0001318482 2015-01-01 2015-06-30 0001318482 2015-06-30 0001318482 2014-12-31 0001318482 2014-01-01 2014-06-30 0001318482 SGLDF:AnguillaMember 2015-06-30 0001318482 SGLDF:CanadaMember 2015-06-30 0001318482 SGLDF:UnitedKingdomMember 2015-06-30 0001318482 SGLDF:UnitedStatesOfAmericaMember 2015-06-30 0001318482 SGLDF:AnguillaMember 2014-12-31 0001318482 SGLDF:CanadaMember 2014-12-31 0001318482 SGLDF:UnitedKingdomMember 2014-12-31 0001318482 SGLDF:UnitedStatesOfAmericaMember 2014-12-31 0001318482 us-gaap:CommonStockMember 2015-06-30 0001318482 us-gaap:RetainedEarningsMember 2015-06-30 0001318482 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-06-30 0001318482 2013-12-31 0001318482 us-gaap:CommonStockMember 2015-01-01 2015-06-30 0001318482 us-gaap:RetainedEarningsMember 2015-01-01 2015-06-30 0001318482 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-01-01 2015-06-30 0001318482 us-gaap:CommonStockMember 2014-12-31 0001318482 us-gaap:RetainedEarningsMember 2014-12-31 0001318482 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-12-31 0001318482 SGLDF:WesternEuropeMember 2015-01-01 2015-06-30 0001318482 SGLDF:CentralEasternAndSouthernEuropeMember 2015-01-01 2015-06-30 0001318482 SGLDF:NordicsMember 2015-01-01 2015-06-30 0001318482 SGLDF:OthersMember 2015-01-01 2015-06-30 0001318482 SGLDF:WesternEuropeMember 2014-01-01 2014-06-30 0001318482 SGLDF:CentralEasternAndSouthernEuropeMember 2014-01-01 2014-06-30 0001318482 SGLDF:NordicsMember 2014-01-01 2014-06-30 0001318482 SGLDF:OthersMember 2014-01-01 2014-06-30 0001318482 2014-06-30 0001318482 2014-01-01 2014-12-31 0001318482 us-gaap:NorthAmericaMember 2015-01-01 2015-06-30 0001318482 us-gaap:NorthAmericaMember 2014-01-01 2014-06-30 0001318482 2015-08-14 0001318482 2015-04-01 2015-06-30 0001318482 2014-04-01 2014-06-30 0001318482 SGLDF:NordicsMember 2015-04-01 2015-06-30 0001318482 SGLDF:WesternEuropeMember 2015-04-01 2015-06-30 0001318482 SGLDF:CentralEasternAndSouthernEuropeMember 2015-04-01 2015-06-30 0001318482 us-gaap:NorthAmericaMember 2015-04-01 2015-06-30 0001318482 SGLDF:OthersMember 2015-04-01 2015-06-30 0001318482 SGLDF:NordicsMember 2014-04-01 2014-06-30 0001318482 SGLDF:WesternEuropeMember 2014-04-01 2014-06-30 0001318482 SGLDF:CentralEasternAndSouthernEuropeMember 2014-04-01 2014-06-30 0001318482 us-gaap:NorthAmericaMember 2014-04-01 2014-06-30 0001318482 SGLDF:OthersMember 2014-04-01 2014-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure SHOAL GAMES LTD. 0001318482 10-Q 2015-06-30 false --12-31 No No Yes Smaller Reporting Company Q2 2015 2599000 3996745 24580 24580 -16829626 -15441454 19257040 19257040 147006 156579 36732 48668 69050 72898 41224 35013 2599000 3996745 0 0 10033 10642 723019 964025 8015 9269 1763 3047 2354 851 2115 3308 2824 1022 1857933 3012809 10203 14367 13306 122056 16305 0 6677759 0 0 0 967703 0 0 0 0 66943 6735 887993 6032 0 0 0 426746 0 0 0 0 0 383549 35428 4417 0 3352 14945 11953 1570 37 158 8295 80 3 59 11365 4885 446 6253 4439 8 437 36 1899 3873 11 43 3 113 4269 8074 11407 0 8074 55 11352 3788 4265 0 3788 9 4256 6871 546 1570 37 158 221 80 3 4 13 4885 446 2465 174 8 437 36 1899 85 2 43 3 113 13 1446038 1446038 723019 482013 -723019 -964025 318617 1181382 -65000 -1257241 8000000 -17424 -17907 -17424 -17907 0 0 1512573 2526185 55682703 1834424 2876386 491203 971141 2451994 3840166 19257040 -16829626 24580 19257040 -15441454 24580 55682703 55682703 55682703 55682703 0.00 0.00 241006 241006 120503 120503 241006 241006 120503 120503 -226061 -229053 -114250 -116064 1172699 1013017 580356 518047 631654 490210 318617 281130 75138 116423 28862 45277 220820 288478 108247 137394 239561 109297 121867 48861 4000 7000 2000 4500 1526 1609 763 885 -1398760 -1242070 -694606 -634111 538 214 259 117 -6255 15736 27835 17445 -1404477 -1226120 -666512 -616549 0 0 0 0 -1404477 -1226120 -666512 -616549 -1388172 -703043 0 -1338172 0 -666512 -350351 0 444626 0 160548 0 0 0 0 -1388172 -703043 -666512 -350351 0 0.01 0 0 -0.02 -0.02 -0.01 -0.01 0 0.01 0 0 -0.02 -0.02 -0.01 -0.01 55682703 68930631 55682703 69631329 55682703 68930631 55682703 69631329 55682703 55682703 -1041690 -174382 6732 76018 609 -57 -4164 -68313 -108750 -141772 -272 -55030 0 51701 272 3329 0 709350 0 700000 0 9350 -1041962 479938 0 0 0 0 0 0 0 0 <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">The accompanying unaudited financial statements have been prepared by Shoal Games Ltd. (&#34;the Company&#34;) in conformity with accounting principles generally accepted in the United States of America (&#34;US GAAP&#34;) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.&#160; Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.&#160; In the opinion of management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.&#160; All adjustments are of a normal recurring nature, except as otherwise noted below.&#160; These unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in the Company's Annual Report on Form 10-K, filed March 26, 2015, with the Securities and Exchange Commission.&#160; The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"><b>Continuing operations</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">These unaudited interim consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.&#160; The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.&#160; The Company has reported losses from operations for the quarters ended June 30, 2015 and 2014, and has an accumulated deficit of 16,829,626 as at June 30, 2015.&#160; This raises substantial doubt about the Company's ability to continue as a going concern.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, and enable the timely discharge of the Company's obligations.&#160; If management is unable to identify sources of additional cash flow in the short term, it may be required to further reduce or limit operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.7pt; text-indent: -17.85pt">(a) &#160;&#160;&#160; Basis of presentation:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">These consolidated financial statements have been prepared in accordance with U.S. GAAP. The financial statements include the accounts of the Company's wholly-owned subsidiaries, English Bay Office Management Limited (registered in British Columbia, Canada), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Shoal Games (UK) Plc (previously Bingo.com (UK) plc.) (registered in the United Kingdom). All inter-company balances and transactions have been eliminated in the consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.7pt; text-indent: -17.85pt">(b) &#160;&#160; Use of estimates:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">The preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Significant areas requiring the use of estimates and judgment include the valuation of long-lived assets, software development, the collectability of accounts receivable, revenue recognition and the valuation of deferred tax assets.&#160; Actual results may differ significantly from these estimates.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 107.7pt; text-indent: -89.85pt">(c) &#160; Revenue recognition:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Trophy Bingo revenues have been recognized on the sale of in game purchases at the time of purchase.