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, 2007
		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 331 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: 4,156,234 Shares of Common Stock outstanding as of March 15,
		2008

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, 2008 was approximately $10,590,000 , based on the
		closing sale price as reported on OTCBB for the registrant's common stock on
		March 15, 2008.

4,156,234 shares of Registrant's Common Stock, $0.001 par value were
		outstanding on March 15, 2008, 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 to 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 2007.

Table Trac is able to offer to its cusomters systems of comparable
		functionality to their Nevada-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 tens of millions of continuous gaming machine monitoring
		hours of operation. Table Trac is positioned favorably to compete for 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 22 casinos in Minnesota, Wisconsin, Florida, Oklahoma,
		and Central America.

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 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 third 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

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, 2007, the Company had seven full-time employees and
		engaged the full time services of 2 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 2007, 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 thier
		system's sales price is half-price, compared to Nevada competitors.
		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-currency, and multi-tax requirements,
		while maintaining the competitive pricing advantage. No testimonial to this
		could be more significant than the agreement 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 2007, 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. As an example, 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-currency,
		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 2007 was the installation of six
		systems in Oklahoma. Since 2005, based upon our knowledge of the market, no
		systems company, including the billion dollar competitors out of Nevada, 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 casino. With 3,000 games operating on Table Trac systems in Oklahoma, Table
		Trac has proved its ability to accomplish mixed game floor operations, and
		become the first to do so. These accomplishments in 2007, 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 $2,000, 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 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

|Price per Share Calendar Year 2007 | High  | Low  
|---------------------------------- | ----- | -----
|First Quarter                      | $1.90 | $1.00
|Second Quarter                     | $1.76 | $1.28
|Third Quarter                      | $2.91 | $2.05
|Fourth Quarter                     | $4.50 | $2.91

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

March , 2007, 10,000 shares were issued to Table Trac's contract S2S
		systems developer for services provided on the S2S interface used in Oklahoma.
		The individual has subsequently become a Table Trac employee.July , 2007,
		5,000 shares each were issued to the 3 board members for service . December
		21, 2007, options dating from 2002 were exercised, a total of 25,000 shares at
		the option price of $0.22.December 21, 2007, options dating from 2002 were
		exercised, a total of 32,500 shares at the option price of $0.125.December
		21, 2007, options dating from 2002 were exercised, a total of 80,000 shares at
		the option price of $0.125.December 21, 2007, shares were issued to
		employees for service, a total of 2,200 shares.

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

|Years Ended December 31,Income Statement Data | 2007        | 2006     
|--------------------------------------------- | ----------- | ---------
|Net Sales                                     | $ 2,716,072 | $ 859,114
|Net Income                                    | $ 717,949   | $ 258,936
|Basic earnings per share after taxes          | $ 0.179     | $ 0.065  

|As of December 31, Balance Sheet Data | 2007       | 2006     
|------------------------------------- | ---------- | ---------
|Total Assets                          | $2,107,258 | $840,790 
|Total Liabilities                     | $ 692,285  | $ 206,662
|Stockholders' Equity                  | $1,414,973 | $ 634,128

The Company received $84,445 in cash in advance for non-refundable work
		on current projects. The remainder of the deferred revenue balance was received
		in 2006. This amount is reflected in the deferred revenue as of December 31,
		2007. The Company enters the year with a backlog of contracted sales of
		$2,250,000 .

Table Trac has achieved several important milestones, including over ten
		years serving the gaming industry with quality systems and over three 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 three 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 continues making investments in personnel and
		manufacturing to support the growing number of casino clients.

RESULTS OF OPERATIONS, YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR
		ENDED DECEMBER 31, 2006.

Revenues increased from $859,114 in 2006 to $2,716,072 in 2007. The
		increase of $1,856,958 was due to the number of completed installations along
		with additional maintenance revenues from new installations in 2007. Ongoing
		maintenance revenue has increased from approximately $315,000 in 2006 to
		approximately $407,000 in 2007, an increase of $92,000.

Deferred revenues decreased slightly from $174,795 in 2006 to $169,353
		in 2007. The decrease was due to less down payments received for in-process
		system installations at December 31, 2007. The deferred revenue is
		non-refundable and will be recognized as revenue in 2008, when the system
		installations are completed.

