SECURITIES AND EXCHANGE
		COMMISSION Washington D.C. 20549

FORM 10-KSB

Annual Report Pursuant to Section 13 or 15(d)  of the
		Securities Exchange Act of 1934

For the fiscal year ended December 31, 2006
		Commission File No. 0-28383

TABLE TRAC, INC.(Exact name of registrant as specified in its charter)

Nevada
		-----------------------------------------------------88-0336568
		(State or other jurisdiction of Incorporation or Organization)---------(IRS
		Employer Identification No.)

15612 Highway 7, Suite 250 Minnetonka, Minnesota 55345(Address of principal executive office) ----------------(Zip Code)

Registrant's telephone number: (952) 548-8877

Securities registered pursuant to Section 12(b) of the
		Act: None

Securities registered pursuant to Section 12(g) of the
		Act: 3,991,534 Shares of Common Stock outstanding as of March 15,
		2007

Common Stock, (par value $0.001) (Title of
		Class)

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.

YesX NO___

The aggregate market value of the voting stock held by non-affiliates of
		the Registrant on March 15, 2007 was approximately $4,702,257, based on the
		closing sale price as reported on OTCBB for the registrant's common stock on
		March 15, 2007.

3,991,534 shares of Registrant's Common Stock, no par value were
		outstanding on March 15, 2007, prior to the effectiveness of the latest
		practicable date.

DOCUMENTS INCORPORATED BY REFERENCE None.

|CONTENTS
			 PART I
			 Item 1.Description of Business
			 Item 2. Description of Property
			 Item 3. Legal Proceedings
			 Item 4. Submission of Matters to a Vote of Security Holders
			 PART II
			 Item 5. Market for Registrant's Common Equity and Related
				Stockholder Matters
			 Item 6. Management's Discussion and Analysis of Financial
				Condition and Results of Operations
			 Item 7. Financial Statements
			 Item 8. Changes in and Disagreements with Accountants on
				Accounting and Financial Disclosure
			 Item 8A. Controls and Procedures
			 Item 8B. Other Information
			 PART III
			 Item 9. Directors, Executive Officers, Promoters and Control
				Persons; Compliance with Section 16(a) of the Exchange Act
			 Item 10. Executive Compensation
			 Item 11. Security Ownership of Certain Beneficial Owners and
				Management and Related Shareholder Matters
			 Item 12. Certain Relationships and Related Transactions
			 PART IV
			 Item 13. Exhibits, Financial Statement Schedules and Reports on
				Form 8-K
			 Item 14. Principal Accountant Fees and Services
			 FORWARD LOOKING STATEMENTS
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In this annual report, references to "the Company" "we," "us," and "our"
		refer to Table Trac, Inc.

This annual report contains certain forward-looking statements and for
		this purpose any statements contained in this annual report that are not
		statements of historical fact may be deemed to be forward-looking statements.
		Without limiting the foregoing, words such as "may," "expect," "believe,"
		"anticipate," "estimate" or "continue" or comparable terminology are intended
		to identify forward-looking statements. These statements by their nature
		involve substantial risks and uncertainties, and actual results may differ
		materially depending on a variety of factors, many of which are not within the
		Company's control. These factors include but are not limited to economic
		conditions generally and in the markets in which the Company may participate;
		competition within the Company's chosen industry, including competition from
		much larger competitors; technological advances and failure by the Company to
		successfully develop business relationships.

PART I

Item 1. - DESCRIPTION OF BUSINESS

Table Trac, Inc. (the "Company" or "Table Trac") is a Nevada
		Corporation, formed on June 27, 1995, with principal offices in Minnetonka,
		Minnesota.

The Company has developed and patented (U.S. patent # 5,957,776) a
		proprietary information and management system (Table Trac) that automates and
		monitors the operations of casino table games. In addition to table games
		management, since 2000 Table Trac has been adding functionality developing
		related casino system modules for guest rewards and loyalty club, marketing
		analysis, guest service, promotions administration / management, vault/cage
		management and audit / accounting. All of these modules use Table Trac's simple
		to learn browser based interface.

In 2005, the Company launched new products in the areas of promotions
		administration and management, customer mailing for tiered pre-encoded
		promotional marketing, gaming machine on-line accounting and management, gaming
		machine vault cage operations, touch screen customer service kiosks, guest
		service paging and wireless handheld communications. The addition of these
		modalities has transformed Table Trac's role from a ""niche" supplier of
		peripheral product offerings to one of a full line single source supplier. The
		Company believes that this development has greatly enhanced their opportunities
		for new system sales in the marketplace, which has been demonstrated in 2006.

Table Trac is able to offer systems of comparable function to their Las
		Vegas based competitors at a significant cost savings by utilizing innovative
		technology and programming resources. Table Trac now has over 10 years of
		on-table experience, 8+ years of customer reward and loyalty programs and 10's
		of millions of continuous gaming machine monitoring hours of operation. Table
		Trac is positioned favorably to compete for the casino systems business of a
		broader cross section of casinos seeking to reduce the cost of their systems
		and improve the reliability and accountability of their operations.

TABLE TRAC INSTALLATIONS

Table Trac currently has systems installed with on-going support and
		maintenance contracts at eleven casinos in Minnesota, Wisconsin and Florida,
		Oklahoma, Nicaragua, and Guatemala.

AVAILABILITY OF TABLE TRAC

Table Trac systems are available for purchase from the Company to any
		legal gambling casino in the U.S. and most legal casinos operating outside the
		U.S. Systems are purchased, installed and sold with a monthly license and
		maintenance contract whereby Table Trac Inc. performs required maintenance on
		its systems to assure trouble free operations.

MANUFACTURING CAPABILITIES

The Company designs and manufactures its own Table Trac table units and
		gaming machine interface boards, using the services of 3rd party electronics
		assembly houses. The Company is aware of local electronic manufacturers
		offering equivalent manufacturing capability whose services the Company could
		readily hire as needed.

TRADEMARKS AND PATENTS

Table Trac's management has actively pursued trademark and patent
		protection for the Company and its products. In the course of it existence,
		Table Trac has spent in excess of $24,000 to secure those protections.

The Company filed for its provisional patent application in August 1995,
		and filed for its Final Application in August 1996. This application was
		approved and issued on September 28, 2000, as patent number 5,957,776.

The Company filed to register its Trademark ("TABLE TRAC") in September
		1996. The Trademark was issued on September 7, 2000, as Trademark number
		2,275,137. A re-application for this mark has been filed in March 2007.

Environmental Compliance

The Company believes that it is in compliance with all current federal
		and state environmental laws.

Employees

As of December 31, 2006, the Company had four full-time employees and
		engaged the services of 3 contract specialists.

