x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the quarterly period ended: September
30, 2006
|
o |
TRANSITION
REPORT PURSUANT SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
|
For
the transition period from: ________________ to
______________
|
Commission
file number: 001-32161
|
VendingData
Corporation
|
|||
(Exact
name of small business issuer as specified in its
charter)
|
Nevada
|
91-1696010
|
||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
6830
Spencer Street, Las Vegas, Nevada 89119
|
|||
(Address
of principal executive offices)
|
|||
(702)
733-7195
|
|||
(Issuer’s
telephone number)
|
|||
(Former
name, former address and former fiscal year, if changed since last
report)
|
|||
Indicate
by check mark whether the issuer is a shell company (as defined in
Rule
12b-2 of the Exchange Act). Yes o No x
|
|||
Check
whether the issuer (1) filed all reports required to be filed by
Section
13 or 15(d) of the Exchange Act during the past 12 months (or for
such
shorter period that the registrant was required to file such reports),
and
(2) has been subject to such filing requirements for the past 90
days.
Yes x No
o
|
|||
APPLICABLE
ONLY TO CORPORATE ISSUERS
|
|||
State
the number of shares outstanding of each of the issuer’s classes of common
equity, as of the latest practicable
date: 29,015,099 shares
of common stock, $.001 par value, as of October 31,
2006
|
|||
Transitional
Small Business Disclosure Format (check one): Yes o No
x
|
PAGE
|
|
PART
I - FINANCIAL INFORMATION
|
1
|
ITEM
1.
FINANCIAL
STATEMENTS.
|
1
|
BALANCE
SHEETS
|
1
|
STATEMENTS OF
OPERATIONS
|
2
|
STATEMENTS
OF CASH
FLOWS
|
3
|
NOTES
TO FINANCIAL
STATEMENTS
|
4
|
ITEM
2.
MANAGEMENT’S
DISCUSSION
AND ANALYSIS OR
PLAN
OF
OPERATION.
|
11
|
CAUTIONARY
STATEMENT
|
11
|
OVERVIEW
|
11
|
RESULTS OF
OPERATIONS
|
12
|
LIQUIDITY AND
CAPITAL
RESOURCES
|
17
|
OFF
BALANCE
SHEET
ARRANGEMENTS
|
19
|
CRITICAL
ACCOUNTING
POLICIES
AND
ESTIMATES
|
19
|
RISK
FACTORS
|
20
|
ITEM
3.
CONTROLS AND
PROCEDURES
|
24
|
PART
II - OTHER INFORMATION
|
25
|
ITEM
6.
EXHIBITS.
|
25
|
September
30, 2006
(Unaudited)
|
December
31, 2005
|
||||||
ASSETS
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
502,178
|
$
|
935,243
|
|||
Current
portion of accounts receivable, trade, net of allowance for uncollectibles
of $316,469 and $276,420
|
2,616,636
|
1,550,559
|
|||||
Inventories
|
3,682,986
|
3,045,334
|
|||||
Prepaid
expenses and other
|
184,996
|
117,655
|
|||||
6,986,796
|
5,648,791
|
||||||
Equipment
rented to customers, net of accumulated depreciation of $89,685 and
$228,032
|
111,340
|
146,527
|
|||||
Property
and equipment, net of accumulated depreciation of $2,291,943 and
$2,408,234
|
3,496,047
|
585,431
|
|||||
Intangible
assets, at cost, net of accumulated amortization of $266,257 and
$836,281
|
5,494,962
|
1,862,268
|
|||||
Goodwill
|
13,094,280
|
||||||
Accounts
receivable, trade, net of current portion, less unamortized
discount
|
366,203
|
600,430
|
|||||
Deferred
expenses
|
660,727
|
748,171
|
|||||