Cost of sales increased in 2007 to $722,051 from $152,421 in 2006. This
		increase was due to more completed system installations in 2007 and increased
		costs of Table Trac hardware and labor involved in the system installations.

The gross margin in 2007 is $1,994,021or 73% of sales compared with
		$706,693 or 82% of sales in 2006. The percentage decrease was due to the 2007
		system sales having more install labor costs due to more complex systems than
		the systems in the prior year. Also, the license and maintenance revenue, which
		has a much lower cost of sales, is a smaller percentage of 2007 total
		revenue.

Total operating expenses increased from $634,686 in 2006 to $856,889 in
		2007. The increase of $222,203 was primarily due to additional wages for new
		employees to handle the increased volume and for costs related to additional
		office space.

Interest income has increased substantially in 2007 to $50,817 from
		$1,929 in 2006 due to our increased cash reserves balance and from our interest
		earned on accounts receivable - financed contracts.

The provision for income taxes was $470,000 in 2007, for an effective
		rate of 39.6%, compared to a tax benefit of $185,000 in 2006 relating to the
		removal of our valuation allowance for the deferred tax asset relating to our
		net operating loss carryforward.

The net income for 2007 was $717,949 compared to net income of $258,936
		for 2006. This was an increase $459,013 over last year.

The basic earnings per share in 2007 was $0.179 compared to basic
		earnings per share of $0.065 in 2006.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash position at December 31, 2007 was $610,155, an
		increase of $302,784 from $307,371 at December 31, 2006 .

Net cash flows provided by operating activities during the year ended
		December 31, 2007 was $283,221 compared with net cash flows provided by
		operating activities of $205,188 for the same period in 2006. The change was
		caused primarily by increased sales, resulting in greater net income and
		increased deferred taxes offset by an increase in accounts receivable .

Net cash provided by financing activities was $19,563 during the year
		ended December 31, 2007 compared to net cash flows provided by financing
		activities of $2,187 for the same period in 2006. The change was due to an
		increase in employee options exercised.

On December 31, 2007, the total stockholder's equity was $1,414,973.
		This compared to a stockholder's equity of $634,128 in 2006, which is an
		increase of $780,845 or 123%.

The Company is not capital intensive. The basic product of the Company
		is 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.

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 control
		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 fees and services.

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

System sales which are accounted for as multiple-element
		arrangements, include multiple products and/or services. For multiple-element
		arrangements, 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 previously, the Company
		recognized revenues as the contract was 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 reasonably
		assured.

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 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.

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.

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.

OFF-BALANCE SHEET ARRANGEMENTS

None.

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

The Company maintains disclosure controls and procedures designed to
		provide reasonable assurance that information required to be disclosed in its
		reports filed pursuant to the Securities Exchange Act of 1934, as amended (the
		"Exchange Act"), are recorded, processed, summarized and reported within the
		time periods specified in the Securities and Exchange Commission's rules and
		forms. Such information is accumulated and communicated to management,
		including our Chief Executive Officer / Chief Financial Officer as appropriate,
		to allow timely decisions regarding required disclosure. A control system, no
		matter how well conceived and operated, can provide only reasonable, not
		absolute, assurance the objectives of the control system are met.

As of December 31, 2007, our management, with the participation of our
		Chief Executive Officer / Chief Financial Officer, carried out an evaluation of
		the effectiveness of our disclosure controls and procedures as such term is
		defined in Rule 13a-15(e) under the Exchange Act. Based on this evaluation, the
		Chief Executive Officer / Chief Financial Officer concluded that the Company's
		disclosure controls and procedures were not effective as of December 31, 2007,
		because of the identification of the material weaknesses in internal control
		over financial reporting described below. Notwithstanding the material
		weaknesses that existed as of December 31, 2007, our Chief Executive Officer /
		Chief Financial Officer has concluded that the financial statements included in
		this Annual Report on Form 10-KSB present fairly, in all material respects, the
		financial position, results of operations and cash flows of the Company in
		conformity with accounting principles generally accepted in the United States
		of America ("GAAP").

