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, 2016

OR

¨ 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 of incorporation or organization)	(I.R.S. Employer Identification No.)
3945 West Cheyenne Avenue,	89032
North 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 ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its 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 ¨

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 the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	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 ¨  No x

The number of shares outstanding of each of the registrant’s classes of common stock as of November 1, 2016, 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, 2016

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 (unaudited)	3
	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)	4
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)	5
	NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)	6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14
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 and par value)

	September 30,			December 31,
	2016			2015
ASSETS
Current Assets:
Cash and cash equivalents	$	10,505		$	17,788
Marketable securities		-			3,503
Accounts receivable, net		12,859			10,677
Inventories		15,781			10,199
Prepaid expenses		724			947
Deferred income tax assets		1,798			1,640
Other current assets		2,160			1,576
Total current assets		43,827			46,330
Property and equipment, net		23,283			14,102
Goodwill		10,292			10,292
Intangible assets, net		2,300			2,505
Deferred income tax assets		602			710
Inventories, non-current		609			670
Other assets, non-current		2,663			2,635
Total assets	$	83,576		$	77,244
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	4,582		$	4,498
Accrued liabilities		5,538			6,456
Customer deposits and deferred revenue		3,815			2,080
Current portion of long-term debt		1,359			1,343
Income taxes payable		1,501			824
Total current liabilities		16,795			15,201
Long-term debt		6,991			8,002
Deferred income tax liabilities		119			170
Other liabilities, non-current		1,076			83
Total liabilities		24,981			23,456
Commitments and contingencies - see Note 9
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding		-			-
Common stock, authorized 30,000,000 shares, $0.01 par value, 8,219,577 shares issued and 7,928,594 shares outstanding		82			82
Additional paid-in capital		20,016			20,033
Treasury stock at cost: 290,983 shares		(2,263	)		(2,263	)
Retained earnings		42,258			37,812
Accumulated other comprehensive loss		(1,498	)		(1,876	)
Total stockholders' equity		58,595			53,788
Total liabilities and stockholders' equity	$	83,576		$	77,244

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,
	2016		2015		2016			2015
Revenues	$	22,559	$	19,844	$	58,996		$	54,749
Cost of revenues		15,036		13,391		40,187			37,338
Gross profit		7,523		6,453		18,809			17,411
Marketing and sales		1,613		1,616		4,711			4,800
General and administrative		2,129		2,565		6,821			7,448
Research and development		297		250		955			900
Operating income		3,484		2,022		6,322			4,263
Other income (expense), net		43		127		(32	)		59
Income before income taxes		3,527		2,149		6,290			4,322
Income tax provision		1,080		474		1,844			832
Net income	$	2,447	$	1,675	$	4,446		$	3,490
Earnings per share:
Basic	$	0.31	$	0.21	$	0.56		$	0.44
Diluted	$	0.30	$	0.21	$	0.55		$	0.43
Weighted-average shares of common stock outstanding:
Basic		7,929		7,929		7,929			7,924
Diluted		8,057		8,049		8,039			8,038

See notes to unaudited condensed consolidated financial statements.

2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Net income	$	2,447	$	1,675	$	4,446	$	3,490
Other comprehensive income (loss):
Foreign currency translation adjustment		126		177		378		(1,143	)
Other comprehensive income (loss)		126		177		378		(1,143	)
Total comprehensive income	$	2,573	$	1,852	$	4,824	$	2,347

See notes to unaudited condensed consolidated financial statements.

3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands, except share amounts)

													Accumulated
	Common Stock				Additional								Other
					Paid-In			Treasury			Retained		Comprehensive
	Shares		Amount		Capital			Stock			Earnings		(Loss) Income			Total
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
Stock compensation expense		-		-		66			-			-		-			66
Tax impact of stock options		-		-		3			-			-		-			3
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
Balance, January 1, 2016		7,928,594	$	82	$	20,033		$	(2,263	)	$	37,812	$	(1,876	)	$	53,788
Net income		-		-		-			-			4,446		-			4,446
Stock compensation expense		-		-		70			-			-		-			70
Tax impact of stock options		-		-		(87	)		-			-		-			(87	)
Foreign currency translation adjustment		-		-		-			-			-		378			378
Balance, September 30, 2016		7,928,594	$	82	$	20,016		$	(2,263	)	$	42,258	$	(1,498	)	$	58,595

See notes to unaudited condensed consolidated financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Nine Months Ended
	September 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	4,446		$	3,490
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property and equipment		1,987			1,950
Amortization of intangible assets		205			218
Provision for bad debt		86			744
Deferred income taxes		(102	)		(574	)
Stock compensation expense		70			66
Tax impact of stock options		(87	)		3
Gain on sale or disposal of property and equipment		-			(12	)
Gain on sale of marketable securities		(1	)		(5	)
Change in operating assets and liabilities:
Accounts receivable		(2,265	)		(1,108	)
Inventories		(5,421	)		(1,743	)
Prepaid expenses and other current assets		(331	)		(624	)
Non-current other assets		16			138
Accounts payable		36			1,022
Accrued liabilities		(2,113	)		373
Customer deposits and deferred revenue		1,731			4,258
Income taxes payable		678			515
Net cash (used in) provided by operating activities		(1,065	)		8,711
Cash Flows from Investing Activities
Purchases of marketable securities		-			(7,136	)
Proceeds from sale of marketable securities		3,584			5,132
Proceeds from sale of property and equipment		-			42
Capital expenditures		(8,921	)		(2,299	)
Net cash used in investing activities		(5,337	)		(4,261	)
Cash Flows from Financing Activities
Cash paid for demand line of credit		-			(10,000	)
Proceeds from debt obligation		-			10,000
Principal payments on long-term debt		(995	)		(325	)
Proceeds from exercise of stock options		-			87
Net cash used in financing activities		(995	)		(238	)
Effect of exchange rate changes on cash		114			(352	)
Net (decrease) increase in cash and cash equivalents		(7,283	)		3,860
Cash and cash equivalents, beginning of period		17,788			8,969
Cash and cash equivalents, end of period	$	10,505		$	12,829
Supplemental disclosures of cash flow information
Cash paid for interest	$	183		$	188
Cash paid for income taxes, net of refunds	$	1,218		$	560
Supplemental disclosures of non-cash investing and financing activities
Property and equipment acquired through accrued and non-current other liabilities	$	2,178		$	46

See notes to unaudited condensed consolidated financial statements.

5

NOTES TO THE CONDENSED CONSOLIDATED 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 North Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, roulette wheels, and radio frequency identification (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 of our products is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have sales offices in North 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 that it manufactures in Macau S.A.R.

Significant Accounting Policies

Basis of Consolidation and Presentation. The accompanying unaudited condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The unaudited 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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016.

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 May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-12, Revenue from Contracts with Customers (Topic 606), amending the new revenue recognition standard that it issued in 2014. The amendments do not change the core principles of the standard, but clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. The ASU becomes effective concurrently with ASU 2014-09. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

6

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), to simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by reporting lease assets and lease liabilities, both finance (capital) and operating leases, on the balance sheet and disclosing key information about leasing arrangements. For public companies, the updated guidance is effective for the financial statements issued for fiscal years beginning after December 15, 2018 (including interim periods within those fiscal years). Early adoption is permitted. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The guidance eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 shall be effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016.

In July 2015, the FASB issued 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 ASU 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 has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

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. ASU 2016-08 comments on the effective date and transition of ASU 2014-09, stating public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application is permitted though in no case could the new guidance be applied before the original effective date. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

Note 2. Dolphin asset acquisition

On May 11, 2016, the Company entered into and closed an Asset Purchase Agreement to purchase certain assets used in the design and manufacture of casino currency from Dolphin Products Limited (Dolphin), a wholly owned subsidiary of Entertainment Gaming Asia Inc. (EGT). The purchased assets were substantially equipment and inventory.

The acquisition was treated as an asset acquisition. The total cost of the acquisition was $7.3 million, with $4.0 million paid at closing, $0.5 million paid in August 2016, $0.6 million paid by September 30, 2016 and $1.1 million to be paid on each of the first two anniversaries of the closing. The acquisition cost has been allocated as follows (in thousands):

	Assets acquired
Property and equipment	$	5,625
Inventory		1,688
Total acquired	$	7,313

7

In connection with the acquisition, the Company and EGT settled and released each other from all claims related to the civil actions initiated by the Company against Dolphin in the High Court of the Hong Kong Special Administrative Region in December 2015, as described further in Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

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 table summarizes our holdings (in thousands):

	September 30, 2016						December 31, 2015
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
Macau S.A.R., China	$	4,996	$	-	$	4,996	$	4,040	$	-	$	4,040
United States (including Mexico)		3,797		-		3,797		12,861		-		12,861
France		1,712		-		1,712		887		3,503		4,390
Total	$	10,505	$	-	$	10,505	$	17,788	$	3,503	$	21,291

Available-for-sale marketable securities as of 31 December, 2015 consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,727	$	-	$	2,727
Bond mutual funds		776		-		776
Total marketable securities	$	3,503	$	-	$	3,503

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.

