Diamondhead Casino (DHCC) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document and Entity Information:
Entity Registrant Name	DIAMONDHEAD CASINO CORP
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Trading Symbol	dhcc
Amendment Flag	false
Entity Central Index Key	844,887
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		36,297,576
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 163,223	$ 843,083
Other current assets	23,844	36,655
Total current assets	187,067	879,738
Land held for development (Note 3)	5,476,097	5,476,097
Deferred financing costs (net of amortization of $37,213 at June 30, 2015 and $18,518 at December 31, 2014)	163,887	182,582
Other assets	80	80
Total assets	5,827,131	6,538,497
Current liabilities
Notes payable	1,962,500	1,962,500
Short term financing agreement	4,549	14,905
Accounts payable and accrued expenses	3,503,765	3,304,479
Total current liabilities	5,470,814	5,281,884
Debenture payable (net of unamortized discount of $48,406 at June 30, 2015 and $48,887 at December 31, 2014)	1,594	1,113
Convertible debentures payable (net of unamortized discount of $1,753,560 at June 30, 2015 and $1,778,859 at December 31, 2014 )	46,440	21,141
Derivative liability	2,878,261	3,754,233
Total liabilities	$ 8,397,109	$ 9,058,371
Commitments and contingencies (Notes 8 and 9)
Stockholders' deficiency
Preferred stock, $.01 par value; shares authorized 5,000,000, outstanding 2,086,000 at June 30,2015 and December 31, 2014 (aggregate liquidation preference of $2,519,080 at June 30, 2015 and December 31, 2014)	$ 20,860	$ 20,860
Common stock, $.001 par value; shares authorized 50,000,000, Issued: 39,052,472 at June 30, 2015 and December 31, 2014, outstanding: 36,297,576 at June 30, 2015 and December 31, 2014	39,052	39,052
Additional paid-in capital	35,568,649	35,568,649
Unearned ESOP shares	(3,558,078)	(3,558,078)
Accumulated Deficit	(34,511,655)	(34,461,551)
Treasury stock, at cost, 368,526 shares at June 30, 2015 and December 31, 2014	(128,806)	(128,806)
Total stockholders' deficiency	(2,569,978)	(2,519,874)
Total liabilities and stockholders deficiency	$ 5,827,131	$ 6,538,497

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Deferred financing costs, amortization	$ 37,213	$ 18,518
Preferred stock, par or stated value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	2,086,000	2,086,000
Preferred stock, shares outstanding	2,086,000	2,086,000
Preferred stock, aggregate liquidation preference	$ 2,519,080	$ 2,519,080
Common stock, par or stated value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	39,052,472	39,052,472
Common stock, shares outstanding	36,297,576	36,297,576
Treasury stock, shares	368,526	368,526
Corporate Debt Securities
Unamortized discount	$ 48,406	$ 48,887
Convertible Debt Securities
Unamortized discount	$ 1,753,560	$ 1,778,859

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
COSTS AND EXPENSES
Administrative and General	$ 367,969	$ 280,661	$ 624,557	$ 421,709
Amortization	9,399	6,132	18,695	6,132
Other	15,667	13,990	37,159	27,980
Costs and Expenses	393,035	300,783	680,411	455,821
OTHER (EXPENSE) INCOME
Amortization of Debt Discount	(7,920)	(15,447)	(25,780)	(15,447)
Interest Expense	(86,105)	(75,397)	(169,085)	(146,743)
Change in Fair Value of Derivative Liability	(477,308)	758,986	875,972	(1,294,190)
Other		6,214		6,214
Other (Expense) Income	(571,333)	674,356	681,107	(1,450,166)
NET INCOME (LOSS)	(964,368)	373,573	696	(1,905,987)
PREFERRED STOCK DIVIDENDS	(25,400)	(25,400)	(50,800)	(50,800)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS	$ (989,768)	$ 348,173	$ (50,104)	$ (1,956,787)
Net (loss) earnings per common share, basic	$ (0.027)	$ 0.010
Net (loss) earnings per common share, fully diluted	$ (0.027)	$ 0.008
Net (loss) per common share, basic and fully diluted			$ (0.001)	$ (0.054)
Weighted average number of common shares, basic	36,297,576	36,297,576
Weighted average number of common shares, basic and fully diluted			36,297,576	36,297,576
Weighted average number of common shares, fully diluted	36,297,576	44,934,075

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 696	$ (1,905,987)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization	18,695	6,132
Change in fair value of derivative liability	(875,972)	1,294,190
Amortization of debt discount	25,780	15,447
Other assets	12,811	4,120
Accounts payable and accrued expenses	148,486	150,118
Net cash used in operating activities	(669,504)	(435,980)
FINANCING ACTIVITIES
Proceeds from Private Placements, net of financing costs		885,000
Proceeds from Short Term Note		1,836
Payment of Short Term Note	(10,356)	(8,044)
Net cash (used in) provided by financing activities	(10,356)	878,792
Net (decrease) increase in cash	(679,860)	442,812
Cash beginning of period	843,083	7,106
Cash end of period	163,223	449,918
Cash paid for interest	10,775	1,843
Non-Cash Financing activities:
Warrants included in deferred financing costs	25,100	16,210
Unpaid preferred stock dividends included in accounts payable and accrued expenses	$ 381,000	$ 304,800

Note 1. Organization and Busine

Note 1. Organization and Business	6 Months Ended
	Jun. 30, 2015
Notes
Note 1. Organization and Business	Note 1. Organization and Business Diamondhead Casino Corporation and Subsidiaries (the “Company”) own a total of approximately 404.5 acres of unimproved land in Diamondhead, Mississippi on which it plans, unilaterally or in conjunction with one or more partners, to construct a casino resort and hotel and associated amenities. The Company was originally formed to principally own, operate and promote gaming vessels offering day and evening cruises in international waters. The Company's Common Stock was previously registered with the Securities and Exchange Commission and traded on the over-the counter bulletin board under the symbol “DHCC”. The Company's stock registration was revoked effective September 4, 2014. Since that date, the Company’s Common Stock has not traded on any exchange or other public market. On March 31, 2015, the Company filed a registration statement on Form 10 to again register its stock with the SEC. The registration became effective May 30, 2015.

