10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: September 30, 2015
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number: 0-23588

GAMING PARTNERS INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

NEVADA	88-0310433
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)
1700 Industrial Road,	89102
Las Vegas, Nevada	(Zip Code)
(Address of principal executive offices)

(702) 384-2425

(Registrant’s telephone number, including area code)

None

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on the Corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

The number of shares outstanding of each of the registrant’s classes of common stock as of November 4, 2015, the latest practicable date, was 7,928,594 shares of Common Stock.

GAMING PARTNERS INTERNATIONAL CORPORATION

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2015

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	1
ITEM 1.	FINANCIAL STATEMENTS	1
	CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)	1
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)	2
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)	3
	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)	4
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)	5
	CONDENSED CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (unaudited)	6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	22
ITEM 4.	CONTROLS AND PROCEDURES	22
PART II.	OTHER INFORMATION	23
ITEM 1.	LEGAL PROCEEDINGS	23
ITEM 1A.	RISK FACTORS	23
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	23
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	23
ITEM 4.	MINE SAFETY DISCLOSURES	23
ITEM 5.	OTHER INFORMATION	23
ITEM 6.	EXHIBITS	24
SIGNATURES		25

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

	September 30,			December 31,
	2015			2014
ASSETS
Current Assets:
Cash and cash equivalents	$	12,829		$	8,969
Marketable securities		5,353			3,597
Accounts receivable, net		10,663			10,327
Inventories		10,727			9,063
Prepaid expenses		729			749
Deferred income tax assets		1,389			1,011
Other current assets		2,778			2,273
Total current assets		44,468			35,989
Property and equipment, net		15,142			15,087
Goodwill		10,292			10,292
Intangibles, net		2,575			2,794
Deferred income tax assets		2,149			2,003
Inventories, non-current		380			523
Other assets		1,530			1,706
Total assets	$	76,536		$	68,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	4,301		$	3,321
Accrued liabilities		4,165			3,906
Customer deposits and deferred revenue		6,496			2,224
Current portion of long term debt		1,334			10,000
Income taxes payable		841			343
Total current liabilities		17,137			19,794
Long term debt		8,341			-
Deferred income tax liabilities		210			272
Other liabilities		80			63
Total liabilities		25,768			20,129
Commitments and contingencies - see Note 9
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value,
none issued and outstanding		-			-
Common stock, authorized 30,000,000 shares, $.01 par value,
8,219,577 and 7,928,594 issued and outstanding, respectively, as of September 30, 2015, and 8,207,077 and 7,916,094 issued and outstanding, respectively, as of December 31, 2014		82			82
Additional paid-in capital		20,042			19,886
Treasury stock at cost: 290,983 shares		(2,263	)		(2,263	)
Retained earnings		34,371			30,881
Accumulated other comprehensive loss		(1,464	)		(321	)
Total stockholders' equity		50,768			48,265
Total liabilities and stockholders' equity	$	76,536		$	68,394

See notes to unaudited condensed consolidated financial statements.

1 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per-share amounts)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
Revenues	$	19,844	$	20,253		$	54,749	$	41,028
Cost of revenues		13,391		13,447			37,338		28,710
Gross profit		6,453		6,806			17,411		12,318
Marketing and sales		1,616		1,840			4,800		4,486
General and administrative		2,565		2,041			7,448		6,151
Research and development		250		324			900		1,178
Operating income		2,022		2,601			4,263		503
Other income, net		127		127			59		232
Income before income taxes		2,149		2,728			4,322		735
Income tax provision (benefit)		474		(40	)		832		252
Net income	$	1,675	$	2,768		$	3,490	$	483
Earnings per share:
Basic	$	0.21	$	0.35		$	0.44	$	0.06
Diluted	$	0.21	$	0.35		$	0.43	$	0.06
Weighted-average shares of common stock outstanding:
Basic		7,929		7,916			7,924		7,916
Diluted		8,049		8,015			8,038		8,016

See notes to unaudited condensed consolidated financial statements.

2 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited)

(in thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015			2014
Net income	$	1,675	$	2,768		$	3,490		$	483
Other comprehensive gain (loss):
Foreign currency translation adjustment		177		(1,145	)		(1,143	)		(1,295	)
Other comprehensive income (loss), net of tax		177		(1,145	)		(1,143	)		(1,295	)
Total comprehensive income (loss)	$	1,852	$	1,623		$	2,347		$	(812	)

See notes to unaudited condensed consolidated financial statements.

3 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands, except per share amounts)

												Accumulated
	Common Stock				Additional							Other
					Paid-In		Treasury			Retained		Comprehensive
	Shares		Amount		Capital		Stock			Earnings		Income (Loss)			Total
Balance, January 1, 2014		7,916,094	$	82	$	19,771	$	(2,262	)	$	28,205	$	1,677		$	47,473
Net income		-		-		-		-			483		-			483
Stock compensation expense		-		-		106		-			-		-			106
Foreign currency translation adjustment		-		-		-		-			-		(1,295	)		(1,295	)
Balance, September 30, 2014		7,916,094	$	82	$	19,877	$	(2,262	)	$	28,688	$	382		$	46,767
Balance, January 1, 2015		7,916,094	$	82	$	19,886	$	(2,263	)	$	30,881	$	(321	)	$	48,265
Net income		-		-		-		-			3,490		-			3,490
Common stock options exercised		12,500		-		87		-			-		-			87
Tax benefit of stock options exercised		-		-		3		-			-		-			3
Stock compensation expense		-		-		66		-			-		-			66
Foreign currency translation adjustment		-		-		-		-			-		(1,143	)		(1,143	)
Balance, September 30, 2015		7,928,594	$	82	$	20,042	$	(2,263	)	$	34,371	$	(1,464	)	$	50,768

See notes to unaudited condensed consolidated financial statements.

4 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Nine Months Ended
	September 30,
	2015			2014
Cash Flows from Operating Activities
Net income	$	3,490		$	483
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment		1,950			1,861
Amortization of intangible assets		218			140
Provision for bad debt		744			100
Deferred income taxes		(574	)		376
Stock compensation expense		66			106
Tax on exercise of stock options		3			-
(Gain) loss on sale or disposal of property, plant and equipment		(12	)		25
Gain on sale of marketable securities		(5	)		(6	)
Change in operating assets and liabilities:
Accounts receivable		(1,108	)		(2,547	)
Inventories		(1,743	)		(1,953	)
Prepaid expenses and other current assets		(624	)		868
Non-current other assets		138			(833	)
Accounts payable		1,022			1,297
Accrued liabilities		325			473
Customer deposits and deferred revenue		4,258			1,548
Other current liabilities		48			-
Income taxes payable		515			(7	)
Net cash provided by operating activities		8,711			1,931
Cash Flows from Investing Activities
Purchases of marketable securities		(7,136	)		(4,603	)
Proceeds from sale of marketable securities		5,132			8,537
Purchase of business assets		-			(19,750	)
Purchase of intangible assets		-			(25	)
Proceeds from sale of property and equipment		42			14
Capital expenditures		(2,299	)		(402	)
Net cash used in investing activities		(4,261	)		(16,229	)
Cash Flows from Financing Activities
Cash (paid) received for demand line of credit		(10,000	)		10,000
Proceeds from debt obligation		10,000			-
Principal payments on long-term debt		(325	)		-
Proceeds from exercise of stock options		87			-
Net cash (used in) provided by financing activities		(238	)		10,000
Effect of exchange rate changes on cash		(352	)		(449	)
Net increase (decrease) in cash and cash equivalents		3,860			(4,747	)
Cash and cash equivalents, beginning of period		8,969			14,492
Cash and cash equivalents, end of period	$	12,829		$	9,745
Supplemental disclosure of cash flow information:
Cash paid for interest	$	(64	)	$	(63	)
Cash (paid) received for income taxes, net of refunds	$	(560	)	$	780
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment acquired through accounts payable	$	46		$	163

See notes to unaudited condensed consolidated financial statements.

5 

CONDENSED CONSOLIDATED NOTES TO FINANCIAL STATEMENTS

(unaudited)

Note 1. Nature of Business and Significant Accounting Policies

Organization and Nature of Business

Gaming Partners International Corporation (GPIC or the Company) is headquartered in Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, upholstery, roulette wheels, and RFID readers and software, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette.

The Company has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), our maquiladora manufacturing operation in Mexico, and GPI USA Blue Springs, our manufacturing facility in Missouri); Gaming Partners International SAS (GPI SAS); and Gaming Partners International Asia Limited (GPI Asia).  Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona, Blue Springs, Missouri, and Las Vegas, Nevada. We have sales offices in Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico.

• GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts and upholstery that it manufactures in Macau S.A.R.

Significant Accounting Policies

Basis of Consolidation and Presentation. The accompanying condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and in the form prescribed by the Securities and Exchange Commission (SEC), and do not include all of the information and notes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year.

Recently Issued Accounting Standards. In July 2015, The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance applies to any entity measuring inventory using first-in, first-out or average cost. The main provision of this guidance requires an entity to measure inventory within the scope of this Update at the lower of cost and net realizable value. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

6 

In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606). This guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting for contract costs. In July 2015, the FASB approved a deferral of the effective date of ASU 2014-09 to January 1, 2017, and would permit early application though in no case could the new guidance be applied before the original effective date. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Note 2. Acquisition

On July 1, 2014, we acquired substantially all of the net gaming assets of GemGroup Inc. (GemGroup Acquisition), a manufacturer of playing cards, table layouts and casino currency primarily sold under the Gemaco® brand. The acquisition was consolidated on the Company’s financial statements as of the date of acquisition.