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At September 30, 2016, two casino customers accounted for 16% and 14% of our accounts receivable balance. At December 31, 2015, one casino customer accounted for 33% of our accounts receivable balance.

Note 5. Inventories

Inventories consist of the following (in thousands):

	September 30, 2016		December 31, 2015
Raw materials	$	10,443	$	7,653
Work in progress		2,493		668
Finished goods		3,454		2,548
Total inventories	$	16,390	$	10,869

8

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 unaudited condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2016		December 31, 2015
Current	$	15,781	$	10,199
Non-current		609		670
Total inventories	$	16,390	$	10,869

Note 6. Property and Equipment

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

	September 30, 2016			December 31, 2015
Land	$	652		$	520
Buildings and improvements		7,770			6,839
Equipment and furniture		33,013			26,912
Vehicles		399			403
Construction in progress		4,742			1,403
		46,576			36,077
Less accumulated depreciation		(23,293	)		(21,975	)
Property and equipment, net	$	23,283		$	14,102

Depreciation expense for the three months ended September 30, 2016 and 2015 was $658,000 and $633,000, respectively. Depreciation expense for the nine months ended September 30, 2016 and 2015 was $1,987,000 and $1,950,000, respectively.

Note 7. Goodwill and Intangible Assets

We had goodwill valued at $10,292,000 as of September 30, 2016 and December 31, 2015.

Intangible assets consist of the following (in thousands):

	September 30, 2016							December 31, 2015
	Gross Carrying Amount		Accum. Amort.			Net Carrying Amount		Gross Carrying Amount		Accum. Amort.			Net Carrying Amount
Trademarks	$	1,772	$	(548	)	$	1,224	$	1,772	$	(454	)	$	1,318
Customer list		1,323		(324	)		999		1,323		(245	)		1,078
Patents		542		(525	)		17		542		(520	)		22
Other intangible assets		372		(312	)		60		372		(285	)		87
Total intangible assets	$	4,009	$	(1,709	)	$	2,300	$	4,009	$	(1,504	)	$	2,505

Amortization expense for intangible assets for the three months ended September 30, 2016 and 2015 was $68,000 and $69,000, respectively. Amortization expense for intangible assets for the nine months ended September 30, 2016 and 2015 was $205,000 and $218,000, respectively.

Note 8. Debt

On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank to borrow 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 has not drawn on funds under the Revolving Loan. The Term Loan will mature on June 26, 2022, and the Revolving Loan will mature on June 26, 2020.

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

9

At September 30, 2016, estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Year Ending	Long-term Debt
2016 (remaining 3 months)	$	336
2017		1,368
2018		1,407
2019		1,446
2020		1,487
Thereafter		2,306
Total	$	8,350

Note 9. Commitments and Contingencies

Operating Lease Commitments

The Company has various operating leases related primarily to equipment and manufacturing and office space.

On January 1, 2016, the Company commenced payments on a lease for its new corporate headquarters with payments of approximately $16,000 per month.

At September 30, 2016, minimum lease payment obligations are as follows (in thousands):

	Minimum
	Lease
Year Ending	Payments
2016 (remaining 3 months)	$	263
2017		949
2018		763
2019		310
2020		267
Thereafter		427
Total	$	2,979

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. See also the discussion at Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

10

Note 10. 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 (dollars in thousands):

	Three Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	13,650	60.6	%	$	13,360	67.4	%
Asia-Pacific		8,695	38.5	%		4,968	25.0	%
Europe and Africa		214	0.9	%		1,516	7.6	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

	Nine Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	42,144	71.5	%	$	38,947	71.1	%
Asia-Pacific		14,052	23.8	%		13,173	24.1	%
Europe and Africa		2,800	4.7	%		2,629	4.8	%
Total	$	58,996	100.0	%	$	54,749	100.0	%

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

	Three Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	2,999	13.3	%	$	6,476	32.6	%
Casino currency with RFID		5,797	25.7	%		850	4.3	%
Total casino currency		8,796	39.0	%		7,326	36.9	%
Playing cards		6,876	30.4	%		6,628	33.4	%
Table accessories and other products		1,961	8.7	%		1,804	9.1	%
Table layouts		1,231	5.4	%		1,630	8.2	%
Gaming furniture		1,053	4.7	%		390	2.0	%
RFID solutions		1,052	4.7	%		485	2.4	%
Dice		672	3.0	%		706	3.6	%
Shipping		918	4.1	%		875	4.4	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

11

	Nine Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	11,478	19.5	%	$	13,102	23.9	%
Casino currency with RFID		9,322	15.8	%		5,507	10.1	%
Total casino currency		20,800	35.3	%		18,609	34.0	%
Playing cards		19,922	33.8	%		18,255	33.4	%
Table accessories and other products		5,114	8.6	%		5,372	9.8	%
Table layouts		3,947	6.7	%		4,754	8.7	%
RFID solutions		2,576	4.4	%		1,939	3.5	%
Dice		2,101	3.6	%		2,043	3.7	%
Gaming furniture		2,090	3.5	%		1,353	2.5	%
Shipping		2,446	4.1	%		2,424	4.4	%
Total	$	58,996	100.0	%	$	54,749	100.0	%

For the nine month periods ended September 30, 2016, and September 30, 2015, no customer accounted for more than 10% of the Company’s revenues.

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

	September 30, 2016		December 31, 2015
United States	$	10,780	$	7,000
Mexico		7,033		3,249
France		5,143		3,544
Asia		327		309
Total	$	23,283	$	14,102

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

	September 30, 2016		December 31, 2015
Intangible assets, net:
United States	$	1,830	$	2,006
Asia		470		497
France		-		2
Total	$	2,300	$	2,505

Note 11. Earnings per Share

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Weighted-average number of common shares outstanding - basic		7,929		7,929		7,929		7,924
Potential dilution from equity options granted		128		120		110		114
Weighted-average number of common shares outstanding - diluted		8,057		8,049		8,039		8,038

12

We have certain outstanding stock options to purchase common stock which have exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted net income per share (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Outstanding anti-dilutive options		16		36		39		47

13

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 consolidated results of operations and our present financial condition and should be read in conjunction with our unaudited condensed consolidated financial statements and related notes and the other financial information included in this Quarterly Report on Form 10-Q. The unaudited 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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016.

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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016.

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, 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^®), Dolphin^® and Bud Jones^®.

GPIC is headquartered in North Las Vegas, Nevada, with offices in Blue Springs, Missouri; Atlantic City, New Jersey; Gulfport, Mississippi; San Luis Rio Colorado, Mexico; Beaune, France; and Macau S.A.R., China. We primarily 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 of our products are either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have sales offices in North 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 that it manufactures in Macau S.A.R.

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 continue to experience steady growth in our consumable products which now represent a significant percentage of our overall revenues. Our backlog, which reflects signed orders scheduled to be delivered in the following twelve months, was as follows at September 30, 2016 and September 30, 2015 (in millions):

	GPI Asia		GPI USA		GPI SAS		Total
September 30, 2016	$	10.1  million	$	8.4  million	$	0.6  million	$	19.1  million
September 30, 2015	$	9.1  million	$	7.7  million	$	0.4  million	$	17.2  million

14

Outlook

The acquisition of Dolphin’s assets strengthened our position in the growing Asian market. We anticipate shipping our first orders under the Dolphin brand in the fourth quarter of 2016. While there are a number of casinos scheduled to open in 2016 and 2017 in Macau, continuing uncertainty arising from regulators’ decisions on the timing of openings and the number of tables allotted to each new casino will impact both the amount of revenue we recognize and the timing of revenue recognition.

In the Americas, we have continued to experience steady growth in our playing cards product line. This has the promise of continuing to provide the Company with a more consistent and predictable revenue stream. To support this growth and to allow for additional growth in the future, we anticipate finalizing the expansion of our Blue Springs manufacturing facility in the fourth quarter of 2016.

