Note 3 - Financed Lease Right-of-use

12 Months Ended

Apr. 30, 2020

Notes to Financial Statements

Lessee, Finance Leases [Text Block]

3. FINANCED LEASE RIGHT-TO-USE:

On

May 1, 2019,

the Company adopted ASU

2016

-

02

Leases – Topic

842.

ASU

2016

-

02

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.

	April 30, 2020		April 30, 2019
Finance lease right-of-use assets	$	44,349	$	1,699
Less accumulated depreciation		2,844		11
Total	$	41,505	$	1,688

Future minimum lease payments for assets under capital leases at

April 30, 2020

are as follows:

2021	$	5,236
2022		5,242
2023		5,287
2024		5,341
2025		5,267
Thereafter		59,618
Total minimum lease payments		85,991
Less amount representing interest		42,617
Present value of net minimum lease payments		43,374
Less current maturities of finance lease liability		1,163
Finance lease liability, net of current maturities	$	42,211

The adoption of ASU

2016

-

02

had a negative impact on our financial statements for the year ended

April 30, 2020

. The impact is summarized below.

Increase in depreciation	$	2,833
Increase in interest expense		4,167
Decrease in rent expense		(5,150	)
Decrease in net income for the year ended April 30, 2020	$	1,850

Financial and Other Covenants

We are in compliance with our covenants at

April 30, 2020

.