Note 3. Cash, Cash Equivalents, and Marketable Securities

We hold our cash, cash equivalents, and marketable securities in various financial institutions in the countries shown below. Substantially all accounts have balances in excess of government-insured limits. The following summarizes our holdings (in thousands):

	September 30, 2015						December 31, 2014
	Cash and  Cash Equivalents		Marketable Securities		Total		Cash and  Cash Equivalents		Marketable Securities		Total
United States (including Mexico)	$	7,141	$	-	$	7,141	$	3,160	$	-	$	3,160
France		857		5,353		6,210		644		3,597		4,241
Macau S.A.R., China		4,831		-		4,831		5,165		-		5,165
Total	$	12,829	$	5,353	$	18,182	$	8,969	$	3,597	$	12,566

Available-for-sale marketable securities consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	September 30, 2015						December 31, 2014
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,811	$	-	$	2,811	$	1,215	$	-	$	1,215
Bond mutual funds		2,542		-		2,542		2,382		-		2,382
Total marketable securities	$	5,353	$	-	$	5,353	$	3,597	$	-	$	3,597

We present our marketable securities at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have determined that all of our marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

7 

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At September 30, 2015, no customer accounted for greater than 10% of our accounts receivable balance. At December 31, 2014, one Macau customer accounted for 30% of our accounts receivable balance.

The allowance for doubtful accounts consists of the following (in thousands):

	Balance at Beginning of Year		Provision		Write-offs, Net of Recoveries			Exchange Rate Effect			Balance at End of Period
September 30, 2015	$	302	$	744	$	(35	)	$	(4	)	$	1,007
December 31, 2014	$	114	$	193	$	(5	)	$	-		$	302

Note 5. Inventories

Inventories consist of the following (in thousands):

	September 30, 2015		December 31, 2014
Raw materials	$	7,408	$	5,747
Work in progress		1,606		1,257
Finished goods		2,093		2,582
Total inventories	$	11,107	$	9,586

We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2015		December 31, 2014
Current	$	10,727	$	9,063
Non-current		380		523
Total inventories	$	11,107	$	9,586

Note 6. Property and Equipment

Property and equipment consists of the following (in thousands):

	September 30, 2015			December 31, 2014
Land	$	1,763		$	1,784
Buildings and improvements		9,689			9,857
Equipment and furniture		27,206			26,033
Vehicles		382			368
		39,040			38,042
Less accumulated depreciation		(23,898	)		(22,955	)
Property and equipment, net	$	15,142		$	15,087

Depreciation expense for the three months ended September 30, 2015 and 2014 was $633,000 and $751,000, respectively. Depreciation expense for the nine months ended September 30, 2015 and 2014 was $1,950,000 and $1,861,000, respectively.

8 

Note 7. Goodwill and Intangible Assets

We have goodwill valued at $10.3 million as of September 30, 2015 arising from the GemGroup Acquisition.

Intangible assets consist of the following (in thousands):

	September 30, 2015							December 31, 2014
	Gross Carrying Amount		Accum Amort			Net Carrying Amount		Gross Carrying Amount		Accum Amort			Net Carrying Amount		Estimated Useful Life (Years)
Trademarks	$	1,772	$	(422	)	$	1,350	$	1,772	$	(327	)	$	1,445	10-15
Customer list		1,324		(219	)		1,105		1,327		(107	)		1,220	10-15
Patents		542		(518	)		24		542		(503	)		39	13-14
Other intangible assets		372		(276	)		96		372		(282	)		90	3-10
Total intangible assets	$	4,010	$	(1,435	)	$	2,575	$	4,013	$	(1,218	)	$	2,794

Amortization expense for intangible assets for the three months ended September 30, 2015 and 2014 was $69,000 and $79,000, respectively. Amortization expense for intangible assets for the nine months ended September 30, 2015 and 2014 was $218,000 and $140,000, respectively.

Note 8. Debt

On June 26, 2015, the Company entered into a credit agreement (Credit Agreement) with Nevada State Bank (Lender) for a combined $15.0 million, consisting of a $10.0 million seven-year term loan (Term Loan) and a $5.0 million five-year revolving loan (Revolving Loan). The Term Loan will mature on June 26, 2022, and the Revolving Loan will mature on June 26, 2020.

The Company borrowed the full amount under the Term Loan and repaid its existing $10.0 million demand line of credit with HSBC Bank USA, National Association (HSBC) on June 26, 2015. Upon repayment of the $10.0 million demand line of credit with HSBC, all obligations, security interests, liens and guarantees were released by HSBC. The Company has not drawn any funds under the Revolving Loan.

Interest on funds borrowed under the Term Loan and the Revolving Loan will be charged at a rate per annum equal to LIBOR plus 2.25%. The Term Loan has a straight-line seven year amortization schedule.

Estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Years ending December 31:
2015	$	334
2016		1,343
2017		1,376
2018		1,410
2019		1,444
Thereafter		3,768
	$	9,675

The Credit Agreement contains customary representations, warranties and events of default, and affirmative, negative and financial covenants. The covenants contain, among other things, limitations on the Company's and its subsidiaries' ability to merge, consolidate, dispose of assets, or incur liens or certain indebtedness. The Company is required to maintain a fixed charge coverage ratio greater than 1.15 to 1.00 and leverage ratio less than 3.00 to 1.00.

The Company and its subsidiary, GPI USA, granted to the Lender a first priority security interest in substantially all of their assets as collateral. In addition, the Credit Agreement is guaranteed by the Company’s subsidiaries GPI USA and GPI Asia.

The above description of the material terms and conditions of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full texts of the Credit Agreement, the Pledge and Security Agreement and Irrevocable Proxy and the Guaranty, which are filed as Exhibits 10.1, 10.2, and 10.3 to Form 8-K filed with the SEC on July 2, 2015.

9 

Note 9. Commitments and Contingencies

Legal Proceedings and Contingencies

From time to time we are engaged in disputes and claims that arose in the normal course of business. We believe the ultimate outcome of these proceedings will not have a material adverse impact on our consolidated financial position or results of operations, but the outcome of these actions is inherently difficult to predict. There can be no assurance that we will prevail in any such litigation. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

Note 10. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the three months ended September 30, 2015, were as follows (in thousands):

	Foreign Currency Translation			Unrealized Gains on Securities		Total
Balance at June 30, 2015	$	(1,642	)	$	1	$	(1,641	)
Other comprehensive income		177			-		177
Balance at September 30, 2015	$	(1,465	)	$	1	$	(1,464	)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2015, were as follows (in thousands):

	Foreign Currency Translation			Unrealized Gains on Securities		Total
Balance at January 1, 2015	$	(322	)	$	1	$	(321	)
Other comprehensive loss		(1,143	)		-		(1,143	)
Balance at September 30, 2015	$	(1,465	)	$	1	$	(1,464	)

Note 11. Geographic and Product Line Information

We manufacture and sell casino table game equipment in one operating segment - casino table game products. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit. Our chief operating decision maker is our Chief Executive Officer (CEO). The CEO manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France, and Macau S.A.R.; that is, the individual locations do not have “segment,” or “product line,” managers who report to our CEO.

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	13,360	67.4	%	$	12,323	60.9	%
Asia-Pacific		4,968	25.0	%		6,909	34.1	%
Europe and Africa		1,516	7.6	%		1,021	5.0	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

10 

	Nine Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	38,947	71.1	%	$	24,553	59.8	%
Asia-Pacific		13,173	24.1	%		14,399	35.1	%
Europe and Africa		2,629	4.8	%		2,076	5.1	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	6,476	32.6	%	$	5,006	24.8	%
Casino currency with RFID		850	4.3	%		4,636	22.9	%
Total casino currency		7,326	36.9	%		9,642	47.7	%
Playing cards		6,628	33.4	%		6,281	31.0	%
Table accessories and other products		1,804	9.1	%		672	3.3	%
Table layouts		1,630	8.2	%		1,790	8.8	%
Dice		706	3.6	%		609	3.0	%
RFID solutions		485	2.4	%		180	0.9	%
Gaming furniture		390	2.0	%		223	1.1	%
Shipping		875	4.4	%		856	4.2	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

	Nine Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	13,102	23.9	%	$	11,270	27.5	%
Casino currency with RFID		5,507	10.1	%		9,297	22.7	%
Total casino currency		18,609	34.0	%		20,567	50.2	%
Playing cards		18,255	33.4	%		9,468	23.0	%
Table accessories and other products		5,372	9.8	%		2,310	5.6	%
Table layouts		4,754	8.7	%		3,651	8.9	%
Dice		2,043	3.7	%		1,774	4.3	%
RFID solutions		1,939	3.5	%		556	1.4	%
Gaming furniture		1,353	2.5	%		1,056	2.6	%
Shipping		2,424	4.4	%		1,646	4.0	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

For the nine months ended September 30, 2015, no customer accounted for greater than 10% of revenues. For the nine months ended September 30, 2014, one customer accounted for 10% of revenues.

11 

The following table presents our property and equipment by geographic area (in thousands):

	September 30, 2015		December 31, 2014
United States	$	8,746	$	8,199
France		3,423		3,699
Mexico		2,862		3,055
Asia		111		134
Total	$	15,142	$	15,087

The following table presents our intangible assets by geographic area (in thousands):

Intangible assets, net	September 30, 2015		December 31, 2014
United States	$	2,065	$	2,249
Asia		506		535
France		4		10
Total	$	2,575	$	2,794

Note 12. Earnings per Share (EPS)

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Weighted-average number of common shares outstanding - basic		7,929		7,916		7,924		7,916
Potential dilution from equity grants		120		99		114		100
Weighted-average number of common shares outstanding - diluted		8,049		8,015		8,038		8,016

Note 13. Income Taxes

As of December 31, 2014, we had a valuation allowance of $2.0 million related to foreign tax credit carryovers. In the second quarter of 2015, the Company pledged all of the net assets of GPI Asia as collateral under the new Credit Agreement (see Note 8 – Debt). Under Section 956 of the Internal Revenue Code, this pledge results in a deemed dividend from GPI Asia to the Company of approximately $7.0 million in 2015, subjecting that amount to U.S. taxation. The Company is able to offset the taxes payable on this deemed dividend with foreign tax credits equal to the taxes previously paid in Macau S.A.R. on the earnings deemed repatriated plus unused foreign tax credit carryovers. As a result, the valuation allowance previously recorded was released into tax expense in the second quarter and will continue to be released through the remainder of 2015. Except for the amount of the deemed dividend, the Company continues to assert that earnings from GPI Asia will be permanently reinvested.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion is intended to assist in the understanding of our results of operations and our present financial condition and should be read in conjunction with our consolidated condensed financial statements and related notes and the other financial information included in this Quarterly Report on Form 10-Q. The condensed consolidated financial statements and the accompanying notes contain additional detailed information that should be referred to when reviewing this material. Statements in this discussion may be forward-looking. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ significantly from those expressed. See Item 1A. “Risk Factors,” of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015.