Financial and Operational Highlights

For the third quarter of 2016, our revenues were $22.6 million, an increase of $2.8 million, or 13.7%, compared to revenues of $19.8 million for the same period of 2015. For the third quarter of 2016, our net income was $2.4 million, an increase of $0.7 million compared to net income of $1.7 million for the same period in 2015.

For the first nine months of 2016, our revenues were $59.0 million, an increase of $4.3 million, or 7.8%, compared to revenues of $54.7 million for the same period of 2015. For the first nine months of 2016, our net income was $4.4 million, compared to net income of $3.5 million for the same period of 2015.

The increase in our net income for the three months and the nine months ended September 30, 2016, compared to the same periods in 2015, is primarily due to an increase in casino currency sales and a decrease in our general and administrative expenses.

Other Matters

See the discussion under “Contractual Obligations and Commercial Commitments” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q.

CRITICAL ACCOUNTING ESTIMATES

Our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, 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 unaudited condensed consolidated financial statements are prepared using the same critical accounting estimates discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016. 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.

15

RESULTS OF OPERATIONS

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

	Three Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Revenues	$	22,559	100.0	%	$	19,844	100.0	%	$	2,715		13.7	%
Cost of revenues		15,036	66.7	%		13,391	67.5	%		1,645		12.3	%
Gross profit		7,523	33.3	%		6,453	32.5	%		1,070		16.6	%
Selling, administrative, and research and development		4,039	17.9	%		4,431	22.3	%		(392	)	(8.8	)%
Operating income		3,484	15.4	%		2,022	10.2	%		1,462		72.3	%
Other income (expense), net		43	0.2	%		127	0.6	%		(84	)	(66.1	)%
Income before income taxes		3,527	15.6	%		2,149	10.8	%		1,378		64.1	%
Income tax provision		1,080	4.8	%		474	2.4	%		606		(127.8	)%
Net income	$	2,447	10.8	%	$	1,675	8.4	%	$	772		46.1	%

	Nine Months Ended
	September 30,									Period-to-Period
	2016					2015				Change
Revenues	$	58,996		100.0	%	$	54,749	100.0	%	$	4,247		7.8	%
Cost of revenues		40,187		68.1	%		37,338	68.2	%		2,849		7.6	%
Gross profit		18,809		31.9	%		17,411	31.8	%		1,398		8.0	%
Selling, administrative, and research and development		12,487		21.2	%		13,148	24.0	%		(661	)	(5.0	)%
Operating income		6,322		10.7	%		4,263	7.8	%		2,059		48.3	%
Other (expense) income, net		(32	)	(0.1	)%		59	0.1	%		(91	)	(154.2	)%
Income before income taxes		6,290		10.6	%		4,322	7.9	%		1,968		45.5	%
Income tax provision		1,844		3.1	%		832	1.5	%		1,012		121.6	%
Net income	$	4,446		7.5	%	$	3,490	6.4	%	$	956		27.4	%

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

	Three Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Revenues
The Americas	$	13,650	60.6	%	$	13,360	67.4	%	$	290		2.2	%
Asia-Pacific		8,695	38.5	%		4,968	25.0	%		3,727		75.0	%
Europe and Africa		214	0.9	%		1,516	7.6	%		(1,302	)	(85.9	)%
Total	$	22,559	100.0	%	$	19,844	100.0	%	$	2,715		13.7	%

	Nine Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Revenues
The Americas	$	42,144	71.5	%	$	38,947	71.1	%	$	3,197	8.2	%
Asia-Pacific		14,052	23.8	%		13,173	24.1	%		879	6.7	%
Europe and Africa		2,800	4.7	%		2,629	4.8	%		171	6.5	%
Total	$	58,996	100.0	%	$	54,749	100.0	%	$	4,247	7.8	%

16

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

	Three Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Casino currency without RFID	$	2,999	13.3	%	$	6,476	32.6	%	$	(3,477	)	(53.7	)%
Casino currency with RFID		5,797	25.7	%		850	4.3	%		4,947		582.0	%
Total casino currency		8,796	39.0	%		7,326	36.9	%		1,470		20.1	%
Playing cards		6,876	30.4	%		6,628	33.4	%		248		3.7	%
Table accessories and other products		1,961	8.7	%		1,804	9.1	%		157		8.7	%
Table layouts		1,231	5.4	%		1,630	8.2	%		(399	)	(24.5	)%
Gaming furniture		1,053	4.7	%		390	2.0	%		663		170.0	%
RFID solutions		1,052	4.7	%		485	2.4	%		567		116.9	%
Dice		672	3.0	%		706	3.6	%		(34	)	(4.8	)%
Shipping		918	4.1	%		875	4.4	%		43		4.9	%
Total	$	22,559	100.0	%	$	19,844	100.0	%	$	2,715		13.7	%

	Nine Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Casino currency without RFID	$	11,478	19.5	%	$	13,102	23.9	%	$	(1,624	)	(12.4	)5
Casino currency with RFID		9,322	15.8	%		5,507	10.1	%		3,815		69.3	%
Total casino currency		20,800	35.3	%		18,609	34.0	%		2,191		11.8	%
Playing cards		19,922	33.8	%		18,255	33.4	%		1,667		9.1	%
Table accessories and other products		5,114	8.6	%		5,372	9.8	%		(258	)	(4.8	)%
Table layouts		3,947	6.7	%		4,754	8.7	%		(807	)	(17.0	)%
RFID solutions		2,576	4.4	%		1,939	3.5	%		637		32.9	%
Dice		2,101	3.6	%		2,043	3.7	%		58		2.8	%
Gaming furniture		2,090	3.5	%		1,353	2.5	%		737		54.5	%
Shipping		2,446	4.1	%		2,424	4.4	%		22		0.9	%
Total	$	58,996	100.0	%	$	54,749	100.0	%	$	4,247		7.8	%

Comparison of Operations for the Three Months and Nine Months Ended September 30, 2016 and 2015

Revenues. For the three months ended September 30, 2016, our revenues were $22.6 million, an increase of $2.8 million, or 13.7%, compared to revenues of $19.8 million for the same period of 2015. The increase was primarily due to an increase in the casino currency, the gaming furniture and the RFID solutions product lines.

For the nine months ended September 30, 2016, our revenues were $59.0 million, an increase of $4.3 million, or 7.8%, compared to revenues of $54.7 million for the same period of 2015. The increase in revenues was primarily attributable to an increase in the casino currency and the playing cards product lines.

Cost of Revenues. For the three months ended September 30, 2016, cost of revenues was $15.0 million, an increase of $1.6 million, or 12.3%, compared to cost of revenues of $13.4 million for the same period in 2015. As a percentage of revenues, our cost of revenues decreased to 66.7% in 2016 compared to 67.5% in 2015. The increased cost of revenues was driven by the same factors described under Revenues above and Gross Profit below.

For the nine months ended September 30, 2016, cost of revenues was $40.2 million, an increase of $2.9 million, or 7.6%, compared to cost of revenues of $37.3 million for the same period in 2015. As a percentage of revenues, our cost of revenues decreased to 68.1% in 2016 compared to 68.2% in 2015. The increased cost of revenues was driven by the same factors described under Revenues above and Gross Profit below.

17

Gross Profit. For the three months ended September 30, 2016, gross profit was $7.5 million, an increase of $1.0 million, or 16.6%, compared to gross profit of $6.5 million for the same period in 2015. As a percentage of revenues, our gross profit increased to 33.3% from 32.5%.

For the nine months ended September 30, 2016, gross profit was $18.8 million, an increase of $1.4 million, or 8.0%, compared to gross profit of $17.4 million for the same period in 2015. As a percentage of revenues, our gross profit increased to 31.9% from 31.8%.

The amount of gross profit increase and the improvement in gross margins for the three months and the nine months ended September 30, 2016, compared to the same periods in 2015, is primarily due to the increase in casino currency sales.

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

	Three Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Marketing and sales	$	1,613	7.2	%	$	1,616	8.1	%	$	(3	)	(0.2	)%
General and administrative		2,129	9.4	%		2,565	12.9	%		(436	)	(17.0	)%
Research and development		297	1.3	%		250	1.3	%		47		18.8	%
Total selling, administrative, and research and development	$	4,039	17.9	%	$	4,431	22.3	%	$	(392	)	(8.8	)%

For the three months ended September 30, 2016, selling, administrative, and research and development expenses were $4.0 million, a decrease of $0.4 million, or 8.8%, compared to selling, administrative, and research and development expenses of $4.4 million during the same period in 2015. Selling, administrative, and research and development expenses decreased as a percentage of revenue to 17.9% in the third quarter of 2016 from 22.3% in the same period in 2015.

