3. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

In connection with the preparation of our condensed consolidated financial statements for the first quarter of 2013, we identified an error in the timely recording for separation payments. In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), we assessed the materiality of the error and concluded that the error was not material to any of our previously issued financial statements. In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), we revised our previously issued financial statements to correct the effect of this error. As the revision relates to the fourth quarter of 2012, it will be reflected in future filings as applicable.

The following table presents the effect of this correction on the Company’s Consolidated Balance Sheet as of December 31, 2012 and on the Consolidated Statement of Income, Consolidated Statement of Equity and Consolidated Statement of Cash Flows for the successor period May 5, 2012 through December 31, 2012:


	As Previously Reported			Adjustment			As Revised
December 31, 2012
Consolidated Balance Sheet
Accrued expenses	$	23,888		$	1,046		$	24,934
Total current liabilities		124,611			1,046			125,657
Total liabilities		627,484			1,046			628,530
Accumulated deficit		(13,002	)		(1,046	)		(14,048	)
Total stockholders’ equity		254,110			(1,046	)		253,064

Period May 5, 2012 through December 31, 2012
Consolidated Statement of Income
Selling, general and administrative		51,930			1,046			52,976
Total operating expenses		177,591			1,046			178,637
Total expenses		193,190			1,046			194,236
Net operating income		13,996			(1,046	)		12,950
Loss from continuing operations before income taxes		(11,425	)		(1,046	)		(12,471	)
Net loss from continuing operations		(13,094	)		(1,046	)		(14,140	)
Net loss		(13,085	)		(1,046	)		(14,131	)
Net loss attributable to Great Wolf Resorts, Inc.		(13,002	)		(1,046	)		(14,048	)
Consolidated Statement of Equity
Net loss attributable to Great Wolf Resorts, Inc.		(13,002	)		(1,046	)		(14,048	)
Accumulated deficit		(13,002	)		(1,046	)		(14,048	)
Consolidated Statement of Cash Flow
Net loss		(13,085	)		(1,046	)		(14,131	)
Accounts payable, accrued expenses and other liabilities		1,000			1,046			2,046