	$	1,110,610
Net income per share - basic	$	0.01		$	0.06	$	0.21	$	0.24
Net income per share - diluted	$	0.01		$	0.06	$	0.21	$	0.24
Weighted-average shares outstanding - basic		4,601,110			4,575,068		4,592,638		4,575,068
Weighted-average shares outstanding - diluted		4,676,672			4,622,938		4,657,538		4,621,840

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, 2023		4,634,865	$	4,635	$	2,346,483	$	7,771,655		$	(223,208	)	$	9,899,565
Stock compensation expense		0		0		25,223		0			0			25,223
Cash dividends declared		0		0		0		(46,347	)		0			(46,347	)
Net income		0		0		0		11,661			0			11,661
BALANCE, March 31, 2024		4,634,865	$	4,635	$	2,371,706	$	7,736,969		$	(223,208	)	$	9,890,102
Stock compensation expense		0		0		25,224		0			0			25,224
Net income		0		0		0		806,570			0			806,570
BALANCE, June 30, 2024		4,634,865	$	4,635	$	2,396,930	$	8,543,539		$	(223,208	)	$	10,721,896
Stock compensation expense		0		0		19,477		0			0			19,477
Cash dividend		0		0		0		(46,349	)		0			(46,349	)
Stock issued for service from treasury		703		1		1,926		0			773			2,700
Net income		0		0		0		292,379			0			292,379
BALANCE, September 30, 2024		4,635,568		4,636		2,418,333		8,789,569			(222,435	)		10,990,103

BALANCE, December 31, 2024		4,635,568	$	4,636	$	2,470,850	$	9,209,030		$	(222,435	)	$	11,462,081
Stock compensation expense		0		0		19,477		0			0			19,477
Issuance of common stock out of treasury		3,955		4		10,001		0			3,955			13,960
Cash dividend		0		0		0		(92,789	)		0			(92,789	)
Net income		0		0		0		782,239			0			782,239
BALANCE, March 31, 2025		4,639,523	$	4,640	$	2,500,328	$	9,898,480		$	(218,480	)	$	12,184,968
Stock compensation expense		0		0		19,477		0			0			19,477
Cash dividend		0		0		0		(92,790	)		0			(92,790	)
Net income		0		0		0		144,782			0			144,782
BALANCE, June 30, 2025		4,639,523	$	4,640	$	2,519,805	$	9,950,473		$	(218,480	)	$	12,256,438
Stock compensation expense		0		0		19,477		0			0			19,477
Cash dividend		0		0		0		(92,830	)		0			(92,830	)
Exercise of employee stock options		2,000		2		5,721		0			2,137			7,860
Net income		0		0		0		58,352			0			58,352
BALANCE, September 30, 2025		4,641,523	$	4,642	$	2,545,003	$	9,915,995		$	(216,343	)	$	12,249,297

See notes to condensed unaudited financial statements.

TABLE TRAC, INC.

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

	*For the Nine Months Ended*
	*September 30,*
	*2025*			*2024*
OPERATING ACTIVITIES
Net income	$	985,374		$	1,110,610
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		30,699			11,573
Deferred income taxes		25,000			56,000
Provision of credit losses		(8,236	)		0
Stock issued for services to non-employee		0			2,700
Stock compensation expense		58,431			69,924
Accrued interest on short-term investments		(87,069	)		(71,048	)
Noncash operating lease expense, net		25,906			0

Changes in operating assets and liabilities:
Accounts receivable		945,876			(133,267	)
Inventory		52,318			649,155
Prepaid expenses		141,335			(72,876	)
Net investment in sales type leases		586			39,224
Accounts payable, accrued expenses		62,960			(13,061	)
Customer deposits		(756,851	)		156,751
Income tax receivable and payable		78,092			(115,782	)
Net cash provided by operating activities		1,554,421			1,689,903
INVESTING ACTIVITIES
Capital expenditures		0			(79,655	)
Purchase of short-term investment		0			(4,500,000	)
Proceeds from short-term investments		2,570,085			1,500,000
Net cash provided by (used in) investing activities		2,570,085			(3,079,655	)
FINANCING ACTIVITIES
Proceeds from exercise of employee stock options		7,860			0
Payment of dividends		(278,409	)		(92,696	)
Net cash used in financing activities		(270,549	)		(92,696	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,853,957			(1,482,448	)