Marketing and sales expenses and research and development expenses remained relatively unchanged in the three months ended September 30, 2016, compared to the same period in 2015.

General and administrative expenses decreased by $0.4 million during the three months ended September 30, 2016, compared to the same period in 2015, primarily due to decreases of $0.2 million in our bad debt accrual and $0.1 million in legal fee expense.

	Nine Months Ended
	September 30,								Period-to-Period
	2016				2015				Change
Marketing and sales	$	4,711	8.0	%	$	4,800	8.8	%	$	(89	)	(1.9	)%
General and administrative		6,821	11.6	%		7,448	13.6	%		(627	)	(8.4	)%
Research and development		955	1.6	%		900	1.6	%		55		6.1	%
Total selling, administrative, and research and development	$	12,487	21.2	%	$	13,148	24.0	%	$	(661	)	(5.0	)%

For the nine months ended September 30, 2016, selling, administrative, and research and development expenses were $12.5 million, a decrease of $0.6 million, or 5.0% compared to selling, administrative, and research and development expenses of $13.1 million during the same period in 2015. Selling, administrative, and research and development expenses decreased as a percentage of revenue to 21.2% in the first nine months of 2016 from 24.0% in the same period in 2015.

Marketing and sales expenses decreased by $0.1 million during the first nine months of 2016, compared to the same period in 2015, primarily due to a decrease in compensation and related costs.

General and administrative expenses decreased by $0.6 million during the first nine months of 2016, compared to the same period in 2015. This was primarily due to decreases of $0.7 million in bad debt expense and $0.4 million in compensation and related costs, offset by increases of $0.2 million in information technology license expense, $0.1 million in legal fees and $0.1 million in rent costs.

18

Research and development expenses remained relatively unchanged during the first nine months of 2016 compared to the same period in 2015.

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

	Three Months Ended
	September 30,										Period-to-Period
	2016					2015					Change
Interest income	$	15		0.1	%	$	3		0.0	%	$	12		400.0	%
Interest expense		(60	)	(0.3	)%		(64	)	(0.3	)%		4		(6.3	)%
Gain on foreign currency transactions		88		0.4	%		185		0.9	%		(97	)	(52.4	)%
Other income		-		0.0	%		3		0.0	%		(3	)	(100.0	)%
Total other income, net	$	43		0.2	%	$	127		0.6	%	$	(84	)	(66.1	)%

	Nine Months Ended
	September 30,										Period-to-Period
	2016					2015					Change
Interest income	$	23		0.0	%	$	16		0.0	%	$	7		43.8	%
Interest expense		(183	)	(0.3	)%		(188	)	(0.3	)%		5		(2.7	)%
Gain on foreign currency transactions		127		0.2	%		151		0.3	%		(24	)	(15.9	)%
Other income		1		0.0	%		80		0.1	%		(79	)	(98.8	)%
Total other (expense) income, net	$	(32	)	(0.1	)%	$	59		0.1	%	$	(91	)	(154.2	)%

GPI SAS uses the euro as its functional currency. At September 30, 2016 and December 31, 2015, the U.S. dollar to euro exchange rates were $1.12 and $1.09, respectively, which represents a 2.8% weaker dollar compared to the euro. The average exchange rates for the nine months ended September 30, 2016 and 2015 were stable at $1.12.

GPI Mexicana uses the U.S. dollar as its functional currency. At September 30, 2016 and December 31, 2015, the Mexican peso to U.S. dollar exchange rates were 19.50 pesos and 17.21 pesos, respectively, which represents a 13.3% stronger dollar compared to the Mexican peso. The peso to U.S. dollar average exchange rates for the nine months ended September 30, 2016 and 2015 were 18.31 pesos and 15.57 pesos, respectively, which represents a 17.6% stronger dollar compared to the Mexican peso.

GPI Asia uses the U.S. dollar as its functional currency. At September 30, 2016 and December 31, 2015, the Macau pataca to U.S. dollar exchange rates were 8.16 patacas and 8.19 patacas, respectively, which represents a 0.4% weaker dollar compared to the Macau pataca. The Macau pataca to U.S. dollar average exchange rates for the nine months ended September 30, 2016 and 2015 were 8.17 patacas and 8.15 patacas, respectively, which represents a 0.3% stronger dollar compared to the Macau pataca.

Income Taxes. Our effective income tax rate for the three months ended September 30, 2016 and 2015 was 30.6% and 22.1%, respectively. Our effective tax rate for the three months ended September 30, 2016 was favorably affected by the foreign rate differential on income from our Macau S.A.R. subsidiary, GPI Asia, and the benefit from a research credit from our French subsidiary, GPI SAS, partially offset by our Subpart F income adjustment. Our effective tax rate for the three months ended September 30, 2015 was favorably affected by 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 2015 tax impact of a deemed dividend from GPI Asia and our Subpart F income adjustment.

Our effective income tax rate for the nine months ended September 30, 2016 and 2015 was 29.3% and 19.3%, respectively. Our effective tax rate for the nine months ended September 30, 2016 was favorably affected by the foreign rate differential on income from GPI Asia, and the benefit from a research credit from GPI SAS, partially offset by our Subpart F income adjustment. 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 GPI SAS, partially offset by the 2015 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 nine months ended September 30, 2015 would have been 23.1%.

19

We account for uncertain tax positions in accordance with applicable accounting guidance. At December 31, 2015, we reported unrecognized tax benefits related to the French Tax Administration’s examination of GPI SAS for tax years 2013 and 2012. As of September 30, 2016, there was no change to the unrecognized tax benefits reported at December 31, 2015.

Liquidity and Capital Resources

Sources of Liquidity and Capital Resources. Historically, our primary source of liquidity and capital 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 credit facility, 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 which will mature on June 26, 2022, and has not drawn any funds under the Revolving Loan. Additional information can be found at Note 8 to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Other potential sources of capital include, but are not limited to, additional bank credit facilities and the sale of stock. We believe we have the resources to satisfy our needs for working capital, capital expenditures, purchases of common stock under our stock repurchase program, litigation, dividends or acquisitions for our operations for a minimum of the next twelve months.

At September 30, 2016, the Company had $10.5 million in cash and cash equivalents. Of this amount, $5.0 million is held by GPI Asia, $2.9 million is held by GPI USA, $1.7 million is held by GPI SAS and $0.9 million is held by GPI Mexicana. Of those amounts held in France by GPI SAS and in Mexico by GPI Mexicana, 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 by GPI Asia could be repatriated tax free due to the deemed dividend from GPI Asia. 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 unaudited condensed consolidated financial statements reflect the tax impacts that would result from repatriation.

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

	September 30,		December 31,		Period-to-Period
	2016		2015		Change
Cash and cash equivalents	$	10,505	$	17,788	$	(7,283	)	(40.9	)%
Marketable securities	$	-	$	3,503		(3,503	)	(100.0	)%
Working capital	$	27,032	$	31,129	$	(4,097	)	(13.2	)%
Current ratio		2.6		3.0

At September 30, 2016, working capital totaled $27.0 million, a decrease of $4.1 million when compared to working capital of $31.1 million at December 31, 2015. The change in cash is mostly due to capital expenditures, including the Dolphin asset acquisition. See Note 2 to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

20

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

	Nine Months Ended
	September 30,						Period-to-Period
	2016			2015			Change
Operating activities	$	(1,065	)	$	8,711		$	(9,776	)	(112.2	)%
Investing activities		(5,337	)		(4,261	)		(1,076	)	(25.3	)%
Financing activities		(995	)		(238	)		(757	)	318.1	%
Effect of exchange rates		114			(352	)		466		132.4	%
Net change	$	(7,283	)	$	3,860		$	(11,143	)	288.7	%

The increase in cash flows used by operating activities was primarily caused by an increase in assets, a decrease in accounts payable and accrued liabilities, partially offset by an increase in customer deposits and deferred revenue.

The increase in cash flows used by investing activities was primarily due to an increase in capital expenditures, including the Dolphin acquisition, partially offset by a decrease in net purchases of marketable securities.

The increase in cash flows used by financing activities was primarily due to an increase in principal payments on long-term debt.

Capital Expenditures. We intend to purchase approximately $3.0 million in property and equipment during the remainder of 2016. This is primarily related to the expansion of our Blue Springs, Missouri facility described below at “Contractual Obligations and Commercial Commitments.”

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 in the future.