Report of Management on Internal Control over Financial Reporting

The Company's management is responsible for establishing and maintaining
		adequate internal control over financial reporting for the Company. Internal
		control over financial reporting is a set of processes designed by, or under
		the supervision of, the Company's CEO / CFO, to provide reasonable assurance
		regarding the reliability of financial reporting and the preparation of
		financial statements for external purposes in accordance with GAAP and includes
		those policies and procedures that:

> Pertain to the maintenance of records that in reasonable detail
> 		  accurately and fairly reflect our transactions and dispositions of our
> 		  assets;

> Provide reasonable assurance our transactions are recorded as
> 		  necessary to permit preparation of our financial statements in accordance with
> 		  GAAP, and that receipts and expenditures are being made only in accordance with
> 		  authorizations of our management and directors; and

> Provide reasonable assurance regarding prevention or timely detection
> 		  of unauthorized acquisition, use or disposition of our assets that could have a
> 		  material effect on the financial statement.

Because of its inherent limitations, internal control over financial
		reporting may not prevent or detect misstatements. It should be noted that any
		system of internal control, however well designed and operated, can provide
		only reasonable, and not absolute, assurance that the objectives of the system
		will be met. Also, projections of any evaluation of effectiveness to future
		periods are subject to the risk that controls may become inadequate because of
		changes in conditions, or that the degree of compliance with the policies or
		procedures may deteriorate.

Under the supervision and with the participation of the Company's
		management, including the Company's CEO / CFO, the Company conducted an
		assessment of the effectiveness of its internal control over financial
		reporting based on criteria established in "Internal Control-Integrated
		Framework" issued by the Committee of Sponsoring Organizations of the Treadway
		Commission (COSO), as of December 31, 2007.

A material weakness is a control deficiency, or combination of control
		deficiencies, that results in more than a remote likelihood that a material
		misstatement of annual or interim financial statements will not be prevented or
		detected. In connection with the assessment described above, management
		identified the following control deficiencies that represent material
		weaknesses at December 31, 2007:

> Managements internal control system, like many embrionic companies,
> 		  was dependant entirely on the founders. As such it had the inherent flaws of
> 		  lack of segregation of duties and being subject to time constraints of an ever
> 		  expanding set of demands that are part of growing a business. Consequently,
> 		  management did not maintain effective control relating to the quarter end
> 		  closing and financial reporting process in adequately preparing account
> 		  reconciliations and properly evidenced journal entries. Additionally, the
> 		  Company had insufficient personnel resources and technical accounting and
> 		  reporting expertise within the Company's financial closing and reporting
> 		  functions.
> 		The Company does not currently have an audit committee with a
> 		  financial expert to help provide financial reporting oversite.
> 		Due to our small size, the Company did not maintain effective control
> 		  to assure segregation as the same employee was responsible for initiating and
> 		  recording of transactions, thereby creating the segreatation of duties
> 		  weakness.

As a result of these material weaknesses described above, management has
		concluded that, as of December 31, 2007, the Company's internal control over
		financial reporting was not effective based on the criteria in "Internal
		Control-Integrated Framework" issued by COSO. This annual filing does not
		include an attestation report of the Company's registered public accounting
		firm regarding internal control over financial reporting. Management's report
		was not subject to attestation by the Company's registered public accounting
		firm pursuant to temporary rules of the Securities and Exchange Commission that
		permit the Company to provide only management's report in this annual filing.

The Company intends to, and has already begun to initiate measures to
		remediate the identified material weaknesses through various means including,
		but not necessarily limited to, the following:

> Applying a more rigorous review of the quarterly close processes to
> 		  ensure that the performance of the control is evidenced through appropriate
> 		  documentation which is consistently maintained.

> Having identified its primary risk areas with respect to
> 		financial reporting, managment began operating an independant accounts
> 		receivable reconciliation process in the third quarter of 2007 which insures
> 		that accounts receivable balances held in the primary bookkeeping system match
> 		the values predicted by the control system.

> The Company intends to hire a Chief Financial Officer in 2008 and has
> 		  identified a candidate. We are in the process of vetting that candidate by
> 		  amoung other processes employing his assistance in the preparation of this
> 		  10KSB. He was a practicing certified public accountant for fifteen years, and
> 		  currently holds an inactive license from the State of Minnesota. He has over
> 		  twenty years senior management experience in various industries, the last nine
> 		  being in tribal gaming. Among the first duties of whomever fills this position
> 		  will be the improvement of control procedures to provide reasonable assurance
> 		  that the information required to be disclosed in reports filed pursuant to the
> 		  "Exchange Act" , is recorded, processed, summarized and reported within the
> 		  time periods specified in the Securities and Exchange Commissions rules and
> 		  forms.