CASH AND CASH EQUIVALENTS
Beginning of period		2,257,696			3,489,771
End of period	$	6,111,653		$	2,007,323

Non-cash investing and financing activities:

Common stock issued out of treasury stock for settlement of accrued liabilities		13,960			0
Treasury stock cost related to compensation		0			773

Supplemental cash flow information:
Cash paid for income taxes	$	229,908		$	464,300

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 10 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, 2025 and the condensed statements of operations, stockholders’ equity and cash flows for the three and nine months ended September 30, 2025 and 2024 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 financial statements 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, 2024.

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, 2024.

There were no changes in critical accounting estimates or assumptions for the nine months ended September 30, 2025.

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, 2024.

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. 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.

Service Revenues and Other Revenues

Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements. Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment. Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears.

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 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 months ended September 30, 2025 and 2024, respectively:

	*Three months ended September 30,*
	*2025*		*2024*		*2025*			*2024*
					(percent of revenues)
System revenue	$	86,927	$	615,160		4.1	%		24.1	%
Maintenance revenue		1,472,143		1,384,407		68.8	%		54.5	%
Service and other revenue		576,566		548,033		27.0	%		21.4	%
Total revenues	$	2,135,636	$	2,547,600		100.0	%		100.0	%

	*Nine months ended September 30,*
	*2025*		*2024*		*2025*			*2024*
					(percent of revenues)
System revenue	$	1,924,415	$	2,954,963		24.0	%		36.8	%
Maintenance revenue		4,562,917		3,990,141		57.0	%		49.8	%
Lease revenue		53,680		0		0.7	%		0.0	%
Service and other revenue		1,469,403		1,079,486		18.3	%		13.4	%
Total revenues	$	8,010,415	$	8,024,590		100.0	%		100.0	%

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, 2025 and December 31, 2024 we recorded a contract asset of approximately $92,296 and $68,400, respectively, as a component of accounts receivable.

As of January 1, 2024, the balance of accounts receivable, net and customer deposits were $3,000,544 and $785,805, respectively.

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, 2025 and December 31, 2024, approximately $1,005,224 and $1,229,290 for systems installed under contract have not been recorded as revenue or included in accounts receivable based on the collectability assessment performed by the Company. In accordance with this assessment, the contracts will be assessed in subsequent quarters at which time they may be deemed collectable and the outstanding remaining system revenue will be recognized accordingly.

We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 2% to 8% and we believe those to be appropriate market interest rates for the financing component.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short-term Investments

The Company currently has one certificate of deposit ("CD") being held at a bank with an original maturity of eleven months. This CD matures in November 2025 and has an interest rate of 4.50%. The Company had two certificates of deposit ("CD") being held at a bank as of December 31, 2024; with original maturities of seven to eleven months, respectively. One CD matured in February 2025 and carried an interest rate of 4.70%, while the other matures in November 2025 and has an interest rate of 4.50%. Certificates of deposit held for investment with an original maturity greater than three months are carried at cost plus accrued interest and reported as short-term investments on the balance sheets. Interest is paid at maturity. At times, certain certificates may exceed amounts insured by the FDIC. The Company determines the appropriate classification as short-term or long-term at the time of purchase based on original maturities and management's reasonable redemption expectation. The Company reevaluates such classification at each balance sheet date.

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, 2025 and 2024:

	*For the Three months ended September 30,*
	*2025*						*2024*
	*% Revenues*			*% AR*			*% Revenues*			*% AR*
Major		26.9	%		38.5	%		36.5	%		37.2	%
All Others		73.1	%		61.5	%		63.5	%		62.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	*For the Nine months ended September 30,*
	*2025*						*2024*
	*% Revenues*			*% AR*			*% Revenues*			*% AR*
Major		19.9	%		38.5	%		38.6	%		37.2	%
All Others		80.1	%		61.5	%		61.4	%		62.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

For the three month periods ending September 30, 2025 and 2024, sales to customers in the United States represent 93.3% and 94.8%, of total revenues, respectively.