Backlog. At September 30, 2016, our backlog of signed orders for the next twelve months was $19.1 million, consisting of $10.1 million for GPI Asia, $8.4 million for GPI USA, and $0.6 million for GPI SAS. At September 30, 2015, the backlog of signed orders for the next twelve months was $17.2 million, consisting of $9.1 million for GPI Asia, $7.7 million for GPI USA, and $0.4 million for GPI SAS.

Contractual Obligations and Commercial Commitments

On May 11, 2016, the Company purchased certain assets dedicated to the design and manufacture of chips and plaques for gaming tables from EGT and Dolphin as described in Note 2 to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

On February 24, 2016, the Company entered into a construction contract with Miller Staunch Construction Co., Inc. (Contractor) to expand its Blue Springs, Missouri manufacturing facility. The Blue Springs building expansion is expected to be completed before the end of the fourth quarter of 2016 for a fixed price of $2.2 million, subject to any additions or deductions agreed to by the Company and the Contractor. The Company expects to fund the construction of the Blue Springs expansion with available cash and cash from operations.

On December 30, 2015, the Company sold its building and land in Las Vegas, Nevada to an unrelated third party for $3.95 million in cash. In early 2016, the Company relocated its headquarters to 3945 West Cheyenne Avenue, North Las Vegas, Nevada. The lease term for the building (approximately 15,000 square feet) is seven years commencing on January 1, 2016 for approximately $16,000 per month.

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 described in Note 8 to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

21

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.

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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016. 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 applicable

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 (Exchange Act) as of September 30, 2016. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of September 30, 2016, 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, 2016, 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

In December 2015, GPI SAS and the Company commenced legal action against former GPI SAS employee Paulo Da Silva. GPI SAS initiated proceedings in both the French Employment Tribunal and High Court, and the Company initiated proceedings in the High Court of Hong Kong. Also, in December 2015, in conjunction with the actions against Mr. Da Silva, the Company commenced legal action against Dolphin, a wholly owned subsidiary of EGT, in the High Court of Hong Kong in the Hong Kong Special Administrative Region.

In connection with the purchase of the Dolphin assets described in Note 2 to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q, the Company and EGT settled and released each other from all claims relating to the civil actions instituted by the Company against Dolphin, and the Company’s action against Dolphin was formally dismissed on May 17, 2016. Also, as part of the agreement with Dolphin and EGT, the Company and Mr. Da Silva settled and released each other from all claims relating to the civil actions instituted by the Company and GPI SAS against Mr. Da Silva. The Company terminated and discontinued its action against Mr. Da Silva in Hong Kong on May 17, 2016. GPI SAS terminated and discontinued its actions against Mr. Da Silva in the French Employment Tribunal on May 23, 2016, and in the French High Court on June 6, 2016.

ITEM 1A. RISK FACTORS

Not applicable.

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

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) Not applicable.

(b) Not applicable.

23

ITEM 6. EXHIBITS

Exhibit Number	Description
2.1	Asset Purchase Agreement dated May 11, 2016, among the Registrant, Entertainment Gaming Asia Inc. and Dolphin Products Limited (incorporated by reference to Exhibit 2.1 to the Registrant’s Form 10-Q filed with the SEC on August 11, 2016)
3.1	Registrant’s Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.01 to the Registrant’s Form 10-K filed with the SEC on March 24, 2016)
3.2	Registrant’s Amended and Restated Bylaws (incorporated by reference to Exhibit 3.02 to the Registrant’s Form 8-K filed with the SEC on December 28, 2007)
4.1	Specimen Stock Certificate for Registrant’s Common Stock (incorporated by reference to Exhibit 4.01 to the Registrant’s Form 10-K filed with the SEC on May 15, 2007)
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.
32.1*	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

*This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise.

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 10, 2016	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: November 10, 2016	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 10, 2016	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 10, 2016	By:	/s/ Alain Thieffry
		Alain Thieffry Chief Financial Officer, and Chairperson of the Board

EX-32.1

Exhibit 32.1

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, 2016, 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 10, 2016	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: November 10, 2016	By:	/s/ Alain Thieffry
		Alain Thieffry
		Chief Financial Officer, and Chairperson of the Board

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
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

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 10,505	$ 17,788
Marketable securities	0	3,503
Accounts receivable, net	12,859	10,677
Inventories	15,781	10,199
Prepaid expenses	724	947
Deferred income tax assets	1,798	1,640
Other current assets	2,160	1,576
Total current assets	43,827	46,330
Property and equipment, net	23,283	14,102
Goodwill	10,292	10,292
Intangible assets, net	2,300	2,505
Deferred income tax assets	602	710
Inventories, non-current	609	670
Other assets, non-current	2,663	2,635
Total assets	83,576	77,244
Current Liabilities:
Accounts payable	4,582	4,498
Accrued liabilities	5,538	6,456
Customer deposits and deferred revenue	3,815	2,080
Current portion of long-term debt	1,359	1,343
Income taxes payable	1,501	824
Total current liabilities	16,795	15,201
Long-term debt	6,991	8,002
Deferred income tax liabilities	119	170
Other liabilities, non-current	1,076	83
Total liabilities	24,981	23,456
Commitments and contingencies - see Note 9
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding	0	0
Common stock, authorized 30,000,000 shares, $0.01 par value, 8,219,577 shares issued and 7,928,594 shares outstanding	82	82
Additional paid-in capital	20,016	20,033
Treasury stock at cost: 290,983 shares	(2,263)	(2,263)
Retained earnings	42,258	37,812
Accumulated other comprehensive loss	(1,498)	(1,876)
Total stockholders' equity	58,595	53,788
Total liabilities and stockholders' equity	$ 83,576	$ 77,244

XML

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Sep. 30, 2016	Dec. 31, 2015
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	8,219,577
Common stock, shares outstanding	7,928,594	7,928,594
Treasury stock, shares	290,983	290,983

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Cost of revenues	15,036	13,391	40,187	37,338
Gross profit	7,523	6,453	18,809	17,411
Marketing and sales	1,613	1,616	4,711	4,800
General and administrative	2,129	2,565	6,821	7,448
Research and development	297	250	955	900
Operating income	3,484	2,022	6,322	4,263
Other income (expense), net	43	127	(32)	59
Income before income taxes	3,527	2,149	6,290	4,322
Income tax provision	1,080	474	1,844	832
Net income	$ 2,447	$ 1,675	$ 4,446	$ 3,490
Earnings per share:
Basic (in dollars per share)	$ 0.31	$ 0.21	$ 0.56	$ 0.44
Diluted (in dollars per share)	$ 0.3	$ 0.21	$ 0.55	$ 0.43
Weighted-average shares of common stock outstanding:
Basic (in thousand of shares)	7,929	7,929	7,929	7,924
Diluted (in thousand of shares)	8,057	8,049	8,039	8,038

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 2,447	$ 1,675	$ 4,446	$ 3,490
Other comprehensive income (loss):
Foreign currency translation adjustment	126	177	378	(1,143)
Other comprehensive income (loss)	126	177	378	(1,143)
Total comprehensive income	$ 2,573	$ 1,852	$ 4,824	$ 2,347

XML

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 (Loss) Income [Member]
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
Common stock options exercised	87	$ 0	87	0	0	0
Common stock options exercised (in shares)		12,500
Stock compensation expense	66	$ 0	66	0	0	0
Tax impact of stock options	3	0	3	0	0	0
Foreign currency translation adjustment	(1,143)	0	0	0	0	(1,143)
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
Balance at Dec. 31, 2015	53,788	$ 82	20,033	(2,263)	37,812	(1,876)
Balance (in shares) at Dec. 31, 2015		7,928,594
Net income	4,446	$ 0	0	0	4,446	0
Stock compensation expense	70	0	70	0	0	0
Tax impact of stock options	(87)	0	(87)	0	0	0
Foreign currency translation adjustment	378	0	0	0	0	378
Balance at Sep. 30, 2016	$ 58,595	$ 82	$ 20,016	$ (2,263)	$ 42,258	$ (1,498)
Balance (in shares) at Sep. 30, 2016		7,928,594

