NEVADA GOLD & CASINOS INC - FORM 8-K/A - EX-99.3 - September 15, 2010

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Exhibit 99.3
Nevada Gold & Casinos, Inc.
Pro-forma Balance Sheet as of the Fiscal Year Ended April 30, 2010
   
Nevada Gold
As reported in
Form 10-K
      
Acquired
Silver Dollar
Casinos
at
April 30, 2010
(Unaudited)
      
Pro-forma
Adjustments
      
Pro-forma
Balance Sheet
  
ASSETS
                        
Current assets:
                        
Cash and cash equivalents
  
$
3,155,736
    
$
1,954,204
            
$
5,109,940
  
Restricted cash
    
5,266,938
      
-
      
(5,000,000
)
    
266,938
  
Accounts receivable
    
66,822
      
-
              
66,822
  
Prepaid expenses
    
475,262
      
(1,480
)
            
473,782
  
Income tax receivable
    
1,750,374
      
-
              
1,750,374
  
Other current assets
    
155,796
      
161,568
      
70,000
      
387,364
  
Total current assets
    
10,870,928
      
2,114,292
      
(4,930,000
)
    
8,055,220
  
                                 
Investments in development projects
    
1,418,789
              
(1,273,649
)
    
145,140
  
Investments in development projects held for sale
    
3,437,932
                      
3,437,932
  
Notes receivable - development projects, net of current portion
    
1,700,000
                      
1,700,000
  
Goodwill
    
10,243,362
      
-
      
3,993,643
      
14,237,005
  
Identifiable intangible assets, net of accumulated amortization of $729,000 at April 30, 2010
    
5,101,800
              
3,382,851
      
8,484,651
  
Property and equipment, net of accumulated depreciation of $2,978,679 at April 30, 2010
    
3,473,051
      
1,888,863
              
5,361,914
  
Deferred tax asset
    
1,848,419
      
-
      
-
      
1,848,419
  
BVO receivable
    
4,000,000
      
-
      
-
      
4,000,000
  
Other assets, net of allowances
    
376,938
      
-
      
-
      
376,938
  
Total assets
  
$
42,471,219
    
$
4,003,155
      
1,172,845
    
$
47,647,219
  
                                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                
Current liabilities:
                                
Accounts payable and accrued liabilities
  
$
1,060,017
    
$
106,000
    
$
-
    
$
1,166,017
  
Accrued interest payable
    
70,000
      
-
      
-
      
70,000
  
Other accrued liabilities
    
687,819
      
-
      
-
      
687,819
  
Total current liabilities
    
1,817,836
      
106,000
      
-
      
1,923,836
  
                                 
Long-term debt, net of current portion and discount
    
10,000,000
      
-
      
5,070,000
      
15,070,000
  
Other liabilities
    
30,944
      
-
      
-
      
30,944
  
Total liabilities
    
11,848,780
      
106,000
      
5,070,000
      
17,024,780
  
                                 
Commitments and contingencies
    
—
                      
—
  
                                 
Stockholders' equity:
                                
    Common stock, $0.12 par value per share; 50,000,000 shares authorized; 13,935,330 shares issued and 12,764,130 shares outstanding at April 30, 2010
    
1,672,240
      
-
      
-
      
1,672,240
  
Additional paid-in capital
    
19,859,966
      
-
      
-
      
19,859,966
  
Retained earnings
    
19,464,972
      
3,897,155
      
(3,897,155
)
    
19,464,972
  
                                 
Treasury stock, 1,171,200 shares at April 30, 2010, at cost
    
(10,369,200
)
                    
(10,369,200
)
Accumulated other comprehensive loss
    
(5,539
)
    
-
              
(5,539
)
Total stockholders' equity
    
30,622,439
      
3,897,155
      
(3,897,155
)
    
30,622,439
  
Total liabilities and stockholders' equity
  
$
42,471,219
    
$
4,003,155
    
$
1,172,845
    
$
47,647,219
  
 
 
 
 
Pro-forma Statement of Operations for the Fiscal Year Ended April 30, 2010

   
Nevada Gold
As reported in
Form 10-K
      
Operating
results of
the acquired
Silver Dollar
Casinos
for the twelve
months ended
April 30, 2010
(unaudited)
      
Pro-forma
Adjustments
      
Pro-forma Stmt
of Operations
   
Revenues:
                        
Casino
  
$
18,822,900
    
$
26,396,282
    
$
-
    
$
45,219,182
  
Food and beverage
    
4,534,744
      
7,163,821
      
-
      
11,698,565
  
Other
    
865,264
      
1,378,624
      
-
      
2,243,888
  
Management fees
    
620,968
      
-
      
-
      
620,968
  
Gross revenues
    
24,843,876
      
34,938,727
      
-
      
59,782,603
  
Less promotional allowances
    
(2,817,888
)
    
(3,905,435
)
    