Note 2. Liquidity and Going Con

Note 2. Liquidity and Going Concern	6 Months Ended
	Jun. 30, 2015
Notes
Note 2. Liquidity and Going Concern	Note 2. Liquidity and Going Concern These condensed consolidated financial statements have been prepared on the basis that the Company is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses over the past several years, has no operations and generates no operating revenues. During the six months ended June 30, 2015 and 2014 the Company incurred net losses applicable to common shareholders, exclusive of the recording of change in the fair value of derivatives, of $926,076 and $662,597, respectively. The Company has had no operations since it ended its gambling cruise ship operations in 2000. Since that time, the Company has concentrated its efforts on the development of its Diamondhead, Mississippi property. That development is dependent upon the Company obtaining the necessary capital, through either equity and/or debt financing, unilaterally or in conjunction with one or more partners, to master plan, design, obtain permits for, construct, open, and operate a casino resort. In the recent past, in order to raise capital to continue to pay on-going costs and expenses, the Company has borrowed funds and offered, through Private Placements, convertible instruments more fully described in Notes 5 and 6 to these condensed consolidated financial statements.

Note 3. Summary of Significant

Note 3. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes
Note 3. Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of the financial statements, have been included. Interim results are not necessarily indicative of results to be expected for the full year. The interim financial information should be read in conjunction with information included in the 2014 year-end financial statements as attached to our registration statement filed on Form 10 as Exhibit 99.1. Principles of Consolidation The condensed consolidated financial statements include the accounts of Diamondhead Casino Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all short term highly liquid investments with a maturity of three months or less to be cash equivalents. Land Held for Development Land held for development is carried at cost. Costs directly related to site development, such as licensing, permitting, engineering, and other costs, are capitalized. Land development costs, which have been capitalized, consist of the following: Land under development $4,934,323 Licenses 77,000 Engineering and costs associated with permitting 464,774 $5,476,097 Fair Value Measurements The Company follows the provisions of ASC Topic 820 “Fair Value Measurements” for financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. The standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Input other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable input that reflects The table listed below provides a reconciliation of the beginning and ending net balances for the derivative liability measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and for the year ended December 31, 2014: June 30, December 31, 2015 2014 Beginning balance $3,754,233 - Total decrease in unrealized appreciation (depreciation) included in net assets (875,972) 1,904,233 Purchases, other settlements and issuances, net - 1,850,000 Ending balance $2,878,261 $3,754,233 Sensitivity Analysis to Changes in Level 3 Assumptions Significant inputs include the expected dates when required conditions are met under the conversion terms of the debentures, the underlying market cap due to borrowings and losses, and discount for lack of marketability inasmuch as the stock is not trading. In addition, use of different ranges of bond discount rates and changes in historical volatility rates would also result in a higher or lower fair value. Current assets and current liabilities are financial instruments and management believes that their carrying amounts are reasonable estimates of their fair values due to their short term nature. The convertible debentures and derivative liability approximate fair value based on Level 3 inputs, as further discussed in Note 6. Long-Lived Assets The Company reviews long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the assets to the estimated undiscounted future cash flows projected to be generated by the assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount the carrying value exceeds the fair value of such assets determined by appraisal, discounted cash flow projections, or other means. No impairment existed as of June 30, 2015. Net Earnings (Loss) per Common Share Basic earnings/(loss) per share is computed by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding. Fully diluted earnings per share are calculated by using the weighted average number of common shares outstanding, plus other potentially dilutive securities. Common shares outstanding consist of issued shares, including allocated and committed shares held by the ESOP trust, less shares held in treasury. The dilutive securities below do not include 5,055,555 potentially Convertible Debentures since the requirements for possible conversion have not yet, and may never be, met. The table below summarizes the components of potential dilutive securities at June 30, 2015 and 2014. June 30, June 30, Description 2015 2014 Convertible Preferred Stock 260,000 260,000 Options to Purchase Common Shares 3,440,000 3,440,000 Private Placement Warrants 2,086,500 3,011,500 Convertible Promissory Notes 1,925,000 1,925,000 Total 7,711,500 8,636,500 Segment Information Operating segments are components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company currently operates solely in one segment, development of land, which relates to planned future operations.

Note 4. Accounts Payable and Ac

Note 4. Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2015
Notes
Note 4. Accounts Payable and Accrued Expenses	Note 4 Accounts Payable and Accrued Expenses The table below outlines the elements included in accounts payable and accrued expenses at June 30, 2015 and December 31, 2014: June 30, December 31, Description 2015 2014 Accrued payroll due officers 1,319,711 1,288,136 Accrued interest due officers 324,028 270,166 Accrued interest 860,853 756,405 Accrued dividends 406,400 355,600 Other accounts payable and accrued expenses 592,773 634,172 Total accounts payable and accrued expenses 3,503,765 3,304,479 Included in other accounts payable and accrued expenses are accrued director fees at June 30, 2015 and December 31, 2014 of $168,750 and $131,250, respectively, and rents payable to the President of the Company in the amounts of $67,608 and $62,062 at June 30, 2015 and December 31, 2014, respectively.