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net income	$ 4,446	$ 3,490
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property and equipment	1,987	1,950
Amortization of intangible assets	205	218
Provision for bad debt	86	744
Deferred income taxes	(102)	(574)
Stock compensation expense	70	66
Tax impact of stock options	(87)	3
Gain on sale or disposal of property and equipment	0	(12)
Gain on sale of marketable securities	(1)	(5)
Change in operating assets and liabilities:
Accounts receivable	(2,265)	(1,108)
Inventories	(5,421)	(1,743)
Prepaid expenses and other current assets	(331)	(624)
Non-current other assets	16	138
Accounts payable	36	1,022
Accrued liabilities	(2,113)	373
Customer deposits and deferred revenue	1,731	4,258
Income taxes payable	678	515
Net cash (used in) provided by operating activities	(1,065)	8,711
Cash Flows from Investing Activities
Purchases of marketable securities	0	(7,136)
Proceeds from sale of marketable securities	3,584	5,132
Proceeds from sale of property and equipment	0	42
Capital expenditures	(8,921)	(2,299)
Net cash used in investing activities	(5,337)	(4,261)
Cash Flows from Financing Activities
Cash paid for demand line of credit	0	(10,000)
Proceeds from debt obligation	0	10,000
Principal payments on long-term debt	(995)	(325)
Proceeds from exercise of stock options	0	87
Net cash used in financing activities	(995)	(238)
Effect of exchange rate changes on cash	114	(352)
Net (decrease) increase in cash and cash equivalents	(7,283)	3,860
Cash and cash equivalents, beginning of period	17,788	8,969
Cash and cash equivalents, end of period	10,505	12,829
Supplemental disclosures of cash flow information
Cash paid for interest	183	188
Cash paid for income taxes, net of refunds	1,218	560
Supplemental disclosures of non-cash investing and financing activities
Property and equipment acquired through accrued and non-current other liabilities	$ 2,178	$ 46

XML

Nature of Business and Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

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 North Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, roulette wheels, and radio frequency identification (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 of our products is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have sales offices in North 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 that it manufactures in Macau S.A.R.

Significant Accounting Policies

Basis of Consolidation and Presentation. The accompanying unaudited condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The unaudited 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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016.

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 May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-12, Revenue from Contracts with Customers (Topic 606), amending the new revenue recognition standard that it issued in 2014. The amendments do not change the core principles of the standard, but clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. The ASU becomes effective concurrently with ASU 2014-09. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), to simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by reporting lease assets and lease liabilities, both finance (capital) and operating leases, on the balance sheet and disclosing key information about leasing arrangements. For public companies, the updated guidance is effective for the financial statements issued for fiscal years beginning after December 15, 2018 (including interim periods within those fiscal years). Early adoption is permitted. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The guidance eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 shall be effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016.

In July 2015, the FASB issued 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 ASU 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 has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

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. ASU 2016-08 comments on the effective date and transition of ASU 2014-09, stating public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application is permitted though in no case could the new guidance be applied before the original effective date. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

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Dolphin asset acquisition

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 2. Dolphin asset acquisition

On May 11, 2016, the Company entered into and closed an Asset Purchase Agreement to purchase certain assets used in the design and manufacture of casino currency from Dolphin Products Limited (Dolphin), a wholly owned subsidiary of Entertainment Gaming Asia Inc. (EGT). The purchased assets were substantially equipment and inventory.

The acquisition was treated as an asset acquisition. The total cost of the acquisition was $7.3 million, with $4.0 million paid at closing, $0.5 million paid in August 2016, $0.6 million paid by September 30, 2016 and $1.1 million to be paid on each of the first two anniversaries of the closing. The acquisition cost has been allocated as follows (in thousands):

  

	Assets acquired
Property and equipment	$	5,625
Inventory		1,688
Total acquired	$	7,313

In connection with the acquisition, the Company and EGT settled and released each other from all claims related to the civil actions initiated by the Company against Dolphin in the High Court of the Hong Kong Special Administrative Region in December 2015, as described further in Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

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Cash, Cash Equivalents, and Marketable Securities

9 Months Ended

Sep. 30, 2016

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 table summarizes our holdings (in thousands):

	September 30, 2016						December 31, 2015
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
Macau S.A.R., China	$	4,996	$	-	$	4,996	$	4,040	$	-	$	4,040
United States (including Mexico)		3,797		-		3,797		12,861		-		12,861
France		1,712		-		1,712		887		3,503		4,390
Total	$	10,505	$	-	$	10,505	$	17,788	$	3,503	$	21,291

Available-for-sale marketable securities as of 31 December, 2015 consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,727	$	-	$	2,727
Bond mutual funds		776		-		776
Total marketable securities	$	3,503	$	-	$	3,503

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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Accounts Receivable and Allowance for Doubtful Accounts

9 Months Ended

Sep. 30, 2016

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, 2016, two casino customers accounted for 16% and 14% of our accounts receivable balance. At December 31, 2015, one casino customer accounted for 33% of our accounts receivable balance.

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Inventories

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 5. Inventories

Inventories consist of the following (in thousands):

	September 30, 2016		December 31, 2015
Raw materials	$	10,443	$	7,653
Work in progress		2,493		668
Finished goods		3,454		2,548
Total inventories	$	16,390	$	10,869

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 unaudited condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2016		December 31, 2015
Current	$	15,781	$	10,199
Non-current		609		670
Total inventories	$	16,390	$	10,869

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Property and Equipment

9 Months Ended

Sep. 30, 2016

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, 2016		December 31, 2015
Land	$	652	$	520
Buildings and improvements		7,770		6,839
Equipment and furniture		33,013		26,912
Vehicles		399		403
Construction in progress		4,742		1,403
		46,576		36,077
Less accumulated depreciation		(23,293)		(21,975)
Property and equipment, net	$	23,283	$	14,102

Depreciation expense for the three months ended September 30, 2016 and 2015 was $658,000 and $633,000, respectively. Depreciation expense for the nine months ended September 30, 2016 and 2015 was $1,987,000 and $1,950,000, respectively.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 7. Goodwill and Intangible Assets

We had goodwill valued at $10,292,000 as of September 30, 2016 and December 31, 2015.

 

Intangible assets consist of the following (in thousands):

	September 30, 2016						December 31, 2015
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount
Trademarks	$	1,772	$	(548)	$	1,224	$	1,772	$	(454)	$	1,318
Customer list		1,323		(324)		999		1,323		(245)		1,078
Patents		542		(525)		17		542		(520)		22
Other intangible assets		372		(312)		60		372		(285)		87
Total intangible assets	$	4,009	$	(1,709)	$	2,300	$	4,009	$	(1,504)	$	2,505

Amortization expense for intangible assets for the three months ended September 30, 2016 and 2015 was $68,000 and $69,000, respectively. Amortization expense for intangible assets for the nine months ended September 30, 2016 and 2015 was $205,000 and $218,000, respectively.

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Debt

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 8. Debt

On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank to borrow 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 has not drawn on funds under the Revolving Loan. The Term Loan will mature on June 26, 2022, and the Revolving Loan will mature on June 26, 2020.

 

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

At September 30, 2016, estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Year Ending	Long-term Debt
2016 (remaining 3 months)	$	336
2017		1,368
2018		1,407
2019		1,446
2020		1,487
Thereafter		2,306
Total	$	8,350

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 9. Commitments and Contingencies

Operating Lease Commitments

The Company has various operating leases related primarily to equipment and manufacturing and office space.

On January 1, 2016, the Company commenced payments on a lease for its new corporate headquarters with payments of approximately $16,000 per month.

 

At September 30, 2016, minimum lease payment obligations are as follows (in thousands):

	Minimum
	Lease
Year Ending	Payments
2016 (remaining 3 months)	$	263
2017		949
2018		763
2019		310
2020		267
Thereafter		427
Total	$	2,979

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. See also the discussion at Part II, Item 1, “Legal Proceedings” of this Quarterly Report on Form 10-Q.