For a more extensive overview and information on our products, as well as general information, see Item 1. “Business” of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015.

Overview of Our Business

We custom manufacture and supply casino currency with multiple security and design options, playing cards, table layouts, gaming furniture, table accessories, dice, upholstery, and roulette wheels. We also provide multiple RFID technologies including low- and high-frequency RFID casino currency, RFID solutions for casino currency (consisting of low- and high-frequency RFID casino currency readers, antennas, casino currency authentication software, casino currency inventory software applications, and software maintenance services). Our products and services are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC sells its casino table game equipment under the brand names of Paulson®, Bourgogne et Grasset® (BG®), Gemaco®, Blue Chip (BC®) and Bud Jones®.  GPIC is headquartered in Las Vegas, Nevada, with offices in Beaune, France; Macau S.A.R., China; San Luis Rio Colorado, Mexico; Blue Springs, Missouri; Atlantic City, New Jersey; and Gulfport, Mississippi. We sell our products to licensed casinos worldwide. We operate in one segment and have three operating subsidiaries: GPI USA (including GPI Mexicana, our maquiladora manufacturing operation in Mexico, and our manufacturing operation in Blue Springs, Missouri), GPI SAS, and GPI Asia. Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona, Blue Springs, Missouri, and Las Vegas, Nevada. We have sales offices in Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico.

• GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts and upholstery that it manufactures in Macau S.A.R.

On July 1, 2014, GPIC started manufacturing and selling playing cards and table layouts under the Gemaco® brand name in connection with the GemGroup Acquisition. In December 2014, we completed the relocation of all our playing card production from Mexico to Gemaco’s facility in Blue Springs, Missouri in order to take advantage of their capacity and manufacturing expertise. The consolidation was part of our strategic plan to improve the efficiency of our playing card production and has provided savings in the manufacturing of playing cards. Further, the GemGroup Acquisition expanded our product offerings in the growing Asia-Pacific region as the Gemaco brand has a strong market presence in the Asia-Pacific layout business.

Historically, we have experienced significant fluctuations in quarterly results primarily due to large, discrete currency orders as a result of casino openings, casino expansions, or large replacement orders. However, we anticipate such fluctuations to somewhat lessen as a result of the GemGroup Acquisition due to our increased market share of both playing cards and table layouts, two important sources of recurring revenue. Our backlog, which reflects signed orders, was as follows at September 30, 2015 and September 30, 2014 (in millions):

13 

	GPI USA			GPI Asia			GPI SAS			Total
September 30, 2015	$	5.9	million	$	7.2	million	$	0.4	million	$	13.5	million
September 30, 2014	$	3.7	million	$	5.7	million	$	0.4	million	$	9.8	million

Outlook

The backlog at September 30, 2015 contains a significant order of $7.2 million for a new casino in Macau S.A.R. The order includes the Company’s Bourgogne et Grasset brand of plaques as well as the newly released V-Series American style chips. While we anticipate that all of the orders included in the September 30, 2015 backlog will ship to customers by December 31, it is possible that production delays or customer requests for later ship dates could result in some of this revenue being recognized in 2016. Moreover, not all of the potential revenue for the current year is included in the backlog, in that orders are often signed and shipped in the same quarter.

Due to the nature of the Company’s business, future revenue streams are subject to a number of conditions beyond its control. Global economic conditions have had a well-publicized negative impact on casino revenues throughout the world. In particular, the slowdown of the Chinese economy continues to impact both the timing and size of orders (i.e. number of new tables scheduled to come on-line) in what had been the single largest growth area in the casino business. We continue to monitor these conditions closely, and work with customers to understand and meet their needs.

Financial and Operational Highlights

For the third quarter of 2015, our revenues were $19.9 million, a decrease of $0.4 million, or 2.0%, compared to revenues of $20.3 million for the same period of 2014.  For the third quarter of 2015, our net income was $1.7 million, compared to a net income of $2.8 million for the same period in 2014. The decrease in net income was primarily due to an increase in bad debt expense in 2015, and the absence of a tax benefit similar to the income tax benefit recorded in the third quarter of 2014.

For the first nine months of 2015, our revenues were $54.7 million, an increase of $13.7 million, or 33.4%, compared to revenues of $41.0 million for the same period of 2014. For the first nine months of 2015, our net income was $3.5 million, compared to net income of $0.5 million for the same period of 2014. The increase was primarily due to the additional revenue generated and synergies created as a result of the GemGroup Acquisition.

GPI SAS uses the euro as its functional currency. At September 30, 2015 and December 31, 2014, the U.S. dollar to euro exchange rates were $1.12 and $1.22, respectively, which represents a 8.2% stronger dollar compared to the euro. The average exchange rates for the nine months ended September 30, 2015 and 2014 were $1.11 and $1.36, respectively, which represents a 18.4% stronger dollar compared to the euro.

GPI Mexicana uses the U.S. dollar as its functional currency. At September 30, 2015 and December 31, 2014, the Mexican peso to U.S. dollar exchange rates were 17.08 and 14.47, respectively, which represents a 18.0% stronger dollar compared to the peso. The average exchange rates for the nine months ended September 30, 2015 and 2014 were 15.57 pesos and 13.11 pesos to the U.S. dollar, respectively, which represents a 18.8% stronger dollar compared to the Mexican peso.

GPI Asia uses the U.S. dollar as its functional currency. We believe the impact of the Macanese pataca to U.S. dollar exchange rate is immaterial because of the number of transactions using the local currency is minimal.

Other Matters

On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank for a combined $15.0 million, consisting of a $10.0 million seven-year term loan and a $5.0 million five-year revolving loan (see Note 8 – Debt).

CRITICAL ACCOUNTING ESTIMATES

Our consolidated condensed financial statements included in this report, while unaudited, have been prepared in accordance with U.S. GAAP. Financial statement preparation requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. The accompanying condensed consolidated financial statements are prepared using the same critical accounting estimates discussed in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

14 

RESULTS OF OPERATIONS

The following tables summarize selected items from our condensed consolidated statements of operations (in thousands) and as a percentage of revenues:

	Three Months Ended
	September 30,									Period-to-Period
	2015				2014					Change
Revenues	$	19,844	100.0	%	$	20,253		100.0	%	$	(409	)	(2.0	)%
Cost of revenues		13,391	67.5	%		13,447		66.4	%		(56	)	(0.4	)%
Gross profit		6,453	32.5	%		6,806		33.6	%		(353	)	(5.2	)%
Selling, administrative, and research and development		4,431	22.3	%		4,205		20.8	%		226		5.4	%
Operating income		2,022	10.2	%		2,601		12.8	%		(579	)	(22.3	)%
Other income, net		127	0.6	%		127		0.6	%		-		0.0	%
Income before income taxes		2,149	10.8	%		2,728		13.4	%		(579	)	(21.2	)%
Income tax provision (benefit)		474	2.4	%		(40	)	(0.2	)%		514		1,285.0	%
Net income	$	1,675	8.4	%	$	2,768		13.6	%	$	(1,093	)	(39.5	)%

	Nine Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Revenues	$	54,749	100.0	%	$	41,028	100.0	%	$	13,721		33.4	%
Cost of revenues		37,338	68.2	%		28,710	70.0	%		8,628		30.1	%
Gross profit		17,411	31.8	%		12,318	30.0	%		5,093		41.3	%
Selling, administrative, and research and development		13,148	24.0	%		11,815	28.8	%		1,332		11.3	%
Operating income		4,263	7.8	%		503	1.2	%		3,761		747.6	%
Other income, net		59	0.1	%		232	0.6	%		(173	)	(74.6	)%
Income before income taxes		4,322	7.9	%		735	1.8	%		3,588		488.1	%
Income tax provision		832	1.5	%		252	0.6	%		580		230.2	%
Net income	$	3,490	6.4	%	$	483	1.2	%	$	3,008		622.7	%

15 

The following tables present certain data by geographic area (in thousands) and as a percentage of revenues:

	Three Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Revenues
The Americas	$	13,360	67.4	%	$	12,323	60.9	%	$	1,037		8.4	%
Asia-Pacific		4,969	25.0	%		6,909	34.1	%		(1,940	)	(28.1	%)
Europe and Africa		1,516	7.6	%		1,021	5.0	%		495		48.5	%
Total	$	19,844	100.0	%	$	20,253	100.0	%	$	(409	)	(2.0	%)

	Nine Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Revenues
The Americas	$	38,947	71.1	%	$	24,553	59.8	%	$	14,394		58.6	%
Asia-Pacific		13,173	24.1	%		14,399	35.1	%		(1,226	)	(8.5	%)
Europe and Africa		2,629	4.8	%		2,076	5.1	%		553		26.6	%
Total	$	54,749	100.0	%	$	41,028	100.0	%	$	13,721		33.4	%

16 

The following tables present our revenues by product line (in thousands) and as a percentage of revenues:

	Three Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Casino currency without RFID	$	6,476	32.6	%	$	5,006	24.8	%	$	1,470		29.4	%
Casino currency with RFID		850	4.3	%		4,636	22.9	%		(3,786	)	(81.7	%)
Total casino currency		7,326	36.9	%		9,642	47.7	%		(2,316	)	(24.0	%)
Playing cards		6,628	33.4	%		6,281	31.0	%		347		5.5	%
Table accessories and other products		1,804	9.1	%		672	3.3	%		1,132		168.4	%
Table layouts		1,630	8.2	%		1,790	8.8	%		(160	)	(8.9	%)
Dice		706	3.6	%		609	3.0	%		97		16.0	%
RFID solutions		485	2.4	%		180	0.9	%		305		169.4	%
Gaming furniture		390	2.0	%		223	1.1	%		167		75.0	%
Shipping		875	4.4	%		856	4.2	%		19		2.2	%
Total	$	19,844	100.0	%	$	20,253	100.0	%	$	(409	)	(2.0	%)

	Nine Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Casino currency without RFID	$	13,102	23.9	%	$	11,270	27.5	%	$	1,832		16.3	%
Casino currency with RFID		5,507	10.1	%		9,297	22.7	%		(3,790	)	(40.8	%)
Total casino currency		18,609	34.0	%		20,567	50.2	%		(1,958	)	(9.5	%)
Playing cards		18,255	33.4	%		9,468	23.0	%		8,787		92.8	%
Table accessories and other products		5,372	9.8	%		2,310	5.6	%		3,062		132.5	%
Table layouts		4,754	8.7	%		3,651	8.9	%		1,103		30.2	%
Dice		2,043	3.7	%		1,774	4.3	%		269		15.1	%
RFID solutions		1,939	3.5	%		556	1.4	%		1,383		248.8	%
Gaming furniture		1,353	2.5	%		1,056	2.6	%		297		28.2	%
Shipping		2,424	4.4	%		1,646	4.0	%		778		47.3	%
Total	$	54,749	100.0	%	$	41,028	100.0	%	$	13,721		33.4	%

Comparison of Operations for the Three and Nine Months Ended September 30, 2015 and 2014

Revenues. For the three months ended September 30, 2015, our revenues were $19.9 million, a decrease of $0.4 million, or 2.0%, compared to revenues of $20.3 million for the same period of 2014.  The decrease was primarily due to a decrease in casino currency revenue largely offset by an increase in consumable products.