Note 5. Notes Payable

Note 5. Notes Payable	6 Months Ended
	Jun. 30, 2015
Notes
Note 5. Notes Payable	Note 5. Notes Payable Line of Credit On October 23, 2008, the Company entered into an agreement with an unrelated third party for an unsecured Line of Credit up to a maximum of $1,000,000. The Line of Credit provided for funds to be drawn as needed and carries an interest rate on amounts borrowed of 9% per annum originally payable quarterly based on the pro rata number of days outstanding. All funds originally advanced under the facility were due and payable by November 1, 2012. As an inducement to provide the facility, the lender was awarded an immediate option to purchase 50,000 shares of common stock of the Company at $1.75 per share. In addition, the lender received an option to purchase a maximum of 250,000 additional shares of common stock of the Company at $1.75 per share. The options expire following repayment in full by the Company of the amount borrowed. As of December 31, 2009, the Company had borrowed all of the $1,000,000 available to it under the Line of Credit. Interest on this debt incurred prior to June 30, 2009 has been paid in full. The Company was unable to satisfy the principal obligation of $1,000,000 by the due date of November 1, 2012 or any interest which accrued on the obligation after June 30, 2009 and is in default under the repayment terms of the note. Convertible Notes and Warrants Pursuant to a Private Placement Memorandum dated March 1, 2010, the Company offered Units consisting of a two year unsecured, convertible promissory note in the principal amount of $25,000 with interest at 12% per annum, together with a five year Warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Promissory Note is convertible into 50,000 shares of common stock of the Company immediately upon issuance at the option of the investor. Interest on the notes is payable either in cash or common stock at the option of the Company. The Company ultimately accepted subscriptions totaling $450,000 from unrelated subscribers and an additional $25,000 for one Unit purchased by a Director of the Company. The five-year Warrants issued in connection with the Units have expired. Pursuant to an additional Private Placement Memorandum dated October 25, 2010, the Company offered Units consisting of a two year unsecured, convertible promissory note in the principal amount of $25,000 together with a five year Warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Promissory Notes bear interest at 9% per annum and are convertible into 50,000 shares of common stock of the Company. Interest on the notes is payable in either cash or common stock at the option of the Company. The Company accepted subscriptions totaling $512,500 from unrelated accredited investors. On July 2, 2011, the Company redeemed a note in the principal amount of $25,000 by issuing 50,000 shares of common stock. The Convertible Notes issued via the Private Placements discussed above total $962,500 in aggregate and became due and payable beginning in March 2012 and extending at various dates through June 2013. As of the date of the filing of this report, all of the aforementioned debt obligations remain unpaid and in default under the repayment terms of the notes. The table below summarizes the Company’s notes payable at June 30, 2015 and December 31, 2014: Gross Amount Loan Facility Owed Line of Credit $1,000,000 Private Placements: March 1, 2010 475,000 October 25, 2010 487,500 Total Private Placements 962,500 Total Note Payable $1,962,500