Deposits
|
459,337
|
759,653
|
|||||
$
|
30,669,692
|
$
|
10,351,271
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Current
portion of leases payable
|
$
|
550,547
|
$
|
471,269
|
|||
Accounts
payable
|
2,875,954
|
1,836,234
|
|||||
Accrued
expenses
|
2,371,288
|
794,203
|
|||||
Deferred
revenues, current portion
|
31,604
|
52,248
|
|||||
Short-term
debt
|
6,180,324
|
4,050,000
|
|||||
Current
portion of long term debt
|
1,500,000
|
||||||
Customer
deposits
|
80,654
|
81,858
|
|||||
13,590,371
|
7,285,812
|
||||||
Long
-term obligations
|
|||||||
Deferred
revenues, net of current portion
|
79,757
|
161,335
|
|||||
Notes
payable
|
11,500,000
|
11,654,500
|
|||||
Leases
payable, net of current portion
|
407,790
|
421,975
|
|||||
Total
Liabilities
|
25,577,918
|
19,523,622
|
|||||
Stockholders'
equity:
|
|||||||
Preferred
stock, $.001 par value, 10,000,000 shares authorized, no shares issued
or
outstanding
|
—
|
—
|
|||||
Common
stock, $.001 par value, 50,000,000 shares authorized, 28,969,099
and
18,141,950 shares issued
|
28,969
|
18,142
|
|||||
Treasury
stock 448,053 common shares
|
(846,820
|
)
|
(846,820
|
)
|
|||
Deferred
officers’ compensation
|
(3,797,006
|
)
|
(3,419,088
|
)
|
|||
Additional
paid in capital
|
90,684,880
|
66,763,192
|
|||||
Deficit
|
(80,978,249
|
)
|
(71,687,777
|
)
|
|||
|
5,491,774
|
(9,172,351
|
)
|
||||
Total
liabilities and stockholders’ equity
|
$
|
30,669,692
|
$
|
10,351,271
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues:
|
|||||||||||||
Gaming:
|
|||||||||||||
Sales
|
$
|
379,433
|
$
|
131,852
|
$
|
2,780,042
|
$
|
1,751,521
|
|||||
Rental
|
75,601
|
159,662
|
266,849
|
416,441
|
|||||||||
Other
|
138,982
|
27,469
|
287,018
|
87,909
|
|||||||||
Non-gaming
revenue
|
1,850,043
|
1,850,043
|
|||||||||||
|
2,444,059
|
318,983
|
5,183,952
|
2,255,871
|
|||||||||
Sales
returns and allowances, gaming
|
(90,712
|
)
|
(20,002
|
)
|
(431,290
|
)
|
(310,840
|
)
|
|||||
2,353,347
|
298,981
|
4,752,662
|
1,945,031
|
||||||||||
Operating
costs and expenses:
|
|||||||||||||
Cost
of sales
|
2,263,449
|
2,922,709
|
4,198,479
|
4,142,162
|
|||||||||
Selling,
general and administrative
|
3,062,180
|
2,306,338
|
7,037,662
|
7,174,231
|
|||||||||
Research
and development
|
448,105
|
591,807
|
1,260,341
|
1,069,496
|
|||||||||
5,773,734
|
5,820,854
|
12,496,482
|
12,385,889
|
||||||||||
Loss
from operations
|
(3,420,387
|
)
|
(5,521,873
|
)
|
(7,743,820
|
)
|
(10,440,858
|
)
|
|||||
Interest
expense, unrelated parties
|
690,008
|
384,665
|
1,546,652
|
1,193,472
|
|||||||||
Interest
expense, related parties
|
15,063
|
||||||||||||
690,008
|
384,665
|
1,546,652
|
1,208,535
|
||||||||||
Net
loss
|
$
|
(4,110,395
|
)
|
$
|
(5,906,538
|
)
|
$
|
(9,290,472
|
)
|
$
|
(11,649,393
|
)
|
|
Basic
loss per share
|
$
|
(
0.15
|
)
|
$
|
(0.35
|
)
|
$
|
(0.41
|
)
|
$
|
(0.68
|
)
|
|
Weighted
average shares outstanding
|
27,629,090
|
16,864,005
|
22,430,475
|
17,105,093
|
|
Nine
Months Ended September 30,
|
||||||
2006
|
2005
|
||||||
Net
loss
|
$
|
(9,290,472 | ) |