A major customer is defined as any customer that represents at least 10% of revenue for a given period or 10% of outstanding account 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 $7,697 at September 30, 2025 and December 31, 2024. The total inventory value was $1,883,361 and $1,935,679, as of September 30, 2025 and December 31, 2024, respectively, which included work-in-process of $138,515 and $147,724 as of September 30, 2025 and December 31, 2024, respectively, and the remaining amount is comprised of finished goods. As of September 30, 2025 and December 31, 2024, the Company had $68,065 and $50,068, respectively, of prepaid inventory as a component of prepaid expenses.

Net Investment in Sales Type Lease

Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases are 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 two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income.

Long-lived Assets

The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset groups. If such assets 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

We expense software development costs, including cost to develop software products to be sold, licensed or marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products. During 2025 no new costs were capitalized for the nine months ended September 30, 2025 and 2024 . Capitalized software development costs are currently amortized straight-line over a five year period, which reflects the pattern in which the assets' future economic benefits are expected to be consumed.

Research and Development

Expenditures for research and product development costs, before technological feasibility is reached are expensed as incurred. Research and development expenses were $372,223 and $143,831 for the nine months ended September 30, 2025 and 2024, respectively, and are included in selling, general and administrative expenses on the condensed statements of operations.

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 8).

2.	Accounts Receivable –

Accounts receivable consisted of the following at:

	*September 30,*			*December 31,*
	*2025*			*2024*

Accounts receivable - current	$	1,847,784		$	2,416,790
Less allowance for credit losses		(64,636	)		(73,728	)
Accounts receivable current - net	$	1,783,148		$	2,343,062

Accounts receivable - long-term	$	633,629		$	1,011,355

A roll-forward of the Company’s allowance for credit losses for the nine month periods ended September 30, 2025 and 2024 are as follows:

	*September 30,*			*September 30,*
	*2025*			*2024*

Allowance for credit losses, beginning of period	$	73,728		$	68,620
Current period provision		(8,236	)		(3,936	)
Write-off		(856	)		0
Allowance for credit losses, end of period		64,636			64,684

3.	Net Investment in Sales Type Lease –

In January 2021, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded $210,782 in "Net investment in sales type leases" and derecognized $139,521 from “Inventory" on its condensed balance sheet. As a result of this transaction the Company recognized $34,719.98 and $25,562 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2025 and 2024, respectively, and for the nine months ended September 30, 2025 and 2024, the Company recognized $1,955 and $2,963, respectively, of interest income in the Company's condensed statements of operations.

In December 2022, the Company entered into a five year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded $98,279 in "Net investment in sales type leases" and derecognized $46,533 from “Inventory" on its balance sheet. As a result of this transaction the Company recognized $14,789 and $12,175 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2025 and 2024, respectively, and for the nine months ended September 30, 2025 and 2024, the Company recognized $2,521and $3,025, respectively, of interest income in the Company's condensed statements of operations.

In March 2025, the Company entered into a four year lease with a customer for hardware which had an implied interest rate of 6%.

At inception, the Company recorded $53,680 in "Net investment in sales type leases" and derecognized $31,740 from “Inventory" on its balance sheet. As a result of this transaction the Company recognized $25,327 in profit from sales type leases in its condensed statements of operations for the nine months ended September 30, 2025 , and for the nine months ended September 30, 2025 , the Company recognized $889 of interest income in the Company's condensed statements of operations.