Note 6. Convertible Debentures

Note 6. Convertible Debentures and Derivative Liability	6 Months Ended
	Jun. 30, 2015
Notes
Note 6. Convertible Debentures and Derivative Liability	Note 6. Convertible Debentures and Derivative Liability Pursuant to a Private Placement Memorandum dated February 14, 2014 (the "Private Placement"), the Company offered up to a maximum of $3,000,000 of Collateralized Convertible Senior Debentures to accredited or institutional investors. The Offering was conducted contingent on the deposit into Escrow of the purchase price for all of the Debentures offered in the principal amount of $3,000,000. The Debentures, once issued, bear interest at 4% per annum after 180 days , (a) $1,000,000 of First Tranche Collateralized Convertible Senior Debentures convertible into an aggregate of 3,333,333 shares of Common Stock of the Company at a conversion price of $.30 per share (the “First Tranche Debentures”); (b) $1,000,000 of Second Tranche Collateralized Convertible Senior Debentures, convertible into an aggregate of 2,222,222 shares of Common Stock of the Company at a conversion price of $.45 per share (the “Second Tranche Debentures”); and (c) $1,000,000 of Third Tranche Collateralized Convertible Senior Debentures, convertible into either 1,818,182 shares of Common Stock or 1,333,333 shares of Common Stock of the Company, at a conversion price of $.55 or $.75 per share depending upon certain conditions described in the Private Placement Memorandum (the “Third Tranche Debentures”). On March 31, 2014, the First Closing occurred when subscriptions in the amount of $3,000,000 were received in Escrow and accepted by the Company. The Escrow Agent released $1,000,000 to the Company and the Company issued First Tranche Debentures in the aggregate principle amount of $1,000,000. The Company's stock registration was revoked effective September 4, 2014. Therefore, on December 4, 2014, the Company extended offers to the investors to amend the Private Placement. The Company offered to amend certain terms and conditions, including the conversion terms of the First Tranche Debentures, which were issued on March 31, 2014 (“Amendment I”). The Company separately offered to amend certain terms and conditions, including those relating to issuance and conversion of the Second and Third Tranche Debentures, as well as the period of time within which to perform the Third Tranche Closing Obligations, as amended (“Amendment II”). On December 31, 2014, investors who had purchased $950,000 of First Tranche Debentures consented to the amended conversion terms of Amendment I. The remaining Debenture in the amount of $50,000 remains as originally issued with no conversion rights. Thus the First Tranche Debentures can be converted into a total of 3,166,666 shares of common stock. On December 31, 2014, the Second Closing occurred when investors representing $850,000 of Second Tranche Debentures consented to Amendment II. The Escrow Agent released $850,000 to the Company and the Company issued Second Tranche Debentures in the aggregate principle amount of $850,000. Thus the Second Tranche Debentures can be converted into 1,888,889 shares of common stock. The Escrow Agent refunded $300,000 to those investors who did not consent to Amendment II. The Company did not meet the closing obligations for the Tranche 3 Debentures as of June 30, 2015, as was required, pursuant to the terms of the Private Placement, as amended. Therefore, the remaining $850,000 being held in escrow for the purchase of the Third Tranche Debentures was returned to the investors. For purposes of determining the proper accounting treatment and valuation of the instruments, the Company applied the provisions set forth in ASC Topic 820, "Fair Value in Financial Instruments" and ASC Topic 815, "Accounting for Derivative Instruments and Hedging Activities." Since the Notes issued have derivative features, the embedded derivatives should be bundled and valued as a single, compound embedded derivative, bifurcated from the debt host and treated as a liability. In addition, the valuation is required to be conducted for each reporting period the instrument was in existence. As previously noted, the Company’s stock registration was revoked effective September 4, 2014. Therefore the Company engaged an independent valuation expert to determine the fair value of its shares of common stock for each quarter beginning with the quarter ended September 30, 2014 through the quarter ended June 30, 2015. For periods after September 3, 2014, the fair value was estimated by adjusting the most recent market price by changes in the underlying market cap due to changes in the value of net assets and applying a discount for lack of marketability inasmuch as the stock is not trading. Monte Carlo models were developed to value the derivative liability within the Notes using a historical volatility rate of 195% at June 30, 2015 and 172% at December 31, 2014, and using discount bond rates based on the expected remaining term of each instrument ranging from 6.45% to 7.07% at June 30, 2015 and 5.78% to 9.85% at December 31, 2014, with expected conversion requirements being met by September 30, 2015. The estimated June 30, 2015 December 31, 2014 Tranche 1 $1,546,551 $2,014,733 Tranche 2 1,331,710 1,739,500 Derivative Liability $2,878,261 $3,754,233 At the initial valuation date of each Tranche, a portion of the derivative liability was allocated to the Convertible Debentures as debt discount, with the remainder being recorded as other income/expense. At March 31, 2014, the initial valuation of Tranche 1 Debentures, $1,000,000 was allocated to debt discount and at December 31, 2014, the initial valuation of Tranche 2 Debentures, $850,000 was allocated to debt discount. The debt discount is subsequently amortized to expense using an effective interest methodology. Amortization of debt discount amounted to $25,299 for the Tranche 1 and Tranche 2 Convertible Debentures and $481 for the non-convertible Debenture for the six months ended June 30, 2015. The Company recorded a decrease in the fair value of the derivative liability of $875,972 for the six months ended June 30, 2015. In the event the Company fails to meet the conditions for conversion of the Debentures, the First Tranche Convertible Debentures which total $950,000, would be due on March 31, 2020 and the Second Tranche Debentures, which total $850,000, would be due December 31, 2020. The sole remaining non-convertible Debenture in the amount of $50,000 is due March 31, 2020.

Note 7. Related Party Transacti

Note 7. Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Notes
Note 7. Related Party Transactions	Note 7. Related Party Transactions As of June 30, 2015, the President of the Company, a current Director of the Company, is owed deferred salary in the amount of $1,116,996 and the Vice President, the current Chairman of the Board of Directors of the Company, is owed deferred salary in the amount of $121,140. The Board of directors had previously agreed to pay interest at 9% on the amounts owed. Accrued interest under this agreement for the six months ended June 30, 2015 and 2014 amounted to $53,863 and $50,247, respectively. Effective September 1, 2011, the Company entered into a month-to-month lease with the President and then-Chairman of the Board of Directors of the Company, for office space in a furnished and fully equipped townhouse office building owned by the President in Alexandria, Virginia. The lease required base rent in the amount of $4,534 per month and payment of associated costs of insurance, real estate taxes, expenses and utilities. Rent expense associated with this lease amounted to $34,287 and $37,050 for the six months ended June 30, 2015 and 2014, respectively. The President received direct cash payments totaling $27,207 for current rents in the first six months of 2015. The President received direct cash payments of $100,000 of the $168,665 total for accumulated rents for the period from September 1, 2011 through March 31, 2014 and an additional $13,602 for base rents due April 1, 2014 through June 30, 2014. Directors of the Company are entitled to a Director fee of $15,000 per year for their services. The Company has been unable to pay directors' fees to date. As of June 30, 2015 and 2014 a total of $168,750 and $93,750, respectively, was due and owing to the Company’s directors. Directors have previously been compensated and may, in the future, be compensated for their services with common stock or options to purchase common stock of the Company.