COMPETITION

2006 was a significant milestone for Table Trac in its quest to not only
		develop its definition of markets for growth and expansion, but to further
		separate itself from the competition. As of the end of 2006, to the best of the
		companys knowledge which encompasses reporting from operators, vendors,
		and analysts, Table Trac was the only systems company that was operating
		accounting and players club functions on Class II, S2S games and protocols in
		Oklahoma. At the same time, Table Trac feels that it can still claim to be
		available for half-price, or close to that. In addition, in regard
		to off-shore markets, Table Tracs successful entry into several Central
		American jurisdictions with their systems meeting the special demands of
		multi-lingual, multi-denominational, and multi-tax requirements, while
		maintaining the competitive pricing advantage, also established definition for
		expansion in line with the competitors. No testimonial to this could be more
		significant than the Letter of Intent signed with Thunderbird Resorts to secure
		an exclusive contract with Table Trac for a period of time, in return for
		minimum sales contracts. Thunderbird currently operates over 26 gaming
		facilities off-shore.

RECENT DEVELOPMENTS

In 2006, Table Trac not only doubled its customer base, but in doing so,
		showed significant geographic and cultural expansion that brought new demands
		and new developments. Casinos in Nicaragua and Guatemala purchased Table Trac
		systems and found that Table Trac and its personnel had the knowledge and
		expertise to adapt to numerous special needs. For one thing, Table Trac showed
		the ability to install their systems over communication lines without having to
		incur major travel expenses to the customer. In addition, those locations
		required systems that could operate with unique multi-lingual,
		multi-denominational, and multi-tax and reporting capabilities. Table Trac
		proved that they could meet these requirements, and still maintain their
		significant pricing edge. Perhaps the most significant development of 2006 was
		the sale of a system in Oklahoma that was performance based. Since 2005, based
		upon our knowledge of the market, no systems company, including the billion
		dollar competitors out of Las Vegas, have been able to provide Class II S2S
		connectivity and successfully operate accounting and players club functions
		together in a Mixed class II S2S - Class III traditional casino. Within 120
		days of contract, Table Trac proved their ability to accomplish this feat, and
		become the first to do so. These accomplishments in 2006, not only proved that
		Table Trac was on a technical level with every other systems provider, but the
		recognition of that is opening up a new world of expansion opportunities.

Item 2. - PROPERTY

Table Trac's operations are headquartered in Minnetonka, Minnesota. The
		Company's lease for its facility requires monthly payments of $1,260, pursuant
		to a lease agreement.

Item 3. - LEGAL PROCEEDINGS

None

Item 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

PART II

Item 5. - MARKET FOR THE COMMON EQUITY AND RELATED STOCKHOLDER
		MATTERS

The Company's common stock has been traded on the OTC Bulletin Board
		("OTCBB") since July 17, 2000, before that time there was no activity.

|Price per Share Calendar Year 2005 | High  | Low  
|---------------------------------- | ----- | -----
|First Quarter                      | $0.76 | $0.36
|Second Quarter                     | $0.77 | $0.46
|Third Quarter                      | $0.60 | $0.40
|Fourth Quarter                     | $0.77 | $0.47



|Price per Share Calendar Year 2006 | High  | Low  
|---------------------------------- | ----- | -----
|First Quarter                      | $0.85 | $0.65
|Second Quarter                     | $0.85 | $0.56
|Third Quarter                      | $1.15 | $0.62
|Fourth Quarter                     | $1.35 | $0.60

There are more than 100 holders of record of the common stock of the
		Company. There have never been any dividends, cash or otherwise, paid on the
		common shares of the Company.

RECENT SALE OF UNREGISTERED SECURITIES

On August 31, 2006, options dating from 2002 were exercised, a total of
		17,500 shares at the option price of $0.125.

On August 31, 2006, 15,000 unregistered shares were issued to a new
		board member for board service at a price of $0.40.

Item 6. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
		AND RESULTS OF OPERATIONS

|Years Ended December 31,Income Statement Data | 2006      | 2005      
|--------------------------------------------- | --------- | ----------
|Net Sales                                     | $ 859,114 | $1,184,956
|Net Income                                    | $ 258,936 | $ 302,773 
|Basic earnings per share                      | $ 0.065   | $ 0.079   



|As of December 31, Balance Sheet Data | 2006      | 2005     
|------------------------------------- | --------- | ---------
|Total Assets                          | $840,790  | $391,145 
|Total Liabilities                     | $ 206,662 | $ 24,140 
|Stockholders' Equity                  | $ 634,128 | $ 367,005

The net income and basic earnings per share should be viewed in light of
		the recognition of Table Trac's NOL carryforward as of December 31, 2006 valued
		this year at $185,000. Due to recent historical profits, the Company is no
		longer recording a valuation allowance against their net operating loss defered
		tax asset. The Company also received $174,795 in cash receipts in advance for
		non-refundable work on current projects. This amount is reflected as deferred
		revenue as of December 31, 2006. The Company enters the year with a backlog of
		contracted sales of $1,196,000 which exceeds our total sales for the year ended
		December 31, 2006.

Table Trac has achieved several important milestones, including over ten
		years serving the gaming industry with quality systems and over two years of
		successful operations as a full service casino systems provider. These
		milestones have transformed the Company's role from a "niche" supplier of
		peripheral product offerings to one of a full line single source systems
		supplier. Credibility in this role has been established with two 1/2 years of
		continuous successful operations as a matter of record. Table Trac has taken
		steps to more effectively market the Company and its products in this new
		supplier role. The Company has begun making investments in personnel and
		manufacturing to support the growing number of casino clients.

Results of Operations YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR
		ENDED DECEMBER 31, 2005.

Revenues decreased from $1,184,956 in 2005 to $859,114 in 2006. The
		decrease of $325,842 was due to fewer completed installations in 2006. However,
		our ongoing maintenance revenue has increased from $228,761 in 2005 to $315,291
		in 2006, an increase of $86,530.

Deferred revenues increased from $0 in 2005 to $174,795 in 2006. The
		increase was due to down payments received for in-process system installations.
		The deferred revenue is non-refundable and will be recognised in 2007 when the
		system installations are completed.

Cost of sales decreased in 2006 to $152,421 from $292,496 in 2005. This
		decrease of 47% was due to fewer completed system installations in 2006 and
		lower costs of Table Trac hardware involved in the system installations.

The gross margin in 2006 is $706,693 or 82% compared with $892,460 or
		75% in 2005, the increase was due to the 2006 system sales having fewer custom
		built hardware and larger lot sizes purchased resulting in quantity pricing
		than the systems in previous years. Also, our license and maintenance revenue
		continues to increase with more systems in place.

Total operating expenses increased from $589,687 in 2005 to $634,686 in
		2006. The increase of $44,999 was due to additional sales & marketing
		expenses and research & development costs.

After demonstrating several years of profitability, Table Trac Inc. has
		recorded a deferred tax asset totaling $185,000 relating to their net operating
		loss carry forward as of December 31, 2006.

The net income for 2006 was $258,936 as compared to net income of
		$302,773 for 2005. This was a decrease $43,837 over the same period last
		year.

The basic earnings per share in 2006 was $0.065 compared to basic
		earnings per share of $0.079 in 2005.