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0 0.5in">Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0 0.5in">Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 4pt 0 6pt 35.7pt; text-indent: -17.85pt">(d) &#160;&#160; Foreign currency:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and the translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 17.85pt">(e)&#160; Impairment of long-lived assets and long-lived assets to be disposed of:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. During the periods presented, the only long-lived assets reported on the Company's consolidated balance sheet are equipment, other assets, security deposits, and domain name rights.&#160; These provisions require that long-lived assets and certain identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160; Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">If such assets 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.&#160; Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 17.85pt">(f)&#160; Domain name and intangible assets:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">The Company has capitalized the cost of the purchase of the domain name Bingo.com and was amortizing the cost over five years from the date of commencement of operations. In 2002, the Company suspended the amortization of the domain name cost in accordance with ASC 350, where companies are no longer required to amortize indefinite life assets but instead test the indefinite life intangible asset for impairment at least annually. The capitalized amount is based on the net present value of the minimum payments permitted under the terms of the purchase agreement. The domain name is tested for impairment by comparing the future cash flows of the domain name with its carrying value. The Company determined that as a result of level 3 unobservable inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, that the fair value of the domain name exceeded the carrying value and therefore no impairment existed for the periods presented.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt; text-indent: -17.6pt">(g)&#160; Software Development Costs:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 35.45pt">Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred once technological feasibility has been established. After technological feasibility is established, any software development costs which have been capitalized are amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility and is amortizing the capitalized software development costs over a period of 3 years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 35.45pt">If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.&#160; Total software development costs for the development of Trophy Bingo were $3,259,074 as at June 30, 2015 (June 30, 2014 - $1,936,248).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 17.85pt">(h)&#160; New accounting pronouncements and changes in accounting policy:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0.5in">In May 2014, the FASB issued Accounting Standards Update (&#34;ASU&#34;) No. 2014-09, Revenue from Contracts with Customers.&#160; This guidance provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016 for public entities, with no early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial position or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0.5in">In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation. This guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial position or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (&#34;ASU 2014-15&#34;). ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the effect of ASU 2014-15 on our consolidated financial condition and results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. This standard requires an entity to &#34;determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances which the hybrid financial instrument was issued or acquired and the potential outcome of the hybrid financial instrument.&#160; ASU 2014-16 is effective for annual periods ending after December 15, 2015 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the effect of ASU 2014-16 on our consolidated financial condition and results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In January 2015, the FASB issued ASU 2015-01, which eliminates from GAAP the concept of extraordinary items. If an event or transaction meets the criteria for extraordinary classification, it is segregated from the results of ordinary operations and is shown as a separate item in the income statement, net of tax. ASU 2015-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect adoption of this guidance will have a material effect on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In February 2015, the FASB issued ASU 2015-02, which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is still assessing the potential impact of ASU 2015-02 on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that lease contracts with customers are a scope exception. Public business entities may elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently assessing the impact of the guidance on our consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">On April 17, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability.&#160; Currently, debt issuance costs are recorded as an asset and amortization of these deferred financing costs is recorded in interest expense.&#160; Under the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will continue to be recorded in interest expense.&#160; The new standard is effective for the Company on January 1, 2016 and will be applied on a retrospective basis.&#160; The Company is currently evaluating ASU 2015-03, and anticipates a change in our presentation only since the standard does not alter the accounting for debt issuance costs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">The FASB has issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.&#160; The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets.&#160; ASU 2015-05 is effective for public entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Company does not anticipate that ASU 2015-05 will have a significant impact on their financial statements.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.45pt; text-align: justify">There have been no other recent accounting standards, or changes in accounting standards, during the three months ended June 30, 2015, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 17.85pt">(i)&#160;&#160; Financial instruments:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">(i)&#160; Fair values:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.45pt">The fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.&#160; Cash is carried at fair value using a level 1 fair value measurement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.45pt">In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.&#160; The Company's cash was measured using Level 1 inputs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 0.5in; text-indent: -0.55pt">(ii)&#160; Foreign currency risk:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 35.45pt">The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.