During the fiscal quarter ended December 31, 2007, there was no change
		in our internal control over financial reporting (as defined in Rule 13a-15(f)
		under the Exchange Act) that has materially affected, or is reasonably likely
		to materially affect, our internal control over financial reporting.

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 .

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

|Name               | Age | Position                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------------ | --- | ---------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Chad B. Hoehne     | 45  | Chairman, CEO, CFO, Director | 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 | 63  | Secretary, Director          | 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 J.Oliveri   | 45  | Director                     | Mr. Tom Oliveri is President of Clear Skies Solar, Inc. CSKH and
			 former Chief Operating Officer of Global Payment Technologies, Inc. (GPT). Mr.
			 Oliveri joined the company's board in 2005. 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.

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, 2007
		and representations from these reporting persons, no Forms 5 were required.

Code of Ethics

Table Trac has adopted a code of ethics for its officers and employees.
		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.

During the years ended December 31, 2007 and 2006, certain officers were
		compensated for their role as executive officers.

In 2007 and since 2002, 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 $299,755 plus 5,000 shares restricted stock for
		board member compensation July 19th valued at $7,688 and $295,839 for years
		ended December 31, 2007 and 2006, respectively.

In 2007 and since 2002, 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 $76,010 plus 5,000 shares
		restricted stock for board member compensation July 19th valued at $7,688 and
		$74,850 for the years ended December 31, 2007 and 2006, respectively.

As of the date of this Annual Report, we do not have any pension,
		annuity, insurance, profit sharing or similar benefit plans other than our
		Stock Incentive Plan. Executive compensation is subject to change concurrent
		with our requirements. We do not have employment agreements with any of our
		officers but we may enter into such agreements with our senior executive
		officers in the future. We do not currently have a compensation committee.
		Decisions as to compensation are made from time-to-time by our Board of
		Directors with no established policies or formulas.

We have no long-term incentive plans in place and therefore there were
		no awards made under any long-term incentive plan to any of the above executive
		officers during fiscal year ended December 31, 2007.

Stock Options and Grants in 2007

None

Aggregated Options Exercised in 2007 and Year End Option
		Values

Chad Hoehne exercised options totaling 80,000 shares in 2007, and holds
		employee stock options in the amount of 157,500 shares with an exercise price
		of $0.125.Robert Siqveland exercised options totaling 32,500 shares in
		2007, and holds employee stock options of 80,000 shares with an exercise price
		of $0.125.

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

There are presently 4,156,234 shares of the Company's common shares
		outstanding. The following table sets forth the information as of December 31,
		2007 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 percent 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 | Employee Stock Options not Exercised
|--------------------------------- | ---------------------- | -------------------- | ------------------------------------
|Chad and Sally Hoehne (1)         | 1,138,600              | 27.39%               | 157,500                             
|Robert Siqveland, Director        | 170,500                | 4.11%                | 80,000                              
|Thomas Oliveri, Director          | 20,000                 | 0.48%                | 0                                   
|Directors and Officers as a group | 1,329,100              | 31.98%               | 237,500                             
|                                  |                        |                      |                                     
|Unrelated Parties                 |                        |                      |                                     
|Doucet capital, LLC               | 217,000                | 5.22%                | 0                                   

(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     | 337,500                                                                                             | $0.13                                                                               | 370,000                                                                                                                                          
|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 2007.

(c) There are no exhibits.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our independent auditor, Carver Moquist & O'Connor, LLC (CMO),
		billed an aggregate of $33,286 in 2007 and $28,935 in 2006 for audit services,
		including the quarterly review of the Company's Form 10-QSB during 2007 and
		2006. The Company also paid CMO $2,365 and $2,085 in 2007 and 2006 respectively
		for corporate income tax preparation services.

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: March 31, 2008

TABLE TRAC, INC.

