Entertainment Gaming Asia Inc.

[1]	Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations.
[2]	Amounts for the three-month periods ended March 31, 2017 and 2016 included related party services fees of approximately $102,000 and $64,000, respectively.
[3]	Amounts for the three-month periods ended March 31, 2017 and 2016 included related party sales of NIL and approximately $159,000 and related party services fees of NIL and approximately $63,000, respectively.

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2017

Mar. 31, 2016

^[1]

Cash flows (used in)/provided by operating activities:

Net loss from continuing operations

$ (1,993)

$ (974)

Adjustments to reconcile net loss from continuing operations to net cash (used in)/ provided by operating activities:

Foreign currency losses

Depreciation of gaming equipment and property and equipment

128

Amortization of casino contracts

Amortization of intangible assets

Stock-based compensation expenses

Changes in operating assets and liabilities:

Accounts receivable and other receivables

Inventories

(33)

Prepaid expenses and other current assets

(86)

(13)

Prepayments, deposits and other assets

(7)

(15)

Accounts payable

258

Amounts due from/to related parties

(213)

Accrued expenses and other liabilities

(118)

(38)

Income tax payable

Customer deposits and other current liabilities

Deferred revenue

Operating cash used in continuing operations

(1,595)

(895)

Operating cash (used in)/provided by discontinued operations

(229)

1,311

Net cash (used in)/provided by operating activities

(1,824)

416

Cash flows used in investing activities:

Purchases of property and equipment

(2)

(11)

Development/purchase of intangibles

(59)

(334)

Investing cash used in continuing operations

(61)

(345)

Investing cash used in discontinued operations

(36)

Net cash used in investing activities

(61)

(381)

Effect of exchange rate changes on cash

(9)

(31)

(Decrease)/increase in cash and cash equivalents

(1,894)

Cash and cash equivalents at beginning of period

33,599

30,681

Cash and cash equivalents at end of period

$ 31,705

$ 30,685

[1]	Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations.

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 31,705	$ 33,599
Accounts receivable, net	126	128
Other receivables	1,079	1,051
Inventories	12	21
Prepaid expenses and other current assets	290	235
Total current assets	33,212	35,034
Gaming equipment, net	322	389
Property and equipment, net	892	915
Goodwill	312	315
Intangible assets, net	1,472	1,512
Deferred tax asset	59	59
Prepayments, deposits and other assets	1,209	1,204
Total assets	37,478	39,428
Current liabilities:
Accounts payable	336	79
Amounts due to related parties	205	160
Accrued expenses	825	1,118
Income tax payable	197	161
Deferred revenue	17	2
Customer deposits and other current liabilities	73	54
Total current liabilities	1,653	1,574
Other liabilities	446	441
Deferred tax liability	5,654	5,654
Total liabilities	7,753	7,669
Commitments and contingencies
Stockholders' equity:
Common stock, $.001 par value, 250,000,000 shares authorized; 14,464,220 shares issued and outstanding	14	14
Additional paid-in-capital	47,854	47,827
Accumulated other comprehensive income	565	585
Accumulated losses	(18,709)	(16,668)
Total EGT stockholders' equity	29,724	31,758
Non-controlling interest	1	1
Total stockholders' equity	29,725	31,759
Total liabilities and stockholders' equity	$ 37,478	$ 39,428