Ag&e (WGA) 8-K/A Financial Statements and Exhibits

Exhibit 99.2

ADVANCED GAMING ASSOCIATES 

LLC FINANCIAL STATEMENTS

SEPTEMBER 30, 2016

 INDEX

	PAGE
ACCOUNTANT'S  AUDIT  REPORT	1
FINANCIAL STATEMENT:
BALANCE SHEET	2-3
STATEMENT OF INCOME	4-5

PORTOCK, BYE, WEISS & CO., LLC
CERTIFIED PUBLIC ACCOUNTANTS JAMES F. PORTOCK, C.P.A. KIRK D. BYE, C.P.A. BRIAN C. WEISS, C.P.A.	2701 NEW ROAD, P.O. BOX 159  NORTHFIELD, NEW JERSEY 08225 (609) 646-6676 • 646-0006 FAX 484-0572

INDEPENDENT ACCOUNTANT’S COMPILATION REPORT

OCTOBER 31, 2016

TO THE MEMBERS

ADVANCED GAMING ASSOCIATES LLC

109 EAST WILMONT AVE

SOMERS POINT, NEW JERSEY 08244

MANAGEMENT IS RESPONSIBLE FOR THE ACCOMPANYING FINANCIAL STATEMENTS, OF ADVANCED GAMING ASSOCIATES LLC, WHICH COMPRISE THE BALANCE SHEET AS OF SEPTEMBER 30, 2016 AND THE RELATED STATEMENTS OF INCOME AND EXPENSES FOR THE NINE MONTHS THEN ENDED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. WE HAVE PERFORMED A COMPILATION ENGAGEMENT IN ACCORDANCE WITH STATEMENTS ON STANDARDS FOR ACCOUNTING AND REVIEW SERVICES PROMULGATED BY THE ACCOUNTING AND REVIEW SERVICES COMMITTEE OF THE AICPA. WE DID NOT AUDIT OR REVIEW THE FINANCIAL STATEMENTS NOR WERE WE REQUIRED TO PERFORM ANY PROCEDURES TO VERIFY THE ACCURACY OR COMPLETENESS OF THE INFORMATION PROVIDED BY MANAGEMENT. ACCORDINGLY, WE DO NOT EXPRESS AN OPINION, A CONCLUSION, NOR PROVIDE ANY FORM OF ASSURANCE ON THESE FINANCIAL STATEMENTS.

MANAGEMENT HAS ELECTED TO OMIT SUBSTANTIALLY ALL THE DISCLOSURES AND THE STATEMENT OF CASH FLOWS REQUIRED BY ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. IF THE OMITTED DISCLOSURES AND STATEMENT OF CASH FLOWS WERE INCLUDED IN THE FINANCIAL STATEMENTS, THEY MIGHT INFLUENCE THE USER’S CONCLUSIONS ABOUT THE COMPANY’S FINANCIAL POSITION, RESULTS OF OPERATIONS, AND CASH FLOWS. ACCORDINGLY, THE FINANCIAL STATEMENTS ARE NOT DESIGNED FOR THOSE WHO ARE NOT INFORMED ABOUT SUCH MATTERS.

RESPECTFULLY SUBMITTED,

/s/ PORTOCK, BYE, WEISS & CO., LLC

CERTIFIED PUBLIC ACCOUNTANTS

MEMBER

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

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 ADVANCED GAMING ASSOCIATES LLC

BALANCE SHEET

AS OF SEPTEMBER 30, 2016

ASSETS

	2016
CURRENT ASSETS		��
CASH IN BANKS	$	514,251.50
ACCOUNTS RECEIVABLE		674,615.55
EMPLOYEE LOANS - R GELMAN		1,000.00
INVENTORY		420,000.00
TOTAL CURRENT ASSETS		1,609,867.05
PROPERTY AND EQUIPMENT
LEASEHOLD IMPROVEMENTS		44,448.42
TRUCKS & AUTOS		99,330.59
MACHINERY & EQUIPMENT		4,723.50
FURNITURE & FIXTURES		25,718.59
OFFICE EQUIPMENT		5,882.15
LESS: ACCUMULATED DEPRECIATION		(66,761.50	)
NET PROPERTY AND EQUIPMENT		113,341.75
OTHER ASSETS
ORGANIZATION EXPENSE		5,000.00
LOAN FEES		12,400.00
EXCHANGES		1,000.00
LESS: ACCUMULATED AMORTIZATION		(12,225.25	)
TOTAL OTHER ASSETS		6,174.75
TOTAL ASSETS	$	1,729,383.55