On December 31, 2006, the total stockholders equity was $634,128. This
		compared to a stockholders equity of $367,005 in 2005, which is an increase of
		$267,123 or 73%.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash position at December 31, 2006 was $307,371, an
		increase of $207,375 from $99,996 at December 31, 2005 .

Net cash flows provided by operating activities during the year ended
		December 31, 2006 was $205,188 compared with net cash flows provided by
		operating activities of $66,939 for the same period in 2005. The change was
		caused primarily by an increase in deferred revenue totaling $174,795 and a
		small decrease in accounts recievable of $44,981 offset by an increase in
		inventory of $89,706.

Net cash provided by financing activities was $2,187 during the year
		ended December 31, 2006 compared to net cash flows provided by financing
		activities of $13,281 for the same period in 2005. The change was caused
		primarily by a decrease in the amount of warrants and options being
		exercised.

The Company is not capital intensive. The basic product of the Company
		is its computer software developed by its employees. Most manufacturing is done
		after the Company receives an order, so there is little product inventory held
		by the Company. After an order is completed, the Company's personnel train the
		casinos technicians who do most of the installation as part of their training
		to learn the system.

There are no known trends, events or uncertainties that are likely to
		have a material impact on the Company's short or long-term liquidity. The
		primary source of liquidity in both the short term and long term will be from
		sales of new systems and monthly maintenance revenues from existing contracts
		and our current cash reserves. Based on sales trends, management will manage
		its expenditure levels. Management believes that the Company has adequate cash
		to meet its obligations and continue operations for both existing customer
		contracts and ongoing product development for the next twelve months.

SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

The Company derives revenues from the sale of systems,
		license and maintenance and services.

System sales: Revenue from systems that have been
		demonstrated to meet customer specifications during installation is recognized
		when the product has been installed, title and risk of loss have transferred to
		the customer and collection of the resulting receivable is probable.

System sales are accounted for as multiple-element
		arrangements. In transactions that include multiple products and/or services,
		the Company allocates the revenue to each element based on their relative fair
		value (or in the absence of fair value, the residual method) and recognizes the
		associated revenue when all revenue recognition criteria have been met for each
		element.

In 2005 a new category of sale was defined, a System Sale
		that included special programming with a customer acceptance clause and payable
		under an installment plan. Due to the Company not having a history of
		collection with this type of installment contract before, the Company
		recognized revenues as the contract is billed. During 2006, the Company has
		collected on these installments as invoiced and has demonstrated that
		collectibility was present. All future financed installment contracts will be
		recognized in revenue following the "system sale" policy noted above.

License and maintenance revenue: Software and maintenance
		revenue are recognized ratably over the contract period.

Service revenue: Service revenue is recognized after the
		services are performed and collection of the resulting receivable is
		probable.

Research and Development

Research and development costs are charged to expense as
		incurred.

Intangible Asset

In March 1999, the Company received patent number 5,957,776
		relating to its table game control system. Management feels strongly that the
		extent of the patent will enable the Company to adequately protect its
		technology. Expenses incurred in obtaining this patent are carried at cost and
		are being amortized over seventeen years using the straight-line method.
		Impairment of this asset is being evaluated at the end of each reporting
		period.

Stock-Based Consideration

Effective January 1, 2006 the Company adopted FASB
		Statement No. 123(R) "Share-Based Payment" (SFAS 123(R)), which requires an
		entity to reflect on its income statement, instead of pro forma disclosures in
		its financial footnotes, the cost of employee services received in exchange for
		an award of equity instruments based on the grant-date fair market value of the
		award. Statement 123(R) supersedes the Company's previous accounting under
		Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
		Employees" for periods beginning prior to December 31, 2005. The Company
		adopted SFAS 123(R) using the modified prospective transition method. The
		Company's financial statements as of and for the year ended December 31, 2006
		reflect the impact of SFAS 123(R). In accordance with the modified prospective
		transition method, the Company's financial statements for the prior periods
		have not been restated to reflect, and do not include, the impact of SFAS
		123(R).

Income Taxes

The Company accounts for income taxes in accordance with
		Statement of Financial Accounting Standards No. 109, "Accounting for Income
		Taxes" which requires the use of the "liability method" of accounting for
		income taxes. Accordingly, deferred tax liabilities and assets are determined
		based on the differences between the financial statement and tax bases of
		assets and liabilities, using enacted tax rates in effect for the year in which
		the differences are expected to reverse.

Prior to 1999, the Company was treated as a Subchapter S
		corporation whereby revenues and expenses flow through to stockholders for
		inclusion on their individual returns. Accordingly, no income tax provision was
		provided in the Company's financial statements through December 31, 1999.



OFF-BALANCE SHEET ARRANGEMENTS

None.

As of the date of this Annual Report, the Company does not have any
		off-balance sheet arrangements.

The term "off-balance sheet arrangement" generally means any
		transaction, agreement or other contractual arrangement to which an entity
		unconsolidated with us is a party, under which we have: (i) any obligation
		arising under a guarantee contract, derivative instrument or variable interest;
		or (ii) a retained or contingent interest in assets transferred to such entity
		or similar arrangement that serves as credit, liquidity or market risk support
		for such assets.

Item 7. -FINANCIAL STATEMENTS

The financial statements of the Company, the accompanying notes and the
		report of the independent registered public accounting firm are part of this
		Form 10-KSB following the signature page.

Item 8. - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
		AND FINANCIAL DISCLOSURE.

None.

Item 8A. - CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures The chief executive
		officer and chief financial officer, carried out an evaluation of the
		effectiveness of our "disclosure controls and procedures" (as defined in the
		Exchange Act, Rules 13a-15(e) and 15-d-15(e)) as of the end of the period
		covered by this report (the "Evaluation Date"). Based upon that evaluation, the
		Chief Executive Officer and Chief Financial Officer concluded that our
		disclosure controls and procedures are effective to ensure that information
		required to be disclosed by us in the reports that we file or submit under the
		Exchange Act (i) is recorded, processed, summarized and reported, within the
		time periods specified in the SEC's rules and forms and (ii) is accumulated and
		communicated to our management, including its chief executive and chief
		financial officers, as appropriate to allow timely decisions regarding required
		disclosure.

Disclosure controls and procedures are our controls and other procedures
		that are designed to ensure that information required to be disclosed by us in
		the reports that we file or submit under the Exchange Act is recorded,
		processed, summarized and reported, within the time periods specified in the
		SEC's rules and forms. Disclosure controls and procedures include, without
		limitation, controls and procedures designed to ensure that information
		required to be disclosed by us in the reports that we file under the Exchange
		Act is accumulated and communicated to our management, including principal
		executive officer and principal financial officer, as appropriate, to allow
		timely decisions regarding required disclosure.