For the nine months ended September 30, 2015, our revenues were $54.7 million, an increase of $13.7 million, or 33.4%, compared to revenues of $41.0 million for the same period of 2014. The increase in revenues was primarily attributable to the additional business generated by the GemGroup Acquisition.

Cost of Revenues. For the three months ended September 30, 2015, cost of revenues was $13.4 million, which was relatively flat compared to cost of revenues for the same period in 2014.

For the nine months ended September 30, 2015, cost of revenues was $37.3 million, an increase of $8.6 million, or 30.1%, compared to cost of revenues of $28.7 million for the same period in 2014. As a percentage of revenues, our cost of revenues decreased to 68.2% in 2015 compared to 70.0% in 2014. The increased cost of revenues was primarily attributable to the additional business generated by the GemGroup Acquisition. The decrease in our cost of revenues as a percent of revenues was primarily due to efficiency improvement in our playing card production as a result of completing the relocation of all our playing card production from Mexico to our facility in Blue Springs, Missouri.

17 

Gross Profit. For the three months ended September 30, 2015, gross profit was $6.5 million, a decrease of $0.3 million, or 5.2%, compared to gross profit of $6.8 million for the same period in 2014. As a percentage of revenues, our gross profit decreased to 32.5% from 33.6%.

For the nine months ended September 30, 2015, gross profit was $17.4 million, an increase of $5.1 million, or 41.3%, compared to gross profit of $12.3 million for the same period in 2014. The increase in gross profit for the nine months ended September 30, 2015 compared to the same period in 2014 was primarily due to the additional business generated by the GemGroup Acquisition. As a percentage of revenues, our gross profit increased to 31.8% from 30.0%. The gross profit percent improvements for the nine months ended September 30, 2015, were primarily due to efficiency improvement in our playing card production as a result of completing the relocation of all our playing card production from Mexico to our facility in Blue Springs, Missouri. An additional factor was a stronger dollar as compared to the euro.

Selling, Administrative, and Research and Development Expenses. The following tables present the selling, administrative, and research and development expenses (in thousands) and as a percentage of revenues:

	Three Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Marketing and sales	$	1,616	8.1	%	$	1,840	9.1	%	$	(224	)	(12.2	%)
General and administrative		2,565	12.9	%		2,041	10.1	%		524		25.7	%
Research and development		250	1.3	%		324	1.6	%		(74	)	(22.8	%)
Total selling, administrative, and research and development	$	4,431	22.3	%	$	4,205	20.8	%	$	226		5.4	%

For the three months ended September 30, 2015, selling, administrative, and research and development expenses were $4.4 million, an increase of $0.2 million, or 5.4%, compared to selling, administrative, and research and development expenses of $4.2 million during the same period in 2014. Selling, administrative, and research and development expenses remained relatively flat as a percent of revenue in the third quarter of 2015 as compared to the same period in 2014.

Marketing and sales expenses decreased $0.2 million for the three months ended September 30, 2015 as compared to the same period in 2014. This was primarily due to staff reductions.

General and administrative expenses increased $0.5 million for the three months ended September 30, 2015 as compared to the same period in 2014. This was primarily due to an increase in bad debt expense and legal fees.

Research and development expenses remained relatively flat for the three months ended September 30, 2015 as compared to the same period in 2014.

	Nine Months Ended
	September 30,								Period-to-Period
	2015				2014				Change
Marketing and sales	$	4,800	8.8	%	$	4,486	10.9	%	$	314		7.0	%
General and administrative		7,448	13.6	%		6,151	15.0	%		1,296		21.1	%
Research and development		900	1.6	%		1,178	2.9	%		(278	)	(23.6	%)
Total selling, administrative, and research and development	$	13,147	24.0	%	$	11,815	28.8	%	$	1,332		11.3	%

For the nine months ended September 30, 2015, selling, administrative, and research and development expenses were $13.1 million, an increase of $1.3 million, or 11.3% compared to selling, administrative, and research and development expenses of $11.8 million during the same period in 2014. Selling, administrative, and research and development expenses decreased as a percent of revenue to 24.0% in the first nine months of 2015 from 28.8% in the same period in 2014 as revenues increased faster than expenses.

18 

Marketing and sales expenses increased by $0.3 million during the first nine months of 2015, compared to the same period in 2014 which was primarily due to an increase in sales expenses for additional personnel associated with the GemGroup Acquisition.

General and administrative expenses increased by $1.3 million during the first nine months of 2015, compared to the same period in 2014. This was primarily due to an increase in personnel and other general and administrative expenses associated with the GemGroup Acquisition, and an increase of $0.6 million in bad debt expense due to customer bankruptcy filings.

Research and development expenses decreased by $0.3 million during the first nine months of 2015, compared to the same period in 2014 primarily due to staff reductions.

Other Income and (Expense). The following tables present other income and (expense) items (in thousands) and as a percentage of revenues:

	Three Months Ended
	September 30,										Period-to-Period
	2015					2014					Change
Interest income	$	3		0.0	%	$	3		0.0	%	$	-		0.0	%
Interest expense		(64	)	(0.3	%)		(64	)	(0.3	%)		-		0.0	%
Gain on foreign currency transactions		185		0.9	%		186		0.9	%		(1	)	(0.5	%)
Other income		3		0.0	%		2		0.0	%		1		50.0	%
Total other income	$	127		0.6	%	$	127		0.6	%	$	-		0.0	%

	Nine Months Ended
	September 30,										Period-to-Period
	2015					2014					Change
Interest income	$	16		0.0	%	$	130		0.3	%	$	(114	)	(87.7	%)
Interest expense		(188	)	(0.3	%)		(64	)	(0.2	%)		(124	)	193.8	%
Gain on foreign currency transactions		151		0.3	%		159		0.5	%		(8	)	(5.0	%)
Other income		80		0.1	%		7		0.0	%		73		1,042.9	%
Total other income	$	59		0.1	%	$	232		0.6	%	$	(173	)	(74.6	%)

Income Taxes. Our effective income tax rate for the three months ended September 30, 2015 and 2014 was 22.1% and (1.5%), respectively. As of December 31, 2014, we had a valuation allowance of $2.0 million related to foreign tax credit carryovers. During the second quarter of 2015, the Company pledged all of the net assets of GPI Asia as collateral under the new Credit Agreement. Under Section 956 of the Internal Revenue Code, this pledge results in a deemed dividend from GPI Asia to the Company of approximately $7 million in 2015, subjecting that amount to U.S. taxation. The Company is able to offset the taxes payable on this deemed dividend with foreign tax credits equal to the taxes previously paid in Macau S.A.R. on the earnings deemed repatriated plus unused foreign tax credit carryovers. As a result, the valuation allowance previously recorded was released into tax expense in the second quarter and will continue to be released through the remainder of 2015. Related to this, there was a discrete benefit of approximately $0.2 million recorded through the second quarter of 2015, with minimal change in the third quarter of 2015.

Our effective income tax rate for the nine months ended September 30, 2015 and 2014 was 19.2% and 34.6%, respectively. Our effective tax rate for the nine months ended September 30, 2015 was favorably affected by the release of the valuation allowance related to foreign tax credits, the foreign rate differential on income from GPI Asia, and the benefit from a research credit from our French subsidiary, GPI SAS; partially offset by the current year tax impact of a deemed dividend from GPI Asia and our Subpart F income adjustment. Without the discrete release in the valuation allowance related to foreign tax credits, our effective tax rate for the three and nine months ended September 30, 2015 would have been 22.2% and 23.1%, respectively.

We account for uncertain tax positions in accordance with applicable accounting guidance. In 2015, the French Tax Administration started an examination of GPI SAS for tax years 2013 and 2012. There were no unrecognized tax benefits reported at September 30, 2015 or December 31, 2014.

19 

Liquidity and Capital Resources

Sources of Liquidity and Capital Resources. Historically, our primary source of liquidity and capital resources has been cash from operations. On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank for a combined $15.0 million, consisting of a $10.0 million seven-year term loan and a $5.0 million five-year revolving loan. The Company borrowed the full amount under the Term Loan and repaid its existing $10.0 million demand line of credit with HSBC Bank USA, National Association (HSBC) on June 26, 2015. The Company has not drawn any funds under the Revolving Loan.

Interest on funds borrowed under the Term Loan and the Revolving Loan will be charged at a rate per annum equal to LIBOR plus 2.25%. The Term Loan has a straight-line seven year amortization schedule. The Credit Agreement is guaranteed by GPIC and its subsidiaries GPI USA and GPI Asia.

Other potential sources of capital include, but are not limited to, marketable securities and bank credit facilities both in the United States and abroad. We believe that the combination of these resources will satisfy our needs for working capital, capital expenditures, purchases of common stock under our stock repurchase program, litigation, dividends or acquisitions.

At September 30, 2015, we had $12.8 million in cash and cash equivalents and $5.4 million in marketable securities, totaling $18.2 million. Of this amount, $7.2 million is held by GPI USA, $6.2 million is held by GPI SAS, and $4.8 million is held by GPI Asia. Of those amounts held outside of the United States, we would be subject to taxation in the United States if we were to repatriate those amounts, though foreign tax credits may be available to offset such taxes. All of the amounts currently held in Asia could be repatriated tax free due to the deemed dividend from GPI Asia (see Note 13 – Income Tax). Except for the amount of the deemed dividend, the Company continues to assert that earnings from GPI Asia will be permanently reinvested. We may repatriate amounts from GPI SAS and, accordingly, our consolidated condensed financial statements reflect the tax impacts that would result from repatriation.

