Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2019 | Mar. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NEVADA GOLD & CASINOS INC | |
Entity Central Index Key | 0000277058 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | UWN | |
Entity Common Stock, Shares Outstanding | 17,765,772 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 17,087,917 | $ 9,508,931 |
Restricted cash | 3,218,463 | 2,369,063 |
Accounts receivable, net of allowances | 670,425 | 345,403 |
Prepaid expenses | 790,547 | 1,058,726 |
Inventory and other current assets | 355,813 | 341,299 |
Assets held for sale | 0 | 607,180 |
Total current assets | 22,123,165 | 14,230,602 |
Real estate held for sale | 750,000 | 750,000 |
Goodwill | 14,092,154 | 14,092,154 |
Intangible assets, net of accumulated amortization | 2,230,548 | 2,289,485 |
Property and equipment, net of accumulated depreciation | 3,060,119 | 3,254,367 |
Deferred tax asset | 604,012 | 704,044 |
Assets held for sale | 0 | 13,597,772 |
Other assets | 70,000 | 204,672 |
Total assets | 42,929,998 | 49,123,096 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,661,782 | 1,350,263 |
Accrued payroll and related | 1,402,010 | 1,810,626 |
Accrued player's club points and progressive jackpots | 2,491,328 | 2,273,655 |
Liabilities held for sale | 0 | 902,720 |
Total current liabilities | 5,555,120 | 6,337,264 |
Long-term debt | 0 | 7,895,240 |
Other long-term liabilities | 594,249 | 637,207 |
Total liabilities | 6,149,369 | 14,869,711 |
Stockholders' equity: | ||
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 18,743,185 and 18,715,985 shares issued and 17,765,772 and 16,848,182 shares outstanding at January 31, 2019, and April 30, 2018, respectively. | 2,356,037 | 2,245,927 |
Additional paid-in capital | 29,643,178 | 27,557,151 |
Retained earnings | 13,975,346 | 13,644,239 |
Treasury stock, 1,867,803 shares at January 31, 2019, and April 30, 2018, at cost. | (9,193,932) | (9,193,932) |
Total stockholders' equity | 36,780,629 | 34,253,385 |
Total liabilities and stockholders' equity | $ 42,929,998 | $ 49,123,096 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2019 | Apr. 30, 2018 |
Common stock, par value | $ 0.12 | $ 0.12 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,743,185 | 18,715,985 |
Common stock, shares outstanding | 17,765,772 | 16,848,182 |
Treasury stock, shares | 1,867,803 | 1,867,803 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues: | ||||
Other | $ 351,656 | $ 377,115 | $ 1,071,966 | $ 1,176,126 |
Gross revenues | 14,564,377 | 15,535,550 | 43,798,999 | 48,622,345 |
Less promotional allowances | 0 | (1,052,821) | 0 | (3,117,506) |
Net revenues | 14,564,377 | 14,482,729 | 43,798,999 | 45,504,839 |
Expenses: | ||||
Other | 57,038 | 24,816 | 170,858 | 74,767 |
Marketing and administrative | 4,396,277 | 4,234,480 | 13,265,222 | 12,951,058 |
Corporate | 1,630,561 | 578,370 | 4,261,090 | 1,909,731 |
Depreciation and amortization | 112,537 | 198,522 | 357,193 | 761,111 |
Loss (gain) on sale of assets | 0 | 308 | (34,356) | 5,773 |
Total operating expenses | 14,315,288 | 13,864,390 | 42,814,730 | 43,637,859 |
Operating income | 249,089 | 618,339 | 984,269 | 1,866,980 |
Non-operating income (expenses): | ||||
Interest income | 8,438 | 10,749 | 25,313 | 37,424 |
Interest expense and amortization of loan issue costs | (132,335) | (145,280) | (340,778) | (469,615) |
Change in swap fair value | (69,892) | 91,986 | (60,872) | 133,444 |
Income from continuing operations before income tax expense | 55,300 | 575,794 | 607,932 | 1,568,233 |
Income tax expense | (12,419) | (553,899) | (134,538) | (847,176) |
Income from continuing operations | 42,881 | 21,895 | 473,394 | 721,057 |
(Loss) income from discontinued operations, net of taxes | (163,594) | 171,432 | (106,862) | 235,248 |
Net (loss) income | $ (120,713) | $ 193,327 | $ 366,532 | $ 956,305 |
Per share information: | ||||
Income from continuing operations per common share - basic and diluted | $ 0 | $ 0 | $ 0.03 | $ 0.04 |
(Loss) income from discontinued operations per common share - basic and diluted | (0.01) | 0.01 | (0.01) | 0.01 |
Net (loss) income per common share - basic | (0.01) | 0.01 | 0.02 | 0.06 |
Net (loss) income per common share - diluted | $ (0.01) | $ 0.01 | $ 0.02 | $ 0.05 |
Casino [Member] | ||||
Revenues: | ||||
Gross revenues | $ 11,547,379 | $ 12,551,816 | $ 35,051,766 | $ 40,009,065 |
Expenses: | ||||
Cost of Goods and Services Sold | 5,342,905 | 7,012,292 | 16,684,984 | 22,704,066 |
Food and beverage [Member] | ||||
Revenues: | ||||
Gross revenues | 2,665,342 | 2,606,619 | 7,675,267 | 7,437,154 |
Expenses: | ||||
Cost of Goods and Services Sold | 2,345,769 | 1,358,684 | 6,793,978 | 3,892,854 |
Facility [Member] | ||||
Expenses: | ||||
Cost of Goods and Services Sold | $ 430,201 | $ 456,918 | $ 1,315,761 | $ 1,338,499 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 366,532 | $ 956,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income (loss) from discontinued operations | 106,862 | (235,248) |
Depreciation and amortization | 357,193 | 761,111 |
Stock compensation | 35,553 | 79,739 |
Amortization of deferred loan issuance costs | 104,760 | 72,959 |
Change in deferred rent | (42,958) | 6,076 |
Change in swap fair value | 60,872 | (133,444) |
(Gain) loss on disposal of assets | (34,356) | 5,773 |
Changes in deferred income taxes | 100,032 | 718,496 |
Changes in operating assets and liabilities: | ||
Receivables and other assets | 112,942 | (15,338) |
Accounts payable and accrued liabilities | 109,987 | (387,653) |
Net cash provided by operating activities | 1,277,419 | 1,828,776 |
Cash flows from investing activities: | ||
Collections on notes receivable | 0 | 347,888 |
Purchase of property and equipment | (171,300) | (640,444) |
(Contribution to) distribution from discontinued operations | (61,669) | 1,320,328 |
Deposit refunded | 0 | (3,500) |
Proceeds from the sale of assets | 13,143,373 | 2,000 |
Net cash provided by investing activities | 12,910,404 | 1,026,272 |
Cash flows from financing activities: | ||
Purchase of treasury stock | 0 | (1,700,291) |
Repayment of credit facilities | (8,000,000) | (3,700,000) |
Proceeds from credit facilities | 0 | 700,000 |
Interest rate swap termination | 73,800 | 0 |
Stock issuance proceeds, net of issuance costss | 2,154,744 | 0 |
Cash proceeds from exercise of stock options | 0 | 14,350 |
Net cash used in financing activities | (5,771,456) | (4,685,941) |
Cash flows from discontinued operations: | ||
Cash flows provided by operating activities | 136,993 | 1,301,905 |
Cash flows used in investing activities | (186,643) | (119,417) |
Cash flows provided by (used in) financing activities | 61,669 | (1,320,328) |
Net cash provided by (used in) discontinued operations | 12,019 | (137,840) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,428,386 | (1,968,733) |
Cash, cash equivalents and restricted cash at beginning of period | 11,877,994 | 12,626,215 |
Cash, cash equivalents and restricted cash at end of period | 20,306,380 | 10,657,482 |
Supplemental cash flow information: | ||
Cash paid for interest | $ 186,549 | $ 401,350 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The interim financial information included herein is unaudited. However, the accompanying condensed consolidated financial statements include all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly our condensed consolidated balance sheets at January 31, 2019 and April 30, 2018, condensed consolidated statements of operations for the three and nine months ended January 31, 2019 and 2018, and condensed consolidated statements of cash flows for the nine months ended January 31, 2019 and 2018. Although we believe the disclosures in these financial statements are adequate to make the interim information presented not misleading, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to Securities and Exchange Commission (“SEC”) rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended April 30, 2018 and the notes thereto included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended January 31, 2019 are not necessarily indicative of the results expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and disclosure of contingent liabilities. On an ongoing basis, we evaluate our estimates, including those related to bad debts, investments, intangible assets and goodwill, property, plant and equipment, income taxes, employment benefits and contingent liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Certain reclassifications have been made to conform prior year financial information to the current period presentation. Those reclassifications did not impact operating income, net income, working capital or stockholders’ equity. As of July 27, 2018, Club Fortune met the requirements for presentation as assets held for sale and discontinued operations under generally accepted accounting principles (see Note 13). Club Fortune was sold on December 31, 2018. Accordingly, the operations of Club Fortune have been classified as discontinued operations. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Revenue Recognition On May 1, 2018, we adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) using a modified retrospective approach. See Note 2, “New Accounting Pronouncements and Legislation Issued,” for a discussion of the new revenue standard and its impact on our unaudited Condensed Consolidated Financial Statements. Prior to the adoption of ASC 606, complimentary revenues pertaining to food and beverage and other were included in gross revenues and excluded from net revenues through promotional allowances in the unaudited Condensed Consolidated Statements of Operations. Subsequent to the adoption of ASC 606, complimentary revenues are included in food and beverage, and other revenues, as appropriate, in the unaudited Condensed Consolidated Statements of Operations. Complimentary other revenues, whether provided as nondiscretionary complimentaries or discretionary complimentaries, were as follows for continuing operations: Three Months Ended Nine Months Ended January 31, 2019 January 31, 2018 January 31, 2019 January 31, 2018 Food and beverage $ 992,595 $ 1,012,407 $ 2,863,087 $ 2,991,976 Other 40,995 40,414 122,552 125,530 Total complimentries $ 1,033,590 $ 1,052,821 $ 2,985,639 $ 3,117,506 Fair Value U.S. generally accepted accounting principles defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there is little or no market data and for which we make our own assumptions about how market participants would price the assets and liabilities. The following describes the valuation methodologies used by us to measure fair value: Real estate held for sale is recorded at fair value less selling costs. Goodwill and indefinite lived intangible assets are recorded at carrying value and tested for impairment annually, or more frequently, using projections of discounted future cash flows. Interest rate swaps are adjusted on a recurring basis pursuant to accounting standards for fair value measurements. We categorize our interest rate swap as Level 2 for fair value measurement. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily notes receivable, cash and cash equivalents, accounts receivable and payable, and long term debt. Management performs periodic evaluations of the collectability of these notes and accounts receivable. Our cash deposits are held with large, well-known financial institutions, and, at times, such deposits may be in excess of the federally insured limit. The recorded value of cash, accounts receivable and payable, approximate fair value based on their short term nature; the recorded value of long term debt approximates fair value as interest rates approximate current market rates. New Accounting Pronouncements and Legislation Issued Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued amended accounting guidance that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amended guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2018, and early application is permitted. The Company is currently evaluating the impact this guidance will have on its financial position and results of operations. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which introduced a new standard related to revenue recognition, ASC 606. Under ASC 606, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the new revenue standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , which deferred the implementation of ASC 606 to be effective for fiscal years beginning after December 15, 2017. The Company adopted ASC 606 during the first quarter 2019 using the modified retrospective approach to all contracts as of the date of initial application, which was May 1, 2018. Adoption of the new revenue standard principally affected (1) how we measure the liability associated with our loyalty program and (2) the classification and, as it related to the measurement of revenues and expenses between gaming; food and beverage; and retail, and other. The modified retrospective approach required the Company to recognize the impact of adopting ASC 606 as a cumulative effect adjustment to our beginning retained earnings, which was a decrease of $35,425 as of May 1, 2018. The cumulative effect adjustment related exclusively to re-measuring the liability associated with the loyalty program from a cost approach to an approach that reflects the estimated stand alone selling price (SSP) of the reward credits and certain tier benefits. In addition, the modified retrospective approach required the Company to provide disclosures describing the financial statement line items impacted by the new revenue standard (see below). Prior to the adoption of ASC 606, we determined our liability for loyalty reward credits based on the estimated costs of goods and services to be provided and estimated redemption rates. Upon adoption of ASC 606, points awarded under our loyalty program constitute a material right and, as such, represent a performance obligation associated with the gaming contracts. Therefore, ASC 606 required us to allocate the revenues associated with the players’ activity between gaming revenue and the estimated SSP of the reward credits. In addition to the above, prior to the adoption of ASC 606, complimentary revenues pertaining to food and beverage and retail were included in gross revenues and excluded from net revenues through promotional allowances in the unaudited Condensed Consolidated Statements of Operations and the estimated costs of providing such complimentary goods and services were included as gaming expenses in the unaudited Condensed Consolidated Statements of Operations. However, subsequent to the adoption of ASC 606, food and beverage, and other services furnished to our guests on a complimentary basis is measured at the estimated SSP and included as revenues within food and beverage and other as appropriate, in the unaudited Condensed Consolidated Statements of Operations, with a corresponding decrease in casino revenues. Additionally, subsequent to the adoption of ASC 606, the costs of providing such complimentary goods and services is included as expenses within food and beverage and other as appropriate, in the unaudited Condensed Consolidated Statements of Operations. The by which each line item in continuing operations in our unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2019 was affected by the new revenue standard as compared with the accounting guidance that was in effect before the change was as follows: For the three months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 11,547,379 $ 12,580,969 $ (1,033,590 ) Food and beverage 2,665,342 2,665,342 - Other 351,656 351,656 - Gross revenues 14,564,377 15,597,967 (1,033,590 ) Less promotional allowances - (1,033,590 ) 1,033,590 Net revenues 14,564,377 14,564,377 - Expenses: Casino 5,342,905 6,215,934 (873,029 ) Food and beverage 2,345,769 1,503,539 842,230 Other 57,038 26,239 30,799 Marketing and administrative 4,396,277 4,396,277 - Facility 430,201 430,201 - Corporate 1,630,561 1,630,561 - Depreciation and amortization 112,537 112,537 - Total operating expenses 14,315,288 14,315,288 - Operating income $ 249,089 $ 249,089 $ - Net income from continuing operations $ 42,881 $ 42,881 $ - For the nine months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 35,051,766 $ 38,033,727 $ (2,981,961 ) Food and beverage 7,675,267 7,675,267 - Other 1,071,966 1,071,966 - Gross revenues 43,798,999 46,780,960 (2,981,961 ) Less promotional allowances - (2,985,639 ) 2,985,639 Net revenues 43,798,999 43,795,321 3,678 Expenses: Casino 16,684,984 19,193,189 (2,508,205 ) Food and beverage 6,793,978 4,375,020 2,418,958 Other 170,858 77,933 92,925 Marketing and administrative 13,265,222 13,265,222 - Facility 1,315,761 1,315,761 - Corporate 4,261,090 4,261,090 - Depreciation and amortization 357,193 357,193 - Gain on sale of assets (34,356 ) (34,356 ) - Total operating expenses 42,814,730 42,811,052 3,678 Operating income $ 984,269 $ 984,269 $ - Net income from continuing operations $ 473,394 $ 473,394 $ - Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) , which amends the existing guidance relating to the disclosure of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this guidance on May 1, 2018 on a retrospective basis and the updated disclosures are reflected for the periods presented in the Condensed Consolidated Statements of Cash Flows. For the nine months ended January 31, 2018, the change in restricted cash of ($64,537) was previously reported within net cash provided by operating activities. A variety of proposed or otherwise potential accounting guidance is currently under study by standard-setting organizations and certain regulatory agencies. Due to the tentative and preliminary nature of such proposed accounting guidance, the Company has not yet determined the effect, if any, that the implementation of such proposed accounting guidance would have on its consolidated financial statements. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Jan. 31, 2019 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash | Note 3. Restricted Cash As of January 31, 2019 and April 30, 2018, we maintained $2,485,843 and $2,369,063, respectively, in restricted cash, which consists of player-supported jackpot funds for our Washington operations. As of January 31, 2019, we also have restricted cash of $732,620 held in escrow as required by the agreement to sell Club Fortune casino. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4. Goodwill and Intangible Assets In connection with our acquisitions of the Washington mini-casinos on May 12, 2009, July 23, 2010 and July 18, 2011, we have goodwill and intangible assets of $16,322,702, net of amortization for intangible assets with finite lives. Goodwill represents the excess of the purchase price over the fair market value of net assets acquired. The change in the carrying amount of goodwill and other intangible assets for the nine months ended January 31, 2019, is as follows: Total Goodwill Other Intangibles, net Balance as of April 30, 2018 $ 16,381,639 $ 14,092,154 $ 2,289,485 Write off Club Fortune registration (43,956 ) - (43,956 ) Current year amortization (14,981 ) - (14,981 ) Balance as of January 31, 2019 $ 16,322,702 $ 14,092,154 $ 2,230,548 Goodwill and net intangibles assets by segment as of January 1, 2019, are as follows: Total Goodwill Other Intangibles, net Washington $ 15,954,154 $ 14,092,154 $ 1,862,000 Corporate 368,548 - 368,548 Total $ 16,322,702 $ 14,092,154 $ 2,230,548 Intangible assets are generally amortized on a straight line basis over the useful lives of the assets. State gaming registration and trade names are not amortizable. Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 6,753,321 $ (6,753,321 ) $ - Non-compete agreements 1,018,000 (1,018,000 ) - State gaming registration 368,548 - 368,548 Trade names 1,862,000 - 1,862,000 Total $ 10,001,869 $ (7,771,321 ) $ 2,230,548 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment Property and equipment at January 31, 2019 and April 30, 2018, consist of the following: Estimated January 31, April 30, Service Life 2019 2018 in Years Building and improvements $ 1,661,367 $ 1,653,534 15-39 Gaming equipment 2,400,815 2,391,596 3-5 Furniture and office equipment 3,579,016 3,500,778 3-7 Land and improvements 87,750 87,750 n/a Leasehold improvements 1,718,835 1,711,641 7-20 Construction in progress 88,539 57,916 9,536,322 9,403,215 Less accumulated depreciation (6,476,203 ) (6,148,848 ) Property and equipment, net $ 3,060,119 $ 3,254,367 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6. Long-Term Debt Our long-term financing obligations are as follows: January 31, April 30, 2019 2018 $23.0 million reducing revolving credit agreement, LIBOR plus an Applicable Margin, $625,000 quarterly reductions beginning January 31, 2016 through November 30, 2020, and the remaining principal due on the maturity date of November 30, 2020, net of accumulated debt issuance costs of $0 and $104,760 at January 31, 2019 and April 30, 2018, respectively. $ - $ 7,895,240 Total long-term financing obligations $ - $ 7,895,240 On November 30, 2015, the Company amended its existing credit agreement with Mutual of Omaha Bank to increase the lending commitment to $23 million. The Company used a portion of the proceeds from the sale of Club Fortune to pay off the outstanding principal under the Company’s credit agreement with Mutual of Omaha Bank on December 31, 2018. The remaining loan issuance costs were written off and appear in Interest expense and amortization of loan issue costs in the condensed consolidated statements of operations. |
Interest Rate Swap
Interest Rate Swap | 9 Months Ended |
Jan. 31, 2019 | |
Interest Rate Swap [Abstract] | |
Interest Rate Swap | Note 7. Interest Rate Swap We were required by the Credit Facility to have a secured interest rate swap for at least 50% of the Credit Facility commitment. On December 28, 2015, the Company entered into a swap transaction with Mutual of Omaha Bank (“MOOB”), which had a calculation period as of the tenth day of each month through the maturity date of the Credit Facility. Under the terms of the swap agreement, the Company paid a fixed rate of 1.77% and a received variable rate based on one-month LIBOR as of the first day of each floating-rate calculation period. The Company terminated its rate swap as part of the December 31, 2018 loan repayment. The Company did not designate the interest rate swap as a cash flow hedge and the interest rate swap did not qualify for hedge accounting under ASC Topic 815. Changes in our interest rate swap fair value are recorded in our condensed consolidated statements of operations. Each quarter, the Company receives fair value statements from the counterparty, MOOB. The fair value of the interest rate swap is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. To comply with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As a result of our evaluation and cancellation of our interest rate swap, as of January 31, 2019, we recorded a $69,892 and $60,872 decrease in our interest rate swap fair value for the three and nine months ended January 31, 2019. As of January 31, 2018 and April 30, 2018, our interest rate swap fair value is a $0 and $134,672 asset, which is included in other assets as of January 31, 2019 and April 30, 2018 on the condensed consolidated balance sheets. |
Equity Transactions and Stock O
Equity Transactions and Stock Option Plan | 9 Months Ended |
Jan. 31, 2019 | |
Share-based Compensation [Abstract] | |
Equity Transactions and Stock Option Plan | Note 8. Equity Transactions and Stock Option Plan We have obligations under our 2009 Equity Incentive Plan (the “2009 Plan”). On April 14, 2009, our shareholders approved the 2009 Plan providing for the granting of awards to our directors, officers, employees and independent contractors. The number of common stock shares reserved for issuance under the 2009 Plan is 1,750,000 shares. The 2009 Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors. The Committee has complete discretion under the plan regarding the vesting and service requirements, exercise price and other conditions. Under the 2009 Plan, the Committee is authorized to grant the following types of awards: · Stock Options including Incentive Stock Options (“ISO”), · Options not intended to qualify as ISOs, · Stock Appreciation Rights, and · Restricted Stock Grants. Our practice has been to issue new or treasury shares upon the exercise of stock options. Stock option rights granted under the 2009 Plan generally have 5 or 10 year terms and vest in two or three equal annual installments, with some options grants providing for immediate vesting for a portion of the grant. During the quarter ended January 31, 2019, there were no stock grants or forfeitures. As of January 31, 2019, there were 38,000 unvested stock grants at a weighted average $2.27 value per share, as well as $71,883 of unamortized compensation cost related to stock grants, which is expected to be recognized over approximately 1.7 years. A summary of stock option activity under our share-based payment plan for the three months ended January 31, 2019 is presented below: Options Weighted Average Excersice Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at April 30, 2018 676,000 $ 1.10 Granted - Exercised - Forfeited or expired - Outstanding at January 31, 2019 676,000 $ 1.10 3.5 $ 923,800 Exercisable at January 31, 2019 676,000 $ 1.10 3.5 $ 923,800 Available for grant at January 31, 2019 507,611 Compensation cost for stock options granted is based on the fair value of each award, measured by applying the Black-Scholes model. As of January 31, 2019, there was no unamortized compensation cost related to stock options. On November 29, 2018, in order to facilitate and avoid delays associated with obtaining the approvals of the Washington State Gambling Commission required in order to consummate the merger with Maverick Casinos, the Company issued and sold to Maverick Casinos 890,390 shares of its common stock representing 5.0% of the outstanding shares of common stock of the Company, in a private placement, for $2.42 per share, the closing market price for shares of the Company’s common stock on the last trading day prior to the issuance, for an aggregate purchase price of $2,154,744, paid in cash. The shares are held in escrow pending the merger. Treasury Stock In July 2016, our board of directors approved a $2.0 million stock repurchase program to purchase our common stock in the open market or in privately negotiated transactions from time to time, in compliance with Rule 10b-18 of the Securities and Exchange Act of 1934, subject to market conditions, applicable legal requirements, loan covenants and other factors. The repurchase plan does not obligate the Company to acquire any specified number or value of common stock. During the three months ended January 31, 2019, the Company did not repurchase any shares. As of January 31, 2019, $1.7 million remains available under the share repurchase authorization. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 9 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Note 9. Computation of Earnings Per Share The following is presented as a reconciliation of the numerators and denominators of basic and diluted earnings per share computations: Three Months Ended Nine Months Ended January 31, January 31, January 31, January 31, 2019 2018 2019 2018 Numerator: Net income from continuing operations $ 42,881 $ 21,895 $ 473,394 $ 721,057 Net (loss) income from discontinued operations $ (163,594 ) $ 171,432 $ (106,862 ) $ 235,248 Net (loss) income $ (120,713 ) $ 193,327 $ 366,532 $ 956,305 Denominator: Basic weighted average number of common shares outstanding 17,485,106 16,829,581 17,060,903 17,029,822 Dilutive effect of common stock options 368,727 378,560 354,095 364,870 Diluted weighted average number of common shares outstanding 17,853,833 17,208,141 17,414,998 17,394,692 Per share information: Income from continuing operations per common share - basic and diluted $ 0.00 $ 0.00 $ 0.03 $ 0.04 (Loss) income from discontinued operations per common share - basic and diluted $ (0.01 ) $ 0.01 $ (0.01 ) $ 0.01 Net (loss) income per common share - basic $ (0.01 ) $ 0.01 $ 0.02 $ 0.06 Net (loss) income per common share - diluted $ (0.01 ) $ 0.01 $ 0.02 $ 0.05 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies We are party to contracts in the ordinary course of business, including leases for real property and operating leases for equipment. The expected remaining future annual minimum lease payments as of January 31, 2019, are as follows: Period Total February 2019 - January 2020 $ 3,239,199 February 2020 - January 2021 3,270,147 February 2021 - January 2022 2,669,607 February 2022 - January 2023 1,083,481 Thereafter 891,765 $ 11,154,199 We indemnified our officers and directors for certain events or occurrences while the director or officer is or was serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification obligations is unlimited; however, we have a Directors and Officers Liability Insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid, provided that such insurance policy provides coverage. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes For the three months ended January 31, 2019 and 2018, our effective tax rates from continuing operations were 22% and 96%, respectively. For the nine months ended January 31, 2019 and 2018, our effective tax rates from continuing operations were 22% and 54%, respectively. The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017. The Tax Act reduces the US federal corporate tax rate from 35% to 21%. Prior year effective tax rates were affected by the revaluing of deferred items at the new rate. The difference between the federal statutory rate of 21% and the current quarter to date’s effective tax rate is primarily due to nondeductible expenses. At January 31, 2019, we have $0.6 million in net deferred tax assets, which is primarily a result of net operating losses. We believe that it is more-likely-than-not that the deferred tax assets will be realized prior to any expiration and therefore we have not applied a valuation allowance on our deferred tax assets. We filed income tax returns in the United States federal jurisdiction. No jurisdiction is currently examining our tax filings for any tax years. All of the Company’s tax positions are considered more likely than not to be sustained upon an IRS examination. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 12. Segment Reporting We have three business segments: (i) Washington, (ii) South Dakota and (iii) Nevada, as well as the Company’s corporate location. On June 30, 2018, the Company sold its South Dakota route operations. Also, as of July 27, 2018, the Nevada reportable segment met the requirements to be classified as a discontinued operation. As a result, the operations of Nevada have been excluded from the segment reporting below. See Note 13 for information related to the Nevada segment. The Washington segment consists of the Washington mini-casinos, the South Dakota segment consisted of our slot route operation in South Dakota, and the Corporate column includes the vacant land in Colorado and its taxes and maintenance expenses, corporate-related items, results of insignificant operations, and income and expenses not allocated to other reportable segments. Summarized financial information for our reportable segments from continuing operations is shown in the following table: For the Three Months Ended, January 31, 2019 Washington South Dakota Corporate Total Net revenues $ 14,564,377 $ - $ - $ 14,564,377 Casino and food and beverage expense 7,688,674 - - 7,688,674 Marketing, administrative and corporate 4,395,723 - 1,631,115 6,026,838 Facility and other expenses 487,239 - - 487,239 Depreciation and amortization 107,065 - 5,472 112,537 Operating income (loss) 1,885,675 - (1,636,586 ) 249,089 For the Three Months Ended, January 31, 2018 Washington South Dakota Corporate Total Net revenues $ 13,314,264 $ 1,168,465 $ - $ 14,482,729 Casino and food and beverage expense 7,239,816 1,131,160 - 8,370,976 Marketing, administrative and corporate 4,099,481 134,999 578,370 4,812,850 Facility and other expenses 458,938 22,796 - 481,734 Depreciation and amortization 119,007 72,980 6,535 198,522 Operating income (loss) 1,396,947 (193,703 ) (584,905 ) 618,339 For the Nine Months Ended, January 31, 2019 Washington South Dakota Corporate Total Net revenues $ 42,970,445 $ 828,554 $ - $ 43,798,999 Casino and food and beverage expense 22,540,802 938,160 - 23,478,962 Marketing, administrative and corporate 13,133,387 131,280 4,261,645 17,526,312 Facility and other expenses 1,469,896 16,723 - 1,486,619 Depreciation and amortization 339,437 - 17,756 357,193 Operating income (loss) 5,486,149 (199,917 ) (4,301,963 ) 984,269 For the Nine Months Ended, January 31, 2018 Washington South Dakota Corporate Total Net revenues $ 40,263,535 $ 5,241,304 $ - $ 45,504,839 Casino and food and beverage expense 21,942,455 4,654,465 - 26,596,920 Marketing, administrative and corporate 12,582,737 368,321 1,909,731 14,860,789 Facility and other expenses 1,345,352 67,914 - 1,413,266 Depreciation and amortization 465,886 275,345 19,880 761,111 Operating income (loss) 3,921,445 (124,854 ) (1,929,611 ) 1,866,980 Segment assets at January 31, 2019 were: Washington $29,713,693; Corporate $13,216,305. Segment assets at January 31, 2018 were: Washington $27,352,824; South Dakota $1,549,392; Corporate $3,793,289. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jan. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 13. Discontinued Operations On June 27, 2018, the Company entered into a definitive agreement to sell its Club Fortune casino property in Henderson, Nevada, for $14.6 million, subject to certain adjustments, including a working capital adjustment. The property was sold on December 31, 2018. As of July 27, 2018, Club Fortune met the requirements for presentation as assets held for sale and discontinued operation under generally accepted accounting principles. As a result of Club Fortune meeting the criteria to be classified as held for sale, the Company recorded a goodwill impairment of $115,128 and a loss on reclassification as held for sale of $84,872 in the first quarter of fiscal 2019 which primarily represented the estimated cost to sell Club Fortune. In the quarter ended January 31, 2019, the Company recorded a $472,866 loss on the sale of Club Fortune. The operations of Club Fortune have been classified as discontinued operations and as assets held for sale for all periods presented. The results of discontinued operations are summarized as follows: Three months ended Nine months ended January 31, January 31, January 31, January 31, 2019 2018 2019 2018 Gross revenues $ 2,289,969 $ 3,862,505 $ 8,750,437 $ 11,827,509 Less promotional allowances - (552,248 ) - (1,713,786 ) Net revenues 2,289,969 3,310,257 8,750,437 10,113,723 Casino and food and beverage expense 1,331,637 2,027,281 5,456,195 6,111,932 Marketing and administrative 644,731 839,229 2,305,831 2,561,965 Facility and other expenses 52,544 87,968 236,513 245,878 Depreciation and amortization - 340,385 220,531 1,087,380 Goodwill impairment - - 115,128 - Loss on reclassification as held for sale - - 84,872 - Loss on sale of assets 472,866 - 472,735 - Income tax benefit (48,215 ) (156,038 ) (34,506 ) (128,680 ) (Loss) income from discontinued operations, net of taxes $ (163,594 ) $ 171,432 $ (106,862 ) $ 235,248 The assets and liabilities held for sale related to Club Fortune were as follows: January 31, April 30, 2019 2018 Assets: Accounts receivable, net $ - $ 140,370 Prepaid expenses and other assets - 377,811 Inventory - 88,998 Goodwill - 2,831,434 Intangible assets, net - 1,208,294 Property and equipment, net - 9,558,045 Total assets held for sale $ - $ 14,204,952 Liabilities: Accounts payable and accrued liabilities $ - $ 345,231 Accrued payroll and related - 238,688 Accrued player’s club points and progressive jackpots - 318,801 Total liabilities held for sale $ - $ 902,720 On June 30, 2018, the Company sold its South Dakota route operations. The sale included all fixtures, equipment, trade names, and operating agreements used in connection with the business, but excluded necessary operating cash used in the business. Because this sale did not represent a strategic shift that would have a major effect on the Company’s operations, the sale was recorded as a sale of assets and not as discontinued operations. |
Merger Agreement
Merger Agreement | 9 Months Ended |
Jan. 31, 2019 | |
Merger Agreement [Abstract] | |
Merger Agreement | Note 14. Merger Agreement On September 18, 2018, the Company announced the signing of a merger agreement with Maverick Casinos, LLC (“Maverick”). Under the terms of the merger agreement, Maverick will acquire all of the outstanding shares of the Company’s common stock for $2.50 The transaction was approved by a majority of the shareholders of Nevada Gold at our special shareholders’ meeting on February 22, 2019 but is still subject to the approval of applicable gaming authorities. The transaction is not subject to a financing condition. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition On May 1, 2018, we adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) using a modified retrospective approach. See Note 2, “New Accounting Pronouncements and Legislation Issued,” for a discussion of the new revenue standard and its impact on our unaudited Condensed Consolidated Financial Statements. Prior to the adoption of ASC 606, complimentary revenues pertaining to food and beverage and other were included in gross revenues and excluded from net revenues through promotional allowances in the unaudited Condensed Consolidated Statements of Operations. Subsequent to the adoption of ASC 606, complimentary revenues are included in food and beverage, and other revenues, as appropriate, in the unaudited Condensed Consolidated Statements of Operations. Complimentary other revenues, whether provided as nondiscretionary complimentaries or discretionary complimentaries, were as follows for continuing operations: Three Months Ended Nine Months Ended January 31, 2019 January 31, 2018 January 31, 2019 January 31, 2018 Food and beverage $ 992,595 $ 1,012,407 $ 2,863,087 $ 2,991,976 Other 40,995 40,414 122,552 125,530 Total complimentries $ 1,033,590 $ 1,052,821 $ 2,985,639 $ 3,117,506 |