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Geographic and Product Line Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10. 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 (dollars in thousands):

	Three Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	13,650	60.6	%	$	13,360	67.4	%
Asia-Pacific		8,695	38.5	%		4,968	25.0	%
Europe and Africa		214	0.9	%		1,516	7.6	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

	Nine Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	42,144	71.5	%	$	38,947	71.1	%
Asia-Pacific		14,052	23.8	%		13,173	24.1	%
Europe and Africa		2,800	4.7	%		2,629	4.8	%
Total	$	58,996	100.0	%	$	54,749	100.0	%

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

	Three Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	2,999	13.3	%	$	6,476	32.6	%
Casino currency with RFID		5,797	25.7	%		850	4.3	%
Total casino currency		8,796	39.0	%		7,326	36.9	%
Playing cards		6,876	30.4	%		6,628	33.4	%
Table accessories and other products		1,961	8.7	%		1,804	9.1	%
Table layouts		1,231	5.4	%		1,630	8.2	%
Gaming furniture		1,053	4.7	%		390	2.0	%
RFID solutions		1,052	4.7	%		485	2.4	%
Dice		672	3.0	%		706	3.6	%
Shipping		918	4.1	%		875	4.4	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

	Nine Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	11,478	19.5	%	$	13,102	23.9	%
Casino currency with RFID		9,322	15.8	%		5,507	10.1	%
Total casino currency		20,800	35.3	%		18,609	34.0	%
Playing cards		19,922	33.8	%		18,255	33.4	%
Table accessories and other products		5,114	8.6	%		5,372	9.8	%
Table layouts		3,947	6.7	%		4,754	8.7	%
RFID solutions		2,576	4.4	%		1,939	3.5	%
Dice		2,101	3.6	%		2,043	3.7	%
Gaming furniture		2,090	3.5	%		1,353	2.5	%
Shipping		2,446	4.1	%		2,424	4.4	%
Total	$	58,996	100.0	%	$	54,749	100.0	%

For the nine month periods ended September 30, 2016, and September 30, 2015, no customer accounted for more than 10% of the Company’s revenues.

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

	September 30, 2016		December 31, 2015
United States	$	10,780	$	7,000
Mexico		7,033		3,249
France		5,143		3,544
Asia		327		309
Total	$	23,283	$	14,102

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

	September 30, 2016		December 31, 2015
Intangible assets, net:
United States	$	1,830	$	2,006
Asia		470		497
France		-		2
Total	$	2,300	$	2,505

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Earnings per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 11. Earnings per Share

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Weighted-average number of common shares outstanding - basic		7,929		7,929		7,929		7,924
Potential dilution from equity options granted		128		120		110		114
Weighted-average number of common shares outstanding - diluted		8,057		8,049		8,039		8,038

We have certain outstanding stock options to purchase common stock which have exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted net income per share (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Outstanding anti-dilutive options		16		36		39		47

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Nature of Business and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Consolidation and Presentation. The accompanying unaudited condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The unaudited 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 for the fiscal year ended December 31, 2015, filed with the SEC on March 24, 2016.

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 May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-12, Revenue from Contracts with Customers (Topic 606), amending the new revenue recognition standard that it issued in 2014. The amendments do not change the core principles of the standard, but clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. The ASU becomes effective concurrently with ASU 2014-09. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), to simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by reporting lease assets and lease liabilities, both finance (capital) and operating leases, on the balance sheet and disclosing key information about leasing arrangements. For public companies, the updated guidance is effective for the financial statements issued for fiscal years beginning after December 15, 2018 (including interim periods within those fiscal years). Early adoption is permitted. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The guidance eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 shall be effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not adopted this guidance for 2016.

In July 2015, the FASB issued 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 ASU 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 has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

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. ASU 2016-08 comments on the effective date and transition of ASU 2014-09, stating public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application is permitted though in no case could the new guidance be applied before the original effective date. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption.

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Dolphin asset acquisition (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The acquisition was treated as an asset acquisition. The total cost of the acquisition was $7.3 million, with $4.0 million paid at closing, $0.5 million paid in August 2016, $0.6 million paid by September 30, 2016 and $1.1 million to be paid on each of the first two anniversaries of the closing. The acquisition cost has been allocated as follows (in thousands):

  

	Assets acquired
Property and equipment	$	5,625
Inventory		1,688
Total acquired	$	7,313

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Cash, Cash Equivalents, and Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2016

Cash and Cash Equivalents [Abstract]

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

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 table summarizes our holdings (in thousands):

	September 30, 2016						December 31, 2015
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
Macau S.A.R., China	$	4,996	$	-	$	4,996	$	4,040	$	-	$	4,040
United States (including Mexico)		3,797		-		3,797		12,861		-		12,861
France		1,712		-		1,712		887		3,503		4,390
Total	$	10,505	$	-	$	10,505	$	17,788	$	3,503	$	21,291

Available-for-sale Securities [Table Text Block]

Available-for-sale marketable securities as of 31 December, 2015 consist of investments in securities such as certificates of deposit offered by French banks and bond mutual funds (in thousands):

	Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	2,727	$	-	$	2,727
Bond mutual funds		776		-		776
Total marketable securities	$	3,503	$	-	$	3,503

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Inventories (Tables)

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following (in thousands):

	September 30, 2016		December 31, 2015
Raw materials	$	10,443	$	7,653
Work in progress		2,493		668
Finished goods		3,454		2,548
Total inventories	$	16,390	$	10,869

Schedule of Inventory, Noncurrent [Table Text Block]

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 unaudited condensed consolidated balance sheets is as follows (in thousands):

	September 30, 2016		December 31, 2015
Current	$	15,781	$	10,199
Non-current		609		670
Total inventories	$	16,390	$	10,869

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

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

	September 30, 2016		December 31, 2015
Land	$	652	$	520
Buildings and improvements		7,770		6,839
Equipment and furniture		33,013		26,912
Vehicles		399		403
Construction in progress		4,742		1,403
		46,576		36,077
Less accumulated depreciation		(23,293)		(21,975)
Property and equipment, net	$	23,283	$	14,102

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016						December 31, 2015
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount
Trademarks	$	1,772	$	(548)	$	1,224	$	1,772	$	(454)	$	1,318
Customer list		1,323		(324)		999		1,323		(245)		1,078
Patents		542		(525)		17		542		(520)		22
Other intangible assets		372		(312)		60		372		(285)		87
Total intangible assets	$	4,009	$	(1,709)	$	2,300	$	4,009	$	(1,504)	$	2,505

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Debt (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

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

At September 30, 2016, estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands):

Year Ending	Long-term Debt
2016 (remaining 3 months)	$	336
2017		1,368
2018		1,407
2019		1,446
2020		1,487
Thereafter		2,306
Total	$	8,350

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

At September 30, 2016, minimum lease payment obligations are as follows (in thousands):

	Minimum
	Lease
Year Ending	Payments
2016 (remaining 3 months)	$	263
2017		949
2018		763
2019		310
2020		267
Thereafter		427
Total	$	2,979

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Geographic and Product Line Information (Tables)

9 Months Ended

Sep. 30, 2016

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 (dollars in thousands):

	Three Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	13,650	60.6	%	$	13,360	67.4	%
Asia-Pacific		8,695	38.5	%		4,968	25.0	%
Europe and Africa		214	0.9	%		1,516	7.6	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

	Nine Months Ended
	September 30,
	2016				2015
Revenues
The Americas	$	42,144	71.5	%	$	38,947	71.1	%
Asia-Pacific		14,052	23.8	%		13,173	24.1	%
Europe and Africa		2,800	4.7	%		2,629	4.8	%
Total	$	58,996	100.0	%	$	54,749	100.0	%

Schedule of Product Revenue [Table Text Block]

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

	Three Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	2,999	13.3	%	$	6,476	32.6	%
Casino currency with RFID		5,797	25.7	%		850	4.3	%
Total casino currency		8,796	39.0	%		7,326	36.9	%
Playing cards		6,876	30.4	%		6,628	33.4	%
Table accessories and other products		1,961	8.7	%		1,804	9.1	%
Table layouts		1,231	5.4	%		1,630	8.2	%
Gaming furniture		1,053	4.7	%		390	2.0	%
RFID solutions		1,052	4.7	%		485	2.4	%
Dice		672	3.0	%		706	3.6	%
Shipping		918	4.1	%		875	4.4	%
Total	$	22,559	100.0	%	$	19,844	100.0	%

	Nine Months Ended
	September 30,
	2016				2015
Casino currency without RFID	$	11,478	19.5	%	$	13,102	23.9	%
Casino currency with RFID		9,322	15.8	%		5,507	10.1	%
Total casino currency		20,800	35.3	%		18,609	34.0	%
Playing cards		19,922	33.8	%		18,255	33.4	%
Table accessories and other products		5,114	8.6	%		5,372	9.8	%
Table layouts		3,947	6.7	%		4,754	8.7	%
RFID solutions		2,576	4.4	%		1,939	3.5	%
Dice		2,101	3.6	%		2,043	3.7	%
Gaming furniture		2,090	3.5	%		1,353	2.5	%
Shipping		2,446	4.1	%		2,424	4.4	%
Total	$	58,996	100.0	%	$	54,749	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, 2016		December 31, 2015
United States	$	10,780	$	7,000
Mexico		7,033		3,249
France		5,143		3,544
Asia		327		309
Total	$	23,283	$	14,102

Schedule of Intangible Assets and Goodwill [Table Text Block]