&#160; The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0">During the year ended December 31, 2012, the Company commenced development of a social bingo game. During the quarter ended March 31, 2014, the Company launched Trophy Bingo on Android in selected markets. The Company ceased to capitalize the development costs and commenced the amortization of the capitalized development costs over a period of three years.</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">June 30, 2015</font></td> <td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Capitalized Expenses</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Accumulated amortization</font></td> <td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt">Net book</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Value</p></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Trophy Bingo capitalized development expenses</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,446,038</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">723,019</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: center"><font style="font-size: 8pt">723,019</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2014</font></td> <td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Capitalized Expenses</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Accumulated amortization</font></td> <td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt">Net book</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Value</p></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Trophy Bingo capitalized development expenses</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,446,038</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">482,013</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: center"><font style="font-size: 8pt">964,025</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the 2014 fiscal year, the Company expensed $1,181,382 in development costs. During the quarter ended June 30, 2015, the Company expensed $318,617 (June 30, 2014 - $281,130) in development costs. The Company has incurred $3,259,074 in total development expenses as at June 30, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt">Effective December 31, 2014, the Company sold the www.bingo.com domain name to Unibet Group plc. for cash consideration of $2,000,000 and redemption of the 15,000,000 common shares of the Company, which were held by Unibet Group plc, at a price of $0.40 per share. The 15,000,000 common shares held by Unibet have been returned to the Company's treasury and were cancelled.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt">The Company recorded the following gain from the sale of domain name for the year ended December 31, 2014.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr> <td style="vertical-align: top; width: 67%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; width: 4%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: bottom; width: 29%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">Gain from sale of domain name </font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Sale of domain name</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,000,000</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Domain name rights and intangible assets held for sale</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(1,257,241)</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Commission on sale </font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(65,000)</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Gain from the sale of the domain name</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">6,677,759</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In addition, the Company disposed its cash bingo business to Unibet Group plc. The company recognized the gain on the sale of the cash bingo business of $16,305 in the quarter ended March 31, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 21.3pt">The effect of the discontinued operations were as follows:</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Six Months ended June 30, 2015</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 12%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Six Months ended June 30, 2014</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Three Months ended June 30, 2015</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 16%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Three Months ended June 30,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">2014</p></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Cash flows from operating activities:</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top"><font style="font-size: 8pt">Discontinued operations</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">16,305</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">523,077</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">266,198</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; border-bottom: Black 1.5pt double">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Common stock issuances:</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">During the quarter ended June 30, 2015, the Company listed on the Toronto Venture Stock Exchange with the shares commencing trading on July 2, 2015. No shares were issued during the quarter ended June 30, 2015. The Company incurred listing expenses relating to legal fees, underwriting fees and exchange listing fees of&#160; $130,960 in its listing on the Toronto Venture Stock Exchange.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stock option plans:</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">No options were granted or exercised during the period ended June 30, 2015.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The Company leases office facilities in Vancouver, British Columbia, Canada, and The Valley, Anguilla, British West Indies. These office facilities are leased under operating lease agreements. The Canadian operating lease expires on April 30, 2017. The Anguillan operating lease automatically renews each 3 months unless 3 months notice is given.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Minimum lease payments under these operating leases are approximately as follows:</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48%; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 33%; border-top: Black 1pt solid; padding-right: 6.3pt; text-align: right">&#160;</td> <td style="width: 19%; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2015</font></td> <td style="padding-right: 6.3pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,802</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2016</font></td> <td style="padding-right: 6.3pt; text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">16,104</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2017</font></td> <td style="padding-right: 6.3pt; text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">5,368</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1pt solid; padding-right: 6.3pt; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">The Company paid rent expense totaling $5,749 for the quarter ended June 30, 2015 (June 30, 2014 - $6,322).