Game Trading Technologies, Inc.

CIK:0001382805|SEC Filings

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
Condensed Consolidated Statements of Operations (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Income Statement [Abstract]
Net Sales	$ 8,029,802	$ 8,005,366	$ 24,249,321	$ 26,038,605
Cost of Sales	7,291,172	7,927,525	29,006,449	23,301,759
Gross Profit	738,630	77,841	(4,757,128)	2,736,846
Operating Expenses:
Selling, General and Administrative	1,136,316	957,656	3,484,235	3,570,980
Employee Stock Based Compensation	358,990	452,285	1,128,802	1,126,251
Non-Employee Stock Based Compensation	120,480		200,800	1,579,689
Depreciation	26,009	24,501	75,392	59,800
Total Operating Expense	1,641,795	1,434,442	4,889,229	6,336,720
Income (Loss) from Operations:	(903,165)	(1,356,601)	(9,646,357)	(3,599,874)
Other Income (Expenses):
Interest Expense, net	(31,441)	(23,206)	(143,847)	(106,473)
Product Financing Liquidated Damages	(74,349)		(398,190)
Other income				46,493
Total Other Expenses	(105,790)	(23,206)	(542,037)	(59,980)
Income (Loss) Before Income Taxes	(1,008,955)	(1,379,807)	(10,188,394)	(3,659,854)
Provision for Income Taxes
Net Loss	(1,008,955)	(1,379,807)	(10,188,394)	(3,659,854)
Accretion of preferred dividends	66,875	70,939	200,625	155,903
Accretion of preferred amortization of beneficial conversion and warrant features	267,498	283,749	802,494	602,915
Net loss attributable to common shareholders	$ (1,343,328)	$ (1,734,495)	$ (11,191,513)	$ (4,418,672)
Net income (loss) per share:
Income (loss) per share - basic & diluted (in dollars per share)	$ (0.24)	$ (0.33)	$ (2.41)	$ (0.91)
Weighted Average Common Shares Outstanding - basic & diluted (in shares)	4,226,256	4,145,000	4,226,256	4,021,923

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net Income (Loss)	$ (10,188,394)	$ (3,659,854)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation & Amortization - Property and Equipment	75,392	59,800
Inventory valuation write-off	6,000,000
Accounts receivable valuation write-off	200,000
Issuance of Stock Warrants for Services	200,800	1,579,689
Stock Options for employee services	1,128,802	1,126,251
Product Financing Costs	392,532
Product Financing Liquidated Damages	398,190
Other		12,317
Changes in assets and liabilities
Account receivable	(1,695,264)	(1,801,167)
Inventory	1,841,514	(4,860,326)
Accounts payable	4,475,532	(707,640)
Accrued liabilities	108,745	105,149
Deferred Expenses		9,801
Prepaid expenses and deposits	67,696	(136,568)
Liabilities of discontinued operation		(88,921)
Net Cash Used In Operating Activities	3,005,546	(8,361,469)
Cash flows from investing activities
Purchases of fixed assets	(49,050)	(280,315)
Net Cash Provided (Used) In Investing Activities	(49,050)	(280,315)
Cash flows from financing activities
Proceeds from the sale of convertible preferred stock		5,675,000
Proceeds (Repayment) from line of credit, net	(2,871,692)	2,363,285
Net borrowings (repayment) in connection with Product financing facilities	(526,254)	3,599,562
Payments on notes payable		(2,750,000)
Payment of Series A preferred dividends	(66,875)	(83,979)
Advances from related party	35,423
Issuance (Repayment) of note payable - related party	(16,255)	(392,169)
Net Cash Provided (Used) In Financing Activities	(3,445,653)	8,411,699
Net increase (decrease) in cash	(489,157)	(230,085)
Cash and cash equivalents at the beginning of the period	827,526	641,088
Cash and cash equivalents at the end of the period	338,369	411,003
Supplemental disclosure of cash flow information :
Cash paid for interest	154,336	106,473
Cash paid for taxes
Non-cash investing and financing activities:
Beneficial conversion feature of redeemable convertible preferred stock		2,067,393
Value of warrants issued with redeemable convertible preferred stock		3,607,607
Conversion of notes payable related party to series A preferred		25,000
Accretion of discount on redeemable preferred stock	802,494	602,915
Accretion of accrued dividend on redeemable preferred stock	200,625	71,924
Inventory Valuation Write-off	$ 6,000,000

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets
Cash and cash equivalents	$ 338,369	$ 827,526
Restricted Cash	1,177,440
Accounts Receivable - Net of Allowance of $300,000 and $100,000 as of September 30, 2011 and December 31, 2010, respectively	4,291,128	2,795,864
Inventories, net of allowance for inventory write-off of $175,000, respectively	1,836,639	9,678,153
Prepaid Expenses And Other	44,975	72,511
TOTAL CURRENT ASSETS	7,688,551	13,374,054
Property and Equipment, net of accumulated depreciation of $421,276 and $371,893, respectively	388,552	414,895
Other Assets	17,927	17,927
TOTAL ASSETS	8,095,030	13,806,876
Current Liabilities
Accounts payable	9,311,200	4,835,668
Product Financing - related party	838,938	1,789,562
Product Financing	2,392,532
Accrued expenses and other	726,186	617,441
Revolving Line of Credit	1,216,593	4,088,285
Registration Rights Liability	380,000	380,000
Note payable - related party		16,255
Advances - related party	35,423
TOTAL CURRENT LIABILITES	14,900,872	11,727,211
TOTAL LIABILITIES	14,900,872	11,727,211
Redeemable preferred stock, Series A; $.0001 par value, 3,000,000 shares authorized, 2,650,000 shares issued and outstanding at September, 30, 2011 and December 31, 2010, net (Face value $5,350,000)	1,839,003	902,759
Stockholders' equity (Deficit)
Preferred stock, $0.0001 par value, 17,000,000 shares authorized, none issued and outstanding as of September 30, 2011 and December, 31, 2010, respectively
Common stock, $0.0001 par value, 100,000,000 shares authorized, 4,226,256 shares issued and outstanding at September 30, 2011 and December 31, 2010,	423	423
Additional paid-in capital	8,234,528	7,867,885
Accumulated deficit	(16,879,796)	(6,691,402)
Total stockholders' equity (Deficit)	(8,644,845)	1,176,906
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 8,095,030	$ 13,806,876