Fair Value | Fair Value U.S. generally accepted accounting principles defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there is little or no market data and for which we make our own assumptions about how market participants would price the assets and liabilities. The following describes the valuation methodologies used by us to measure fair value: Real estate held for sale is recorded at fair value less selling costs. Goodwill and indefinite lived intangible assets are recorded at carrying value and tested for impairment annually, or more frequently, using projections of discounted future cash flows. Interest rate swaps are adjusted on a recurring basis pursuant to accounting standards for fair value measurements. We categorize our interest rate swap as Level 2 for fair value measurement. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily notes receivable, cash and cash equivalents, accounts receivable and payable, and long term debt. Management performs periodic evaluations of the collectability of these notes and accounts receivable. Our cash deposits are held with large, well-known financial institutions, and, at times, such deposits may be in excess of the federally insured limit. The recorded value of cash, accounts receivable and payable, approximate fair value based on their short term nature; the recorded value of long term debt approximates fair value as interest rates approximate current market rates. |
New Accounting Pronouncements and Legislation Issued | New Accounting Pronouncements and Legislation Issued Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued amended accounting guidance that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amended guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2018, and early application is permitted. The Company is currently evaluating the impact this guidance will have on its financial position and results of operations. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which introduced a new standard related to revenue recognition, ASC 606. Under ASC 606, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the new revenue standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , which deferred the implementation of ASC 606 to be effective for fiscal years beginning after December 15, 2017. The Company adopted ASC 606 during the first quarter 2019 using the modified retrospective approach to all contracts as of the date of initial application, which was May 1, 2018. Adoption of the new revenue standard principally affected (1) how we measure the liability associated with our loyalty program and (2) the classification and, as it related to the measurement of revenues and expenses between gaming; food and beverage; and retail, and other. The modified retrospective approach required the Company to recognize the impact of adopting ASC 606 as a cumulative effect adjustment to our beginning retained earnings, which was a decrease of $35,425 as of May 1, 2018. The cumulative effect adjustment related exclusively to re-measuring the liability associated with the loyalty program from a cost approach to an approach that reflects the estimated stand alone selling price (SSP) of the reward credits and certain tier benefits. In addition, the modified retrospective approach required the Company to provide disclosures describing the financial statement line items impacted by the new revenue standard (see below). Prior to the adoption of ASC 606, we determined our liability for loyalty reward credits based on the estimated costs of goods and services to be provided and estimated redemption rates. Upon adoption of ASC 606, points awarded under our loyalty program constitute a material right and, as such, represent a performance obligation associated with the gaming contracts. Therefore, ASC 606 required us to allocate the revenues associated with the players’ activity between gaming revenue and the estimated SSP of the reward credits. In addition to the above, prior to the adoption of ASC 606, complimentary revenues pertaining to food and beverage and retail were included in gross revenues and excluded from net revenues through promotional allowances in the unaudited Condensed Consolidated Statements of Operations and the estimated costs of providing such complimentary goods and services were included as gaming expenses in the unaudited Condensed Consolidated Statements of Operations. However, subsequent to the adoption of ASC 606, food and beverage, and other services furnished to our guests on a complimentary basis is measured at the estimated SSP and included as revenues within food and beverage and other as appropriate, in the unaudited Condensed Consolidated Statements of Operations, with a corresponding decrease in casino revenues. Additionally, subsequent to the adoption of ASC 606, the costs of providing such complimentary goods and services is included as expenses within food and beverage and other as appropriate, in the unaudited Condensed Consolidated Statements of Operations. The by which each line item in continuing operations in our unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2019 was affected by the new revenue standard as compared with the accounting guidance that was in effect before the change was as follows: For the three months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 11,547,379 $ 12,580,969 $ (1,033,590 ) Food and beverage 2,665,342 2,665,342 - Other 351,656 351,656 - Gross revenues 14,564,377 15,597,967 (1,033,590 ) Less promotional allowances - (1,033,590 ) 1,033,590 Net revenues 14,564,377 14,564,377 - Expenses: Casino 5,342,905 6,215,934 (873,029 ) Food and beverage 2,345,769 1,503,539 842,230 Other 57,038 26,239 30,799 Marketing and administrative 4,396,277 4,396,277 - Facility 430,201 430,201 - Corporate 1,630,561 1,630,561 - Depreciation and amortization 112,537 112,537 - Total operating expenses 14,315,288 14,315,288 - Operating income $ 249,089 $ 249,089 $ - Net income from continuing operations $ 42,881 $ 42,881 $ - For the nine months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 35,051,766 $ 38,033,727 $ (2,981,961 ) Food and beverage 7,675,267 7,675,267 - Other 1,071,966 1,071,966 - Gross revenues 43,798,999 46,780,960 (2,981,961 ) Less promotional allowances - (2,985,639 ) 2,985,639 Net revenues 43,798,999 43,795,321 3,678 Expenses: Casino 16,684,984 19,193,189 (2,508,205 ) Food and beverage 6,793,978 4,375,020 2,418,958 Other 170,858 77,933 92,925 Marketing and administrative 13,265,222 13,265,222 - Facility 1,315,761 1,315,761 - Corporate 4,261,090 4,261,090 - Depreciation and amortization 357,193 357,193 - Gain on sale of assets (34,356 ) (34,356 ) - Total operating expenses 42,814,730 42,811,052 3,678 Operating income $ 984,269 $ 984,269 $ - Net income from continuing operations $ 473,394 $ 473,394 $ - Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) , which amends the existing guidance relating to the disclosure of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this guidance on May 1, 2018 on a retrospective basis and the updated disclosures are reflected for the periods presented in the Condensed Consolidated Statements of Cash Flows. For the nine months ended January 31, 2018, the change in restricted cash of ($64,537) was previously reported within net cash provided by operating activities. A variety of proposed or otherwise potential accounting guidance is currently under study by standard-setting organizations and certain regulatory agencies. Due to the tentative and preliminary nature of such proposed accounting guidance, the Company has not yet determined the effect, if any, that the implementation of such proposed accounting guidance would have on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule Of Promotional Allowances | Complimentary other revenues, whether provided as nondiscretionary complimentaries or discretionary complimentaries, were as follows for continuing operations: Three Months Ended Nine Months Ended January 31, 2019 January 31, 2018 January 31, 2019 January 31, 2018 Food and beverage $ 992,595 $ 1,012,407 $ 2,863,087 $ 2,991,976 Other 40,995 40,414 122,552 125,530 Total complimentries $ 1,033,590 $ 1,052,821 $ 2,985,639 $ 3,117,506 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The by which each line item in continuing operations in our unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2019 was affected by the new revenue standard as compared with the accounting guidance that was in effect before the change was as follows: For the three months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 11,547,379 $ 12,580,969 $ (1,033,590 ) Food and beverage 2,665,342 2,665,342 - Other 351,656 351,656 - Gross revenues 14,564,377 15,597,967 (1,033,590 ) Less promotional allowances - (1,033,590 ) 1,033,590 Net revenues 14,564,377 14,564,377 - Expenses: Casino 5,342,905 6,215,934 (873,029 ) Food and beverage 2,345,769 1,503,539 842,230 Other 57,038 26,239 30,799 Marketing and administrative 4,396,277 4,396,277 - Facility 430,201 430,201 - Corporate 1,630,561 1,630,561 - Depreciation and amortization 112,537 112,537 - Total operating expenses 14,315,288 14,315,288 - Operating income $ 249,089 $ 249,089 $ - Net income from continuing operations $ 42,881 $ 42,881 $ - For the nine months ended January 31, 2019 As Reported - With Adoption of ASC 606 As Adjusted - Without Adoption of ASC 606 Effect of Accounting Change Increase/(Decrease) Revenues: Casino $ 35,051,766 $ 38,033,727 $ (2,981,961 ) Food and beverage 7,675,267 7,675,267 - Other 1,071,966 1,071,966 - Gross revenues 43,798,999 46,780,960 (2,981,961 ) Less promotional allowances - (2,985,639 ) 2,985,639 Net revenues 43,798,999 43,795,321 3,678 Expenses: Casino 16,684,984 19,193,189 (2,508,205 ) Food and beverage 6,793,978 4,375,020 2,418,958 Other 170,858 77,933 92,925 Marketing and administrative 13,265,222 13,265,222 - Facility 1,315,761 1,315,761 - Corporate 4,261,090 4,261,090 - Depreciation and amortization 357,193 357,193 - Gain on sale of assets (34,356 ) (34,356 ) - Total operating expenses 42,814,730 42,811,052 3,678 Operating income $ 984,269 $ 984,269 $ - Net income from continuing operations $ 473,394 $ 473,394 $ - |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Carrying Amount of Goodwill and Intangibles | The change in the carrying amount of goodwill and other intangible assets for the nine months ended January 31, 2019, is as follows: Total Goodwill Other Intangibles, net Balance as of April 30, 2018 $ 16,381,639 $ 14,092,154 $ 2,289,485 Write off Club Fortune registration (43,956 ) - (43,956 ) Current year amortization (14,981 ) - (14,981 ) Balance as of January 31, 2019 $ 16,322,702 $ 14,092,154 $ 2,230,548 |