Working Capital. The following summarizes our cash and cash equivalents, marketable securities, and working capital (all in thousands), and our current ratio:

	September 30,		December 31,		Period-to-Period
	2015		2014		Change
Cash and cash equivalents	$	12,829	$	8,969	$	3,860	43.0	%
Marketable securities		5,353		3,597		1,756	48.8	%
Working capital		27,331		16,195		11,136	68.8	%
Current ratio		2.6		1.8

At September 30, 2015, working capital totaled $27.3 million, an increase of $11.1 million, or 68.8%, compared to working capital of $16.2 million at December 31, 2014. This increase was due to an increase in current assets of $8.5 million and a decrease in current liabilities of $2.6 million. The increase in current assets was primarily related to an increase in cash and marketable securities of $5.6 million, an increase of $1.7 million in inventories, an increase in other current assets of $0.5 million, an increase in deferred tax assets of $0.4 million, and an increase in net accounts receivable of $0.3 million. The decrease in current liabilities is primarily related to the payoff of the $10.0 million demand line of credit somewhat offset by $1.3 million of current portion of the seven-year term loan, a $4.3 million increase in customer deposits and deferred revenue, and a $1.7 million increase in payables.

20 

Cash Flows. The following summarizes our cash flows (in thousands):

	Nine Months Ended
	September 30,						Period-to-Period
	2015			2014			Change
Operating activities	$	8,711		$	1,931		$	6,780		351.1	%
Investing activities		(4,261	)		(16,229	)		11,968		73.7	%
Financing activities		(238	)		10,000			(10,238	)	(102.4	%)
Effect of exchange rates		(352	)		(449	)		97		21.6	%
Net change	$	3,860		$	(4,747	)	$	8,607		181.3	%

The increase in cash flows provided by operating activities was primarily caused by an increase in net income of $3.0 million, an increase in assets of $1.1 million, an increase in liabilities of $2.9 million, and a decrease in non-cash items of $0.2 million.

The decrease in cash flows used by investing activities was primarily due to the decrease in the purchase of business assets somewhat offset by the net purchase of marketable securities of $2.0 million and capital expenditures of $2.3 million.

The decrease in cash flows provided by financing activities was due to the payoff of the HSBC $10.0 million demand line of credit.

Capital Expenditures. We plan to purchase approximately $1.5 million in property, plant, and equipment during the remainder of 2015. In the first nine months of 2015, we purchased $2.3 million of property, plant, and equipment.

Cash Dividend. Our Board of Directors has no current plans to pay a regular dividend on our common stock, but may evaluate the merit of paying a dividend from time to time.

Backlog. At September 30, 2015, our backlog of signed orders for 2015 was $13.5 million, consisting of $7.2 million for GPI Asia, $5.9 million for GPI USA, and $0.4 million for GPI SAS. At September 30, 2014, our backlog of signed orders was $9.8 million, consisting of $5.7 million for GPI Asia, $3.7 million for GPI USA, and $0.4 million for GPI SAS.

Contractual Obligations and Commercial Commitments

On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank for a combined $15.0 million, consisting of a $10.0 million seven-year term loan and a $5.0 million five-year revolving loan (see Note 8 – Debt).

Forward-Looking Information Statements and Risk Factors

Throughout this Quarterly Report on Form 10-Q, we make some forward-looking statements which do not relate to historical or current facts, but are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable that, while considered reasonable by us, are inherently subject to significant business, economic, and competitive risks and uncertainties, many of which are beyond our control and are subject to change. The statements also relate to our future prospects and anticipated performance, development, and business strategies such as statements relating to anticipated future sales or the timing thereof, potential acquisitions, the long-term growth and prospects of our business or any jurisdiction, the duration or effects of unfavorable economic conditions which may reduce our product sales, and the long-term potential of the RFID gaming chips market and our ability to capitalize on any such growth opportunities. These statements are identified by their use of terms and phrases such as anticipate, believe, could, would, estimate, expect, intend, may, plan, predict, project, pursue, will, continue, feel, or the negative or other variations thereof, and other similar terms and phrases, including references to assumptions.

21 

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those expressed or implied. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent known and unknown risks and uncertainties such as those identified in Part I-Item 1A. “Risk Factors,” of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015. We do not intend, and undertake no obligation, to update our forward-looking statements to reflect future events or circumstances.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, including the Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of September 30, 2015. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of September 30, 2015, the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective at a reasonable assurance level to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Management has determined that there was no change in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended September 30, 2015, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

22 

PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Not required for a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

No common shares were repurchased by the Company in the third quarter or first nine months of 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

23 

ITEM 6. EXHIBITS

31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation

24 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GAMING PARTNERS INTERNATIONAL CORPORATION
Date: November 12, 2015	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: November 12, 2015	By:	/s/ Alain Thieffry
		Alain Thieffry
		Chief Financial Officer, and Chairperson of the Board

25 

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Section 302 Certification

I, Gregory S. Gronau, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Gaming Partners International Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 12, 2015	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER

Section 302 Certification

I, Alain Thieffry, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Gaming Partners International Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 12, 2015	By:	/s/ Alain Thieffry
		Alain Thieffry Chief Financial Officer, and Chairperson of the Board

EX-32

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Gaming Partners International Corporation (the Company), for the quarter ended September 30, 2015, as filed with the Securities and Exchange Commission (SEC) on the date hereof (the Report), Gregory S. Gronau, as Chief Executive Officer of the Company, and Alain Thieffry, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

  1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

  2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	GAMING PARTNERS INTERNATIONAL CORPORATION
Date: November 12, 2015	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: November 12, 2015	By:	/s/ Alain Thieffry
		Alain Thieffry
		Chief Financial Officer, and Chairperson of the Board

XML

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Gross Carrying Amount	$ 4,010	$ 4,013
Goodwill and Intangible assets, Accumulated Amortization	(1,435)	(1,218)
Goodwill and Intangible assets, Net Carrying Amount	2,575	2,794
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Gross Carrying Amount	1,772	1,772
Goodwill and Intangible assets, Accumulated Amortization	(422)	(327)
Goodwill and Intangible assets, Net Carrying Amount	$ 1,350	1,445
Trademarks [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	10 years
Trademarks [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	15 years
Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Gross Carrying Amount	$ 1,324	1,327
Goodwill and Intangible assets, Accumulated Amortization	(219)	(107)
Goodwill and Intangible assets, Net Carrying Amount	$ 1,105	1,220
Customer List [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	10 years
Customer List [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	15 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Gross Carrying Amount	$ 542	542
Goodwill and Intangible assets, Accumulated Amortization	(518)	(503)
Goodwill and Intangible assets, Net Carrying Amount	$ 24	39
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	13 years
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	14 years
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Gross Carrying Amount	$ 372	372
Goodwill and Intangible assets, Accumulated Amortization	(276)	(282)
Goodwill and Intangible assets, Net Carrying Amount	$ 96	$ 90
Other Intangible Assets [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	3 years
Other Intangible Assets [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible assets, Estimated Useful Life (Years)	10 years

XML

Geographic and Product Line Information (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage			10.00%
Customer One [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage				10.00%

XML

Geographic and Product Line Information (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Property and equipment, net	$ 15,142	$ 15,087
United States [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	8,746	8,199
France [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	3,423	3,699
Mexico [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	2,862	3,055
Asia [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	$ 111	$ 134

XML

Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at Beginning of Year	$ 302	$ 114	$ 114
Provision	744	$ 100	193
Write-offs, Net of Recoveries	(35)		(5)
Exchange Rate Effect	(4)		0
Balance at End of Period	$ 1,007		$ 302

XML

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consists of the following (in thousands):

	September 30, 2015		December 31, 2014
Land	$	1,763	$	1,784
Buildings and improvements		9,689		9,857
Equipment and furniture		27,206		26,033
Vehicles		382		368
		39,040		38,042
Less accumulated depreciation		(23,898)		(22,955)
Property and equipment, net	$	15,142	$	15,087

XML

Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Tax Credit Carryforward, Valuation Allowance		$ 2.0
Dividend Income On Pledged Net Assets	$ 7.0

XML

Debt (Details Textual) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Jun. 26, 2015	Sep. 30, 2015
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	LIBOR plus 2.25%
Nevada State Bank [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit		$ 15.0
Long-term Debt [Member] | Nevada State Bank [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit		$ 10.0
Line of Credit Facility, Expiration Date		Jun. 26, 2022
Line of Credit [Member] | HSBC Bank [Member]
Line of Credit Facility [Line Items]
Repayments of Lines of Credit	$ 10.0
Revolving Credit Facility [Member] | Nevada State Bank [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit		$ 5.0
Line of Credit Facility, Expiration Date		Jun. 26, 2020

XML

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Land	$ 1,763	$ 1,784
Buildings and improvements	9,689	9,857
Equipment and furniture	27,206	26,033
Vehicles	382	368
Property, Plant and Equipment, Gross	39,040	38,042
Less accumulated depreciation	(23,898)	(22,955)
Property and equipment, net	$ 15,142	$ 15,087

XML

Geographic and Product Line Information (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Intangible assets, net	$ 2,575	$ 2,794
United States [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	2,065	2,249
Asia [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	506	535
France [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	$ 4	$ 10

XML

Acquisition

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

Note 2. Acquisition

On July 1, 2014, we acquired substantially all of the net gaming assets of GemGroup Inc. (GemGroup Acquisition), a manufacturer of playing cards, table layouts and casino currency primarily sold under the Gemaco® brand. The acquisition was  consolidated on the Company’s financial statements as of the date of acquisition.

