4. Property and Equipment

12 Months Ended

Jun. 30, 2012

Notes to Financial Statements

4. Property and Equipment

As of June 30, 2012 and 2011, property and equipment consisted of the following

	2012			2011
Gaming vessel	$	-		$	4,854,908
Truck		-			39,761
Furniture and fixtures		8,490			8,490
Office equipment		23,289			23,290
		31,779			4,926,449
Less accumulated depreciation		(29,532	)		(263,708	)
Sale of Gaming Vessel		-			(4,651,637	)
	$	2,247		$	11,104

On June 10, 2010, the Company purchased The Big Easy, a gaming vessel for an aggregate purchase price of $4,264,500, payable: (a) by issuance of a secured note payable to the seller of $2,975,000 (the Secured Note), (b) issuance of an unsecured note payable to the seller of $600,000 (Unsecured Note), fees of $414,500 and cash of $275,000. As of September 17, 2010, both notes were in default and the interest rate was increased to 20%, per annum. As of June 30, 2011, the Big Easy was sold at public auction at a loss of $4,191,891 (Note 9).

On December 1, 2011, the Company transferred ownership of the Company truck to an officer without consideration.  The vehicle had a net book value of $0 at the date of transfer.

Casino construction in progress totals $538,853 and represents expenses related to the architectural design of the casino.

For the years ended June 30, 2012 and 2011, depreciation expense was $8,857 and $214,066, respectively.