Goodwill and Net Other Intangibles by Segment | Goodwill and net intangibles assets by segment as of January 1, 2019, are as follows: Total Goodwill Other Intangibles, net Washington $ 15,954,154 $ 14,092,154 $ 1,862,000 Corporate 368,548 - 368,548 Total $ 16,322,702 $ 14,092,154 $ 2,230,548 |
Summary of Intangible Assets and Accumulated Amortization | A summary of intangible assets and accumulated amortization as of January 31, 2019, are as follows: Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 6,753,321 $ (6,753,321 ) $ - Non-compete agreements 1,018,000 (1,018,000 ) - State gaming registration 368,548 - 368,548 Trade names 1,862,000 - 1,862,000 Total $ 10,001,869 $ (7,771,321 ) $ 2,230,548 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment at January 31, 2019 and April 30, 2018, consist of the following: Estimated January 31, April 30, Service Life 2019 2018 in Years Building and improvements $ 1,661,367 $ 1,653,534 15-39 Gaming equipment 2,400,815 2,391,596 3-5 Furniture and office equipment 3,579,016 3,500,778 3-7 Land and improvements 87,750 87,750 n/a Leasehold improvements 1,718,835 1,711,641 7-20 Construction in progress 88,539 57,916 9,536,322 9,403,215 Less accumulated depreciation (6,476,203 ) (6,148,848 ) Property and equipment, net $ 3,060,119 $ 3,254,367 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Financing Obligations | Our long-term financing obligations are as follows: January 31, April 30, 2019 2018 $23.0 million reducing revolving credit agreement, LIBOR plus an Applicable Margin, $625,000 quarterly reductions beginning January 31, 2016 through November 30, 2020, and the remaining principal due on the maturity date of November 30, 2020, net of accumulated debt issuance costs of $0 and $104,760 at January 31, 2019 and April 30, 2018, respectively. $ - $ 7,895,240 Total long-term financing obligations $ - $ 7,895,240 |
Equity Transactions and Stock_2
Equity Transactions and Stock Option Plan (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Share-based Compensation [Abstract] | |
Summary of Stock Grant Activity Under our Share-Based Payment Plans | A summary of stock option activity under our share-based payment plan for the three months ended January 31, 2019 is presented below: Options Weighted Average Excersice Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at April 30, 2018 676,000 $ 1.10 Granted - Exercised - Forfeited or expired - Outstanding at January 31, 2019 676,000 $ 1.10 3.5 $ 923,800 Exercisable at January 31, 2019 676,000 $ 1.10 3.5 $ 923,800 Available for grant at January 31, 2019 507,611 |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share computations | The following is presented as a reconciliation of the numerators and denominators of basic and diluted earnings per share computations: Three Months Ended Nine Months Ended January 31, January 31, January 31, January 31, 2019 2018 2019 2018 Numerator: Net income from continuing operations $ 42,881 $ 21,895 $ 473,394 $ 721,057 Net (loss) income from discontinued operations $ (163,594 ) $ 171,432 $ (106,862 ) $ 235,248 Net (loss) income $ (120,713 ) $ 193,327 $ 366,532 $ 956,305 Denominator: Basic weighted average number of common shares outstanding 17,485,106 16,829,581 17,060,903 17,029,822 Dilutive effect of common stock options 368,727 378,560 354,095 364,870 Diluted weighted average number of common shares outstanding 17,853,833 17,208,141 17,414,998 17,394,692 Per share information: Income from continuing operations per common share - basic and diluted $ 0.00 $ 0.00 $ 0.03 $ 0.04 (Loss) income from discontinued operations per common share - basic and diluted $ (0.01 ) $ 0.01 $ (0.01 ) $ 0.01 Net (loss) income per common share - basic $ (0.01 ) $ 0.01 $ 0.02 $ 0.06 Net (loss) income per common share - diluted $ (0.01 ) $ 0.01 $ 0.02 $ 0.05 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Expected Remaining Future Rolling Twelve Months Minimum Lease Payments | The expected remaining future annual minimum lease payments as of January 31, 2019, are as follows: Period Total February 2019 - January 2020 $ 3,239,199 February 2020 - January 2021 3,270,147 February 2021 - January 2022 2,669,607 February 2022 - January 2023 1,083,481 Thereafter 891,765 $ 11,154,199 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Reportable Segments | Summarized financial information for our reportable segments from continuing operations is shown in the following table: For the Three Months Ended, January 31, 2019 Washington South Dakota Corporate Total Net revenues $ 14,564,377 $ - $ - $ 14,564,377 Casino and food and beverage expense 7,688,674 - - 7,688,674 Marketing, administrative and corporate 4,395,723 - 1,631,115 6,026,838 Facility and other expenses 487,239 - - 487,239 Depreciation and amortization 107,065 - 5,472 112,537 Operating income (loss) 1,885,675 - (1,636,586 ) 249,089 For the Three Months Ended, January 31, 2018 Washington South Dakota Corporate Total Net revenues $ 13,314,264 $ 1,168,465 $ - $ 14,482,729 Casino and food and beverage expense 7,239,816 1,131,160 - 8,370,976 Marketing, administrative and corporate 4,099,481 134,999 578,370 4,812,850 Facility and other expenses 458,938 22,796 - 481,734 Depreciation and amortization 119,007 72,980 6,535 198,522 Operating income (loss) 1,396,947 (193,703 ) (584,905 ) 618,339 For the Nine Months Ended, January 31, 2019 Washington South Dakota Corporate Total Net revenues $ 42,970,445 $ 828,554 $ - $ 43,798,999 Casino and food and beverage expense 22,540,802 938,160 - 23,478,962 Marketing, administrative and corporate 13,133,387 131,280 4,261,645 17,526,312 Facility and other expenses 1,469,896 16,723 - 1,486,619 Depreciation and amortization 339,437 - 17,756 357,193 Operating income (loss) 5,486,149 (199,917 ) (4,301,963 ) 984,269 For the Nine Months Ended, January 31, 2018 Washington South Dakota Corporate Total Net revenues $ 40,263,535 $ 5,241,304 $ - $ 45,504,839 Casino and food and beverage expense 21,942,455 4,654,465 - 26,596,920 Marketing, administrative and corporate 12,582,737 368,321 1,909,731 14,860,789 Facility and other expenses 1,345,352 67,914 - 1,413,266 Depreciation and amortization 465,886 275,345 19,880 761,111 Operating income (loss) 3,921,445 (124,854 ) (1,929,611 ) 1,866,980 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups Including Discontinued Operations Income Statement | The results of discontinued operations are summarized as follows: Three months ended Nine months ended January 31, January 31, January 31, January 31, 2019 2018 2019 2018 Gross revenues $ 2,289,969 $ 3,862,505 $ 8,750,437 $ 11,827,509 Less promotional allowances - (552,248 ) - (1,713,786 ) Net revenues 2,289,969 3,310,257 8,750,437 10,113,723 Casino and food and beverage expense 1,331,637 2,027,281 5,456,195 6,111,932 Marketing and administrative 644,731 839,229 2,305,831 2,561,965 Facility and other expenses 52,544 87,968 236,513 245,878 Depreciation and amortization - 340,385 220,531 1,087,380 Goodwill impairment - - 115,128 - Loss on reclassification as held for sale - - 84,872 - Loss on sale of assets 472,866 - 472,735 - Income tax benefit (48,215 ) (156,038 ) (34,506 ) (128,680 ) (Loss) income from discontinued operations, net of taxes $ (163,594 ) $ 171,432 $ (106,862 ) $ 235,248 |
Disposal Groups Including Discontinued Operations Balance Sheet | The assets and liabilities held for sale related to Club Fortune were as follows: January 31, April 30, 2019 2018 Assets: Accounts receivable, net $ - $ 140,370 Prepaid expenses and other assets - 377,811 Inventory - 88,998 Goodwill - 2,831,434 Intangible assets, net - 1,208,294 Property and equipment, net - 9,558,045 Total assets held for sale $ - $ 14,204,952 Liabilities: Accounts payable and accrued liabilities $ - $ 345,231 Accrued payroll and related - 238,688 Accrued player’s club points and progressive jackpots - 318,801 Total liabilities held for sale $ - $ 902,720 |
Estimated Cost of Promotional A
Estimated Cost of Promotional Allowances (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Promotional Allowance | $ 0 | $ 1,052,821 | $ 0 | $ 3,117,506 |
Food and beverage [Member] | ||||
Promotional Allowance | 992,595 | 1,012,407 | 2,863,087 | 2,991,976 |
Other [Member] | ||||
Promotional Allowance | $ 40,995 | $ 40,414 | $ 122,552 | $ 125,530 |
Schedule of New Accounting Pron
Schedule of New Accounting Pronouncements and Changes in Accounting Principles (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 14,564,377 | $ 15,535,550 | $ 43,798,999 | $ 48,622,345 |
Expenses: | ||||