It should be noted that we do not have a formal audit committee. Our
		board of directors oversees the responsibilities of the audit committee. The
		board is fully aware that there is a lack of segregation of duties due to the
		small number of employees dealing with general administrative and financial
		matters. However, the board has determined that considering the employees
		involved and the control procedures in place, risks associated with such a lack
		of segregation are insignificant and the potential benefits of adding employees
		to clearly segregate duties does not justify the expenses associated with such
		increases at this time.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate
		internal control over financial reporting for the Company. As of the end of the
		most recent fiscal year, management found the internal control over financial
		reporting to be effective, with no material weaknesses. There were no changes
		in our internal controls over financial reporting, known to the Chief Executive
		Officer or Chief Financial Officer, that occurred during our fiscal fourth
		quarter that have materially affected, or are reasonably likely to materially
		affect, our internal control over financial reporting.

Our management is reviewing our internal controls over financial
		reporting to determine the most suitable recognized control framework. We will
		give great weight and deference to the product of the discussions of the SEC's
		Advisory Committee on Smaller Public Companies (the "Advisory Committee") and
		the Committee of Sponsoring Organizations' task force entitled Implementing the
		COSO Control Framework in Smaller Businesses (the "Task Force"). Both the
		Advisory Committee and the Task Force are expected to provide practical, needed
		guidance regarding the applicability of Section 404 of the Sarbanes-Oxley Act
		to small business issuers. Our management intends to perform the evaluation
		required by Section 404 of the Sarbanes-Oxley Act at such time as we adopt a
		framework. For the same reason, our independent registered public accounting
		firm has not issued an "attestation report" on our management's assessment of
		internal controls.

Item 8B. - OTHER INFORMATION

None

PART III

Item 9. - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
		PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT .

In July 2006, Financial Accounting Standards Board (FASB) issued
		Interpretation No. 48, Accounting for Uncertainty in Income Taxes - An
		Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the
		accounting treatment (recognition and measurement) for an income tax position
		taken in a tax return and recognized in a company's financial statements. The
		new standard also contains guidance on "de-recognition, classification,
		interest and penalties, accounting in interim periods, disclosure, and
		transition". The provisions of FIN 48 are effective for fiscal years beginning
		after December 15, 2006. We are currently evaluating the impact of this
		statement but we believe the adoption of FIN 48 will not have an impact on our
		consolidated financial position or results of operations.

In September 2006, the U.S. Securities and Exchange Commission staff
		issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year
		Misstatements when Quantifying Misstatements in Current Year Financial
		Statements ("SAB 108"). This SAB addresses diversity in practice of quantifying
		financial statement misstatements. It establishes an approach that requires
		quantification of financial statement misstatements based on the effects of the
		misstatements on each of the company's financial statements and the related
		financial statement disclosures. The SAB is effective for financial statements
		issued for fiscal years ending after November 15, 2006. The adoption of SAB 108
		did not have an impact on our consolidated financial position or results of
		operations.

In September 2006, the Financial Accounting Standards Board (FASB)
		issued Statement of Financial Accounting Standards No. 157, Fair Value
		Measurements ("SFAS No. 157"). This standard clarifies the principle that fair
		value should be based on the assumptions that market participants would use
		when pricing an asset or liability. Additionally, it establishes a fair value
		hierarchy that prioritizes the information used to develop those assumptions.
		This standard is effective for financial statements issued for fiscal years
		beginning after November 15, 2007. We are currently evaluating the impact of
		this statement. We believe the adoption of SFAS No. 157 will not have a
		material impact on our consolidated financial position or results of
		operations.

The executive officers and directors of the Company, with a brief
		description, are as follows:

|Name               | Age | Position            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------------------ | --- | ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Chad B. Hoehne     | 44  | Chairman, President | Mr. Hoehne is the Chairman, President and founder of the Company.
			 He has a BS degree in Business Administration from Mankato State University.
			 Mr. Hoehne was employed by Micro Control Company from 1985 to 1993.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Robert R Siqveland | 62  | Secretary           | Mr. Siqveland is the Director of Marketing and the Corporate
			 Secretary. He was an investment advisor and venture capitalist for twenty-five
			 years. Mr. Siqveland has worked with Table Trac in various capacities for the
			 past seven years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Thomas Oliveri     | 44  | Director            | Tom Oliveri is Executive Vice President and Chief Operating Officer
			 of Global Payment Technologies, Inc. (GPT), a worldwide leader in automated
			 currency acceptance and validation. Mr. Oliveri, who also is a member of GPT's
			 Board of Directors, joined the company in January 1999. Mr. Oliveri possesses
			 over twenty-two years of diverse manufacturing experience, including fifteen
			 years in senior management positions encompassing a variety of manufacturing
			 venues from military electronics and aviation to medical devices. Mr. Oliveri
			 holds a Bachelor of Science degree from the State University at Oswego and a
			 Master of Science degree from the State University at Stony Brook.

The directors of the Company are elected annually by the stockholders
		for a term of one year or until their successors are elected and qualified. The
		officers serve at the pleasure of the Board of Directors.

Audit Committee Financial Expert

Due to the Company's size and number of employees, it does not currently
		have a serving audit committee and, accordingly, we do not have an audit
		committee financial expert serving on an audit committee.

Compliance with Section 16(a) of the Exchange Act.

Section 16(a) of the Securities Exchange Act of 1934 requires our
		directors, executive officers and persons who own more than five percent of our
		common stock to file initial reports of ownership and reports of changes in
		ownership of our common stock with the SEC. Officers, directors and ten-percent
		or greater beneficial owners are required by SEC regulations to furnish us with
		copies of all Section 16(a) reports they file. Based upon review of the copies
		of such forms furnished to us during the fiscal year ended December 31, 2006
		and representations from these reporting persons, no Forms 5 were required.

Code of Ethics

Table Trac has adopted a code of ethics for our principal executive and
		financial officers. The management promotes honest and ethical conduct, full
		and fair disclosure in our reports to the SEC, and compliance with applicable
		governmental laws and regulations.

Item 10. - EXECUTIVE COMPENSATION.

In 2006 and during the past three years, Mr. Hoehne has fulfilled the
		duties of chief financial officer, corporate administrator, performing the
		corporate accounting and finance activities, chairman and president, in
		addition to programming and technology development. For fulfilling these
		responsibilities the total executive compensation was $295,839 and $290,746 for
		years ended December 31, 2006 and 2005, respectively.

In 2006 and during the past three years, Mr. Siqveland has fulfilled the
		duties of corporate secretary, customer services, installation training and
		corporate development, as well as National Sales Manager. For fulfilling these
		responsibilities the total executive compensation was $74,850 and $92,950 for
		the years ended December 31, 2006 and 2005, respectively.

Options Granted in 2006

None

Aggregated Options Exercises in 2006 and Year End Option
		Values

Chad Hoehne holds employee stock options in the amount of 237,500 shares
		with an exercise price of $0.13.Robert Siqveland holds employee stock
		options of 112,500 shares with an exercise price of $0.13.

Boards' Compensation in 2006

$1,000 was the total compensation for each member in 2006. Table Trac,
		Inc. also issued 15,000 shares of its authorized but unissued restricted common
		stock with a fair value of $6,000 to Tom Olivari as part of his agreement to
		serve as a new board member.