The future minimum lease payments receivable for sales type leases are as follows:

	Amount
2025 (remainder)	$	37,221
2026		42,003
2027		37,928
2028		15,128
2029		3,782
Total undiscounted cash flows		136,062
Present value discount		13,866
Net investment in lease as of September 30, 2025	$	122,196

The current portion of $59,765 and $75,858 are included in Current Assets on the condensed balance sheets as of September 30, 2025 and December 31, 2024, respectively, and the long term portion of $62,431 and $46,924 are included in Long-Term Assets on the condensed balance sheets as of September 30, 2025 and December 31, 2024, respectively. The leases contain a purchase option at the conclusion of the lease, which the Company has determined does not meet the probability criterion. The Company has not recorded an unguaranteed residual asset.

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 75 months and included a $36,000 tenant improvement allowance, which is offsetting the 2024 lease payments. The extended lease is expiring October 31, 2031. On August 29, 2025, we extended our lease for the Oklahoma location. The term of the extension is 36 months expiring August 31, 2028. On August 24, 2023, we entered into a lease for the Nevada location. The terms of the lease is 36 months expiring August 31, 2026.

Maturities of our lease liabilities for all operating leases are as follows as of September 30, 2025 for the years ended:


2025 (remainder)	$	37,188
2026		124,906
2027		92,457
2028		90,619
2029		83,958
Thereafter		154,965
Total Lease Payments		584,094
Less: Interest		84,659
Present value of lease liabilities	$	499,435

The following table summarizes the Company's operating lease expenses for the nine months ended September 30:

	*2025*		*2024*
Operating lease expense	$	113,632	$	92,127
Variable lease expense		34,265		25,869
Total lease expense	$	147,897	$	117,996

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:

	*2025*			*2024*

Operating cash flow from operating leases	$	87,726		$	117,996
Right of use asset in exchange for new lease liabilities		41,630			349,031
Operating leases
Weighted average remaining lease term - operating leases (years)		5.4			5.8
Weighted average discount rate - operating leases		5.8	%		5.6	%

5.	Bank Financing –

Revolving Credit Line

The Company has a revolving credit line of up to $500,000 that expires on February 1, 2026. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had no borrowings under the credit line during the nine months ended September 30, 2025 and 2024. Interest on outstanding borrowings is payable monthly and charged at the Prime Rate, which was 7.25% and 8.25% subject to a floor of 3.75% at September 30, 2025 and 2024, respectively.

6.	Stockholders’ Equity –

Cash Dividend

For the nine months ending September 30, 2025 and 2024 the company has paid cash dividends totaling $278,409 and $92,696, respectively. The 2025 dividends were declared on February 28, May 5 and August 7, 2025 with payment dates of March 28, June 13 and September 12, 2025, respectively. The 2024 dividends were declared on March 14 and August 9, 2024 with payment dates of April 4 and September 13, 2024, respectively.

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 ten 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 500,000 shares initially available for grant.

On September 30, 2024 the Company awarded 703 Restricted Stock shares to a non-employee out of treasury stock. These shares are not subject to a vesting period. Grant date fair value of $2,700 was recognized as legal expense as a component of selling, general and administrative expense.

On March 5, 2025 Chad Hoehne and Randy Gilbert elected to be paid in the form of 2,100 and 1,855 shares of the Company’s treasury stock as part of their 2024 Executive bonus plan, respectively. Per this plan, each officer may obtain shares in an amount not to exceed 25% of their declared bonus. Additionally, these shares were valued at 90% of the weighted average trade value from the fourth quarter of 2024.

The Company has 39,500 shares of restricted stock outstanding as of September 30, 2025. There were 60,500 shares of restricted stock outstanding at September 30, 2024.

For the three months and nine months ending September 30, 2025 and 2024, the Company recorded compensation expense related to restricted stock granted of $19,477 and $58,431, respectively, as a component of selling, general and administrative expenses.

For the three months ending September 30, 2025 and 2024, the Company recorded compensation expense related to stock options granted of $0. For the nine months ending September 30, 2025 and 2024, the Company recorded compensation expense related to stock options granted of $0 and $11,494, respectively. as a component of selling, general and administrative expenses.

The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately two years. As of September 30, 2025 and 2024, the remaining unrecognized stock compensation expense for stock options and restricted stock was approximately $95,821 and $173,730, respectively.