Marketing and administrative | 4,396,277 | 4,234,480 | 13,265,222 | 12,951,058 |
Corporate | 1,630,561 | 578,370 | 4,261,090 | 1,909,731 |
Depreciation and amortization | 112,537 | 198,522 | 357,193 | 761,111 |
Gain on sale of assets | 0 | (308) | 34,356 | (5,773) |
Operating income | 249,089 | 618,339 | 984,269 | 1,866,980 |
Net revenues | (120,713) | 193,327 | 366,532 | 956,305 |
As Reported - With Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 14,564,377 | 43,798,999 | ||
Gross revenues | 14,564,377 | 43,798,999 | ||
Less promotional allowances | 0 | 0 | ||
Expenses: | ||||
Marketing and administrative | 4,396,277 | 13,265,222 | ||
Corporate | 1,630,561 | 4,261,090 | ||
Depreciation and amortization | 112,537 | 357,193 | ||
Gain on sale of assets | (34,356) | |||
Total operating expenses | 14,315,288 | 42,814,730 | ||
Operating income | 249,089 | 984,269 | ||
Net revenues | 42,881 | 473,394 | ||
As Adjusted - Without Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 14,564,377 | 43,795,321 | ||
Gross revenues | 15,597,967 | 46,780,960 | ||
Less promotional allowances | (1,033,590) | (2,985,639) | ||
Expenses: | ||||
Marketing and administrative | 4,396,277 | 13,265,222 | ||
Corporate | 1,630,561 | 4,261,090 | ||
Depreciation and amortization | 112,537 | 357,193 | ||
Gain on sale of assets | (34,356) | |||
Total operating expenses | 14,315,288 | 42,811,052 | ||
Operating income | 249,089 | 984,269 | ||
Net revenues | 42,881 | 473,394 | ||
Effect of Accounting Change Increase/(Decrease) [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 3,678 | ||
Gross revenues | (1,033,590) | (2,981,961) | ||
Less promotional allowances | 1,033,590 | 2,985,639 | ||
Expenses: | ||||
Marketing and administrative | 0 | 0 | ||
Corporate | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Gain on sale of assets | 0 | |||
Total operating expenses | 0 | 3,678 | ||
Operating income | 0 | 0 | ||
Net revenues | 0 | 0 | ||
Casino [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 11,547,379 | 12,551,816 | 35,051,766 | 40,009,065 |
Expenses: | ||||
Cost of Goods and Services Sold | 5,342,905 | 7,012,292 | 16,684,984 | 22,704,066 |
Casino [Member] | As Reported - With Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 11,547,379 | 35,051,766 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 5,342,905 | 16,684,984 | ||
Casino [Member] | As Adjusted - Without Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,580,969 | 38,033,727 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 6,215,934 | 19,193,189 | ||
Casino [Member] | Effect of Accounting Change Increase/(Decrease) [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | (1,033,590) | (2,981,961) | ||
Expenses: | ||||
Cost of Goods and Services Sold | (873,029) | (2,508,205) | ||
Food and beverage [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 2,665,342 | 2,606,619 | 7,675,267 | 7,437,154 |
Expenses: | ||||
Cost of Goods and Services Sold | 2,345,769 | 1,358,684 | 6,793,978 | 3,892,854 |
Food and beverage [Member] | As Reported - With Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 2,665,342 | 7,675,267 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 2,345,769 | 6,793,978 | ||
Food and beverage [Member] | As Adjusted - Without Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 2,665,342 | 7,675,267 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 1,503,539 | 4,375,020 | ||
Food and beverage [Member] | Effect of Accounting Change Increase/(Decrease) [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 842,230 | 2,418,958 | ||
Other [Member] | As Reported - With Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 351,656 | 1,071,966 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 57,038 | 170,858 | ||
Other [Member] | As Adjusted - Without Adoption of ASC 606 [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 351,656 | 1,071,966 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 26,239 | 77,933 | ||
Other [Member] | Effect of Accounting Change Increase/(Decrease) [Member] | ||||
Revenues: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | ||
Expenses: | ||||
Cost of Goods and Services Sold | 30,799 | 92,925 | ||
Facility [Member] | ||||
Expenses: | ||||
Cost of Goods and Services Sold | 430,201 | $ 456,918 | 1,315,761 | $ 1,338,499 |
Facility [Member] | As Reported - With Adoption of ASC 606 [Member] | ||||
Expenses: | ||||
Cost of Goods and Services Sold | 430,201 | 1,315,761 | ||
Facility [Member] | As Adjusted - Without Adoption of ASC 606 [Member] | ||||
Expenses: | ||||
Cost of Goods and Services Sold | 430,201 | 1,315,761 | ||
Facility [Member] | Effect of Accounting Change Increase/(Decrease) [Member] | ||||
Expenses: | ||||
Cost of Goods and Services Sold | $ 0 | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jan. 31, 2018 | May 01, 2018 | |
Significant Accounting Policies [Line Items] | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ 35,425 | |
Previously Reported [Member] | ||
Significant Accounting Policies [Line Items] | ||
Increase (Decrease) in Restricted Cash | $ 64,537 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 2,485,843 | $ 2,369,063 |
Change in Carrying Amount of Go
Change in Carrying Amount of Goodwill and Other Intangibles (Detail) | 9 Months Ended |
Jan. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | |
Balance as of April 30, 2018 | $ 16,381,639 |
Write off Club Fortune registration | (43,956) |
Current year amortization | (14,981) |
Balance as of January 31, 2019 | 16,322,702 |
Goodwill | |
Goodwill and Intangible Assets Disclosure [Line Items] | |
Balance as of April 30, 2018 | 14,092,154 |
Write off Club Fortune registration | 0 |
Current year amortization | 0 |
Balance as of January 31, 2019 | 14,092,154 |
Other Intangibles, net | |
Goodwill and Intangible Assets Disclosure [Line Items] | |
Balance as of April 30, 2018 | 2,289,485 |
Write off Club Fortune registration | (43,956) |
Current year amortization | (14,981) |
Balance as of January 31, 2019 | $ 2,230,548 |
Goodwill and Net Other Intangib
Goodwill and Net Other Intangibles by Segment (Detail) | Jan. 31, 2019USD ($) |
Goodwill [Line Items] | |
Goodwill and other intangible assets | $ 16,322,702 |
Washington | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 15,954,154 |
Corporate | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 368,548 |
Other Intangibles, net | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 2,230,548 |
Other Intangibles, net | Washington | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 1,862,000 |
Other Intangibles, net | Corporate | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 368,548 |
Goodwill | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 14,092,154 |
Goodwill | Washington | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | 14,092,154 |
Goodwill | Corporate | |
Goodwill [Line Items] | |
Goodwill and other intangible assets | $ 0 |
Summary of Intangible Assets an
Summary of Intangible Assets and Accumulated Amortization (Detail) | Jan. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 10,001,869 |
Accumulated Amortization | (7,771,321) |
Net | 2,230,548 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 6,753,321 |
Accumulated Amortization | (6,753,321) |
Net | 0 |
Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 1,018,000 |
Accumulated Amortization | (1,018,000) |
Net | 0 |
State gaming registration | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 368,548 |
Accumulated Amortization | 0 |
Net | 368,548 |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 1,862,000 |
Accumulated Amortization | 0 |
Net | $ 1,862,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Goodwill and identifiable intangible in connection with acquisitions of the Washington mini-casinos | $ 16,322,702 | $ 16,381,639 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Apr. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,536,322 | $ 9,403,215 |
Less accumulated depreciation | (6,476,203) | (6,148,848) |
Property and equipment, net | 3,060,119 | 3,254,367 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,661,367 | 1,653,534 |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 39 years | |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 15 years | |
Gaming equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,400,815 | 2,391,596 |
Gaming equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 5 years | |
Gaming equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 3 years | |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,579,016 | 3,500,778 |
Furniture and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 7 years | |
Furniture and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 3 years | |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 87,750 | 87,750 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,718,835 | 1,711,641 |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 20 years | |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Service Life in Years | 7 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 88,539 | $ 57,916 |
Long-Term Financing Obligations
Long-Term Financing Obligations (Detail) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Debt Instrument [Line Items] | ||
$23.0 million reducing revolving credit agreement, LIBOR plus an Applicable Margin, $625,000 quarterly reductions beginning January 31, 2016 through November 30, 2020, and the remaining principal due on the maturity date of November 30, 2020, net of accumulated debt issuance costs of $0 and $104,760 at January 31, 2019 and April 30, 2018, respectively. | $ 0 | $ 7,895,240 |
Total long-term financing obligations | $ 0 | $ 7,895,240 |