&#160;</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. Williams, a related party, for a consultancy payment based on the Company's performance with a minimum of $11,000 and a maximum of $25,000 per month.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">The Company has a management consulting agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of Shoal Games Ltd. for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of GBP5,000 per month payable in arrears.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">The Company has a management consulting agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of Shoal Games Ltd. The Consulting agreement provides for a consultancy payment based on the Company's performance with a minimum of $7,500 and a maximum of $25,000 per month.</p> <p style="font: 8pt Times New Roman, Times, Serif; text-align: justify; margin-top: 6pt; margin-right: 0; margin-left: 0">Shoal Games Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company's subsidiaries incur income taxation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0">The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2015, and December 31, 2014, are presented below:</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 52%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">June 30,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">2015</p></td> <td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">December 31, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td><font style="font-size: 8pt">Deferred tax assets:</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="padding-right: -4.95pt">&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">&#160;&#160; Net operating loss carry forwards</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">17,424</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 2pt; text-align: right"><font style="font-size: 8pt">17,907</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">&#160;&#160; Valuation Allowance </font></td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(17,424)</font></td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(17,907)</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-&#160; </font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-&#160; </font></td></tr> </table> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The Company has a liability of $nil (December 31, 2014 - $3,937) to a company owned by a current director and officer of the Company for payment of services rendered of $33,000 (June 30, 2014 - $44,146) by the current director and officer of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $4,609 (December 31, 2014 - $3,580) to a current director and officer of the Company for expenses incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $23,589 (December 31, 2014 - 23,300) to a company owned by a current director and officer of the Company for payment of services rendered of $22,972 (June 30, 2014 - $25,241) by the current director and officer of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $nil (December 31, 2014 - $nil) to a company owned by a current director and officer of the Company for payment of services rendered of $22,500 (June 30, 2014 - $22,970) by the current director and officer of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $3,074 (December 31, 2014 - $3,313) to a company owned by a current director of the Company for payment of services rendered of $3,077 (June 30, 2014 - $7,681) by the current director of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $1,000 (December 31, 2014 - $10,000), to independent directors of the Company for payment of services rendered. During the quarter ended June 30, 2015, the Company paid $2,000 (June 30, 2014 - $4,500) to the independent directors in director fees.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Company has a liability of $4,460 (December 31, 2014 - $4,538), to an officer of the Company for payment of services rendered and expenses incurred of $15,777 (June 30, 2014 - $17,304) by the officer of the Company.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0">The related party transactions are in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related party.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><u>Revenue</u></p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">During the quarter ended June 30, 2015, the Company operated in two reportable business segments, firstly the sale of in-app purchases on Trophy Bingo and secondly the selling of advertising on the website. &#160;During the quarter ended June 30, 2014, the Company operated in three reportable business segments, firstly the sale of in-app purchases on Trophy Bingo and secondly the selling of advertising on the website and thirdly the business of marketing games and entertainment based on the game of bingo through its Internet portal, bingo.com, supported mainly by the revenue generated from the deposits received for the games for money.</p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b>The Company had the following revenue by geographical region.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 34%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="vertical-align: top; width: 3%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="vertical-align: top; width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Six Months ended June 30, 2015</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Six Months ended June 30, 2014</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Three Months ended June 30, 2015</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Three Months ended June 30, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td colspan="3" style="text-decoration: underline"><font style="font-size: 8pt"><u>Revenue From Continuing Operations</u></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr> <td style="vertical-align: top; text-decoration: underline"><font style="font-size: 8pt"><u>Advertising revenue</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Nordics</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">55</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">9</font></td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,074</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,352</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,788</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,256</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Total advertising revenue</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,074</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">11,407</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">3,788</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">4,265</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td style="text-decoration: underline"><font style="font-size: 8pt"><u>Trophy Bingo Revenue</u></font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Western Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,570</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">80</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">437</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">43</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">37</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">36</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Nordics</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">158</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">North