The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2025:

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
109,750		3.49	$	3.24	$	165,755		109,750	$	3.24	$	165,755

The following table summarizes the activity of all stock options outstanding for the nine months ended September 30, 2025 and 2024.

	2025					2024
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding at beginning of period		115,750		$	3.27		119,750		$	2.97
Granted		0			0		0			0
Exercised		(2,000	)		3.93		0			0
Expired		(4,000	)		3.95		(20,000	)		2.42
Balance at September 30:		109,750		$	3.24		99,750		$	3.25

Options Exercisable at September 30:		109,750		$	3.24		99,750		$	3.25

7.	Income Tax –

The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. The Company estimates the actual amount of income taxes currently payable or receivable, as well as deferred income tax assets and liabilities attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of the tax rate changes on deferred tax assets and liabilities is recognized in the year that the change is enacted. Management believes that any write-off not allowed for will not have a material impact on the Company’s financial position.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, the Company believes that it has no significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2021 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2025. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. In accordance with current guidance, the Company classifies interest and penalties as income tax expense as incurred.

8.	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, 2025 and 2024:

	*For the Three Months Ended*
	*September 30,*
	*2025*		*2024*
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	58,352	$	292,379
Weighted average number of common shares outstanding - basic		4,601,110		4,575,068
Basic net income per share	$	0.01	$	0.06
Weighted average number of common shares outstanding - diluted		4,676,672		4,622,938
Diluted net income per share	$	0.01	$	0.06

	*For the Nine Months Ended*
	*September 30,*
	*2025*		*2024*
Basic and diluted earnings per share calculation:
Net income to common stockholders	$	985,374	$	1,110,610
Weighted average number of common shares outstanding - basic		4,592,638		4,575,068
Basic net income per share	$	0.21	$	0.24
Weighted average number of common shares outstanding - diluted		4,657,538		4,621,840
Diluted net income per share	$	0.21	$	0.24

For the three month and nine month periods ended September 30, 2025 and 2024, there were common stock equivalents that had a dilutive effect of approximately 75,562 and 47,870, and 64,900 and 53,500 respectively.

9.	Segment Information –

The Company conducts its business activities and reports financial results as a single reportable segment, casino products segment. Using the management approach, qualitative and quantitative criteria established by ASC 280, the Company has determined it has a single reportable segment. The Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results, using net income that is also reported on the income statement as net income. There are no reconciling items to the income statement. The measurement of segment assets is reported on the balance sheet as total assets. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the brokerage services segment or into other parts of the entity. The Company’s CODM is the CEO. The majority 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 November 7, 2025, The Board of Directors declared a cash dividend of $0.02 per share on the company’s common stock. The dividend is payable on December 12, 2025, to shareholders of record at the close of business on November 28, 2025.

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 19,2025 relating to our year ended December 31, 2024.

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, 2024 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.

The Company has developed and patented (U.S. patent # 5,957,776) a proprietary information and management system (called our “Table Trac” system) that automates and monitors the operations of casino table game operations. In addition to its table games management system, Table Trac has developed a highly secure, unified, and stable Casino Management System (“CMS”) offering end-to-end casino resort functionality for guest rewards and loyalty marketing operations, marketing analysis, guest service, promotions, administration / management, vault / cage management and audit / accounting tasks, altogether a powerful, elegant technology ecosystem of value, efficiency and reliability for casinos seeking to add or upgrade their casino management systems.

In August of 2022 and September of 2020, the Company was granted Patents (U.S. patent #11,417,169) on its April 2017 application 16/984755 “SYSTEMS AND METHODS OF FACILITATING INTERACTIONS BETWEEN AN ELECTRONIC GAMING MACHINE, GAME PLAYER, AND A CONTROL SYSTEM” and (U.S. patent #10,769,885 B2) on its April 2017 application 15/946,227 “SYSTEMS AND METHODS OF FACILITATING INTERACTIONS BETWEEN AN ELECTRONIC GAMING MACHINE, GAME PLAYER, AND A CONTROL SYSTEM”.