Note 8. Commitments and Conting

Note 8. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes
Note 8. Commitments and Contingencies	Note 8. Commitments and Contingencies Management Agreement On June 19, 1993, two subsidiaries of Diamondhead Casino Corporation, Casino World Inc. and Mississippi Gaming Corporation, entered into a Management Agreement with Casinos Austria Maritime Corporation (CAMC). Subject to certain conditions, under the Management Agreement, CAMC would operate, on an exclusive basis, all of the Company’s proposed dockside gaming casinos in the State of Mississippi, including any operation fifty percent (50%) or more of which is owned by the Company or its affiliates. Unless terminated earlier pursuant to the provisions of the Agreement, the Agreement terminates five years from the first day of actual Mississippi gaming operations and provides for the payment of an annual operational term management fee of 1.2% of all gross gaming revenues between zero and $100,000,000; plus 0.75% of gross gaming revenue between $100,000,000 and $140,000,000; plus 0.5% of gross gaming revenue above $140,000,000; plus two percent of the net gaming revenue between zero and $25,000,000; plus three percent of the net gaming revenue above twenty-five million dollars $25,000,000. Management of the Company believes this Agreement is no longer in effect. However, there can be no assurance that CAMC will not attempt to maintain otherwise which would lead to litigation. Related Parties The Company has an agreement with a Director pursuant to which he will be paid a bonus in the event of any recovery received from litigation against BP relating to the oil spill. This Director will receive ten percent of any amounts received by the Company, after deduction of attorney fees and expenses relating to the litigation. Other The Company's obligations under the Collateralized Convertible Senior Debentures will be secured by a lien on the Company’s Mississippi property (the “Investors Lien”). Liens were placed on the Property in favor of the Investors for $1,850,000. The Investors Lien is in pari passu The Company is currently delinquent in filing those documents and forms required to be filed in connection with its Employee Stock Ownership Plan ("ESOP") for the years ended December 31, 2010, 2011, 2012 and 2013. The Company did not have the funds to pay professionals to audit its ESOP and/or prepare and file required documents and forms when due. Although these required filings normally do not result in any tax due to an agency of the government, the Company could be subject to significant penalties for failure to file Litigation College Health & Investment, L.P. v. Diamondhead Casino Corporation On January 15, 2015, the plaintiff, a beneficial owner of in excess of 5% of the common stock of the Company, filed suit for breach of a Promissory Note issued March 25, 2010, in the principle amount of $150,000, with interest payable at 12% per annum, with a maturity date of March 25, 2012. Plaintiff seeks payment of principle of $150,000, interest due through December 31, 2014 in the amount of $45,000, and interest due of 12% per annum from December 31, 2014 until entry of judgment. The note as well as the accrued interest thereon, are shown as current liabilities on the Company’s balance sheet at June 30, 2015. On January 22, 2015, the defendant forwarded a Notice of Conversion to plaintiff, exercising the Borrower's right to convert the principal and any interest due on the Note into common stock. On February 11, 2015, the Company moved to dismiss the complaint as moot. The plaintiff filed an opposition to the motion to dismiss alleging that the Note was convertible only prior to its maturity date. The Court agreed with the Plaintiff and denied the Company's motion to dismiss. On July 16, 2015, the Company filed an Answer and Affirmative Defenses. The matter is pending. College Health & Investment, L.P. v. Diamondhead Casino Corporation On February 13, 2015, the plaintiff, a beneficial owner in excess of 5% of the common stock of the Company, filed a Verified Complaint Pursuant to 8 Del.C.§211(c), with a Verification signed by the plaintiff's General Partner, Samuel I. Burstyn, seeking an order compelling the Company to hold an annual meeting. The Company agreed to entry of an Order setting a new date for an annual meeting of June 8, 2015, a Record Date of April 24, 2015, and to clarify that there is no advance notice requirement for the submission of stockholder proposals at the Company's annual stockholders' meetings. The plaintiff sought costs and expenses, including reasonable attorneys' fees. On or about July 7, 2015, the Plaintiff filed a Motion for an Award of Attorneys' Fees and Reimbursement of Expenses in the total amount of $150,000 for both this case and the following case. The Company intends to file an opposition to this motion. College Health & Investment, L.P. v. Edson R. Arneault, Deborah A. Vitale, Gregory A. Harrison, Martin Blount and Benjamin Harrell On March 14, 2015, the plaintiff, a beneficial owner in excess of 5% of the common stock of the Company, filed a Verified Complaint, with a Verification signed by the plaintiff's General Partner, Samuel I. Burstyn. In Count I, the plaintiff alleges that the defendants breached their fiduciary duty of disclosure. In Count II, the plaintiff alleges that defendants breached their fiduciary duties of loyalty and care. The defendants believe that plaintiff's claims are without merit and intend to vigorously defend this lawsuit. On or about July 30, 2015, the defendant directors filed Defendants' Answer and Verified Counterclaims for defamation, breach of fiduciary duty and aiding and abetting a breach of fiduciary duty. The plaintiff sought injunctive relief, but no monetary damages other than attorney’s fees. As noted above, on or about July 7, 2015, the Plaintiff filed a Motion for an Award of Attorneys' Fees and Reimbursement of Expenses in the total amount of $150,000 for both cases. The defendant directors intend to file an opposition to this motion.

Note 9. Subsequent Event

Note 9. Subsequent Event	6 Months Ended
	Jun. 30, 2015
Notes
Note 9. Subsequent Event	Note 9. Subsequent Event On August 6, 2015 ,