America</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">4,885</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">446</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,899</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">113</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">221</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">13</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">85</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">13</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Total Trophy Bingo revenue</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">6,871</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">546</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,465</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">174</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 8pt"><u>Total revenue from continuing operations</u></font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Western Europe</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,570</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">80</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">437</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">43</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">37</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">36</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Nordics</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">158</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">59</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">11</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">North America</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">4,885</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">446</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,899</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">113</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,295</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,365</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,873</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,269</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Total revenue from continuing operations</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">14,945</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">11,953</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">6,253</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">4,439</font></td></tr> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 8pt"><u>Gaming revenue from discontinued operations</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; text-decoration: underline"><font style="font-size: 8pt"><u>Gaming revenue</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Western Europe</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">66,943</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">35,428</font></td></tr> <tr> <td style="vertical-align: top"><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6,735</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4,417</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Nordics</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">887,993</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">383,549</font></td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">6,032</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,352</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Total gaming revenue from discontinued operations</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">967,703</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">426,746</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><u>Equipment</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The Company's equipment is located as follows:</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 50%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net Book Value</font></td> <td style="width: 4%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 8pt">June 30, 2015</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center">&#160;</td> <td style="width: 20%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">Anguilla</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1,763</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">2,115</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td><font style="font-size: 8pt">Canada</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,047</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,308</font></td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">United Kingdom</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,354</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,824</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">United States of America</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">851</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,022</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: Black 1.5pt double">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">8,015</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">9,269</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0"><u>Major customers</u></p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">For the quarter ended June 30, 2015 and 2014 the Company sold in-app purchases on its social bingo site, Trophy Bingo. There was no single player who had purchased more than 10% of the Trophy Bingo revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">During the quarter ended June 30, 2015 and 2014, the Company offered limited advertising. Therefore there were no advertising sales representing more than 10% of the total sales.</p> <p style="margin: 0; font: 8pt Times New Roman, Times, Serif">For the quarter ended June 30, 2014, there was no single player on the gaming site who had wagered more than 10% of the total gaming revenue. The Company was reliant on Unibet to provide contracted services pursuant to its Partner Program. These services include the supply and operation of the games (i.e. Bingo and Slots); the development and maintenance of the website, customer support to our players playing on our website www.bingo.com, processing all deposits and collection of those funds and processing all withdrawal requests.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.&#160; The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At June 30, 2015, the Company had total cash balances of $1,834,424 (December 31, 2014 - $2,876,386) at financial institutions, where $1,512,573 (December 31, 2014 - $2,526,185) is in excess of federally insured limits.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2015, the Company had one customer totaling $7,674, who accounted for total accounts receivable greater than 10%. As of December 31, 2014, the Company had one customer, totaling $112,552 who accounted for greater than 10% of the total accounts receivable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.&#160; The Company performs credit evaluations of its customers but generally does not require collateral to support accounts receivable.