PokerTek Inc. (PTEK, Financial) filed Quarterly Report for the period ended 2009-09-30.
PokerTek, Inc. was formed to develop and market the PokerPro system, an electronic poker table that provides a fully-automated poker room environment, to tribal casinos, commercial casinos, and card clubs. This system is designed to increase casino revenue by increasing hands per hour, while helping to reduce the labor costs within poker rooms, and is also designed to increase players' gaming experience by eliminating dealer and player mistakes, and eliminating the need for dealer tipping. Pokertek Inc. has a market cap of $9.5 million; its shares were traded at around $0.78 with and P/S ratio of 0.7.
Interest Expense, net. Interest expense increased $25,827 (51%) for the three months ended September 30, 2009 to $76,403 from $50,576 for the three months ended September 30, 2008. We incurred interest expense for the three months ended September 30, 2009 on the loan from our founders of $55,767 and recognized loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $19,494. In addition, we incurred interest on our capital lease of $1,143. During 2008, our interest expense was partially offset by interest income earned on our ARS investments, which were liquidated on January 5, 2009.
Net Loss. Net loss for the three months ended September 30, 2009 was $1.3 million, an improvement of $0.5 million (27%) from $1.8 million for the three months ended September 30, 2008. Net loss per share, basic and diluted, was $0.11 per share for the three months ended September 30, 2009, an improvement of $0.05 (31%) per share from net loss per share, basic and diluted, of $0.16 for the comparable period of 2008.
Depreciation of PokerPro systems increased by $99,328 (5%) to $2.0 million for the nine months ended September 30, 2009 as compared to $1.9 million for the nine months ended September 30, 2008. Cost of product sales decreased by $4.0 million (79%) to $1.1 million for the nine months ended September 30, 2009 as compared to $5.0 million for the nine months ended September 30, 2008. This decrease in cost of sales was attributable to the lower unit product sales of both PokerPro and Heads-Up Challenge.
Interest Expense, net. Interest expense, net increased $233,596 (970%) for the nine months ended September 30, 2009 to $257,674 from $24,078 for the nine months ended September 30, 2008. We incurred interest expense in 2009 on the loan from our founders of $184,697 and recognized loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $67,651. In addition, we incurred interest on our capital lease of $3,843. During 2008, we earned interest income on our ARS investments, which were liquidated on January 5, 2009.
Net Loss. Net loss for the nine months ended September 30, 2009 was $4.7 million, an improvement of $1.1 million (19%) from $5.8 million for the nine months ended September 30, 2008. Net loss per share, basic and diluted, was $0.ÂÂ42 per share for the nine months ended September 30, 2009, an improvement of $0.11 (21%) per share from net loss per share, basic and diluted, of $0.53 for the comparable period of 2008.
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PokerTek, Inc. was formed to develop and market the PokerPro system, an electronic poker table that provides a fully-automated poker room environment, to tribal casinos, commercial casinos, and card clubs. This system is designed to increase casino revenue by increasing hands per hour, while helping to reduce the labor costs within poker rooms, and is also designed to increase players' gaming experience by eliminating dealer and player mistakes, and eliminating the need for dealer tipping. Pokertek Inc. has a market cap of $9.5 million; its shares were traded at around $0.78 with and P/S ratio of 0.7.
Highlight of Business Operations:
Depreciation of PokerPro systems decreased by $12,502 (2%) to $663,633 for the three months ended September 30, 2009 as compared to $676,135 for the three months ended September 30, 2008. Cost of product sales decreased by $1.9 million (91%) to $0.2 million for the three months ended September 30, 2009 as compared to $2.1 million for the three months ended September 30, 2008. This decrease in cost of sales was attributable to the lower unit product sales of both PokerPro and Heads-Up Challenge.Interest Expense, net. Interest expense increased $25,827 (51%) for the three months ended September 30, 2009 to $76,403 from $50,576 for the three months ended September 30, 2008. We incurred interest expense for the three months ended September 30, 2009 on the loan from our founders of $55,767 and recognized loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $19,494. In addition, we incurred interest on our capital lease of $1,143. During 2008, our interest expense was partially offset by interest income earned on our ARS investments, which were liquidated on January 5, 2009.
Net Loss. Net loss for the three months ended September 30, 2009 was $1.3 million, an improvement of $0.5 million (27%) from $1.8 million for the three months ended September 30, 2008. Net loss per share, basic and diluted, was $0.11 per share for the three months ended September 30, 2009, an improvement of $0.05 (31%) per share from net loss per share, basic and diluted, of $0.16 for the comparable period of 2008.
Depreciation of PokerPro systems increased by $99,328 (5%) to $2.0 million for the nine months ended September 30, 2009 as compared to $1.9 million for the nine months ended September 30, 2008. Cost of product sales decreased by $4.0 million (79%) to $1.1 million for the nine months ended September 30, 2009 as compared to $5.0 million for the nine months ended September 30, 2008. This decrease in cost of sales was attributable to the lower unit product sales of both PokerPro and Heads-Up Challenge.
Interest Expense, net. Interest expense, net increased $233,596 (970%) for the nine months ended September 30, 2009 to $257,674 from $24,078 for the nine months ended September 30, 2008. We incurred interest expense in 2009 on the loan from our founders of $184,697 and recognized loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $67,651. In addition, we incurred interest on our capital lease of $3,843. During 2008, we earned interest income on our ARS investments, which were liquidated on January 5, 2009.
Net Loss. Net loss for the nine months ended September 30, 2009 was $4.7 million, an improvement of $1.1 million (19%) from $5.8 million for the nine months ended September 30, 2008. Net loss per share, basic and diluted, was $0.ÂÂ42 per share for the nine months ended September 30, 2009, an improvement of $0.11 (21%) per share from net loss per share, basic and diluted, of $0.53 for the comparable period of 2008.
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