$
|
( 11,649,394 | ) | |
Adjustments
to reconcile net loss to net cash
|
|||||||
used
in operating activities:
|
|||||||
Depreciation
|
528,950
|
584,750
|
|||||
Amortization
of deferred interest
|
44,465
|
158,552
|
|||||
Non-cash
compensation expense
|
837,349
|
365,126
|
|||||
Increase
in operating (assets) liabilities:
|
|||||||
Trade
accounts receivable
|
(831,850
|
)
|
710,717
|
||||
Other
receivables
|
154,486
|
(32,391
|
)
|
||||
Inventory
|
(637,652
|
)
|
1,510,277
|
||||
Prepaid
expenses
|
(221,827
|
)
|
(116,516
|
)
|
|||
Deferred
financing and interest expense
|
(546,875
|
)
|
|||||
Deposits
with vendors
|
300,316
|
(3,079
|
)
|
||||
Accounts
payable
|
1,039,720
|
1,189,145
|
|||||
Accrued
expenses
|
1,577,084
|
668,671
|
|||||
Deferred
expenses
|
(2,491,333
|
)
|
|||||
Deferred
revenues
|
(102,222
|
)
|
|||||
Customer
expenses
|
(5,175
|
)
|
|||||
Customer
deposits
|
(1,204
|
)
|
|||||
|
2,140,740
|
2,538,744
|
|||||
Net
cash used in operating activities
|
(7,149,732
|
)
|
(9,110,650
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Purchase
of intellectual property
|
(716,500
|
)
|
|
||||
Purchase
of Dolphin (see note 5)
|
(1,350,000
|
)
|
|||||
Purchase
of plant and equipment
|
(1,560,616
|
)
|
(897,707
|
)
|
|||
Proceeds
from disposition of equipment produced for rental
|
35,187
|
|
|
||||
Proceeds
from disposition of equipment
|
405,634
|
4,700
|
|||||
Net
cash used in investing activities
|
(3,186,295
|
)
|
(893,007
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from sale of stock
|
3,034,179
|
3,566,852
|
|||||
Purchase
of treasury stock
|
(846,820
|
)
|
|||||
Proceeds
from capital lease financing
|
300,000
|
||||||
Repayment
from leases payable
|
(279,373
|
)
|
(1,743,057
|
)
|
|||
Proceeds
from notes payable
|
13,000,000
|
8,750,000
|
|||||
Repayment
of notes payable
|
(6,000,000
|
)
|
|||||
Repayment
of short-term debt
|
(4,050,000
|
)
|
(188,250
|
)
|
|||
Proceeds
from short term debt
|
398,156
|
||||||
Proceeds
from convertible debt
|
3,500,000
|
||||||
Net
cash provided by financing activities
|
9,902,962
|
9,538,725
|
|||||
Increase
(decrease) in cash and cash equivalents
|
(433,065
|
)
|
(464,932
|
)
|
|||
Cash
and cash equivalents at beginning of period
|
935,243
|
907,660
|
|||||
Cash
and cash equivalents at end of period
|
$
|
502,178
|
$
|
442,728
|
|||
Non-cash
investing and financing activities:
|
|||||||
Intangible
assets acquired with stock
|
$
|
2,690,000
|
|||||
Note
issued for acquisition of Dolphin (see note 5)
|
$
|
5,782,168
|
|||||
Stock
issued as deposit for acquisition (see note 5)
|
$
|
7,817,833
|
|||||
Debt
settled with stock
|
$
|
9,154,500
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Gaming:
|
|||||||||||||
North
America
|
$
|
447,996
|
$
|
298,981
|
$
|
990,002
|
$
|
1,553,981
|
|||||
Asia
|
55,308
|
1,912,617
|
267,300
|
||||||||||
Europe
|
99,000
|
||||||||||||
South
America
|
24,750
|
||||||||||||
Total
gaming
|
503,304
|
298,981
|
2,902,619
|
1,945,031
|
|||||||||
Non-gaming:
|
|||||||||||||