XML

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income [Line Items]
Foreign Currency Translation, Beginning Balance	$ (1,642)		$ (322)
Foreign Currency Translation, Other comprehensive income (loss)	177		(1,143)	$ (1,295)
Foreign Currency Translation, Ending Balance	(1,465)		(1,465)
Unrealized Gains on Securities, Beginning Balance	1		1
Unrealized Gains on Securities, Other comprehensive loss	0		0
Unrealized Gains on Securities, Ending Balance	1		1
Accumulated other comprehensive income, Beginning Balance	(1,641)		(321)
Accumulated other comprehensive income, Other comprehensive income (loss)	177	$ (1,145)	(1,143)	$ (1,295)
Accumulated other comprehensive income, Ending Balance	$ (1,464)		$ (1,464)

XML

Geographic and Product Line Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of Revenue from Foreign Countries by Geographic Area [Table Text Block]

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	13,360	67.4	%	$	12,323	60.9	%
Asia-Pacific		4,968	25.0	%		6,909	34.1	%
Europe and Africa		1,516	7.6	%		1,021	5.0	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

	Nine Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	38,947	71.1	%	$	24,553	59.8	%
Asia-Pacific		13,173	24.1	%		14,399	35.1	%
Europe and Africa		2,629	4.8	%		2,076	5.1	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

Schedule of Product Revenue [Table Text Block]

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	6,476	32.6	%	$	5,006	24.8	%
Casino currency with RFID		850	4.3	%		4,636	22.9	%
Total casino currency		7,326	36.9	%		9,642	47.7	%
Playing cards		6,628	33.4	%		6,281	31.0	%
Table accessories and other products		1,804	9.1	%		672	3.3	%
Table layouts		1,630	8.2	%		1,790	8.8	%
Dice		706	3.6	%		609	3.0	%
RFID solutions		485	2.4	%		180	0.9	%
Gaming furniture		390	2.0	%		223	1.1	%
Shipping		875	4.4	%		856	4.2	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

	Nine Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	13,102	23.9	%	$	11,270	27.5	%
Casino currency with RFID		5,507	10.1	%		9,297	22.7	%
Total casino currency		18,609	34.0	%		20,567	50.2	%
Playing cards		18,255	33.4	%		9,468	23.0	%
Table accessories and other products		5,372	9.8	%		2,310	5.6	%
Table layouts		4,754	8.7	%		3,651	8.9	%
Dice		2,043	3.7	%		1,774	4.3	%
RFID solutions		1,939	3.5	%		556	1.4	%
Gaming furniture		1,353	2.5	%		1,056	2.6	%
Shipping		2,424	4.4	%		1,646	4.0	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

Schedule of Property Plant and Equipment by Geographic Area [Table Text Block]

The following table presents our property and equipment by geographic area (in thousands):

	September 30, 2015		December 31, 2014
United States	$	8,746	$	8,199
France		3,423		3,699
Mexico		2,862		3,055
Asia		111		134
Total	$	15,142	$	15,087

Schedule of Intangible Assets and Goodwill [Table Text Block]

The following table presents our intangible assets by geographic area (in thousands):

Intangible assets, net	September 30, 2015		December 31, 2014
United States	$	2,065	$	2,249
Asia		506		535
France		4		10
Total	$	2,575	$	2,794

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in accumulated other comprehensive loss for the three months ended September 30, 2015, were as follows (in thousands):

	Foreign		Unrealized
	Currency		Gains on
	Translation		Securities		Total
Balance at June 30, 2015	$	(1,642)	$	1	$	(1,641)
Other comprehensive income		177		-		177
Balance at September 30, 2015	$	(1,465)	$	1	$	(1,464)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2015, were as follows (in thousands):

	Foreign		Unrealized
	Currency		Gains on
	Translation		Securities		Total
Balance at January 1, 2015	$	(322)	$	1	$	(321)
Other comprehensive loss		(1,143)		-		(1,143)
Balance at September 30, 2015	$	(1,465)	$	1	$	(1,464)

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Geographic and Product Line Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$ 19,844	$ 20,253	$ 54,749	$ 41,028
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
The Americas [Member]
Segment Reporting Information [Line Items]
Revenues	$ 13,360	$ 12,323	$ 38,947	$ 24,553
Revenues, Percentage	67.40%	60.90%	71.10%	59.80%
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenues	$ 4,968	$ 6,909	$ 13,173	$ 14,399
Revenues, Percentage	25.00%	34.10%	24.10%	35.10%
Europe and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,516	$ 1,021	$ 2,629	$ 2,076
Revenues, Percentage	7.60%	5.00%	4.80%	5.10%

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Earnings per Share (EPS) (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Weighted-average number of common shares outstanding - basic		7,929		7,916		7,924		7,916
Potential dilution from equity grants		120		99		114		100
Weighted-average number of common shares outstanding - diluted		8,049		8,015		8,038		8,016

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Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	$ 12,829	$ 8,969	$ 9,745	$ 14,492
Marketable Securities	5,353	3,597
Total	18,182	12,566
United States (including Mexico) [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	7,141	3,160
Marketable Securities	0	0
Total	7,141	3,160
France [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	857	644
Marketable Securities	5,353	3,597
Total	6,210	4,241
Macau S.A.R., China [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	4,831	5,165
Marketable Securities	0	0
Total	$ 4,831	$ 5,165

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Nature of Business and Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

Note 1. Nature of Business and Significant Accounting Policies

Organization and Nature of Business

Gaming Partners International Corporation (GPIC or the Company) is headquartered in Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, upholstery, roulette wheels, and RFID readers and software, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. 

The Company has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), our maquiladora manufacturing operation in Mexico, and GPI USA Blue Springs, our manufacturing facility in Missouri); Gaming Partners International SAS (GPI SAS); and Gaming Partners International Asia Limited (GPI Asia).  Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona, Blue Springs, Missouri, and Las Vegas, Nevada. We have sales offices in Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico.

• GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts and upholstery that it manufactures in Macau S.A.R.

Significant Accounting Policies

Basis of Consolidation and Presentation. The accompanying condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and in the form prescribed by the Securities and Exchange Commission (SEC), and do not include all of the information and notes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year.

Recently Issued Accounting Standards. In July 2015, The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance applies to any entity measuring inventory using first-in, first-out or average cost. The main provision of this guidance requires an entity to measure inventory within the scope of this Update at the lower of cost and net realizable value. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606). This guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting for contract costs. In July 2015, the FASB approved a deferral of the effective date of ASU 2014-09 to January 1, 2017, and would permit early application though in no case could the new guidance be applied before the original effective date. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

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Cash, Cash Equivalents, and Marketable Securities (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 5,353	$ 3,597
Unrealized Gain/(Loss)	0	0
Fair Value	5,353	3,597
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	2,811	1,215
Unrealized Gain/(Loss)	0	0
Fair Value	2,811	1,215
Bond Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	2,542	2,382
Unrealized Gain/(Loss)	0	0
Fair Value	$ 2,542	$ 2,382

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Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization Of Intangible Assets	$ 69	$ 79	$ 218	$ 140
Goodwill	10,292		10,292		$ 10,292
GemGroup Inc [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 10,300		$ 10,300

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 12,829	$ 8,969
Marketable securities	5,353	3,597
Accounts receivable, net	10,663	10,327
Inventories	10,727	9,063
Prepaid expenses	729	749
Deferred income tax assets	1,389	1,011
Other current assets	2,778	2,273
Total current assets	44,468	35,989
Property and equipment, net	15,142	15,087
Goodwill	10,292	10,292
Intangibles, net	2,575	2,794
Deferred income tax asset	2,149	2,003
Inventories, non-current	380	523
Other assets	1,530	1,706
Total assets	76,536	68,394
Current Liabilities:
Accounts payable	4,301	3,321
Accrued liabilities	4,165	3,906
Customer deposits and deferred revenue	6,496	2,224
Current portion of long term debt	1,334	10,000
Income taxes payable	841	343
Total current liabilities	17,137	19,794
Long term debt	8,341	0
Deferred income tax liabilities	210	272
Other liabilities	80	63
Total liabilities	$ 25,768	$ 20,129
Commitments and contingencies - see Note 9
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued and outstanding	$ 0	$ 0
Common stock, authorized 30,000,000 shares, $.01 par value, 8,219,577 and 7,928,594 issued and outstanding, respectively, as of September 30, 2015, and 8,207,077 and 7,916,094 issued and outstanding, respectively, as of December 31, 2014	82	82
Additional paid-in capital	20,042	19,886
Treasury stock at cost: 290,983 shares	(2,263)	(2,263)
Retained earnings	34,371	30,881
Accumulated other comprehensive loss	(1,464)	(321)
Total stockholders' equity	50,768	48,265
Total liabilities and stockholders' equity	$ 76,536	$ 68,394

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Geographic and Product Line Information (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$ 19,844	$ 20,253	$ 54,749	$ 41,028
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
Casino currency without RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 6,476	$ 5,006	$ 13,102	$ 11,270
Revenues, Percentage	32.60%	24.80%	23.90%	27.50%
Casino currency with RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 850	$ 4,636	$ 5,507	$ 9,297
Revenues, Percentage	4.30%	22.90%	10.10%	22.70%
Total casino currency [Member]
Segment Reporting Information [Line Items]
Revenues	$ 7,326	$ 9,642	$ 18,609	$ 20,567
Revenues, Percentage	36.90%	47.70%	34.00%	50.20%
Playing Cards [Member]
Segment Reporting Information [Line Items]
Revenues	$ 6,628	$ 6,281	$ 18,255	$ 9,468
Revenues, Percentage	33.40%	31.00%	33.40%	23.00%
Table Accessories and Other Products [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,804	$ 672	$ 5,372	$ 2,310
Revenues, Percentage	9.10%	3.30%	9.80%	5.60%
Table Layouts [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,630	$ 1,790	$ 4,754	$ 3,651
Revenues, Percentage	8.20%	8.80%	8.70%	8.90%
Dice [Member]
Segment Reporting Information [Line Items]
Revenues	$ 706	$ 609	$ 2,043	$ 1,774
Revenues, Percentage	3.60%	3.00%	3.70%	4.30%
RFID Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	$ 485	$ 180	$ 1,939	$ 556
Revenues, Percentage	2.40%	0.90%	3.50%	1.40%
Gaming Furniture [Member]
Segment Reporting Information [Line Items]
Revenues	$ 390	$ 223	$ 1,353	$ 1,056
Revenues, Percentage	2.00%	1.10%	2.50%	2.60%
Shipping [Member]
Segment Reporting Information [Line Items]
Revenues	$ 875	$ 856	$ 2,424	$ 1,646
Revenues, Percentage	4.40%	4.20%	4.40%	4.00%