Note 3. Summary of Significan15

Note 3. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Diamondhead Casino Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Estimates	Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all short term highly liquid investments with a maturity of three months or less to be cash equivalents.
Land Held For Development	Land Held for Development Land held for development is carried at cost. Costs directly related to site development, such as licensing, permitting, engineering, and other costs, are capitalized. Land development costs, which have been capitalized, consist of the following: Land under development $4,934,323 Licenses 77,000 Engineering and costs associated with permitting 464,774 $5,476,097
Fair Value Measurements	Fair Value Measurements The Company follows the provisions of ASC Topic 820 “Fair Value Measurements” for financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. The standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Input other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable input that reflects The table listed below provides a reconciliation of the beginning and ending net balances for the derivative liability measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and for the year ended December 31, 2014: June 30, December 31, 2015 2014 Beginning balance $3,754,233 - Total decrease in unrealized appreciation (depreciation) included in net assets (875,972) 1,904,233 Purchases, other settlements and issuances, net - 1,850,000 Ending balance $2,878,261 $3,754,233
Sensitivity Analysis To Changes in Level 3 Assumptions	Sensitivity Analysis to Changes in Level 3 Assumptions Significant inputs include the expected dates when required conditions are met under the conversion terms of the debentures, the underlying market cap due to borrowings and losses, and discount for lack of marketability inasmuch as the stock is not trading. In addition, use of different ranges of bond discount rates and changes in historical volatility rates would also result in a higher or lower fair value. Current assets and current liabilities are financial instruments and management believes that their carrying amounts are reasonable estimates of their fair values due to their short term nature. The convertible debentures and derivative liability approximate fair value based on Level 3 inputs, as further discussed in Note 6.
Long-lived Assets	Long-Lived Assets The Company reviews long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the assets to the estimated undiscounted future cash flows projected to be generated by the assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount the carrying value exceeds the fair value of such assets determined by appraisal, discounted cash flow projections, or other means. No impairment existed as of June 30, 2015.
Net Earnings (loss) Per Common Share	Net Earnings (Loss) per Common Share Basic earnings/(loss) per share is computed by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding. Fully diluted earnings per share are calculated by using the weighted average number of common shares outstanding, plus other potentially dilutive securities. Common shares outstanding consist of issued shares, including allocated and committed shares held by the ESOP trust, less shares held in treasury. The dilutive securities below do not include 5,055,555 potentially Convertible Debentures since the requirements for possible conversion have not yet, and may never be, met. The table below summarizes the components of potential dilutive securities at June 30, 2015 and 2014. June 30, June 30, Description 2015 2014 Convertible Preferred Stock 260,000 260,000 Options to Purchase Common Shares 3,440,000 3,440,000 Private Placement Warrants 2,086,500 3,011,500 Convertible Promissory Notes 1,925,000 1,925,000 Total 7,711,500 8,636,500
Segment Information	Segment Information Operating segments are components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company currently operates solely in one segment, development of land, which relates to planned future operations.

Note 3. Summary of Significan16

Note 3. Summary of Significant Accounting Policies: Land Held For Development: Land development costs (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Land development costs	Land under development $4,934,323 Licenses 77,000 Engineering and costs associated with permitting 464,774 $5,476,097

Note 3. Summary of Significan17

Note 3. Summary of Significant Accounting Policies: Fair Value Measurements: Schedule of Derivative Liability Reconciliation (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Derivative Liability Reconciliation	June 30, December 31, 2015 2014 Beginning balance $3,754,233 - Total decrease in unrealized appreciation (depreciation) included in net assets (875,972) 1,904,233 Purchases, other settlements and issuances, net - 1,850,000 Ending balance $2,878,261 $3,754,233

Note 3. Summary of Significan18

Note 3. Summary of Significant Accounting Policies: Net Earnings (loss) Per Common Share: Schedule of Components of Potential Dilutive Securities (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Components of Potential Dilutive Securities	June 30, June 30, Description 2015 2014 Convertible Preferred Stock 260,000 260,000 Options to Purchase Common Shares 3,440,000 3,440,000 Private Placement Warrants 2,086,500 3,011,500 Convertible Promissory Notes 1,925,000 1,925,000 Total 7,711,500 8,636,500

Note 4. Accounts Payable and 19

Note 4. Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Accounts Payable and Accrued Expenses	The table below outlines the elements included in accounts payable and accrued expenses at June 30, 2015 and December 31, 2014: June 30, December 31, Description 2015 2014 Accrued payroll due officers 1,319,711 1,288,136 Accrued interest due officers 324,028 270,166 Accrued interest 860,853 756,405 Accrued dividends 406,400 355,600 Other accounts payable and accrued expenses 592,773 634,172 Total accounts payable and accrued expenses 3,503,765 3,304,479

Note 5. Notes Payable_ Schedule

Note 5. Notes Payable: Schedule of Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Notes Payable	Gross Amount Loan Facility Owed Line of Credit $1,000,000 Private Placements: March 1, 2010 475,000 October 25, 2010 487,500 Total Private Placements 962,500 Total Note Payable $1,962,500

Note 6. Convertible Debenture21

Note 6. Convertible Debentures and Derivative Liability: Schedule of Derivative Liabilities at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Derivative Liabilities at Fair Value	June 30, 2015 December 31, 2014 Tranche 1 $1,546,551 $2,014,733 Tranche 2 1,331,710 1,739,500 Derivative Liability $2,878,261 $3,754,233

Note 1. Organization and Busi22

Note 1. Organization and Business (Details)	Jun. 30, 2015a
Details
Area of Land, owned	404.5

Note 2. Liquidity and Going C23

Note 2. Liquidity and Going Concern (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Details
Net loss applicable to common shareholders, exclusive of change in fair value of derivative	$ (926,076)	$ (662,597)

Note 3. Summary of Significan24

Note 3. Summary of Significant Accounting Policies: Land Held For Development: Land development costs (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Land under development	$ 4,934,323
Licenses	77,000
Engineering and costs associated with permitting	464,774
Land held for development	$ 5,476,097	$ 5,476,097