Item 11. - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
		MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

There are presently 3,991,534 shares of the Company's common shares
		outstanding. The following table sets forth the information as of December 31,
		2006 to the ownership of each person who, as of this date, owns of record, or
		is known by the Company to own beneficially, more than five per cent of the
		Company's common stock, and in addition, by each director and executive officer
		of the Company, and by all directors and executive officers as a group.

|Name                              | Shares of Common Stock | Percent of Ownership
|--------------------------------- | ---------------------- | --------------------
|Chad and Sally Hoehne (1)         | 1,128,600              | 28.28%              
|Robert Siqveland, Director        | 137,500                | 3.44%               
|Thomas Oliveri, Director          | 15,000                 | 0.38%               
|Directors and Officers as a group | 1,281,100              | 32.10%              

(1) Sally Hoehne is the wife of the President of the Company (Chad
		Hoehne).

Securities Authorized Under Equity Compensation Plans

The following table lists the securities authorized for issuance under
		any equity compensation plans approved by our shareholders and any equity
		compensation plans not approved by our shareholders. This chart also includes
		individual compensation arrangements. Descriptions of these plans are provided
		below.

Equity Compensation Plan Information

|Plan category                                              | Number of securities to be issued upon exercise of
			 outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants
			 and rights (b) | Number of securities remaining available for future issuance under
			 equity compensation plans (excluding securities reflected in column a) (c)
|---------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|Equity compensation plans approved by security holders     | 492,500                                                                                             | $0.13                                                                               | 507,500                                                                                                                                          
|Equity compensation plans not approved by security holders | - 0 -                                                                                               | - 0 -                                                                               | - 0 -                                                                                                                                            

Item 12. - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

None

PART IV

Item 13. - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
		FORM 8-K.

(a) Attached are the Financial Statements and the Report of the
		Independent Registered Public Accounting Firm.

(b) The Company had no events to report on Form 8-K in 2006.

(c) There are no exhibits.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our independent auditor, Carver Moquist & O'Connor, LLC (formerly
		known as Carver Moquist & Associates, LLC), billed an aggregate of $31,120
		in 2006 and $16,644 in 2005 for audit services, including the quarterly review
		of the Company's Form 10-QSB during 2005, and tax preparation. No additional
		fees were paid to Carver Moquist & O'Connor, LLC.

The Company does not have an audit committee and as a result our board
		of directors perform the duties of an audit committee. Our board of directors
		evaluates the scope and cost of the engagement of an auditor before the auditor
		renders audit and non-audit services. As a result, we do not rely on
		established pre-approval policies and procedures.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
		Exchange Act of 1934 the registrant has duly caused this report to be signed on
		its behalf by the undersigned, there unto duly authorized.

Dated April 2, 2007

TABLE TRAC, INC.

Table Trac, Inc. ______/s/_Chad B. Hoehne_______________
		Chad B. Hoehne, Chief Executive Officer

|CERTIFICATION I, Chad B.
			 Hoehne, Chief Executive Officer of Table Trac, Inc. (the "Registrant"), certify
			 that:
			 1. I have reviewed this annual report
				on Form 10-KSB for the year ended December 31, 2006 of Table Trac, Inc.;
			 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)) 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) Evaluated the effectiveness of
				  the Registrant's disclosure controls and procedures and presented in this
				  annual 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
				c) 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: April 2, 2007
			 Table Trac, Inc. ______/s/_Chad B.
				Hoehne_______________ Chad B. Hoehne, Chief Executive Officer / Chief
				Finanial Officer
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|TABLE TRAC, INC. CERTIFICATION OF
				CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF
				THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)
			 The undersigned, Chad B. Hoehne, the
				Chairman and President of Table Trac, Inc. (the "Company") has executed this
				Certification in connection with the filing with the Securities and Exchange
				Commission of the Company's amended Annual Report on Form 10-KSB for the year
				ended December 31, 2006 (the "Report"). The undersigned hereby certifies that:
				· the Report fully complies with the requirements of Section 13(a) of
				the Securities Exchange Act of 1934; and · the information contained in
				the Report fairly presents, in all material respects, the financial condition
				and results of operations of the Company. IN WITNESS WHEREOF, the undersigned
				has executed this Certification as of the 2nd day of April 2007.
			 Table Trac, Inc. ______/s/_Chad B.
				Hoehne_______________ Chad B. Hoehne, Chief Executive Officer/ Chief
				Financial Officer
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TABLE TRAC,
		INC.

FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2006 AND 2005



|Report of Independent Registered Public Accounting Firm | Section | 1
|------------------------------------------------------- | ------- | -
|Balance Sheets                                          | Section | 2
|Statements of Operations                                | Section | 3
|Statements of Stockholders' Equity                      | Section | 4
|Statements of Cash Flows                                | Section | 5
|Notes to Financial Statements                           | Section | 6

Section 1. Independent Auditors'
		Reports

|CARVER MOQUIST & O'CONNOR, LLC.REPORT OF
			 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
			 To the Board of Directors and Stockholders of Table
				Trac, Inc.
			 We have audited the accompanying balance sheets of
				Table Trac, Inc. as of December 31, 2006 and 2005, and the related statements
				of operations, stockholders' equity and cash flows for the years then ended.
				These financial statements are the responsibility of the Company's management.
				Our responsibility is to express an opinion on these financial statements based
				on our audits.
			 We conducted our audits in accordance with the
				standards of the Public Accounting Oversight Board (United States). Those
				standards require that we plan and perform the audit to obtain reasonable
				assurance about whether the financial statements are free of material
				misstatement. The company is not required to have, nor were we engaged to
				perform, an audit of its internal control over financial reporting. Our audit
				included consideration of internal control over financial reporting as a basis
				for designing audit procedures that are appropriate in the circumstances, but
				not for the purpose of expressing an opinion on the effectiveness of the
				company's internal control over financial reporting. Accordingly, we express no
				such opinion. An audit also includes examining, on a test basis, evidence
				supporting the amounts and disclosures in the financial statements, assessing
				the accounting principles used and significant estimates made by management, as
				well as evaluating the overall financial statement presentation. We believe
				that our audit provides a reasonable basis for our opinion.
			 In our opinion, the financial statements referred to
				above present fairly, in all material respects, the financial position of Table
				Trac, Inc. as of December 31, 2006 and 2005, and the results of its operations
				and its cash flows for the years then ended, in conformity with accounting
				principles generally accepted in the United States of America.
			 /s/ Carver Moquist & O'Connor, LLC
			 Bloomington, Minnesota April 2, 2007
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 2. Financial Statements:
		Balance Sheets