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2013	$ 47,473	$ 82	$ 19,771	$ (2,262)	$ 28,205	$ 1,677
Balance (in shares) at Dec. 31, 2013		7,916,094
Net income	483	$ 0	0	0	483	0
Stock compensation expense	106	0	106	0	0	0
Foreign currency translation adjustment	(1,295)	0	0	0	0	(1,295)
Balance at Sep. 30, 2014	46,767	$ 82	19,877	(2,262)	28,688	382
Balance (in shares) at Sep. 30, 2014		7,916,094
Balance at Dec. 31, 2014	48,265	$ 82	19,886	(2,263)	30,881	(321)
Balance (in shares) at Dec. 31, 2014		7,916,094
Net income	3,490	$ 0	0	0	3,490	0
Stock compensation expense	66	0	66	0	0	0
Foreign currency translation adjustment	(1,143)	0	0	0	0	(1,143)
Common stock options exercised	87	$ 0	87	0	0	0
Common stock options exercised (Shares)		12,500
Tax benefit of stock options exercised	3	$ 0	3	0	0	0
Balance at Sep. 30, 2015	$ 50,768	$ 82	$ 20,042	$ (2,263)	$ 34,371	$ (1,464)
Balance (in shares) at Sep. 30, 2015		7,928,594

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Raw materials	$ 7,408	$ 5,747
Work in progress	1,606	1,257
Finished goods	2,093	2,582
Total inventories	$ 11,107	$ 9,586

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Cash, Cash Equivalents, and Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2015

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents and Marketable Securities [Table Text Block]

The following summarizes our holdings (in thousands):

	September 30, 2015						December 31, 2014
	Cash and  Cash Equivalents		Marketable Securities		Total		Cash and  Cash Equivalents		Marketable Securities		Total
United States (including Mexico)	$	7,141	$	-	$	7,141	$	3,160	$	-	$	3,160
France		857		5,353		6,210		644		3,597		4,241
Macau S.A.R., China		4,831		-		4,831		5,165		-		5,165
Total	$	12,829	$	5,353	$	18,182	$	8,969	$	3,597	$	12,566

Available-for-sale Securities [Table Text Block]

Available-for-sale marketable securities consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	September 30, 2015						December 31, 2014
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,811	$	-	$	2,811	$	1,215	$	-	$	1,215
Bond mutual funds		2,542		-		2,542		2,382		-		2,382
Total marketable securities	$	5,353	$	-	$	5,353	$	3,597	$	-	$	3,597

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Inventories (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Current	$ 10,727	$ 9,063
Non-current	380	523
Total inventories	$ 11,107	$ 9,586

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following (in thousands):

	September 30, 2015		December 31, 2014
Raw materials	$	7,408	$	5,747
Work in progress		1,606		1,257
Finished goods		2,093		2,582
Total inventories	$	11,107	$	9,586

Schedule of Inventory, Noncurrent [Table Text Block]

The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2015		December 31, 2014
Current	$	10,727	$	9,063
Non-current		380		523
Total inventories	$	11,107	$	9,586

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities
Net income	$ 3,490	$ 483
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	1,950	1,861
Amortization of intangible assets	218	140
Provision for bad debt	744	100
Deferred income taxes	(574)	376
Stock compensation expense	66	106
Tax on exercise of stock options	3	0
(Gain) loss on sale or disposal of property, plant and equipment	(12)	25
Gain on sale of marketable securities	(5)	(6)
Change in operating assets and liabilities:
Accounts receivable	(1,108)	(2,547)
Inventories	(1,743)	(1,953)
Prepaid expenses and other current assets	(624)	868
Non-current other assets	138	(833)
Accounts payable	1,022	1,297
Accrued liabilities	325	473
Customer deposits and deferred revenue	4,258	1,548
Other current liabilities	48	0
Income taxes payable	515	(7)
Net cash provided by operating activities	8,711	1,931
Cash Flows from Investing Activities
Purchases of marketable securities	(7,136)	(4,603)
Proceeds from sale of marketable securities	5,132	8,537
Purchase of business assets	0	(19,750)
Purchase of intangible assets	0	(25)
Proceeds from sale of property and equipment	42	14
Capital expenditures	(2,299)	(402)
Net cash used in investing activities	(4,261)	(16,229)
Cash Flows from Financing Activities
Cash (paid) received for demand line of credit	(10,000)	10,000
Proceeds from debt obligation	10,000	0
Principal payments on long-term debt	(325)	0
Proceeds from exercise of stock options	87	0
Net cash (used in) provided by financing activities	(238)	10,000
Effect of exchange rate changes on cash	(352)	(449)
Net increase (decrease) in cash and cash equivalents	3,860	(4,747)
Cash and cash equivalents, beginning of period	8,969	14,492
Cash and cash equivalents, end of period	12,829	9,745
Supplemental disclosure of cash flow information:
Cash paid for interest	(64)	(63)
Cash (paid) received for income taxes, net of refunds	(560)	780
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment acquired through accounts payable	$ 46	$ 163

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	8,219,577	8,207,077
Common stock, shares outstanding	7,928,594	7,916,094
Treasury stock, shares	290,983	290,983

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Note 10. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the three months ended September 30, 2015, were as follows (in thousands):

	Foreign		Unrealized
	Currency		Gains on
	Translation		Securities		Total
Balance at June 30, 2015	$	(1,642)	$	1	$	(1,641)
Other comprehensive income		177		-		177
Balance at September 30, 2015	$	(1,465)	$	1	$	(1,464)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2015, were as follows (in thousands):

	Foreign		Unrealized
	Currency		Gains on
	Translation		Securities		Total
Balance at January 1, 2015	$	(322)	$	1	$	(321)
Other comprehensive loss		(1,143)		-		(1,143)
Balance at September 30, 2015	$	(1,465)	$	1	$	(1,464)

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Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 04, 2015
Document Information [Line Items]
Entity Registrant Name	Gaming Partners International CORP
Entity Central Index Key	0000918580
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	GPIC
Entity Common Stock, Shares Outstanding		7,928,594
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

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Geographic and Product Line Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11. Geographic and Product Line Information

We manufacture and sell casino table game equipment in one operating segment - casino table game products. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit. Our chief operating decision maker is our Chief Executive Officer (CEO). The CEO manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France, and Macau S.A.R.; that is, the individual locations do not have “segment,” or “product line,” managers who report to our CEO.

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	13,360	67.4	%	$	12,323	60.9	%
Asia-Pacific		4,968	25.0	%		6,909	34.1	%
Europe and Africa		1,516	7.6	%		1,021	5.0	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

	Nine Months Ended
	September 30,
	2015				2014
Revenues
The Americas	$	38,947	71.1	%	$	24,553	59.8	%
Asia-Pacific		13,173	24.1	%		14,399	35.1	%
Europe and Africa		2,629	4.8	%		2,076	5.1	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	6,476	32.6	%	$	5,006	24.8	%
Casino currency with RFID		850	4.3	%		4,636	22.9	%
Total casino currency		7,326	36.9	%		9,642	47.7	%
Playing cards		6,628	33.4	%		6,281	31.0	%
Table accessories and other products		1,804	9.1	%		672	3.3	%
Table layouts		1,630	8.2	%		1,790	8.8	%
Dice		706	3.6	%		609	3.0	%
RFID solutions		485	2.4	%		180	0.9	%
Gaming furniture		390	2.0	%		223	1.1	%
Shipping		875	4.4	%		856	4.2	%
Total	$	19,844	100.0	%	$	20,253	100.0	%

	Nine Months Ended
	September 30,
	2015				2014
Casino currency without RFID	$	13,102	23.9	%	$	11,270	27.5	%
Casino currency with RFID		5,507	10.1	%		9,297	22.7	%
Total casino currency		18,609	34.0	%		20,567	50.2	%
Playing cards		18,255	33.4	%		9,468	23.0	%
Table accessories and other products		5,372	9.8	%		2,310	5.6	%
Table layouts		4,754	8.7	%		3,651	8.9	%
Dice		2,043	3.7	%		1,774	4.3	%
RFID solutions		1,939	3.5	%		556	1.4	%
Gaming furniture		1,353	2.5	%		1,056	2.6	%
Shipping		2,424	4.4	%		1,646	4.0	%
Total	$	54,749	100.0	%	$	41,028	100.0	%

For the nine months ended September 30, 2015, no customer accounted for greater than 10% of revenues. For the nine months ended September 30, 2014, one customer accounted for 10% of revenues.

The following table presents our property and equipment by geographic area (in thousands):

	September 30, 2015		December 31, 2014
United States	$	8,746	$	8,199
France		3,423		3,699
Mexico		2,862		3,055
Asia		111		134
Total	$	15,142	$	15,087

The following table presents our intangible assets by geographic area (in thousands):

Intangible assets, net	September 30, 2015		December 31, 2014
United States	$	2,065	$	2,249
Asia		506		535
France		4		10
Total	$	2,575	$	2,794

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues	$ 19,844	$ 20,253	$ 54,749	$ 41,028
Cost of revenues	13,391	13,447	37,338	28,710
Gross profit	6,453	6,806	17,411	12,318
Marketing and sales	1,616	1,840	4,800	4,486
General and administrative	2,565	2,041	7,448	6,151
Research and development	250	324	900	1,178
Operating income	2,022	2,601	4,263	503
Other income, net	127	127	59	232
Income before income taxes	2,149	2,728	4,322	735
Income tax provision (benefit)	474	(40)	832	252
Net income	$ 1,675	$ 2,768	$ 3,490	$ 483
Earnings per share:
Basic (in dollars per share)	$ 0.21	$ 0.35	$ 0.44	$ 0.06
Diluted (in dollars per share)	$ 0.21	$ 0.35	$ 0.43	$ 0.06
Weighted-average shares of common stock outstanding:
Basic (in shares)	7,929	7,916	7,924	7,916
Diluted (in shares)	8,049	8,015	8,038	8,016

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Inventories

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 5. Inventories

Inventories consist of the following (in thousands):

	September 30, 2015		December 31, 2014
Raw materials	$	7,408	$	5,747
Work in progress		1,606		1,257
Finished goods		2,093		2,582
Total inventories	$	11,107	$	9,586

We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2015		December 31, 2014
Current	$	10,727	$	9,063
Non-current		380		523
Total inventories	$	11,107	$	9,586

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Accounts Receivable and Allowance for Doubtful Accounts

9 Months Ended

Sep. 30, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At September 30, 2015, no customer accounted for greater than 10% of our accounts receivable balance. At December 31, 2014, one Macau customer accounted for 30% of our accounts receivable balance.

