Income Taxes

2 Months Ended

Feb. 29, 2012

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

Blocker, a wholly-owned subsidiary, has elected to be taxed as a corporation. Accordingly, equity in the flow-through earnings of Eldorado and Mesquite is taxed to Blocker. NGA incurs certain other costs, primarily associated with being a public company, including professional and other fees, which, for tax purposes, flow through to its members.

For the periods presented, the Company's effective and statutory tax rates did not vary materially and the only reconciling item was an immaterial change in valuation allowance to reduce income taxes (benefit) to zero.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used to determine taxable income for income tax reporting purposes. The following table presents the significant components of the non-current deferred tax assets (liabilities) of the Company and its consolidated subsidiaries related to its investments in Eldorado and Mesquite.

Net operating loss carryforward	$	1,562,703
Tax credit carryforward		182,791
Basis difference for investment in Eldorado Resorts LLC		3,887,377
Acquisition costs		144,800
Subtotal		5,777,671
Less: valuation allowance		(5,777,671	)
Net deferred tax asset	$	—

The Company has a federal income tax net operating loss carryforward of approximately $4,465,000 and a federal income tax credit carry forward of $182,791, both of which will expire between 2028 and 2030.