</p> <p style="margin: 0; font: 8pt Times New Roman, Times, Serif">These consolidated financial statements have been prepared in accordance with U.S. GAAP. The financial statements include the accounts of the Company's wholly-owned subsidiaries, English Bay Office Management Limited (registered in British Columbia, Canada), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Shoal Games (UK) Plc (previously Bingo.com (UK) plc.) (registered in the United Kingdom). All inter-company balances and transactions have been eliminated in the consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: left">The preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Significant areas requiring the use of estimates and judgment include the valuation of long-lived assets, software development, the collectability of accounts receivable, revenue recognition and the valuation of deferred tax assets.&#160; Actual results may differ significantly from these estimates.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in">Trophy Bingo revenues have been recognized on the sale of in game purchases at the time of purchase.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0 0.5in">Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 5pt 0 0 0.5in">Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and the translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.5in">Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. During the periods presented, the only long-lived assets reported on the Company's consolidated balance sheet are equipment, other assets, security deposits, and domain name rights.&#160; These provisions require that long-lived assets and certain identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160; Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.&#160;</p> <p style="margin: 0; font: 8pt Times New Roman, Times, Serif">If such assets 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.&#160; Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">The Company has capitalized the cost of the purchase of the domain name Bingo.com and was amortizing the cost over five years from the date of commencement of operations. In 2002, the Company suspended the amortization of the domain name cost in accordance with ASC 350, where companies are no longer required to amortize indefinite life assets but instead test the indefinite life intangible asset for impairment at least annually. The capitalized amount is based on the net present value of the minimum payments permitted under the terms of the purchase agreement. The domain name is tested for impairment by comparing the future cash flows of the domain name with its carrying value. The Company determined that as a result of level 3 unobservable inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, that the fair value of the domain name exceeded the carrying value and therefore no impairment existed for the periods presented.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 35.45pt">Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred once technological feasibility has been established. After technological feasibility is established, any software development costs which have been capitalized are amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility and is amortizing the capitalized software development costs over a period of 3 years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 35.45pt">If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.&#160; Total software development costs for the development of Trophy Bingo were $3,259,074 as at June 30, 2015 (June 30, 2014 - $1,936,248).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0.5in">In May 2014, the FASB issued Accounting Standards Update (&#34;ASU&#34;) No. 2014-09, Revenue from Contracts with Customers.&#160; This guidance provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016 for public entities, with no early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial position or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0.5in">In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation. This guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial position or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (&#34;ASU 2014-15&#34;). ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the effect of ASU 2014-15 on our consolidated financial condition and results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. This standard requires an entity to &#34;determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances which the hybrid financial instrument was issued or acquired and the potential outcome of the hybrid financial instrument.&#160; ASU 2014-16 is effective for annual periods ending after December 15, 2015 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the effect of ASU 2014-16 on our consolidated financial condition and results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In January 2015, the FASB issued ASU 2015-01, which eliminates from GAAP the concept of extraordinary items. If an event or transaction meets the criteria for extraordinary classification, it is segregated from the results of ordinary operations and is shown as a separate item in the income statement, net of tax. ASU 2015-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect adoption of this guidance will have a material effect on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">In February 2015, the FASB issued ASU 2015-02, which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is still assessing the potential impact of ASU 2015-02 on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that lease contracts with customers are a scope exception. Public business entities may elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently assessing the impact of the guidance on our consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">On April 17, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability.&#160; Currently, debt issuance costs are recorded as an asset and amortization of these deferred financing costs is recorded in interest expense.&#160; Under the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will continue to be recorded in interest expense.&#160; The new standard is effective for the Company on January 1, 2016 and will be applied on a retrospective basis.&#160; The Company is currently evaluating ASU 2015-03, and anticipates a change in our presentation only since the standard does not alter the accounting for debt issuance costs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.3pt; text-align: justify">The FASB has issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.&#160; The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets.&#160; ASU 2015-05 is effective for public entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Company does not anticipate that ASU 2015-05 will have a significant impact on their financial statements.</p> <p style="margin: 0; font: 8pt Times New Roman, Times, Serif">There have been no other recent accounting standards, or changes in accounting standards, during the three months ended June 30, 2015, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">(i)&#160; Fair values:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.45pt">The fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.