Note 3. Summary of Significan25

Note 3. Summary of Significant Accounting Policies: Fair Value Measurements: Schedule of Derivative Liability Reconciliation (Details) - Derivative Financial Instruments, Liabilities - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Beginning balance	$ 3,754,233	$ 0
Total decrease in unrealized appreciation (depreciation) included in net assets	(875,972)	1,904,233
Purchases, other settlements and issuances, net	0	1,850,000
Ending balance	$ 2,878,261	$ 3,754,233

Note 3. Summary of Significan26

Note 3. Summary of Significant Accounting Policies: Net Earnings (loss) Per Common Share (Details)	6 Months Ended
	Jun. 30, 2015shares
Convertible Debt Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,055,555

Note 3. Summary of Significan27

Note 3. Summary of Significant Accounting Policies: Net Earnings (loss) Per Common Share: Schedule of Components of Potential Dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Details
Convertible Preferred Stock	260,000	260,000
Options to Purchase Common Shares	3,440,000	3,440,000
Private Placement Warrants	2,086,500	3,011,500
Convertible Promissory Notes	1,925,000	1,925,000
Total	7,711,500	8,636,500

Note 4. Accounts Payable and 28

Note 4. Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Details
Accrued payroll due officers	$ 1,319,711	$ 1,288,136
Accrued interest due officers	324,028	270,166
Accrued interest	860,853	756,405
Accrued dividends	406,400	355,600
Other accounts payable and accrued expenses	592,773	634,172
Total accounts payable and accrued expenses	$ 3,503,765	$ 3,304,479

Note 4. Accounts Payable and 29

Note 4. Accounts Payable and Accrued Expenses (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Accrued payroll due officers	$ 1,319,711	$ 1,288,136
Director
Accrued payroll due officers	168,750	131,250	$ 93,750
President
Accrued payroll due officers	1,116,996
Accrued Rent, Current	$ 67,608	$ 62,062

Note 5. Notes Payable (Details)

Note 5. Notes Payable (Details) - USD ($)	1 Months Ended		6 Months Ended
	Jul. 31, 2011	Oct. 31, 2008	Jun. 30, 2015	Dec. 31, 2014	Oct. 25, 2010	Mar. 01, 2010	Dec. 31, 2009	Oct. 23, 2008
Line of Credit Facility, Maximum Borrowing Capacity								$ 1,000,000
Notes payable			$ 1,962,500	$ 1,962,500
Line of Credit
Debt Instrument, Interest Rate, Stated Percentage								9.00%
Debt Instrument, Maturity Date		Nov. 1, 2012
Long-term Line of Credit							$ 1,000,000
Notes payable			$ 1,000,000
Line of Credit | Employee Stock Option | October 23, 2008
Options, Granted			50,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value			$ 1.75
Line of Credit | Employee Stock Option | October 23, 2008 - 2
Options, Granted			250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value			$ 1.75
Convertible Promissory Note
Notes payable			$ 962,500
Convertible Promissory Note | March 1, 2010 Private Placement
Debt Instrument, Face Amount			25,000
Interest Expense, Debt			$ 0.1200
Warrants per unit			50,000
Warrant Exercise Price			$ 1
Debt Instrument, Convertible, Conversion Price			$ 50,000
Notes payable			$ 475,000			$ 450,000
Convertible Promissory Note | March 1, 2010 Private Placement | Director
Notes payable						$ 25,000
Convertible Promissory Note | October 25, 2010 Private Placement
Debt Instrument, Face Amount			25,000
Interest Expense, Debt			$ 0.0900
Warrants per unit			50,000
Warrant Exercise Price			$ 1
Debt Instrument, Convertible, Conversion Price			$ 50,000
Notes payable			$ 487,500		$ 512,500
Debt Conversion, Original Debt, Amount	$ 25,000
Convertible Promissory Note | October 25, 2010 Private Placement | Common Stock
Debt Conversion, Converted Instrument, Shares Issued	50,000

Note 5. Notes Payable_ Schedu31

Note 5. Notes Payable: Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Oct. 25, 2010	Mar. 01, 2010
Notes payable	$ 1,962,500	$ 1,962,500
Line of Credit
Notes payable	1,000,000
Convertible Promissory Note
Notes payable	962,500
Convertible Promissory Note | March 1, 2010 Private Placement
Notes payable	475,000			$ 450,000
Convertible Promissory Note | October 25, 2010 Private Placement
Notes payable	$ 487,500		$ 512,500