TABLE TRAC, INC.BALANCE SHEETS

|                                                                                                                                                      | December 31, 2006 | December 31, 2005
|----------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | -----------------
|ASSETS                                                                                                                                                |                   |                  
|Current assets:                                                                                                                                       |                   |                  
|Cash                                                                                                                                                  | $307,371          | $99,996          
|Accounts receivable, no allowance for doubtful accounts deemed
			 necessary for 2006 and 2005                                                        | 221,992           | 266,973          
|Inventory                                                                                                                                             | 96,473            | 6,767            
|Prepaid expenses                                                                                                                                      | 16,310            | 2,400            
|                                                                                                                                                      |                   |                  
|Total current assets                                                                                                                                  | 642,146           | 376,136          
|                                                                                                                                                      |                   |                  
|Patent, net                                                                                                                                           | 13,644            | 15,009           
|                                                                                                                                                      |                   |                  
|Deferred tax asset                                                                                                                                    | 185,000           | - 0 -            
|                                                                                                                                                      |                   |                  
|Total assets                                                                                                                                          | 840,790           | 391,145          
|                                                                                                                                                      |                   |                  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                  |                   |                  
|Current liabilities:                                                                                                                                  |                   |                  
|Accounts payable                                                                                                                                      | $ 13,609          | $ 8,946          
|Accrued payroll and related                                                                                                                           | 18,258            | 15,194           
|Deferred revenue                                                                                                                                      | 174,795           | - 0 -            
|Total current liabilities                                                                                                                             | 206,662           | 24,140           
|                                                                                                                                                      |                   |                  
|Stockholders equity:                                                                                                                                 |                   |                  
|Common stock, no par value; 5,000,000 shares
			 authorized: 3,991,534 and 3,959,034 shares issued and outstanding in 2006 and
			 2005, respectively | 1,323,770         | 1,315,583        
|Accumulated deficit                                                                                                                                   | (689,642)         | (948,578)        
|Total stockholders equity                                                                                                                            | 634,128           | 367,005          
|                                                                                                                                                      |                   |                  
|Total liabilities and stockholders equity                                                                                                            | $ 840,790         | $ 391,145        

The accompanying notes are an integrated part of these
		financial statement

Section 3. Financial Statements:
		Statements of Operations

TABLE TRAC,
		INC.STATEMENTS OF OPERATIONS

|                                             |              |             
|-------------------------------------------- | ------------ | ------------
|                                             | Years Ended 
|                                             | December 31, | December 31,
|                                             | 2006         | 2005        
|Net sales                                    | $859,114     | $ 1,184,956 
|Cost of sales                                | 152,421      | 292,496     
|Gross profit                                 | 706,693      | 892,460     
|                                             |              |             
|Selling, general and administrative expenses | 634,686      | 589,687     
|                                             |              |             
|Net income from operations                   | 72,007       | 302,773     
|                                             |              |             
|Other income (expense):                      |              |             
|Interest income                              | 1,929        | - 0 -       
|                                             |              |             
|Net income before income taxes               | 73,936       | 302,773     
|Income tax expense (benefit)                 | (185,000)    | - 0 -       
|Net income                                   | $ 258,936    | $ 302,773   
|Basic earnings per share                     | *$0.065*     | *$0.079*    
|Weighted average basic shares outstanding    | *3,969,897*  | *3,852,784* 
|Diluted earnings per share                   | 0.059        | *0.072*     
|Weighted average diluted shares              | 4,400,916    | 4,255,990   

The accompanying notes are an integrated part of these
		financial statements.



Section 4. Statement of
		Stockholders Equity

TABLE TRAC, INC.STATEMENTS OF
		STOCKHOLDERS EQUITY (DEFICIT)

|                                                      | Common Stock Number of
			 Shares | Common
			 StockAmount | Accumulated Deficit | Total   
|----------------------------------------------------- | --------------------------------- | ---------------------- | ------------------- | --------
|BALANCE, DECEMBER 31, 2004                            | 3,831,534                         | $1,302,302             | $(1,251,351)        | $50,951 
|Stock warrants exercised                              | 127,500                           | 13,281                 |                     | 13,281  
|2005 Net income                                       | - 0 -                             | - 0 -                  | 302,773             | 302,773 
|BALANCE, DECEMBER 31, 2005                            | 3,959,034                         | 1,315,583              | (948,578)           | 367,005 
|Stock options exercised                               | 17,500                            | 2,187                  |                     | 2,187   
|Shares issued to a new board member for board service | 15,000                            | 6,000                  |                     | 6,000   
|2006 Net income                                       | - 0 -                             | - 0 -                  | 258,936             | 258,936 
|BALANCE, DECEMBER 31, 2006                            | 3,991,534                         | $1,323,770             | $(689,642)          | $634,128

The accompanying notes are an integrated part of these
		financial statements.

Section 5. Statements of Cash Flows

TABLE TRAC, INC.
		STATEMENTS OF CASH FLOWS

|                                                                                        | Year Ended December 31,
			 2006 | Year Ended December 31,
			 2005
|--------------------------------------------------------------------------------------- | -------------------------------- | --------------------------------
|Cash flows from operating activities:                                                   |                                  |                                 
|Net income                                                                              | $258,936                         | $302,773                        
|Adjustments to reconcile net income to cash flows
			 provided by operating activities: |                                  |                                 
|Amortization                                                                            | 1,365                            | 1,365                           
|Deferred Income Taxes                                                                   | (185,000)                        | - 0 -                           
|Non-cash stock compensation expense                                                     | 6,000                            | - 0 -                           
|Changes in operating assets and liabilities:                                            |                                  |                                 
|(Increase) decrease in accounts receivable                                              | 44,981                           | (240,577)                       
|Increase in inventory                                                                   | (89,706 )                        | (3,811)                         
|Increase in prepaid expenses                                                            | (13,910 )                        | - 0 -                           
|Increase in accounts payable                                                            | 4,663                            | 3,072                           
|Increase in accrued payroll and related                                                 | 3,064                            | 4,117                           
|Increase in deferred revenue                                                            | 174,795                          | - 0 -                           
|Net cash flows provided by operating activities                                         | 205,188                          | 66,939                          
|                                                                                        |                                  |                                 
|                                                                                        |                                  |                                 
|Cash flows from financing activities:                                                   |                                  |                                 
|Proceeds from stock options/ warrants exercised                                         | 2,187                            | 13,281                          
|Net cash flows provided by financing activities                                         | 2,187                            | 13,281                          
|                                                                                        |                                  |                                 
|Net increase in cash                                                                    | 207,375                          | 80,220                          
|                                                                                        |                                  |                                 
|Cash - beginning of year                                                                | 99,996                           | 19,776                          
|                                                                                        |                                  |                                 
|Cash - end of year                                                                      | *$ 307,371*                      | *$ 99,996*                      

The accompanying notes are an integrated part of these
		financial statements.

Section 6. Notes to Financial
		Statements

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company

Table Trac, Inc. (the Company) was formed under the laws of
		the State of Nevada in June 1995. The Corporation has its offices in
		Minnetonka, Minnesota. The Company has developed and sells an information and
		management system that automates various aspects of the operations of casino
		table games, Table Trac.