Long-Term Financing Obligatio_2
Long-Term Financing Obligations (Parenthetical) (Detail) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Apr. 30, 2018 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 23,000,000 | |
Debt Instrument Maturity Date | Nov. 30, 2020 | |
Debt Instrument, Unamortized Discount | $ 0 | $ 104,760 |
January 31, 2016 through November 30, 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | $ 625,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | Nov. 30, 2015USD ($) |
Reducing Revolving Credit Facility | |
Debt Disclosure [Line Items] | |
Line of credit facility amount outstanding | $ 23 |
Interest Rate Swap - Additional
Interest Rate Swap - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Dec. 28, 2015 | |
Interest Rate Swap [Line Items] | ||||
Derivative, Variable Interest Rate | 1.77% | 1.77% | ||
Increase Decrease In Interest Rate Swap | $ 69,892 | $ 60,872 | ||
Other Long-term Debt | $ 0 | $ 0 | $ 134,672 | |
Secured Interest Rate Swap Percentage On Debt | 50.00% |
Summary of Activity under Share
Summary of Activity under Share-Based Payment Plans (Detail) | 9 Months Ended |
Jan. 31, 2019USD ($)$ / sharesshares | |
Options | |
Outstanding | 676,000 |
Granted | 0 |
Exercised | 0 |
Forfeited or expired | 0 |
Outstanding | 676,000 |
Exercisable | 676,000 |
Available for grant | 507,611 |
Weighted Average Exercise Price | |
Outstanding | $ / shares | $ 1.10 |
Outstanding | $ / shares | 1.10 |
Exercisable | $ / shares | $ 1.10 |
Weighted Average Remaining Contractual Term (Years) | |
Outstanding | 3 years 6 months |
Exercisable | 3 years 6 months |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 923,800 |
Exercisable | $ | $ 923,800 |
Equity Transactions and Stock_3
Equity Transactions and Stock Option Plan - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Nov. 29, 2018 | Jul. 31, 2016 | Jan. 31, 2019 | Sep. 18, 2018 | Apr. 14, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for Repurchase of Common Stock | $ 2,000,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 1,700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 38,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 2.27 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 71,883 | ||||
Maverick Casinos LLC [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 890,390 | ||||
Percentage of Outstanding Shares of Common Stock | 5.00% | ||||
Business Acquisition, Share Price | $ 2.42 | $ 2.50 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,154,744 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of reserved for issuance under stock plan | 1,750,000 | ||||
2009 Plan | Stock option rights granted prior to fiscal year 2006 | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options terms | 5 years | ||||
2009 Plan | Stock option rights granted prior to fiscal year 2006 | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options terms | 10 years |
Reconciliation of Numerators an
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Basic and Diluted: | ||||
Net income from continuing operations | $ 42,881 | $ 21,895 | $ 473,394 | $ 721,057 |
Net (loss) income from discontinued operations | (163,594) | 171,432 | (106,862) | 235,248 |
Net (loss) income | $ (120,713) | $ 193,327 | $ 366,532 | $ 956,305 |
Denominator: | ||||
Basic weighted average number of common shares outstanding | 17,485,106 | 16,829,581 | 17,060,903 | 17,029,822 |
Dilutive effect of common stock options | 368,727 | 378,560 | 354,095 | 364,870 |
Diluted weighted average number of common shares outstanding | 17,853,833 | 17,208,141 | 17,414,998 | 17,394,692 |
Per share information: | ||||
Income from continuing operations per common share - basic and diluted | $ 0 | $ 0 | $ 0.03 | $ 0.04 |
(Loss) income from discontinued operations per common share - basic and diluted | (0.01) | 0.01 | (0.01) | 0.01 |
Net (loss) income per common share - basic | (0.01) | 0.01 | 0.02 | 0.06 |
Net (loss) income per common share - diluted | $ (0.01) | $ 0.01 | $ 0.02 | $ 0.05 |
Expected Remaining Future Rolli
Expected Remaining Future Rolling Twelve Months Minimum Lease Payments (Detail) | Jan. 31, 2019USD ($) |
Schedule of Operating Leases [Line Items] | |
February 2019 - January 2020 | $ 3,239,199 |
February 2020 - January 2021 | 3,270,147 |
February 2021 - January 2022 | 2,669,607 |
February 2022 - January 2023 | 1,083,481 |
Thereafter | 891,765 |
Total | $ 11,154,199 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 22, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||
Effective income tax rate reconciliation, at federal statutory income tax rate | 35.00% | 21.00% | |||
Deferred tax assets, general business | $ 0.6 | $ 0.6 | |||
Effective Income Tax Rate Reconciliation, Percent | 22.00% | 96.00% | 22.00% | 54.00% |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 14,564,377 | $ 14,482,729 | $ 43,798,999 | $ 45,504,839 |
Casino and food and beverage expense | 7,688,674 | 8,370,976 | 23,478,962 | 26,596,920 |
Marketing, administrative and corporate expense | 6,026,838 | 4,812,850 | 17,526,312 | 14,860,789 |
Facility and other expenses | 487,239 | 481,734 | 1,486,619 | 1,413,266 |
Depreciation and amortization | 112,537 | 198,522 | 357,193 | 761,111 |
Operating income (loss) | 249,089 | 618,339 | 984,269 | 1,866,980 |
Washington | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 14,564,377 | 13,314,264 | 42,970,445 | 40,263,535 |
Casino and food and beverage expense | 7,688,674 | 7,239,816 | 22,540,802 | 21,942,455 |
Marketing, administrative and corporate expense | 4,395,723 | 4,099,481 | 13,133,387 | 12,582,737 |
Facility and other expenses | 487,239 | 458,938 | 1,469,896 | 1,345,352 |
Depreciation and amortization | 107,065 | 119,007 | 339,437 | 465,886 |
Operating income (loss) | 1,885,675 | 1,396,947 | 5,486,149 | 3,921,445 |
South Dakota | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 1,168,465 | 828,554 | 5,241,304 |
Casino and food and beverage expense | 0 | 1,131,160 | 938,160 | 4,654,465 |
Marketing, administrative and corporate expense | 0 | 134,999 | 131,280 | 368,321 |
Facility and other expenses | 0 | 22,796 | 16,723 | 67,914 |
Depreciation and amortization | 0 | 72,980 | 0 | 275,345 |
Operating income (loss) | 0 | (193,703) | (199,917) | (124,854) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Casino and food and beverage expense | 0 | 0 | 0 | 0 |
Marketing, administrative and corporate expense | 1,631,115 | 578,370 | 4,261,645 | 1,909,731 |
Facility and other expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 5,472 | 6,535 | 17,756 | 19,880 |
Operating income (loss) | $ (1,636,586) | $ (584,905) | $ (4,301,963) | $ (1,929,611) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Washington Gold [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information Average Segment Assets | $ 29,713,693 | $ 27,352,824 |
South Dakota Gold [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information Average Segment Assets | 1,549,392 | |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information Average Segment Assets | $ 13,216,305 | $ 3,793,289 |
Discontinued Operations (Detail
Discontinued Operations (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
(Gain) on sale of assets | $ 0 | $ (308) | $ 34,356 | $ (5,773) |
Income tax expense | (12,419) | (553,899) | (134,538) | (847,176) |
Income from discontinued operations, net of tax | (163,594) | 171,432 | (106,862) | 235,248 |
Club Fortune Casino [Member] | ||||
Gross revenues | 2,289,969 | 3,862,505 | 8,750,437 | 11,827,509 |
Less promotional allowances | 0 | (552,248) | 0 | (1,713,786) |
Net revenues | 2,289,969 | 3,310,257 | 8,750,437 | 10,113,723 |
Casino and food and beverage expense | 1,331,637 | 2,027,281 | 5,456,195 | 6,111,932 |
Marketing and administrative | 644,731 | 839,229 | 2,305,831 | 2,561,965 |
Facility and other expenses | 52,544 | 87,968 | 236,513 | 245,878 |
Depreciation and amortization | 0 | 340,385 | 220,531 | 1,087,380 |
Goodwill impairment | 0 | 0 | 115,128 | 0 |
Loss on reclassification as held for sale | 0 | 0 | 84,872 | 0 |
(Gain) on sale of assets | 472,866 | 0 | 472,735 | 0 |
Income tax expense | (48,215) | (156,038) | (34,506) | (128,680) |
Income from discontinued operations, net of tax | $ (163,594) | $ 171,432 | $ (106,862) | $ 235,248 |
Discontinued Operations (Deta_2
Discontinued Operations (Detail 1) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Assets: | ||
Accounts receivable, net | $ 0 | $ 140,370 |
Prepaid expenses and other assets | 0 | 377,811 |
Inventory | 0 | 88,998 |
Goodwill | 0 | 2,831,434 |
Intangible assets, net | 0 | 1,208,294 |
Property and equipment, net | 0 | 9,558,045 |
Total assets held for sale | 0 | 14,204,952 |
Liabilities: | ||
Accounts payable and accrued liabilities | 0 | 345,231 |
Accrued payroll and related | 0 | 238,688 |
Accrued player's club points and progressive jackpots | 0 | 318,801 |
Total liabilities held for sale | $ 0 | $ 902,720 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jun. 27, 2018 | |
Gain (Loss) on Sale of Properties | $ 472,866 | ||||
Club Fortune Casino [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 14,600,000 | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | 115,128 | $ 0 | |
Disposal Group Including Discontinued Operation Loss On Reclassification Held For Sale | $ 0 | $ 0 | $ (84,872) | $ 0 |
Merger Agreement - Additional I
Merger Agreement - Additional Information (Detail) - Maverick Casinos LLC [Member] - $ / shares | 1 Months Ended | |
Sep. 18, 2018 | Nov. 29, 2018 | |
Business Acquisition, Share Price | $ 2.50 | $ 2.42 |
Business Combination Increase in Consideration Per Share | $ 0.01 |