Asia
|
1,850,043
|
1,850,043
|
|||||||||||
Total
Revenue
|
$
|
2,353,347
|
$
|
298,981
|
$
|
4,752,662
|
$
|
1,945,031
|
|
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Secure
Drop®
|
$
|
8,641
|
$
|
81,235
|
|||||||||
Shuffler
|
$
|
192,293
|
124,957
|
$
|
602,476
|
1,289,706
|
|||||||
Deck
CheckerTM
|
207,393
|
157,916
|
1,191,797
|
797,021
|
|||||||||
Casino
chips
|
55,348
|
1,252,618
|
|||||||||||
Non-gaming
|
1,850,043
|
1,850,043
|
|||||||||||
Other
|
138,982
|
27,469
|
287,018
|
87,909
|
|||||||||
2,444,059
|
318,983
|
5,183,952
|
2,255,871
|
||||||||||
Sales
returns and allowances
|
(90,712
|
)
|
(20,002
|
)
|
(431,290
|
)
|
(310,840
|
)
|
|||||
$
|
2,353,347
|
$
|
298,981
|
$
|
4,752,662
|
$
|
1,945,031
|
||||||
Depreciation
and amortization
|
|||||||||||||
Shuffler
|
$
|
7,899
|
$
|
54,469
|
$
|
28,564
|
$
|
159,908
|
|||||
Deck
Checker
|
3,998
|
9,229
|
13,869
|
27,687
|
|||||||||
Non-gaming
|
66,616
|
66,616 | |||||||||||
Unallocated
|
183,116
|
106,705
|
419,901
|
397,155
|
|||||||||
$
|
261,629
|
$
|
171,403
|
$
|
528,951
|
$
|
584,750
|
||||||
Operating
income (loss)
|
|||||||||||||
Secure
Drop® gross margin
|
$
|
8,412
|
$
|
73,262
|
|||||||||
Shuffler
gross margin
|
$
|
94,523
|
(164,266
|
)
|
$
|
132,638
|
704,558
|
||||||
Deck
Checker gross margin
|
142,790
|
149,952
|
855,683
|
711,216
|
|||||||||
Casino
chip gross margin
|
5,845
|
|
552,329
|
|
|||||||||
Non-gaming
gross margin
|
53,954
|
|
53,954
|
|
|||||||||
Other
costs of good sold
|
(207,214
|
)
|
(2,617,826
|
)
|
(1,040,421
|
)
|
(3,688,067
|
)
|
|||||
Selling,
general, and administrative
|
(3,062,180
|
)
|
(2,306,338
|
)
|
(7,037,662
|
)
|
(7,172,331
|
)
|
|||||
Research
and development
|
(448,105
|
)
|
(591,807
|
)
|
(1,260,341
|
)
|
(1,069,496
|
)
|
|||||
$
|
(3,420,387
|
)
|
$
|
(5,521,873
|
)
|
$
|
(7,743,820
|
)
|
$
|
(10,440,858
|
)
|
|
Stock
Options
|
Weighted
Average
Exercise
Price
|
|||||
Balance,
December 31, 2005
|
3,953,472
|
$
|
1.99
|
||||
Options
granted
|
1,605,000
|
2.19
|
|||||
Options
exercised
|
360,000
|
2.19
|
|||||
Options
cancelled
|
348,940
|
4.00
|
|||||
|
|||||||
Balance,
September 30, 2006
|
4,849,532
|
2.00
|
|||||
|
|||||||
Options
exercisable (vested) at September 30,
2006
|
974,938
|
$
|
2.24
|
Three
months ended September 20,
2006
|
Three
months ended September 20,
2005
|
Year
to
year
change
|
Percentage
change
|
||||||||||
Secure
Drop
|
|||||||||||||
Revenue
|
-
|
8,641
|
(8,641
|
)
|
-100
|
%
|
|||||||
Cost
of Sales
|
-
|
230
|
(230
|
)
|
-100
|
%
|
|||||||
Gross
Margin
|
-
|
8,411
|
(8,411
|
)
|
-100
|
%
|
|||||||
Gross
Margin %
|
0
|
%
|
97
|
%
|
|||||||||
Shuffler
Sales
|
|||||||||||||
Revenue
|
140,878
|
38,791
|
102,087
|
263
|
%
|
||||||||
Cost
of Sales
|
89,871
|
19,357
|
70,514
|
364
|
%
|
||||||||
Gross
Margin
|
51,006
|
19,434
|
31,572
|
162
|
%
|
||||||||
Gross
Margin%
|
36
|
%
|
50
|
%
|
|||||||||
Shuffler
Rentals
|
|||||||||||||
Revenue
|
51,416
|
86,167
|
(34,751
|
)
|
-40
|
%
|
|||||||
Cost
of Sales
|
7,899
|
43,001
|
(35,102