In June of 2021, the Company was granted a Patent (U.S. patent #11,024,116) on its May 2020 application 16/884731 “DYNAMIC AUTOMATED SOCIAL DISTANCING ON ELECTRONIC GAMING MACHINES”. In addition, the Company renewed its Trademark claim for “Table Trac” which was granted July 31, 2018 Reg. No. 5,529,779 and made a new Trademark claim on its “CasinoTrac” brand.

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 2025, the Company delivered no 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 93.3% of the Company’s total revenues for the three month period ending September 30, 2025.

Results of Operations – Three Months Ended September 30, 2025 Compared to Three months ended September 30, 2024

During the three months ended September 30, 2025, loss from operations was $47,530 compared to income from operations of $268,497, for the three months ended September 30, 2024. 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 $2,135,636 for the three months ended September 30, 2025 compared to $ 2,547,600, for the three months ended September 30, 2024.

Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers

During the three months ended September 30, 2025, the Company delivered no new systems. During the same period in 2024, the Company delivered two systems.

Cost of Sales and Gross Profit

Cost of sales decreased to $561,048 for the three months ended September 30, 2025 from $747,293, for the three months ended September 30, 2024 due primarily to the Company not installing any systems during the three months ended September 30, 2025. The following table summarizes our cost of sales for the three months ended September 30, 2025 and 2024, respectively:

	Three Months Ended September 30,
	2025		2024		2025			2024
					(percent of revenues)			(percent of revenues)
System	$	4,786	$	214,176		0.2	%		8.4	%
Maintenance		320,675		237,535		15.0	%		9.3	%
Service and other		235,587		295,582		11.0	%		11.6	%
Total cost of sales	$	561,048	$	747,293		26.3	%		29.3	%
Gross profit	$	1,574,588	$	1,800,307		73.7	%		70.7	%

The Company’s gross profit was 73.7% and 70.7% for the three months ended September 30, 2025 and 2024, respectively. This increase is a result of decreased relative labor costs associated with the decreased number of systems installed in the three months ended September 30, 2025.

Selling, General and Administrative Expenses

For the three months ended September 30, 2025, selling, general and administrative expenses were $1,622,118 compared to $1,531,810 for the same period in 2024. This increase is a result of the company's increase in sales and marketing and research and development efforts.

Interest Income

For the three months ended September 30, 2025, interest income was $116,532 compared to $111,382 for the same period in 2024. This increase was a result of an increase in short-term investments in the 2025 period.

Tax Provision

The income tax expense for the three months ended September 30, 2025 was $11,000 as compared to $87,500, for the three months ended September 30, 2024. The effective rate fluctuates significantly due to fluctuations in periodic net income, changes in state apportionment rates and availability of research and development and foreign tax credits.

Net Income

Income before taxes for the three months ended September 30, 2025 was $69,352 compared to income before taxes for the three months ended September 30, 2024 of $379,879. Net income for the three months ended September 30, 2025 was $58,352 compared to net income of $292,379 for the three months ended September 30, 2024. The basic and diluted income per share was $0.01 compared to basic and diluted income per share of $0.06 for the three months ended September 30, 2025 and 2024, respectively.

Results of Operations – Nine Months Ended September 30, 2025 Compared to Nine months ended September 30, 2024

During the nine months ended September 30, 2025, income from operations was $951,514 compared to $1,224,843, for the nine months ended September 30, 2024. 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 $8,010,415 for the nine months ended September 30, 2025 compared to $8,024,590, for the nine months ended September 30, 2024.

Refer to Note 1 – Revenue, including disaggregated revenues by major product line table, and Major Customers

During the nine months ended September 30, 2025, the Company delivered six systems and expanded three existing customers. During the same period in 2024, the Company delivered six new system and expanded one existing customer and our exclusive supplier installed our system in multiple locations in Australia.

