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Discontinued Operations
 9 Months Ended
Jan. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 13.
  
Discontinued Operations
 
On June 27, 2018, the Company entered into a definitive agreement to sell its Club Fortune casino property in Henderson, Nevada, for $14.6 million, subject to certain adjustments, including a working capital adjustment. The property was sold on December 31, 2018.
 
As of July 27, 2018, Club Fortune met the requirements for presentation as assets held for sale and discontinued operation under generally accepted accounting principles. As a result of Club Fortune meeting the criteria to be classified as held for sale, the Company recorded a goodwill impairment of $115,128 and a loss on reclassification as held for sale of $84,872 in the first quarter of fiscal 2019 which primarily represented the estimated cost to sell Club Fortune. In the quarter ended January 31, 2019, the Company recorded a $472,866 loss on the sale of Club Fortune. The operations of Club Fortune have been classified as discontinued operations and as assets held for sale for all periods presented.
 
The results of discontinued operations are summarized as follows:
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
January 31,
 
 
January 31,
 
 
January 31,
 
 
January 31,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Gross revenues
 
$
2,289,969
 
 
$
3,862,505
 
 
$
8,750,437
 
 
$
11,827,509
 
Less promotional allowances
 
 
-
 
 
 
(552,248
)
 
 
-
 
 
 
(1,713,786
)
Net revenues
 
 
2,289,969
 
 
 
3,310,257
 
 
 
8,750,437
 
 
 
10,113,723
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Casino and food and beverage expense
 
 
1,331,637
 
 
 
2,027,281
 
 
 
5,456,195
 
 
 
6,111,932
 
Marketing and administrative
 
 
644,731
 
 
 
839,229
 
 
 
2,305,831
 
 
 
2,561,965
 
Facility and other expenses
 
 
52,544
 
 
 
87,968
 
 
 
236,513
 
 
 
245,878
 
Depreciation and amortization
 
 
-
 
 
 
340,385
 
 
 
220,531
 
 
 
1,087,380
 
Goodwill impairment
 
 
-
 
 
 
-
 
 
 
115,128
 
 
 
-
 
Loss on reclassification as held for sale
 
 
-
 
 
 
-
 
 
 
84,872
 
 
 
-
 
Loss on sale of assets
 
 
472,866
 
 
 
-
 
 
 
472,735
 
 
 
-
 
Income tax benefit
 
 
(48,215
)
 
 
(156,038
)
 
 
(34,506
)
 
 
(128,680
)
(Loss) income from discontinued operations, net of taxes
 
$
(163,594
)
 
$
171,432
 
 
$
(106,862
)
 
$
235,248
 
 
The assets and liabilities held for sale related to Club Fortune were as follows:
 
 
 
January 31,
 
 
April 30,
 
 
 
2019
 
 
2018
 
Assets:
 
 
 
 
 
 
 
 
Accounts receivable, net
 
$
-
 
 
$
140,370
 
Prepaid expenses and other assets
 
 
-
 
 
 
377,811
 
Inventory
 
 
-
 
 
 
88,998
 
Goodwill
 
 
-
 
 
 
2,831,434
 
Intangible assets, net
 
 
-
 
 
 
1,208,294
 
Property and equipment, net
 
 
-
 
 
 
9,558,045
 
Total assets held for sale
 
$
-
 
 
$
14,204,952
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
-
 
 
$
345,231
 
Accrued payroll and related
 
 
-
 
 
 
238,688
 
Accrued player’s club points and progressive jackpots
 
 
-
 
 
 
318,801
 
Total liabilities held for sale
 
$
-
 
 
$
902,720
 
 
On June 30, 2018, the Company sold its South Dakota route operations. The sale included all fixtures, equipment, trade names, and operating agreements used in connection with the business, but excluded necessary operating cash used in the business. Because this sale did not represent a strategic shift that would have a major effect on the Company’s operations, the sale was recorded as a sale of assets and not as discontinued operations.