|
)
|
-82
|
%
|
|||||||
Gross
Margin
|
43,517
|
43,166
|
351
|
1
|
%
|
||||||||
Gross
Margin%
|
85
|
%
|
50
|
%
|
|||||||||
Deck
Checker
|
|||||||||||||
Revenue
|
183,208
|
84,420
|
98,788
|
117
|
%
|
||||||||
Cost
of Sales
|
60,604
|
(1,226
|
)
|
61,830
|
-5043
|
%
|
|||||||
Gross
Margin
|
122,603
|
85,646
|
36,957
|
43
|
%
|
||||||||
Gross
Margin%
|
67
|
%
|
101
|
%
|
|||||||||
Deck
Checker Rentals
|
|||||||||||||
Revenue
|
24,185
|
73,495
|
(49,310
|
)
|
-67
|
%
|
|||||||
Cost
of Sales
|
3,998
|
9,229
|
(5,231
|
)
|
-57
|
%
|
|||||||
Gross
Margin
|
20,187
|
64,266
|
(44,079
|
)
|
-69
|
%
|
|||||||
Gross
Margin%
|
83
|
%
|
87
|
%
|
|||||||||
Casino
Chips
|
|||||||||||||
Revenue
|
55,348
|
-
|
55,348
|
100
|
%
|
||||||||
Cost
of Sales
|
49,503
|
-
|
49,503
|
100
|
%
|
||||||||
Gross
Margin
|
5,845
|
-
|
5,845
|
100
|
%
|
||||||||
Gross
Margin%
|
11
|
%
|
0
|
%
|
|||||||||
Non-gaming
Product Line
|
|||||||||||||
Revenue
|
1,850,043
|
-
|
1,850,043
|
100
|
%
|
||||||||
Cost
of Sales
|
1,796,089
|
-
|
1,796,089
|
100
|
%
|
||||||||
Gross
Margin
|
53,954
|
-
|
53,954
|
100
|
%
|
||||||||
Gross
Margin%
|
3
|
%
|
0
|
%
|
|||||||||
Other
|
|||||||||||||
Revenue
|
48,270
|
7,467
|
40,803
|
546
|
%
|
||||||||
Cost
of Sales
|
255,485
|
2,852,118
|
(2,596,633
|
)
|
-91
|
%
|
|||||||
Gross
Margin
|
(207,215
|
)
|
(2,844,651
|
)
|
2,637,437
|
128
|
%
|
||||||
Gross
Margin%
|
-429
|
%
|
-38096
|
%
|
|||||||||
Total
|
|||||||||||||
Revenue
|
2,353,347
|
298,981
|
2,054,366
|
687
|
%
|
||||||||
Cost
of Sales
|
2,263,449
|
2,922,709
|
(659,260
|
)
|
-23
|
%
|
|||||||
Gross
Margin
|
89,898
|
(2,623,728
|
)
|
2,713,626
|
-103
|
%
|
|||||||
Gross
Margin%
|
4
|
%
|
-878
|
%
|
Nine
months ended September 20,
2006
|
Nine
months ended September 20,
2005
|
Year
to year
change
|
Percentage
change
|
||||||||||
Secure
Drop
|
|||||||||||||
Revenue
|
-
|
81,235
|
(81,235
|
)
|
-100
|
%
|
|||||||
Cost
of Sales
|
-
|
7,973
|
(7,973
|
)
|
-100
|
%
|
|||||||
Gross
Margin
|
-
|
73,262
|
(73,262
|
)
|
-100
|
%
|
|||||||
Gross
Margin%
|
0
|
%
|
90
|
%
|
|||||||||
Shuffler
Sales
|
|||||||||||||
Revenue
|
424,015
|
1,077,230
|
(653,215
|
)
|
-61
|
%
|
|||||||
Cost
of Sales
|
441,274
|
198,368
|
242,906
|
122
|
%
|
||||||||
Gross
Margin
|
(17,260
|
)
|
878,862
|
(896,122
|
)
|
-102
|
%
|
||||||
Gross
Margin%
|
-4
|
%
|
82
|
%
|
|||||||||
Shuffler
Rentals
|
|||||||||||||
Revenue
|
178,462
|
212,476
|
(34,014
|
)
|
-16
|
%
|
|||||||
Cost
of Sales
|
28,564
|
386,780
|
(358,216
|
)
|
-93
|
%
|
|||||||
Gross
Margin
|
149,897
|
(174,304
|
)
|
324,201
|
-186
|
%
|
|||||||
Gross
Margin%
|
84
|
%
|
-82
|
%
|
|||||||||
Deck
Checker
|
|||||||||||||
Revenue
|
1,103,410
|
593,056
|
510,354
|
86
|
%
|
||||||||
Cost
of Sales
|
322,244
|
58,118
|
264,126
|
454
|
%
|
||||||||
Gross
Margin
|
781,165
|
534,938
|
246,227
|
46
|
%
|
||||||||
Gross
Margin%
|
71
|
%
|
90
|
%
|
|||||||||
Deck
Checker Rentals
|
|||||||||||||
Revenue
|
88,388
|
203,965
|
(115,578
|
)
|
-57
|
%
|
|||||||
Cost
of Sales
|
13,869
|
27,687
|
(13,818