-
      
(6,723,323
)
Net revenues
    
22,025,988
      
31,033,292
      
-
      
53,059,280
  
                                 
Operating expenses:
                                
Casino
    
8,562,284
      
16,566,625
      
-
      
25,128,909
  
Food and beverage
    
2,851,635
      
5,713,201
      
-
      
8,564,836
  
Marketing and administrative
    
5,564,288
      
601,663
      
-
      
6,165,951
  
Facility
    
1,070,933
      
3,088,285
      
-
      
4,159,218
  
Corporate expense
    
4,216,475
      
2,323,592
      
-
      
6,540,067
  
Legal expenses
    
241,468
      
1,850
      
-
      
243,318
  
Depreciation and amortization
    
1,344,323
      
640,816
      
296,304
      
2,281,443
  
Impairment of assets
    
4,347,183
      
-
      
-
      
4,347,183
  
Write-off of project development cost
    
50,486
      
-
      
-
      
50,486
  
Other
    
476,395
      
503,030
      
-
      
979,425
  
Total operating expenses
    
28,725,470
      
29,439,062
      
296,304
      
58,460,836
  
Operating income (loss)
    
(6,699,482
)
    
1,594,230
      
(296,304
)
    
(5,401,556
)
Non-operating income (expenses):
                                
Gain (loss) on sale of equity investees and assets
    
16,511
      
(5,173
)
    
-
      
11,338
  
Interest income
    
192,708
      
-
      
(10,721
)
    
181,987
  
Interest expense
    
(866,034
)
    
-
      
(557,700
)
    
(1,423,734
)
Amortization of loan issue costs
    
(58,972
)
    
-
      
-
      
(58,972
)
Loss on extinguishment of debt
    
(128,834
)
    
-
      
-
      
(128,834
)
Income (loss) before income tax expense (benefit)
    
(7,544,103
)
    
1,589,057
      
(864,725
)
    
(6,819,771
)
Income tax expense (benefit)
                                
Current
    
(1,546,698
)
    
37,400
      
246,273
      
(1,263,025
)
Deferred and change in valuation allowance
    
(1,248,623
)
    
-
      
-
      
(1,248,623
)
Total income tax expense (benefit)
    
(2,795,321
)
    
37,400
      
246,273
      
(2,511,648
)
Net income (loss)
  
$
(4,748,782
)
  
$
1,551,657
    
$
(1,110,998
)
  
$
(4,308,123
)
                                 
Per share information:
                                
Net income (loss) per common share - basic
  
$
(0.37
)
  
$
0.12
    
$
(0.09
)
  
$
(0.33
)
Net income (loss) per common share - diluted
  
$
(0.37
)
  
$
0.12
    
$
(0.09
)
  
$
(0.33
)
                                 
Basic weighted average number of shares outstanding
    
12,878,240
      
12,878,240
      
12,878,240
      
12,878,240
  
Diluted weighted average number of shares outstanding
    
12,878,240
      
12,878,240
      
12,878,240
      
12,878,240
  
 
 
 
 
 
Pro-forma Balance Sheet as of the Fiscal Year Ended April 30, 2010

Pro-forma adjustments to give effect to the acquisition as if it occurred April 30, 2010 (the last day of fiscal 2010)

To give effect to the acquisition as if it occurred April 30, 2010 (last day of fiscal 2010)
Restricted cash
          
5,000,000
  
Remaining cash to be paid for acquisition
Long-term debt, net of current portion
          
5,070,000
  
New credit agreement
Investments in development projects
          
1,273,649
  
Reclass
Memorabilia inventory
    
70,000
          
Hollywood Casino memorabilia
Customer relationships
    
2,074,131
          
Used same % as NGWA acquisition
Trade names
    
1,308,720
          
Used same % as NGWA acquisition
Retained earnings
    
3,897,155
          
Eliminate remaining Retained Earnings of
Goodwill
    
3,993,643
          
Silver Dollar Casinos
   

   
Debit
    
Credit
  
Reduce interest income for the use of cash to purchase casinos for one year at 0.18%
  
Interest income
    
10,800
        
Cash
            
10,800
  
                 
To account for interest expense on $5,070,000 long-term debt at 11.0%
  
Interest expense
    
557,700
          
Cash
            
557,700
  
                 
To amortize Customer Relationship intangible asset over 7 years
  
Amortization of intangible assets expense
    
296,304
          
Accumulated amortization of intangible assets
            
296,304
  
                 
To account for interest on $1 million deposit made to acquire casinos for 16 days at 0.18%
  
Cash
    
79
          
Interest income
            
79
  
                 
To account for Federal income tax at 34% of pro-forma pre-tax operating adjustments
  
Income tax receivable
    
294,007
          
Income tax expense-current
            
294,007
  
                 
To account for Federal income tax at 34% of pre-tax operating results of acquired casinos
  
Income tax expense-current
    
540,279
          
Income tax receivable
            
540,279
  
 
 
 
 
 

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