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

|CERTIFICATION I, Chad B.
			 Hoehne, Chief Executive Officer / Chief Financial 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, 2007 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. I am 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, to ensure that material information relating to the
				  Registrant, is made known to me 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: March 31, 2008
			 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, 2008 (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 31th day of March 2008.
			 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, 2007 AND 2006



|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'
		Report

|CARVER MOQUIST & O'CONNOR, LLC.REPORT OF
			 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Board of Directors
			 and Stockholders of Table Trac, Inc. We have audited the
			 accompanying balance sheets of Table Trac, Inc. (the "Company") as of December
			 31, 2007 and 2006, 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, 2007 and 2006, 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 March 29, 2008
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 2. Financial Statements:
		Balance Sheets

TABLE TRAC, INC.BALANCE SHEETS

|                                                                                                                                                                      | December 31, 2007 | December 31, 2006
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | -----------------
|ASSETS                                                                                                                                                                |                   |                  
|Current assets:                                                                                                                                                       |                   |                  
|Cash                                                                                                                                                                  | $610,155          | $307,371         
|Accounts receivable, no allowance for doubtful accounts deemed
			 necessary for 2007 and 2006                                                                        | 1,021,346         | 221,992          
|Inventory                                                                                                                                                             | 162,559           | 96,473           
|Prepaid expenses                                                                                                                                                      | 12,043            | 16,310           
|Total current assets                                                                                                                                                  | 1,806,103         | 642,146          
|                                                                                                                                                                      |                   |                  
|Patent, net                                                                                                                                                           | 12,555            | 13,644           
|Deferred tax asset                                                                                                                                                    | 136,000           | 185,000          
|Accounts receivable, financed contracts - long
			 term                                                                                                               | 152,600           | - 0 -            
|Total assets                                                                                                                                                          | 2,107,258         | 840,790          
|                                                                                                                                                                      |                   |                  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                  |                   |                  
|Current liabilities:                                                                                                                                                  |                   |                  
|Accounts payable                                                                                                                                                      | $ 65,509          | $ 13,609         
|Accrued payroll and related                                                                                                                                           | 36,423            | 18,258           
|Deferred revenue                                                                                                                                                      | 169,353           | 174,795          
|Deferred tax liability                                                                                                                                                | 421,000           | - 0 -            
|Total current liabilities                                                                                                                                             | 692,285           | 206,662          
|                                                                                                                                                                      |                   |                  
|Stockholders equity:                                                                                                                                                 |                   |                  
|Common stock, 0.001 par value; 5,000,000 shares
			 authorized: 4,156,234 and 3,991,534 shares issued and outstanding at December
			 31, 2007 and 2006, respectively | 1,386,666         | 1,323,770        
|Retained earnings (accumulated deficit)                                                                                                                               | 28,307            | (689,642)        
|Total stockholders equity                                                                                                                                            | 1,414,973         | 634,128          
|                                                                                                                                                                      |                   |                  
|Total liabilities and stockholders equity                                                                                                                            | $ 2,107,258       | $ 840,790        

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

Section 3. Financial Statements:
		Statements of Operations

TABLE TRAC,
		INC.STATEMENTS OF OPERATIONS

|                                             |              |             
|-------------------------------------------- | ------------ | ------------
|                                             | Years Ended 
|                                             | December 31, | December 31,
|                                             | 2007         | 2006        
|Net sales                                    | $2,716,072   | $859,114    
|Cost of sales                                | 722,051      | 152,421     
|Gross profit                                 | 1,994,021    | 706,693     
|                                             |              |             
|Selling, general and administrative expenses | 856,889      | 634,686     
|                                             |              |             
|Income from operations                       | 1,137,132    | 72,007      
|                                             |              |             
|Other income (expense):                      |              |             
|Interest income                              | 50,817       | 1,929       
|                                             |              |             
|Net income before income taxes               | 1,187,949    | 73,936      
|Income tax expense (benefit)                 | 470,000      | (185,000)   
|Net income                                   | $ 717,949    | $ 258,936   
|Basic earnings per share                     | *$0.179*     | *$0.065*    
|Weighted average basic shares outstanding    | *4,012,147*  | *3,969,897* 
|Diluted earnings per share                   | $0.166       | *0.059*     
|Weighted average diluted shares outstanding  | 4,337,806    | 4,400,916   

