Note 11 - Finance Lease Right-of-use

9 Months Ended

Jan. 31, 2020

Lessee, Finance Leases [Text Block]

11.

Finance Lease Right-of-Use

May 1, 2019,

the Company adopted ASU

2016

Leases – Topic

842.

ASU

2016

requires that on the balance sheet a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.

We lease the casino as well as hangar and office space with initial lease terms of

two

five

twenty-five

and

fifty

years.

	January 31, 2020
Right-of-use assets	$	44,349
Less accumulated depreciation		2,130
Total	$	42,219

Future minimum lease payments for assets under capital leases at

January 31, 2020

are as follows:

2021	$	5,223
2022		5,243
2023		5,273
2024		5,328
2025		5,292
Thereafter		60,937
Total minimum lease payments		87,296
Less amount representing interest		43,652
Present value of net minimum lease payments		43,644
Less current maturities of finance lease liability		1,123
Finance lease liability, net of current maturities	$	42,521

The adoption of ASU

2016

had a negative impact on our financial statements for the

nine

months ended

January 31, 2020

. The impact is summarized below:

Increase in depreciation	$	2,118
Increase in interest expense		3,128
Decrease in rent expense		(3,845	)
Decrease in net income for the nine months ended January 31, 2020	$	1,401