SEE ACCOMPANYING ACCOUNTANTS COMPILATION LETTER

WHICH IS AN INTEGRAL PART OF THIS STATEMENT

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ADVANCED GAMING ASSOCIATES LLC

BALANCE SHEET

AS OF SEPTEMBER 30, 2016

 LIABILITIES AND CAPITAL

	2016
CURRENT LIABILITIES
SALES TAX PAYABLE	$	11,184.25
ACCOUNTS PAYABLE		437,195.40
NOTE PAYABLE - BMW		5,534.21
NOTE PAYABLE- FULTON BANK		686,368.22
NOTE PAYABLE - CAPE BANK		19,039.04
NOTE PAYABLE- ALLY		3,725.25
TOTAL CURRENT LIABILITIES		1,163,046.37
NON-CURRENT LIABILITIES
NOTE PAYABLE - CAPE BANK		152,966.46
NOTE PAYABLE - ALLY		11,119.59
TOTAL NON-CURRENT LIABILITIES		164,086.05
TOTAL LIABILITIES		1,327,132.42
CAPITAL
BEGINNING CAPITAL		609,383.93
WITHDRAWS		(108,632.85	)
NET PROFIT YEAR TO DATE		(98,499.95	)
TOTAL CAPITAL		402,251.13
TOTAL LIABILITIES AND CAPITAL	$	1,729,383.55

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WHICH IS AN INTEGRAL PART OF THIS STATEMENT.

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ADVANCED GAMING ASSOCIATES LLC

STATEMENT OF INCOME

FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2016

	9 MONTHS ENDED
	SEPTEMBER 30, 2016
CONTRACT INCOME
SALES	$	5,000,204.86
TOTAL CONTRACT INCOME		5,000,204.86
COST OF CONTRACTS
INVENTORY – BEGINNING		219,212.60
PURCHASES		1,079,941.05
FREIGHT		37,949.87
PAYROLL		2,132,204.51
PAYROLL TAX		228,561.21
SUBCONTRACTORS		387,341.11
INVENTORY ENDING		(420,000.00	)
TOTAL COST OF CONTRACTS		3,665,210.35
GROSS PROFIT		1,334,994.51
OPERATING EXPENSES (SCHEDULE)		1,442,463.55
NET OPERATING PROFIT		(107,469.04	)
OTHER INCOME INSURANCE RECOVERY		8,969.09
TOTAL OTHER INCOME		8,969.09
NET PROFIT	$	(98,499.95	)

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WHICH IS AN INTEGRAL PART OF THIS STATEMENT

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ADVANCED GAMING ASSOCIATES LLC

STATEMENT OF INCOME

FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2016

	9 MONTHS ENDED
	SEPTEMBER 30, 2016
OPERATING EXPENSES
ADVERTISING	$	1,822.99
AUTO EXPENSE		9,490.61
AUTO LEASE		8,460.40
AMORTIZATION		1,286.25
BANK CHARGES		4,965.04
CLEANING		349.84
DEPRECIATION		12,319.50
DUES & SUBSCRIPTION		1,280.00
ELECTRIC		7,469.87
EQUIPMENT LEASING		1,773.37
GAS		3,288.55
INSURANCE		85,616.69
INSURANCE - LIFE		1,965.06
INTEREST		18,075.88
JANITORIAL		200.00
LEGAL & PROFESSIONAL		262,271.85
LICENSES		118,803.94
MAINTENANCE		1,084.83
OFFICE EXPENSE		13,041.95
OUTSIDE SERVICE		3,057.88
PAYROLL SERVICE		9,293.10
PENSION EXPENSE		307,610.20
RENT		70,848.20
STATUTORY REPRESENTATION		2,832.01
SUPPLIES		748.18
TAXES - OTHER		13,250.66
TELEPHONE		12,094.79
TRAVEL		78,672.76
TRAVEL – AMEX		101,115.79
TRAVEL – MASTERCARD		287,728.48
TRASH REMOVAL		552.10
UNIFORMS		1,092.78
TOTAL OPERATING EXPENSES	$	1,442,463.55

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WHICH IS AN INTEGRAL PART OF THIS STATEMENT

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