The accompanying notes are an integral 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 | Retained Earnings (Accumulated Deficit) | Total      
|----------------------------------------------------- | --------------------------------- | ---------------------- | --------------------------------------- | -----------
|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                                       | _____                             | ______                 | 258,936                                 | 258,936    
|BALANCE, DECEMBER 31, 2006                            | 3,991,534                         | 1,323,770              | (689,642)                               | 634,128    
|Stock options exercised                               | 137,500                           | 19,563                 |                                         | 19,563     
|Shares issued for board service                       | 15,000                            | 23,063                 |                                         | 23,063     
|Shares issued to employees                            | 12,200                            | 20,270                 |                                         | 20,270     
|2007 Net income                                       | _____                             | ______                 | 717,949                                 | 717,949    
|BALANCE, DECEMBER 31, 2007                            | 4,156,234                         | $1,386,666             | $28,307                                 | $ 1,414,973

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

Section 5. Statements of Cash Flows

TABLE TRAC, INC.
		STATEMENTS OF CASH FLOWS

|                                                                                        | Year Ended December 31,
			 2007 | Year Ended December 31,
			 2006
|--------------------------------------------------------------------------------------- | -------------------------------- | --------------------------------
|Cash flows from operating activities:                                                   |                                  |                                 
|Net income                                                                              | $ 717,949                        | $258,936                        
|Adjustments to reconcile net income to cash flows
			 provided by operating activities: |                                  |                                 
|Amortization                                                                            | 1,089                            | 1,365                           
|Deferred income taxes                                                                   | 470,000                          | (185,000)                       
|Non-cash stock compensation expense                                                     | 43,333                           | 6,000                           
|Changes in operating assets and liabilities:                                            |                                  |                                 
|(Increase) decrease in accounts receivable                                              | (951,954)                        | 44,981                          
|(Increase) in inventory                                                                 | (66,086 )                        | (89,706 )                       
|(Increase) decrease in prepaid expenses                                                 | 4,267                            | (13,910 )                       
|Increase in accounts payable                                                            | 51,900                           | 4,663                           
|Increase in accrued payroll and related                                                 | 18,165                           | 3,064                           
|(Increase) decrease in deferred revenue                                                 | (5,442)                          | 174,795                         
|Net cash flows provided by operating activities                                         | 283,221                          | 205,188                         
|                                                                                        |                                  |                                 
|                                                                                        |                                  |                                 
|Cash flows from financing activities:                                                   |                                  |                                 
|Proceeds from stock options exercised                                                   | 19,563                           | 2,187                           
|Net cash flows provided by financing activities                                         | 19,563                           | 2,187                           
|                                                                                        |                                  |                                 
|Net increase in cash                                                                    | 302,784                          | 207,375                         
|                                                                                        |                                  |                                 
|Cash - beginning of year                                                                | 307,371                          | 99,996                          
|                                                                                        |                                  |                                 
|Cash - end of year                                                                      | *$ 610,155*                      | *$ 307,371*                     

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

Section 6. Notes to Financial
		Statements

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. 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.

Revenue Recognition

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

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

System sales which are accounted for as multiple-element
		arrangements include multiple products and/or services. For multiple-element
		arrangments, 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 were recognizing
		revenue as the contract was billed. During 2006, the Company has collected on
		these installments as invoiced and has demonstrated that collectibility was
		present. Based on this past and current collection history, all future sales
		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 reasonably
		assured.

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 $422,000 of uninsured cash
> 		  balances at December 31, 2007.

> Major Customers

> Three customers accounted for approximately 66% of
> 		  revenues in 2007 and appoximately 63% of accounts receivable at December 31,
> 		  2007.

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

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, 2007 and 2006, 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.
		Any accounts receivable amount relating to a sales installment contract greater
		than twelve months beyond the calendar year end is recorded as a long term
		asset and is classified as "accounts receivable, financed contracts - long
		term". 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. 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.

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.

Recent Accounting Pronouncements

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.

In February 2007, the FASB issued Statement No. 159, "The
		Fair Value Option for Financial Assets and Financial Liabilities," which
		provides companies with an option to report selected financial assets and
		liabilities at fair value. This standard is effective beginning after December
		31, 2007. We presently do not anticipate that the provisions of SFAS No. 159
		will apply to the Company.

In December 2007, the FASB issued Statement No. 141R,
		"Business combinations" which establishes principles for how an acquirer
		recognizes and measures in its financial statements the identifiable assets
		acquired and liabilities assumed in a business combination, the goodwill
		acquired in a business combination, and determines what information to disclose
		to enable users of the financial statements to evaluate the nature and
		financial effects of a business combination. We are required to apply this
		standard prospectively to business combinations for which the acquisition date
		is on or after January 1, 2009. Earlier application is not permitted.

