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Subsequent Events
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 16. Subsequent Events

 

On September 1, 2016, the Company was awarded $54,886 in attorneys’ fees and expenses against the six Petitioners who filed a Chapter 7 Involuntary Bankruptcy Petition against the Company in or about August 2015. The Bankruptcy Court found that the Petition had been filed in bad faith and for improper purposes. In November 2016, the Company recorded and enrolled the Delaware judgment in the Montgomery County Circuit Court of Maryland. One Petitioner, Arnold Sussman, filed a Motion to Reopen and Vacate Foreign Judgment. The Company settled with another Petitioner for $20,000. The Circuit Court denied Sussman’s Motion to Reopen and Vacate Foreign Judgment. Sussman appealed to the Court of Special Appeals which affirmed the judgment of the lower court. Sussman then filed a Petition for a Writ of Certiorari in the Maryland Court of Appeals, which denied the Petition. The Company has collected the $36,000 Sussman was required to post as a bond with the Circuit Court to stay enforcement of the judgment. The Company intends to pursue the remaining interest due on the judgment.

 

In the first quarter of 2019, the President advanced additional funds totaling $15,860 under the terms of her arrangement dated July 24, 2017 as more fully described in Note 8 of these consolidated financial statements. These funds were used primarily to pay those taxes and penalties required to reinstate the Company and Mississippi Gaming Corporation in both Delaware and Mississippi. In March 2019, the President was reimbursed for these advances from the $36,000 collected from Sussman in the above-referenced case.

 

In the first quarter of 2019, the Chairman advanced additional funds totaling $20,737 with the approval of the Board of Directors which voted on March 11, 2019 to increase up to an additional $200,000 of advances from the Chairman. The terms of this advance are identical to the terms of prior advances approved in March 2018 and more fully described in Note 8 of these consolidated financial statements. However, the additional funds will be secured by a fourth lien to be filed by the Company in favor of the Chairman.

 

On March 25, 2019, Mississippi Gaming Corporation, a wholly-owned subsidiary of the Company and the title owner of the Diamondhead Property (the "Owner"), entered into an agreement with an unrelated commercial real estate brokerage firm to sell all or part of the Diamondhead, Mississippi Property or, alternatively, to find a joint venture partner for the project. The agreement provides for an exclusive right to sell all or part of the Property beginning March 25, 2019 and ending October 31, 2019, unless extended by the parties. The agreement provides for a commission equal to three percent (3%) of the gross sales price for property sold if the Buyer does not have a broker or four percent (4%) of the gross sales price of property sold if the Buyer does have a broker, in which case the commission due will be split between the brokers. In the event the Owner consummates and closes a deal with a Joint Venture Partner introduced to the Owner by the broker, the Owner will pay the broker a commission equal to four percent (4%) of the amount contributed by the Joint Venture Partner as its capital contribution. This will not apply in the event the Owner consummates a deal with a Joint Venture Partner who is not introduced to the Owner by the broker. The agreement does not apply to loans obtained by or on behalf of the Owner using the Property as collateral or as security for a loan. The agreement also provides for a reduced commission to the broker in the event of a sale to certain potential purchasers already involved in discussions with the Owner.