Table Trac provides system sales and technical support to
		casinos with a minimum number of tables or gaming machines. System sales
		include installation, custom casino system configuration, and training. In
		addition, license and technical support are provided under an annual license
		and service contract. Custom screens and reports can be designed, if requested
		by the casino, at additional cost.

Revenue Recognition

The Company derives revenues from the sale of systems,
		license and maintenance and services.

System sales: Revenue from systems that have been
		demonstrated to meet customer specifications during installation is recognized
		when the product has been installed, title and risk of loss have transferred to
		the customer and collection of the resulting receivable is probable.

System sales are accounted for as multiple-element
		arrangements. In transactions that include multiple products and/or services,
		the Company allocates the revenue to each element based on their relative fair
		value (or in the absence of fair value, the residual method) and recognizes the
		associated revenue when all revenue recognition criteria have been met for each
		element.

In 2005 a new category of sale was defined, a System Sale
		that included special programming with a customer acceptance clause and payable
		under an installment plan. Due to the Company not having a history of
		collection with this type of installment contract before, they are recognizing
		revenue as the contract is billed. During 2006, the Company has collected on
		these installments as invoiced and has demonstrated that collectibility was
		present. All future financial installment contracts will be recognized in
		revenue following the 'system sales" policy noted above.

License and maintenance revenue: Software and maintenance
		revenue are recognized ratably over the contract period.

Service revenue: Service revenue is recognized after the
		services are performed and collection of the resulting receivable is probable.

Estimates

The preparation of financial statements in conformity with
		accounting principles generally accepted in the United States of America
		requires management to make estimates and assumptions that affect the reported
		amounts of assets and liabilities and disclosure of contingent assets and
		liabilities at the date of the financial statements and the reported amounts of
		revenues and expenses during the reporting period. Actual results could differ
		from those estimates.

Concentrations of Risk

Cash Deposits in Excess of Federally Insured Limits

The Company maintains its cash balances at two financial
		institutions. Accounts are insured by the Federal Deposit Insurance Corporation
		up to $100,000. The Company had approximately $100,638 of uninsured cash
		balances at December 31, 2006.

Major Customers

Five customers accounted for approximately 93% of the
		Company's revenue in 2006 and approximately 86% of accounts receivable at
		December 31, 2006. Two customers accounted for approximately 87% of the
		Company's revenue in 2005 and approximately 97% of accounts receivable at
		December 31, 2005.

Major Suppliers

The Company has developed the ability to manufacture its
		own Table Trac units. The Company is aware of local electronic manufacturers
		offering equivalent manufacturing capability whose services the Company could
		readily hire as needed.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash,
		accounts receivable, accounts payable and accrued expenses. Pursuant to SFAS
		No. 107 "Disclosures About Fair Value of Financial Instruments," the Company is
		required to estimate the fair value of all financial instruments at the balance
		sheet date. The Company considers the carrying values of its financial
		instruments to approximate fair value due to their short-term nature.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company
		considers all highly liquid investments purchased with a maturity of three
		months or less to be cash equivalents.

Segment Reporting

The Company operates as one reporting segment.

Comprehensive income (loss)

Comprehensive income (loss) includes net income (loss) and
		items defined as other comprehensive income (loss). Items defined as other
		comprehensive income (loss) include such items as foreign currency translation
		adjustments and unrealized gains (losses) on certain marketable securities. For
		the year ended December 31, 2006 and 2005, the Company had no items defined as
		other comprehensive income (loss).

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income
		by the weighted average shares outstanding during the reporting period. Diluted
		earnings per share is computed similar to basic earnings per share except that
		the weighted average shares outstanding are increased to include additional
		shares from the assumed exercise of stock options or warrants, if dilutive. The
		number of additional shares is calculated by assuming that outstanding stock
		options or warrants were exercised and that the proceeds from the exercise were
		used to acquire shares of common stock at the average market price during the
		reporting period.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount.
		Management believes that receivables are fully collectible. While the ultimate
		result may differ, management believes that any write off not allowed for will
		not have a material impact on the Company's financial position.

Inventory

Inventory is stated at the lower of cost or market. The
		first-in, first-out cost method is used to value inventory.

Furniture, Equipment and Software

Furniture, equipment and purchased software are stated at
		cost and are depreciated using the straight-line method over the estimated
		useful lives of the assets which range from two to five years. Repair and
		maintenance costs are expensed as incurred; major renewals and improvements are
		capitalized. As items of property or equipment are sold or retired, the related
		cost and accumulated depreciation are removed from the accounts and any gain or
		loss is included in operating income.

Intangible Asset

In March 1999, the Company received patent number 5,957,776
		relating to its table game control system. Management feels strongly that the
		extent of the patent will enable the Company to adequately protect its
		technology. Expenses incurred in obtaining this patent are carried at cost and
		are being amortized over seventeen years using the straight-line method.

Long-lived Assets

The Company periodically assesses the recoverability of
		long-lived assets and certain identifiable intangible assets by reviewing for
		impairment whenever events or changes in circumstances indicate that the
		carrying amount of an asset may not be recoverable. Recoverability of assets to
		be held and used is measured by a comparison of the carrying amount of an asset
		to future undiscounted net cash flows expected to be generated by the asset. If
		such assets are considered to be impaired, the impairment to be recognized is
		measured by the amount by which the carrying amount of the assets exceeds the
		fair value of the assets. Assets to be disposed of are reported at the lower of
		the carrying amount or fair value less costs to sell.

Income Taxes

The Company accounts for income taxes in accordance with
		Statement of Financial Accounting Standards No. 109, "Accounting for Income
		Taxes" which requires the use of the "liability method" of accounting for
		income taxes. Accordingly, deferred tax liabilities and assets are determined
		based on the differences between the financial statement and tax bases of
		assets and liabilities, using enacted tax rates in effect for the year in which
		the differences are expected to reverse.

Prior to 1999, the Company was treated as a Subchapter S
		corporation whereby revenues and expenses flow through to stockholders for
		inclusion on their individual returns. Accordingly, no income tax provision was
		provided in the Company's financial statements through December 31, 1999.

Stock-based Compensation

Effective January 1, 2006 the Company adopted FASB
		Statement No. 123(R) "Share-Based Payment" (SFAS 123(R)), which requires an
		entity to reflect on its income statement, instead of pro forma disclosures in
		its financial footnotes, the cost of employee services received in exchange for
		an award of equity instruments based on the grant-date fair market value of the
		award. Statement 123(R) supersedes the Company's previous accounting under
		Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
		Employees" for periods beginning prior to December 31, 2005. The Company
		adopted SFAS 123(R) using the modified prospective transition method. The
		Company's financial statements as of and for the year ended December 31, 2006
		reflect the impact of SFAS 123(R). In accordance with the modified prospective
		transition method, the Company's financial statements for the prior periods
		have not been restated to reflect, and do not include, the impact of SFAS
		123(R). The Company for the year ended December 31, 2005 had no pro forma stock
		option expenses.