&#160; Cash is carried at fair value using a level 1 fair value measurement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 0 35.45pt">In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.&#160; The Company's cash was measured using Level 1 inputs.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 5pt 0.5in; text-indent: -0.55pt">(ii)&#160; Foreign currency risk:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 35.45pt">The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.&#160; The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">June 30, 2015</font></td> <td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Capitalized Expenses</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Accumulated amortization</font></td> <td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt">Net book</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Value</p></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Trophy Bingo capitalized development expenses</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,446,038</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">723,019</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: center"><font style="font-size: 8pt">723,019</font></td></tr> </table> <p style="margin-top: 0; margin-bottom: 0">&#160;</p> <p style="margin-top: 0; margin-bottom: 0"></p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2014</font></td> <td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Capitalized Expenses</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Accumulated amortization</font></td> <td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt">Net book</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Value</p></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Trophy Bingo capitalized development expenses</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">1,446,038</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">482,013</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: center"><font style="font-size: 8pt">964,025</font></td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr> <td style="vertical-align: top; width: 67%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; width: 4%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: bottom; width: 29%; border-top: Black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">Gain from sale of domain name </font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Sale of domain name</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,000,000</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Domain name rights and intangible assets held for sale</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(1,257,241)</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Commission on sale </font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(65,000)</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Gain from the sale of the domain name</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">6,677,759</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Six Months ended June 30, 2015</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 12%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Six Months ended June 30, 2014</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">Three Months ended June 30, 2015</font></td> <td style="width: 3%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="width: 16%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">Three Months ended June 30,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">2014</p></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Cash flows from operating activities:</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top"><font style="font-size: 8pt">Discontinued operations</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">16,305</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">523,077</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">266,198</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; border-bottom: Black 1.5pt double">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48%; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 33%; border-top: Black 1pt solid; padding-right: 6.3pt; text-align: right">&#160;</td> <td style="width: 19%; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2015</font></td> <td style="padding-right: 6.3pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,802</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2016</font></td> <td style="padding-right: 6.3pt; text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">16,104</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">2017</font></td> <td style="padding-right: 6.3pt; text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">5,368</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1pt solid; padding-right: 6.3pt; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 52%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">June 30,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">2015</p></td> <td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">December 31, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td><font style="font-size: 8pt">Deferred tax assets:</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="padding-right: -4.95pt">&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">&#160;&#160; Net operating loss carry forwards</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">17,424</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 2pt; text-align: right"><font style="font-size: 8pt">17,907</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">&#160;&#160; Valuation Allowance </font></td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(17,424)</font></td> <td style="border-bottom: black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(17,907)</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-&#160; </font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-&#160; </font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 34%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="vertical-align: top; width: 3%; border-top: black 1pt solid; border-bottom: black 1pt solid">&#160;</td> <td style="vertical-align: top; width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Six Months ended June 30, 2015</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Six Months ended June 30, 2014</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Three Months ended June 30, 2015</font></td> <td style="vertical-align: top; width: 2%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&#160;</td> <td style="vertical-align: top; width: 14%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Three Months ended June 30, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td colspan="3" style="text-decoration: underline"><font style="font-size: 8pt"><u>Revenue From Continuing Operations</u></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr> <td style="vertical-align: top; text-decoration: underline"><font style="font-size: 8pt"><u>Advertising