Note 6. Convertible Debenture32

Note 6. Convertible Debentures and Derivative Liability (Details)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2014USD ($)	Feb. 28, 2014	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2014USD ($)
Amortization of debt discount			$ 7,920	$ 15,447	$ 25,780	$ 15,447
Change in fair value of derivative liability					$ (875,972)	$ 1,294,190
Tranche 1
Unamortized discount								$ 1,000,000
Debt Instrument, Maturity Date					Mar. 31, 2020
Tranche 2
Unamortized discount								$ 850,000
Debt Instrument, Maturity Date					Dec. 31, 2020
Tranches 1 & 2
Amortization of debt discount					$ 25,299
Non-convertible Debenture
Amortization of debt discount					$ 481
Debt Instrument, Maturity Date					Mar. 31, 2020
Convertible Debt Securities
Unamortized discount	$ 1,778,859		$ 1,753,560		$ 1,753,560		$ 1,778,859
Convertible Debt Securities | February 14, 2014 Private Placement
Maximum Offering Amount					$ 3,000,000
Debt Instrument, Interest Rate, Stated Percentage			4.00%		4.00%
Debt Instrument, Maturity Date, Description					mature six years from the date of issuance
Convertible Debt Securities | February 14, 2014 Private Placement | Derivative Financial Instruments, Liabilities
Fair Value Measurements, Valuation Techniques					Monte Carlo models
Fair Value Assumptions, Expected Volatility Rate					195.00%		172.00%
Convertible Debt Securities | February 14, 2014 Private Placement | Maximum | Derivative Financial Instruments, Liabilities
Fair Value Inputs, Discounted Bond Rates					7.07%		9.85%
Convertible Debt Securities | February 14, 2014 Private Placement | Minimum | Derivative Financial Instruments, Liabilities
Fair Value Inputs, Discounted Bond Rates					6.45%		5.78%
Convertible Debt Securities | February 14, 2014 Private Placement | Tranche 1
Maximum Offering Amount					$ 1,000,000
Debt Instrument, Convertible, Number of Equity Instruments	3,166,666	3,333,333
Debt Instrument, Convertible, Conversion Price | $ / shares			$ 0.30		$ 0.30
Investors that consented to amended conversion terms, amount of offering	$ 950,000						$ 950,000
Investors that did not consent to amended conversion terms, amount of offering	$ 50,000						50,000
Convertible Debt Securities | February 14, 2014 Private Placement | Tranche 2
Maximum Offering Amount					$ 1,000,000
Debt Instrument, Convertible, Number of Equity Instruments	1,888,889	2,222,222
Debt Instrument, Convertible, Conversion Price | $ / shares			$ 0.45		$ 0.45
Investors that consented to amended conversion terms, amount of offering	$ 850,000						850,000
Investors that did not consent to amended conversion terms, amount of offering	$ 300,000						$ 300,000
Convertible Debt Securities | February 14, 2014 Private Placement | Tranche 3
Maximum Offering Amount					$ 1,000,000
Investors that did not consent to amended conversion terms, amount of offering			$ 850,000		$ 850,000
Convertible Debt Securities | February 14, 2014 Private Placement | Tranche 3 | Maximum
Debt Instrument, Convertible, Number of Equity Instruments					1,818,182
Debt Instrument, Convertible, Conversion Price | $ / shares			$ 0.75		$ 0.75
Convertible Debt Securities | February 14, 2014 Private Placement | Tranche 3 | Minimum
Debt Instrument, Convertible, Number of Equity Instruments					1,333,333
Debt Instrument, Convertible, Conversion Price | $ / shares			$ 0.55		$ 0.55

Note 6. Convertible Debenture33

Note 6. Convertible Debentures and Derivative Liability: Schedule of Derivative Liabilities at Fair Value (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Derivative Liability, Current	$ 2,878,261	$ 3,754,233
Tranche 1
Derivative Liability, Current	1,546,551	2,014,733
Tranche 2
Derivative Liability, Current	$ 1,331,710	$ 1,739,500

Note 7. Related Party Transac34

Note 7. Related Party Transactions (Details) - USD ($)	3 Months Ended	6 Months Ended		31 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014
Accrued payroll due officers	$ 1,319,711	$ 1,319,711			$ 1,288,136
Accrued interest	860,853	860,853			756,405
Operating Leases, Rent Expense, Net		34,287	$ 37,050	$ 168,665
Office Space Lease
Debt Instrument, Periodic Payment		4,534
President
Accrued payroll due officers	1,116,996	1,116,996
Operating Leases, Rent Expense, Net	13,602	27,207		$ 100,000
Vice President
Accrued payroll due officers	$ 121,140	$ 121,140
Management
Debt Instrument, Interest Rate, Stated Percentage	9.00%	9.00%
Accrued interest	$ 53,863	$ 53,863	50,247
Director
Accrued payroll due officers	$ 168,750	168,750	$ 93,750		$ 131,250
Noninterest Expense Directors Fees		$ 15,000

Note 8. Commitments and Conti35

Note 8. Commitments and Contingencies (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating agreement description for CAMC	provides for the payment of an annual operational term management fee of 1.2% of all gross gaming revenues between zero and $100,000,000; plus 0.75% of gross gaming revenue between $100,000,000 and $140,000,000; plus 0.5% of gross gaming revenue above $140,000,000; plus two percent of the net gaming revenue between zero and $25,000,000; plus three percent of the net gaming revenue above twenty-five million dollars $25,000,000
Employee Stock Ownership Plan Penalties	$ 42,605	$ 28,417
Employee Stock Ownership Plan Cumulative Potential Penalties	$ 185,208
College Health & Investment, L.P. v. Diamondhead Casino Corporation
Debt Instrument, Interest Rate, Stated Percentage	12.00%
College Health & Investment, L.P. v. Diamondhead Casino Corporation | Principal
Loss Contingency, Damages Sought, Value	$ 150,000
College Health & Investment, L.P. v. Diamondhead Casino Corporation | Interest
Loss Contingency, Damages Sought, Value	45,000
College Health & Investment, L.P. v. Diamondhead Casino Corporation 2
Loss Contingency, Damages Sought, Value	150,000
College Health & Investment, L.P. v. Edson R. Arneault, Deborah A. Vitale, Gregory A. Harrison, Martin Blount and Benjamin Harrell
Loss Contingency, Damages Sought, Value	$ 150,000
College Health & Investment, L.P.
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	5.00%
Investor
Lien Amount	$ 1,850,000
Management
Lien Amount	$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage	9.00%

Note 9. Subsequent Event (Detai

Note 9. Subsequent Event (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Subsequent Event | United States Bankruptcy Court
Loss Contingency, Damages Sought, Value	$ 150,000