$GLXZ

Galaxy Gaming, Inc.

CIK:0000013156|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 7,937,890	$ 7,527,691	$ 15,600,451	$ 15,312,624
Costs and expenses:
Cost of ancillary products and assembled components	82,003	188,011	149,191	376,013
Selling, general and administrative	4,852,606	4,213,470	9,199,458	8,526,251
Research and development	128,553	243,162	280,611	605,938
Depreciation and amortization	919,222	785,915	1,789,173	1,565,732
Stock-based compensation	55,819	153,142	108,666	319,403
Total costs and expenses	6,038,203	5,583,700	11,527,099	11,393,337
Income from operations	1,899,687	1,943,991	4,073,352	3,919,287
Other income (expense):
Interest income	435	15,879	814	38,757
Interest expense	(813,483)	(906,598)	(1,589,972)	(1,909,948)
Foreign currency exchange loss	(25,393)	(9,003)	(24,760)	(19,103)
Loss on extinguishment of debt	0	0	0	(2,969,585)
Total other expense, net	(838,441)	(899,722)	(1,613,918)	(4,859,879)
Income (Loss) before provision for income taxes	1,061,246	1,044,269	2,459,434	(940,592)
Provision for income taxes	(64,268)	(93,912)	(94,900)	(130,333)
Net Income (Loss)	996,978	950,357	2,364,534	(1,070,925)
Foreign currency translation adjustment	(28,545)	252,210	(153,295)	404,000
Comprehensive income (loss)	$ 968,433	$ 1,202,567	$ 2,211,239	$ (666,925)
Net income (loss) per share:
Basic	$ 0.04	$ 0.04	$ 0.09	$ (0.04)
Diluted	$ 0.04	$ 0.04	$ 0.09	$ (0.04)
Weighted-average shares outstanding:
Basic	26,132,943	26,035,137	26,132,943	25,974,071
Diluted	26,132,943	26,192,145	26,137,942	25,974,071
Licensing Fees
Revenue:
Total revenue	$ 7,937,890	$ 7,527,691	$ 15,600,451	$ 15,312,624

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 2,364,534	$ (1,070,925)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,789,173	1,565,732
Amortization of right-of-use assets	134,798	128,607
Amortization of debt issuance costs and debt discount	126,799	85,251
Bad debt expense	10,489	38,295
Gain on disposal of property & equipment	0	(62)
Deferred income tax	(5,647)	68,687
Stock-based compensation	108,666	319,403
Loss on extinguishment of debt	0	2,969,585
Changes in operating assets and liabilities:
Accounts receivable	807,154	612,499
Income tax receivable	(18,083)	(55,973)
Prepaid expenses and other current assets	332,462	345,816
Other assets	(17,863)	161,522
Accounts payable	(268,689)	(478,608)
Accrued expenses	(875,378)	(327,785)
Revenue contract liability	(167,471)	125,491
Operating lease liabilities	(153,458)	(141,744)
Net cash provided by operating activities	4,167,486	4,345,791
Cash flows from investing activities:
Investment in internally developed software	(726,408)	(484,741)
Acquisition of property and equipment	(75,707)	(93,683)
Acquisition of assemblies in process	(350,900)	(279,519)
Acquisition of assets deployed at client locations	(974,819)	(463,785)
Transfer of title of assets deployed at client locations to perpetual license customer	31,578	159,984
Net cash used in investing activities	(2,096,256)	(1,161,744)
Cash flows from financing activities:
Proceeds from BMO Credit Agreement	0	45,000,000
Payments of debt issuance costs	0	(624,248)
Fees associated with debt transactions - prior debt	0	(138,233)
Proceeds from stock option exercises	0	151,200
Net cash used in financing activities	(1,516,965)	(16,493,898)
Effect of exchange rate changes on cash	(103,150)	231,057
Net increase (decrease) in cash and cash equivalents	451,115	(13,078,794)
Cash and cash equivalents – beginning of period	4,306,683	18,118,043
Cash and cash equivalents – end of period	4,757,798	5,039,249
Supplemental cash flow information:
Cash paid for interest	1,415,059	1,815,593
Cash paid for income taxes	118,630	117,914
Supplemental schedule of non-cash activities:
Right-of-use assets obtained in exchange for lease liabilities	24,206	6,914
Fortress
Cash flows from financing activities:
Principal payments on long-term debt	0	(57,576,929)
BMO
Cash flows from financing activities:
Principal payments on long-term debt	(1,375,000)	(3,125,000)
Insurance
Cash flows from financing activities:
Principal payments on long-term debt	$ (141,965)	$ (180,688)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 4,757,798	$ 4,306,683
Accounts receivable, net of allowance of $124,466 and $241,283, respectively	4,840,712	5,742,383
Income tax receivable	153,074	126,311
Prepaid expenses	1,062,000	1,394,462
Total current assets	10,813,584	11,569,839
Property and equipment, net	136,441	118,115
Operating lease right-of-use assets	169,837	280,429
Assets deployed at client locations, net	4,809,357	4,125,723
Goodwill	1,091,000	1,091,000
Other intangible assets, net	9,830,906	10,225,783
Other assets	107,595	89,730
Total assets	26,958,720	27,500,619
Current liabilities:
Accounts payable	1,606,324	1,876,338
Accrued expenses	2,279,074	3,178,328
Current portion of operating lease liabilities	165,373	298,006
Current portion of long-term debt	2,836,643	2,416,108
Revenue contract liability	118,750	286,221
Total current liabilities	7,006,164	8,055,001
Long-term operating lease liabilities	6,325	2,944
Long-term debt and liabilities, net	35,057,103	36,867,804
Deferred tax liabilities, net	43,498	49,145
Total liabilities	42,113,090	44,974,894
Commitments and Contingencies (See Note 6)
Stockholders’ deficit
Preferred stock, 10,000,000 shares authorized; $0.001 par value; 0 shares issued and outstanding
Common stock, 65,000,000 shares authorized; $0.001 par value; 25,354,623 and 25,354,623 shares issued and outstanding, respectively	25,354	25,354
Additional paid-in capital	20,772,597	20,663,931
Accumulated deficit	(35,903,083)	(38,267,617)
Accumulated other comprehensive (loss) income	(49,238)	104,057
Total stockholders’ deficit	(15,154,370)	(17,474,275)
Total liabilities and stockholders’ deficit	$ 26,958,720	$ 27,500,619