Note 7 - Boot Hill Casino Building and Land Purchase

12 Months Ended

Apr. 30, 2022

Notes to Financial Statements

Casino Building and Land Purchase [Text Block]

7. Boot Hill Casino Building and Land Purchase:

On December 19, 2020, we completed the purchase of our Boot Hill Casino located in Dodge City, Kansas, for a purchase price of $41,250, and was funded with two secured bank long-term loans totaling $42,000. We incurred direct financing costs of approximately $400. Prior to our purchase, we were leasing the property under an operating lease. We had recorded a right-of-use asset and the related lease liability upon the adoption ASC 842, Leases, on May 1, 2019. Pursuant to ASC 805-50, Asset Acquisition, the cost was allocated to land, building and improvements, based on the relative fair values. Furthermore, pursuant to ASC 842-20-40-2, Leases – Purchase of Underlying Asset, the difference between the purchase price and the carrying amount of the lease liability immediately before the purchase was recorded by us as the lessee as an adjustment of approximately $2,628 to the carrying amount of the assets.

Purchase price of casino building and related land	$	41,250
Note payable, collaterialized by all of BHCMC's assets and compensation due under the State Management Contract. The interest rate is 5.32%. This note matures in December 2027, with a balloon payment of $19,250.	$	35,000
Note payable, collaterialized by all of BHCMC's assets and compensation due under the State Management Contract. This loan has subsequently been amended as part of the purchase of noncotrolling interest (See Footnote 6).	$	7,000
Total	$	42,000
Lease right-to-use asset	$	41,250
Accumulated depreciation	$	(4,169	)
Net	$	37,081
Lease liability	$	39,709