revenue</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Nordics</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">55</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">9</font></td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,074</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,352</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,788</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,256</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Total advertising revenue</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,074</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">11,407</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">3,788</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">4,265</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td style="text-decoration: underline"><font style="font-size: 8pt"><u>Trophy Bingo Revenue</u></font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Western Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,570</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">80</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">437</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">43</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">37</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">36</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Nordics</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">158</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">North America</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">4,885</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">446</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,899</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">113</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">221</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">13</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">85</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">13</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Total Trophy Bingo revenue</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">6,871</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">546</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,465</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">174</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 8pt"><u>Total revenue from continuing operations</u></font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Western Europe</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,570</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">80</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">437</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">43</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">37</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">36</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Nordics</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">158</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">59</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">11</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">North America</font></td> <td style="text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">4,885</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">446</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,899</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">113</font></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">8,295</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,365</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,873</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,269</font></td></tr> <tr style="vertical-align: bottom; background-color: #66FFFF"> <td><font style="font-size: 8pt">Total revenue from continuing operations</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">14,945</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">11,953</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">6,253</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">4,439</font></td></tr> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 8pt"><u>Gaming revenue from discontinued operations</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr> <td style="vertical-align: top; text-decoration: underline"><font style="font-size: 8pt"><u>Gaming revenue</u></font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Western Europe</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">66,943</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">35,428</font></td></tr> <tr> <td style="vertical-align: top"><font style="font-size: 8pt">Central, Eastern and Southern Europe</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6,735</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4,417</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top"><font style="font-size: 8pt">Nordics</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">887,993</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: top; text-align: right"><font style="font-size: 8pt">383,549</font></td></tr> <tr> <td style="vertical-align: top; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Other</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">6,032</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,352</font></td></tr> <tr style="background-color: #66FFFF"> <td style="vertical-align: top; border-bottom: Black 1.5pt double"><font style="font-size: 8pt">Total gaming revenue from discontinued operations</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">967,703</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">426,746</font></td></tr> </table> 16305 523077 0 266198 8802 16104 5368 5749 6322 7674 112552 .10 .10 <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 50%; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net Book Value</font></td> <td style="width: 4%; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&#160;</td> <td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 8pt">June 30, 2015</font></td> <td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center">&#160;</td> <td style="width: 20%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2014</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">Anguilla</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">1,763</font></td> <td style="text-align: right"><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">2,115</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td><font style="font-size: 8pt">Canada</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,047</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,308</font></td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">United Kingdom</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,354</font></td> <td style="text-align: right">&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,824</font></td></tr> <tr style="vertical-align: top; background-color: #66FFFF"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">United States of America</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">851</font></td> <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,022</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: Black 1.5pt double">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">8,015</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 8pt">9,269</font></td></tr> </table>