Cost of Sales and Gross Profit

Cost of sales decreased to $2,072,672 for the nine months ended September 30, 2025 from $2,289,119, for the nine months ended September 30, 2024 due primarily to the Company installing systems with total less machines during 2025 as compared to 2024. The following table summarizes our cost of sales for the nine months ended September 30, 2025 and 2024, respectively:

	Nine Months Ended September 30,
	2025		2024		2025			2024
					(percent of revenues)			(percent of revenues)
System	$	573,361	$	855,330		7.2	%		10.7	%
Maintenance		871,815		726,110		10.9	%		9.0	%
Lease		31,740		0		0.4	%		0.0	%
Service and other		595,756		707,679		7.4	%		8.8	%
Total cost of sales	$	2,072,672	$	2,289,119		25.9	%		28.5	%
Gross profit	$	5,937,743	$	5,735,471		74.1	%		71.5	%

The Company’s gross profit was 74.1% and 71.5% for the nine months ended September 30, 2025 and 2024, respectively. This increase is a result of decreased relative labor costs associated with the systems installed in the nine months ended September 30, 2025.

Selling, General and Administrative Expenses

For the nine months ended September 30, 2025, selling, general and administrative expenses were $4,986,229 compared to $4,510,628 for the same period in 2024. This increase is a result of the company's increase in sales and marketing and research and development efforts.

Interest Income

For the nine months ended September 30, 2025, interest income was $359,784 compared to $289,261 for the same period in 2024. This increase was a result of an increase in short-term investments in the 2025 period.

Tax Provision

The income tax expense for the nine months ended September 30, 2025 was $333,000 as compared to $404,500, for the nine months ended September 30, 2024. The effective rate fluctuates significantly due to fluctuations in periodic net income, changes in state apportionment rates and availability of research and development and foreign tax credits.

Net Income

Income before taxes for the nine months ended September 30, 2025 was $1,318,374 compared to income before taxes for the nine months ended September 30, 2024 of $1,515,110. Net income for the nine months ended September 30, 2025 was $985,374 compared to net income of $1,110,610 for the nine months ended September 30, 2024. The basic and diluted income per share was $0.21 compared to basic and diluted income per share of $0.24 for the nine months ended September 30, 2025 and 2024, respectively.

Backlog

The Company’s backlog generally consists of incomplete system installations and expansion of offerings for currently installed and supported systems.

The Company had one system installation in its backlog at September 30, 2025. The Company had five system installations in its backlog as of September 30, 2024. As of the filing date of this report, the Company has signed one new contract.

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, 2025, there were no borrowings outstanding under the line of credit. The Company’s primary sources of liquidity are cash and cash equivalents, short-term investments, receivables and future cash generated from operations. As of September 30, 2025, the Company had total cash and cash equivalents of $6,111,653 and short-term investments of $2,144,728 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, 2025 was $1,554,421 compared to $1,689,903 for the nine month period ending September 30, 2024. This decrease was a result of a number of factors including a decrease in accounts receivable and net income, offset by a decrease in customer deposits.

For the nine months ended September 30, 2025 net cash provided by investing activities was $2,570,085 compared to cash used by investing activities of $3,079,655 for the same period in 2024. This increase was a result of one of the Company's certificates of deposit maturing in the nine months ended September 30, 2025.

For the nine months ended September 30, 2025 net cash used in financing activities was $270,549 compared to $92,696 for the same period in 2024, due primarily to the payment of cash dividends which increased in the nine months ended September 30, 2025.

Off-Balance Sheet Arrangements

The Company had no off-balance sheet arrangements as of September 30, 2025.

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, 2025, 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, 2025.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting during the quarter ended September 30, 2025 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 19, 2025 relating to our year ended December 31, 2024 before making an investment decision. The risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2024 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

None

Item 6. Exhibits

Exhibit		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, 2010 (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).

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 18 U.S.C. 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.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		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 14, 2025	Table Trac, Inc.
	(Registrant)

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

By:

/s/ Randy Gilbert

Randy Gilbert

Chief Financial Officer

(principal financial and accounting officer)

TABLE TRAC INC 10-Q