NOTE 2. OPERATING LEASE

The Company leases its office facilities under a lease
		agreement which expires July 2010. Future minimum lease payments are as
		follows:

> 2008- - - - $24,0002009- - - - $25,2002010- - - -
> 		  $14,700

Rent expense was $18,820 and $15,120 in 2007 and 2006,
		respectively.

NOTE 3. STOCKHOLDERS' EQUITY

During 2007, the Company issued 15,000 restricted common
		shares to board members for their services with a fair value of $23,063. The
		Company also issued 12,200 common shares to its employees for services with a
		fair value of $20,270.

Stock Options

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, 2007, 370,000 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 years ended December 31, 2007 and 2006 as no
		options were granted during these years.

The Company uses the Black-Sholes-Merton ("Black Sholes")
		option-pricing model as the 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 and exercisable Options |                                 |                                 |                          
|                           |                                     |                                 |                                 |                          
|Balance, December 31, 2005 | 492,500                             | $ 0.13                          |                                 |                          
|                           |                                     |                                 |                                 |                          
|Granted                    | -                                   |                                 |                                 |                          
|Exercised                  | 17,500                              | $ 0.13                          |                                 |                          
|Cancelled                  | -                                   |                                 |                                 |                          
|                           |                                     |                                 |                                 |                          
|Balance, December 31, 2006 | 475,000                             | $ 0.13                          |                                 |                          
|                           |                                     |                                 |                                 |                          
|Granted                    | - 0 -                               |                                 |                                 |                          
|Exercised                  | 137,500                             | $0.14                           |                                 |                          
|Cancelled                  | - 0 -                               |                                 |                                 |                          
|                           |                                     |                                 |                                 |                          
|Balance, December 31, 2006 | 337,500                             | $ 0.13                          | 3.6                             | 1,474,875                

The aggregate intrinsic value in the table represents the
		difference between the closing stock price on December 31, 2007 and the
		exercise price, multiplied by the number of in-the-money options that would
		have been received by the option holders had all option holders exercised their
		options on December 31, 2007. The total intrinsic value of options exercised
		during years ended December 31, 2007 and 2006 was approximately $599,500 and
		$21,000 respectively. We received proceeds of $19,563 in 2007 and $2,187 in
		2006 from stock option exercises and realized no tax benefit since they were
		incentive stock options.

NOTE 4. SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest was $0 and $0 for the years ended
		December 31, 2007 and 2006 respectively. There were no cash payments for income
		taxes for the years ended December 31, 2007 and 2006.

NOTE 5. INCOME TAXES

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

|                                   | 2007      | 2006       
|---------------------------------- | --------- | -----------
|Current tax expense                | $- 0 -    | $- 0 -     
|Deferred tax expense benefit       | 470,000   | 24,000     
|Net change in valuation allowance  | - 0 -     | (209,000)  
|Total income tax expense (benefit) | $ 470,000 | $ (185,000)

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

|                                             | 2007     | 2006   
|-------------------------------------------- | -------- | -------
|                                             | Amount   | Percent
|Expected federal tax $                       | $404,000 | 34.0%  
|State income tax, net of federal tax benefit | 60,000   | 5.0    
|Other                                        | 6,000    | 0.5    
|Change in valuation allowance                | $- 0 -   | - 0 -  
|Total                                        | $470,000 | 39.6%  

The Company, up until 2006, carried a full valuation
		allowance against its deferred tax assets, comprised primarily of 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, 2007 and
		2006:

|                                          | 2007        | 2006     
|----------------------------------------- | ----------- | ---------
|Current deferred tax asset (liabilities): |             |          
|Deferred revenue                          | $ 67,000    | $ -      
|Accounts Receivable                       | (458,000)   | -        
|Inventory                                 | (64,000)    | -        
|Prepaid Expenses                          | (4,000)     | -        
|Accounts payable and accrued expenses     | 38,000      | -        
|Net current deferred tax liability        | $ (421,000) | $ -      
|Long-term deferred tax asset:             |             |          
|Net operating loss carryforwards          | $ 136,000   | $ 185,000
|Net deferred tax asset (liability)        | $(285,000)  | $185,000 

At December 31, 2007, the Company has Federal and State net
		operating loss carryforwards of approximately $350,000 available to offset
		furutre taxable income through 2027.