|
)
|
-50
|
%
|
|||||||
Gross
Margin
|
74,518
|
176,278
|
(101,760
|
)
|
-58
|
%
|
|||||||
Gross
Margin%
|
84
|
%
|
86
|
%
|
|||||||||
Casino
Chips
|
|||||||||||||
Revenue
|
1,252,618
|
-
|
1,252,618
|
100
|
%
|
||||||||
Cost
of Sales
|
700,289
|
-
|
700,289
|
100
|
%
|
||||||||
Gross
Margin
|
552,329
|
-
|
552,329
|
100
|
%
|
||||||||
Gross
Margin%
|
44
|
%
|
0
|
%
|
|||||||||
Non-gaming
Product Line
|
|||||||||||||
Revenue
|
1,850,043
|
-
|
1,850,043
|
100
|
%
|
||||||||
Cost
of Sales
|
1,796,089
|
-
|
1,796,089
|
100
|
%
|
||||||||
Gross
Margin
|
53,954
|
-
|
53,954
|
100
|
%
|
||||||||
Gross
Margin%
|
3
|
%
|
0
|
%
|
|||||||||
Other
|
|||||||||||||
Revenue
|
(144,272
|
)
|
(222,931
|
)
|
78,659
|
-35
|
%
|
||||||
Cost
of Sales
|
896,149
|
3,463,236
|
(2,567,087
|
)
|
-74
|
%
|
|||||||
Gross
Margin
|
(1,040,420
|
)
|
(3,686,167
|
)
|
2,645,747
|
-72
|
%
|
||||||
Gross
Margin%
|
721
|
%
|
1654
|
%
|
|||||||||
Total
|
|||||||||||||
Revenue
|
4,752,663
|
1,945,031
|
2,807,632
|
144
|
%
|
||||||||
Cost
of Sales
|
4,198,479
|
4,142,162
|
56,317
|
1
|
%
|
||||||||
Gross
Margin
|
554,184
|
(2,197,131
|
)
|
2,751,315
|
-125
|
%
|
|||||||
Gross
Margin%
|
12
|
%
|
-113
|
%
|
·
|
the
percentage ownership of our existing stockholders will be reduced;
|
·
|
our
stockholders may experience additional dilution in net book value
per
share; or
|
·
|
the
new equity securities may have rights, preferences or privileges
senior to
those of the holders of our common stock.
|
·
|
contractual
arrangements providing for non-disclosure and prohibitions on
use;
|
·
|
patents
and pending patent applications;
|
·
|
trade
secret, copyright and trademark laws;
and
|
·
|
certain
built-in technical product
features.
|
·
|
consuming
substantial time and financial resources required to defend against
them;
|
·
|
diverting
the attention of management from growing our business and managing
operations;
|
·
|
resulting
in costly litigation; and
|
·
|
disrupting
product sales and shipments.
|
ITEM
3.
|
CONTROLS AND
PROCEDURES
|
10.1
|
Alliance
Agreement dated October 11, 2006 between the Compnay and Elixir Group
Limited
|
|
10.2
|
Amended
and Restated Sales Representative Agreement dated October 11, 2006
between
the Compnay and Elixir Group Limited
|
|
10.3
|
Securities
Purchase Agreement dated October 11, 2006 between the Compnay and
Elixir
Group Limited
|
|
31.1
|
Certifications
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
Certifications
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certification
of Principal Executive Officer and Principal Financial Officer pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350).
|
VENDINGDATA
CORPORATION
(Registrant)
|
||
|
|
|
Date: November 14, 2006 | By: | /s/ Mark R. Newburg |
Mark R. Newburg |
||
Its:
|
President,
Chief Executive Officer and Treasurer (Principal Executive
Officer)
|
|
|
Date: November 14, 2006 | By: |
/s/
Arnaldo F. Galassi
|
Arnaldo
F. Galassi
|
||
Its:
|
Chief
Financial Officer and Secretary (Principal Financial
Officer)
|