Recent Accounting Pronouncements

In July 2006, Financial Accounting Standards Board (FASB)
		issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes - An
		Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the
		accounting treatment (recognition and measurement) for an income tax position
		taken in a tax return and recognized in a company's financial statements. The
		new standard also contains guidance on "de-recognition, classification,
		interest and penalties, accounting in interim periods, disclosure, and
		transition". The provisions of FIN 48 are effective for fiscal years beginning
		after December 15, 2006. We are currently evaluating the impact of this
		statement but we believe the adoption of FIN 48 will not have an impact on our
		consolidated financial position or results of operations.

In September 2006, the U.S. Securities and Exchange
		Commission staff issued Staff Accounting Bulletin No. 108, Considering the
		Effects of Prior Year Misstatements when Quantifying Misstatements in Current
		Year Financial Statements ("SAB 108"). This SAB addresses diversity in practice
		of quantifying financial statement misstatements. It establishes an approach
		that requires quantification of financial statement misstatements based on the
		effects of the misstatements on each of the company's financial statements and
		the related financial statement disclosures. The SAB is effective for financial
		statements issued for fiscal years ending after November 15, 2006. The adoption
		of SAB 108 did not have an impact on our consolidated financial position or
		results of operations.

In September 2006, the Financial Accounting Standards Board
		(FASB) issued Statement of Financial Accounting Standards No. 157, Fair Value
		Measurements ("SFAS No. 157"). This standard clarifies the principle that fair
		value should be based on the assumptions that market participants would use
		when pricing an asset or liability. Additionally, it establishes a fair value
		hierarchy that prioritizes the information used to develop those assumptions.
		This standard is effective for financial statements issued for fiscal years
		beginning after November 15, 2007. We are currently evaluating the impact of
		this statement. We believe the adoption of SFAS No. 157 will not have a
		material impact on our consolidated financial position or results of
		operations.

NOTE 2. OPERATING LEASE

The Company leases its office facilities under a lease
		agreement. Future minimum lease payments are as follows:

> 2007- - - - $15,120

Rent expense was $15,120 and $14,400 in 2006 and 2005,
		respectively.

NOTE 3. STOCKHOLDERS' EQUITY

Stock Options and Warrants

In October 2001, the Company implemented an Employee Stock
		Incentive Plan. This plan provides for the issuance of options to employees to
		purchase shares of the Company's common stock at an exercise price at least
		equal to the fair value of the Company's common stock at the grant date. These
		options are exercisable for a period of seven years from the date of grant. The
		Company has reserved 1,000,000 shares of its common stock for potential
		issuance under this plan. As of December 31, 2006, 507,500 stock options were
		available for grants.

SFAS 123(R) requires companies to estimate the fair value
		of share-based payment awards on the date of grant using an option-pricing
		model. The value of the portion of the award that is ultimately expected to
		vest is recognized as expense over the requisite service periods in the
		Company's Statements of Operations. The Company recorded $0 of related
		compensation expense for the year ended December 31, 2006 as no options were
		granted during the period.

The Company uses the Black-Sholes-Merton ("Black Sholes")
		option-pricing model as a method for determining the estimated fair market
		value for employee stock awards. This is the same option-pricing model used in
		prior years to calculate pro forma compensation expense under SFAS 123 footnote
		disclosures. Compensation expense for employee stock awards is recognized on a
		straight-line basis over the vesting period of the award.

The following is a summary of all activity involving
		options for the years ended December 31:

|                           |                     | Weighted Average Exercise Price | Weighted Average Remaining Term | Aggregate Intrinsic Value
|-------------------------- | ------------------- | ------------------------------- | ------------------------------- | -------------------------
|                           | Outstanding Options |                                 |                                 |                          
|                           |                     |                                 |                                 |                          
|Balance, December 31, 2004 | 492,500             | $ 0.13                          |                                 |                          
|                           |                     |                                 |                                 |                          
|Granted                    | -                   |                                 |                                 |                          
|Cancelled                  | -                   |                                 |                                 |                          
|                           |                     |                                 |                                 |                          
|Balance, December 31, 2005 | 492,500             | $ 0.13                          |                                 |                          
|                           |                     |                                 |                                 |                          
|Granted                    | -                   |                                 |                                 |                          
|Excercised                 | 17,500              |                                 |                                 |                          
|Cancelled                  | -                   |                                 |                                 |                          
|                           |                     |                                 |                                 |                          
|Balance, December 31, 2006 | 475,000             | $ 0.13                          | 4.6                             | $579,500                 

The aggregate intrinsic value in tthe table represents the
		difference between the closing stock price on December 31, 2006 and the
		exercise price, multiplied by the number of in-the-money options that would
		have been recieved by the option holders had all option holders exercised their
		options on December 31, 2006. The total intrinsic value of options exercised
		during years ended December 31, 2006 and 2005 was approximately $21,000 and $0
		respectively.

NOTE 4. SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest was $0 and $0 for the years ended
		December 31, 2006 and 2005 respectively. There were no cash payments for income
		taxes for the years ending December 31, 2006 and 2005.

NOTE 5. INCOME TAXES

The Company was treated as a subchapter S corporation from
		inception through December 31, 1998.

The income tax provisions consists of the following for the
		years ended December 31:

|                                  | 2006        | 2005     
|--------------------------------- | ----------- | ---------
|Current tax expense               | $- 0 -      | $- 0 -   
|Deferred tax expense benefit      | 24,000      | 120,000  
|Net change in valuation allowance | (209,000)   | (120,000)
|Total income tax provisions       | $ (185,000) | $- 0 -   

The reconciliation between expected federal income tax
		rates is as follows:

|                                                              | 2006       | 2005    
|------------------------------------------------------------- | ---------- | --------
|                                                              | Amount     | Percent 
|Expected federal tax $                                        | $25,000    | 34.0%   
|Surtax exemption                                              | (6,000)    | (8.1)   
|State income tax, net of federal tax benefit                  | 5,000      | 6.8     
|Valuation and utilization of net operating loss carryforwards | $(209,000) | (282.9) 
|Total                                                         | $(185,000) | (250.2)%

The Company up until 2006 carried a full valuation
		allowance against its deferred tax assets, primarily its net operating loss
		carryforwards. After demonstrating several years of profitability, Table Trac
		Inc. has reversed the valuation allowance and has recorded a deferred tax asset
		totaling $185,000 relating to their net operating loss carry forward as of
		December 31, 2006. The following table summarizes the Company's deferred tax
		assets and liabilities at December 31, 2006:

|                                 | 2006    | 2005     
|-------------------------------- | ------- | ---------
|Inventory valuation allowance    | $- 0 -  | $6,000   
|Net operating loss carryforwards | 185,000 | 203,000  
|Valuation allowance              | - 0 -   | (209,000)
|Net deferred tax asset           | 185,000 | $- 0 -   

At December 31, 2006, the Company has Federal and State NOL
		carryforwards available to offset future taxable income as follows through
		years ending December 31:

|       |         
|------ | --------
|2021   | 249,000 
|2022   | 178,000 
|2023   | 31,000  
|Totals | $458,000