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

	September 30, 2016		December 31, 2015
Intangible assets, net:
United States	$	1,830	$	2,006
Asia		470		497
France		-		2
Total	$	2,300	$	2,505

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2016

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 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Weighted-average number of common shares outstanding - basic		7,929		7,929		7,929		7,924
Potential dilution from equity options granted		128		120		110		114
Weighted-average number of common shares outstanding - diluted		8,057		8,049		8,039		8,038

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

We have certain outstanding stock options to purchase common stock which have exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted net income per share (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Outstanding anti-dilutive options		16		36		39		47

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Dolphin asset acquisition (Details) - Dolphin Asset Acquisition [Member] $ in Thousands	Sep. 30, 2016 USD ($)
Property and equipment	$ 5,625
Inventory	1,688
Total acquired	$ 7,313

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Dolphin asset acquisition (Details Textual) - Dolphin Asset Acquisition [Member] - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2016	Aug. 31, 2016	May 31, 2016	May 11, 2018	May 11, 2017
Business Combination, Consideration Transferred			$ 7.3
Payments to Acquire Businesses, Gross		$ 0.5	$ 4.0
Business Combination, Acquisition Related Costs	$ 0.6
Scenario, Forecast [Member]
Business Combination, Contingent Consideration, Liability, Noncurrent				$ 1.1	$ 1.1

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Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	$ 10,505	$ 17,788	$ 12,829	$ 8,969
Marketable Securities	0	3,503
Total	10,505	21,291
United States (including Mexico) [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	3,797	12,861
Marketable Securities	0	0
Total	3,797	12,861
France [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	1,712	887
Marketable Securities	0	3,503
Total	1,712	4,390
Macau S.A.R., China [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	4,996	4,040
Marketable Securities	0	0
Total	$ 4,996	$ 4,040

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Cash, Cash Equivalents, and Marketable Securities (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost		$ 3,503
Unrealized Gain/(Loss)	$ 0
Fair Value		3,503
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		2,727
Unrealized Gain/(Loss)	0
Fair Value		2,727
Bond Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		776
Unrealized Gain/(Loss)	$ 0
Fair Value		$ 776

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Accounts Receivable and Allowance for Doubtful Accounts (Details Textual)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	100.00%	100.00%
One Casino Customer [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	16.00%		33.00%
Two Casino Customer [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration Risk, Percentage	14.00%

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 10,443	$ 7,653
Work in progress	2,493	668
Finished goods	3,454	2,548
Total inventories	$ 16,390	$ 10,869

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Inventories (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current	$ 15,781	$ 10,199
Non-current	609	670
Total inventories	$ 16,390	$ 10,869

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Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Land	$ 652	$ 520
Buildings and improvements	7,770	6,839
Equipment and furniture	33,013	26,912
Vehicles	399	403
Construction in progress	4,742	1,403
Property, Plant and Equipment, Gross	46,576	36,077
Less accumulated depreciation	(23,293)	(21,975)
Property and equipment, net	$ 23,283	$ 14,102

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Property and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 658	$ 633	$ 1,987	$ 1,950

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Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 4,009	$ 4,009
Intangible assets, Accumulated Amortization	(1,709)	(1,504)
Intangible assets, Net Carrying Amount	2,300	2,505
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	1,772	1,772
Intangible assets, Accumulated Amortization	(548)	(454)
Intangible assets, Net Carrying Amount	1,224	1,318
Customer list [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	1,323	1,323
Intangible assets, Accumulated Amortization	(324)	(245)
Intangible assets, Net Carrying Amount	999	1,078
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	542	542
Intangible assets, Accumulated Amortization	(525)	(520)
Intangible assets, Net Carrying Amount	17	22
Other intangible assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	372	372
Intangible assets, Accumulated Amortization	(312)	(285)
Intangible assets, Net Carrying Amount	$ 60	$ 87

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Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization Of Intangible Assets	$ 68	$ 69	$ 205	$ 218
Goodwill	$ 10,292		$ 10,292		$ 10,292

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Debt (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Principal Balance
2016 (remaining 3 months)	$ 336
2017	1,368
2018	1,407
2019	1,446
2020	1,487
Thereafter	2,306
Total	$ 8,350

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Debt (Details Textual) $ in Millions	1 Months Ended
	Jun. 26, 2015 USD ($)
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]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 10.0
Line of Credit Facility, Expiration Date	Jun. 26, 2022
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 5.0
Line of Credit Facility, Expiration Date	Jun. 26, 2020

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Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments
2016 (remaining 3 months)	$ 263
2017	949
2018	763
2019	310
2020	267
Thereafter	427
Total	$ 2,979

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Commitments and Contingencies (Details Textual)	1 Months Ended
	Jan. 31, 2016 USD ($)
Commitments and Contingencies [Line Items]
Operating Leases, Rent Expense, Minimum Rentals	$ 16,000

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Geographic and Product Line Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Revenues, Percentage			100.00%	100.00%
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
The Americas [Member]
Segment Reporting Information [Line Items]
Revenues	$ 13,650	$ 13,360	$ 42,144	$ 38,947
The Americas [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	60.60%	67.40%	71.50%	71.10%
Asia-Pacific [Member]
Segment Reporting Information [Line Items]
Revenues	$ 8,695	$ 4,968	$ 14,052	$ 13,173
Asia-Pacific [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	38.50%	25.00%	23.80%	24.10%
Europe and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	$ 214	$ 1,516	$ 2,800	$ 2,629
Europe and Africa [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	0.90%	7.60%	4.70%	4.80%

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Geographic and Product Line Information (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 22,559	$ 19,844	$ 58,996	$ 54,749
Revenues, Percentage			100.00%	100.00%
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	100.00%	100.00%	100.00%	100.00%
Casino currency without RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 2,999	$ 6,476	$ 11,478	$ 13,102
Revenues, Percentage			19.50%	23.90%
Casino currency without RFID [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	13.30%	32.60%
Casino currency with RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 5,797	$ 850	$ 9,322	$ 5,507
Revenues, Percentage			15.80%	10.10%
Casino currency with RFID [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	25.70%	4.30%
Total casino currency [Member]
Segment Reporting Information [Line Items]
Revenues	$ 8,796	$ 7,326	$ 20,800	$ 18,609
Revenues, Percentage			35.30%	34.00%
Total casino currency [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	39.00%	36.90%
Playing Cards [Member]
Segment Reporting Information [Line Items]
Revenues	$ 6,876	$ 6,628	$ 19,922	$ 18,255
Revenues, Percentage			33.80%	33.40%
Playing Cards [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	30.40%	33.40%
Table layouts [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,231	$ 1,630	$ 3,947	$ 4,754
Revenues, Percentage			6.70%	8.70%
Table layouts [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	5.40%	8.20%
Table accessories and other products [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,961	$ 1,804	$ 5,114	$ 5,372
Revenues, Percentage			8.60%	9.80%
Table accessories and other products [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	8.70%	9.10%
Dice [Member]
Segment Reporting Information [Line Items]
Revenues	$ 672	$ 706	$ 2,101	$ 2,043
Revenues, Percentage			3.60%	3.70%
Dice [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	3.00%	3.60%
Gaming furniture [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,053	$ 390	$ 2,090	$ 1,353
Revenues, Percentage			3.50%	2.50%
Gaming furniture [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.70%	2.00%
RFID solutions [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,052	$ 485	$ 2,576	$ 1,939
Revenues, Percentage			4.40%	3.50%
RFID solutions [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.70%	2.40%
Shipping [Member]
Segment Reporting Information [Line Items]
Revenues	$ 918	$ 875	$ 2,446	$ 2,424
Revenues, Percentage			4.10%	4.40%
Shipping [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Revenues, Percentage	4.10%	4.40%

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Geographic and Product Line Information (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Property and equipment, net	$ 23,283	$ 14,102
United States [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	10,780	7,000
France [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	5,143	3,544
Mexico [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	7,033	3,249
Asia [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	$ 327	$ 309

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Geographic and Product Line Information (Details 3) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Intangible assets, net	$ 2,300	$ 2,505
United States [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	1,830	2,006
France [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	0	2
Asia [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	$ 470	$ 497

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Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic and Diluted Earnings Per Share [Line Items]
Weighted-average number of common shares outstanding - basic	7,929	7,929	7,929	7,924
Potential dilution from equity options granted	128	120	110	114
Weighted-average number of common shares outstanding - diluted	8,057	8,049	8,039	8,038

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Earnings per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic and Diluted Earnings Per Share [Line Items]
Outstanding anti-dilutive options	16	36	39	47