The allowance for doubtful accounts consists of the following (in thousands):

	Balance at
	Beginning of				Write-offs, Net		Exchange		Balance at End
	Year		Provision		of Recoveries		Rate Effect		of Period
September 30, 2015	$	302	$	744	$	(35)	$	(4)	$	1,007
December 31, 2014	$	114	$	193	$	(5)	$	-	$	302

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Accounts Receivable and Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule of Allowance for Doubtful Accounts Receivable Roll Forward [Table Text Block]

The allowance for doubtful accounts consists of the following (in thousands):

	Balance at
	Beginning of				Write-offs, Net		Exchange		Balance at End
	Year		Provision		of Recoveries		Rate Effect		of Period
September 30, 2015	$	302	$	744	$	(35)	$	(4)	$	1,007
December 31, 2014	$	114	$	193	$	(5)	$	-	$	302

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Earnings per Share (EPS)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 12. Earnings per Share (EPS)

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Weighted-average number of common shares outstanding - basic		7,929		7,916		7,924		7,916
Potential dilution from equity grants		120		99		114		100
Weighted-average number of common shares outstanding - diluted		8,049		8,015		8,038		8,016

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Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 8. Debt

On June 26, 2015, the Company entered into a credit agreement (Credit Agreement) with Nevada State Bank (Lender) for a combined $15.0 million, consisting of a $10.0 million seven-year term loan (Term Loan) and a $5.0 million five-year revolving loan (Revolving Loan). The Term Loan will mature on June 26, 2022, and the Revolving Loan will mature on June 26, 2020.

The Company borrowed the full amount under the Term Loan and repaid its existing $10.0 million demand line of credit with HSBC Bank USA, National Association (HSBC) on June 26, 2015. Upon repayment of the $10.0 million demand line of credit with HSBC, all obligations, security interests, liens and guarantees were released by HSBC. The Company has not drawn any funds under the Revolving Loan.

Interest on funds borrowed under the Term Loan and the Revolving Loan will be charged at a rate per annum equal to LIBOR plus 2.25%. The Term Loan has a straight-line seven year amortization schedule.

Estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Years ending December 31:
2015	$	334
2016		1,343
2017		1,376
2018		1,410
2019		1,444
Thereafter		3,768
	$	9,675

The Credit Agreement contains customary representations, warranties and events of default, and affirmative, negative and financial covenants. The covenants contain, among other things, limitations on the Company's and its subsidiaries' ability to merge, consolidate, dispose of assets, or incur liens or certain indebtedness. The Company is required to maintain a fixed charge coverage ratio greater than 1.15 to 1.00 and leverage ratio less than 3.00 to 1.00.

The Company and its subsidiary, GPI USA, granted to the Lender a first priority security interest in substantially all of their assets as collateral. In addition, the Credit Agreement is guaranteed by the Company’s subsidiaries GPI USA and GPI Asia. 

The above description of the material terms and conditions of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full texts of the Credit Agreement, the Pledge and Security Agreement and Irrevocable Proxy and the Guaranty, which are filed as Exhibits 10.1, 10.2, and 10.3 to Form 8-K filed with the SEC on July 2, 2015.

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Property and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6. Property and Equipment

Property and equipment consists of the following (in thousands):

	September 30, 2015		December 31, 2014
Land	$	1,763	$	1,784
Buildings and improvements		9,689		9,857
Equipment and furniture		27,206		26,033
Vehicles		382		368
		39,040		38,042
Less accumulated depreciation		(23,898)		(22,955)
Property and equipment, net	$	15,142	$	15,087

Depreciation expense for the three months ended September 30, 2015 and 2014 was $633,000 and $751,000, respectively. Depreciation expense for the nine months ended September 30, 2015 and 2014 was $1,950,000 and $1,861,000, respectively.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 7. Goodwill and Intangible Assets

We have goodwill valued at $10.3 million as of September 30, 2015 arising from the GemGroup Acquisition.

Intangible assets consist of the following (in thousands):

	September 30, 2015						December 31, 2014
	Gross				Net		Gross				Net		Estimated
	Carrying		Accum		Carrying		Carrying		Accum		Carrying		Useful Life
	Amount		Amort		Amount		Amount		Amort		Amount		(Years)
Trademarks	$	1,772	$	(422)	$	1,350	$	1,772	$	(327)	$	1,445	10-15
Customer list		1,324		(219)		1,105		1,327		(107)		1,220	10-15
Patents		542		(518)		24		542		(503)		39	13-14
Other intangible assets		372		(276)		96		372		(282)		90	3-10
Total intangible assets	$	4,010	$	(1,435)	$	2,575	$	4,013	$	(1,218)	$	2,794

Amortization expense for intangible assets for the three months ended September 30, 2015 and 2014 was $69,000 and $79,000, respectively. Amortization expense for intangible assets for the nine months ended September 30, 2015 and 2014 was $218,000 and $140,000, respectively.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 9. Commitments and Contingencies

Legal Proceedings and Contingencies

From time to time we are engaged in disputes and claims that arose in the normal course of business. We believe the ultimate outcome of these proceedings will not have a material adverse impact on our consolidated financial position or results of operations, but the outcome of these actions is inherently difficult to predict. There can be no assurance that we will prevail in any such litigation. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

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Accounts Receivable and Allowance for Doubtful Accounts (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage			10.00%
Customer One [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage					30.00%

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Nature of Business and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Consolidation and Presentation. The accompanying condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and in the form prescribed by the Securities and Exchange Commission (SEC), and do not include all of the information and notes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 20, 2015.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards. In July 2015, The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance applies to any entity measuring inventory using first-in, first-out or average cost. The main provision of this guidance requires an entity to measure inventory within the scope of this Update at the lower of cost and net realizable value. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606). This guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting for contract costs. In July 2015, the FASB approved a deferral of the effective date of ASU 2014-09 to January 1, 2017, and would permit early application though in no case could the new guidance be applied before the original effective date. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets consist of the following (in thousands):

	September 30, 2015						December 31, 2014
	Gross				Net		Gross				Net		Estimated
	Carrying		Accum		Carrying		Carrying		Accum		Carrying		Useful Life
	Amount		Amort		Amount		Amount		Amort		Amount		(Years)
Trademarks	$	1,772	$	(422)	$	1,350	$	1,772	$	(327)	$	1,445	10-15
Customer list		1,324		(219)		1,105		1,327		(107)		1,220	10-15
Patents		542		(518)		24		542		(503)		39	13-14
Other intangible assets		372		(276)		96		372		(282)		90	3-10
Total intangible assets	$	4,010	$	(1,435)	$	2,575	$	4,013	$	(1,218)	$	2,794

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Earnings per Share (EPS) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic and Diluted Earnings Per Share [Line Items]
Weighted-average number of common shares outstanding - basic	7,929	7,916	7,924	7,916
Potential dilution from equity grants	120	99	114	100
Weighted-average number of common shares outstanding - diluted	8,049	8,015	8,038	8,016

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Debt (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Principal Balance
2015	$ 334
2016	1,343
2017	1,376
2018	1,410
2019	1,444
Thereafter	3,768
Long-term Debt	$ 9,675

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income	$ 1,675	$ 2,768	$ 3,490	$ 483
Other comprehensive gain (loss):
Foreign currency translation adjustment	177	(1,145)	(1,143)	(1,295)
Other comprehensive income (loss), net of tax	177	(1,145)	(1,143)	(1,295)
Total comprehensive income (loss)	$ 1,852	$ 1,623	$ 2,347	$ (812)

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Cash, Cash Equivalents, and Marketable Securities

9 Months Ended

Sep. 30, 2015

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 3. Cash, Cash Equivalents, and Marketable Securities

We hold our cash, cash equivalents, and marketable securities in various financial institutions in the countries shown below. Substantially all accounts have balances in excess of government-insured limits. The following summarizes our holdings (in thousands):

	September 30, 2015						December 31, 2014
	Cash and  Cash Equivalents		Marketable Securities		Total		Cash and  Cash Equivalents		Marketable Securities		Total
United States (including Mexico)	$	7,141	$	-	$	7,141	$	3,160	$	-	$	3,160
France		857		5,353		6,210		644		3,597		4,241
Macau S.A.R., China		4,831		-		4,831		5,165		-		5,165
Total	$	12,829	$	5,353	$	18,182	$	8,969	$	3,597	$	12,566

Available-for-sale marketable securities consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	September 30, 2015						December 31, 2014
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,811	$	-	$	2,811	$	1,215	$	-	$	1,215
Bond mutual funds		2,542		-		2,542		2,382		-		2,382
Total marketable securities	$	5,353	$	-	$	5,353	$	3,597	$	-	$	3,597

We present our marketable securities at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have determined that all of our marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

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Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt [Table Text Block]

Estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Years ending December 31:
2015	$	334
2016		1,343
2017		1,376
2018		1,410
2019		1,444
Thereafter		3,768
	$	9,675

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Property and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 633	$ 751	$ 1,950	$ 1,861

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 13. Income Taxes

As of December 31, 2014, we had a valuation allowance of $2.0 million related to foreign tax credit carryovers. In the second quarter of 2015, the Company pledged all of the net assets of GPI Asia as collateral under the new Credit Agreement (see Note 8 – Debt). Under Section 956 of the Internal Revenue Code, this pledge results in a deemed dividend from GPI Asia to the Company of approximately $7.0 million in 2015, subjecting that amount to U.S. taxation. The Company is able to offset the taxes payable on this deemed dividend with foreign tax credits equal to the taxes previously paid in Macau S.A.R. on the earnings deemed repatriated plus unused foreign tax credit carryovers. As a result, the valuation allowance previously recorded was released into tax expense in the second quarter and will continue to be released through the remainder of 2015. Except for the amount of the deemed dividend, the Company continues to assert that earnings from GPI Asia will be permanently reinvested.