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AMERICAN WAGERING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JANUARY 31, 2010 AND 2009
2010 2009
ASSETS
CURRENT ASSETS
Cash and Equivalents
$ 2,084,268 $ 3,357,978
Restricted Cash
1,729,209 1,298,463
Accounts Receivable
204,706 219,264
Inventories
143,913 219,601
Deferred Tax Assets, net of allowance
369,000 369,000
Prepaid Expenses and Other
364,207 379,910
4,895,303 5,844,216
Property and Equipment, net of accumulated depreciation and amortization
3,301,180 4,171,160
Goodwill
103,725 103,725
Other Assets
221,291 321,222
$ 8,521,499 $ 10,440,323
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt
$ 441,781 $ 612,759
Accounts Payable
1,217,409 1,191,649
Line of Credit Payable
— 499,295
Accrued Liabilities
613,320 652,439
Unpaid Winning Tickets
1,021,229 1,193,900
Customer Deposits and Other
850,075 2,150,230
4,143,814 6,300,272
Long-Term Debt, less current portion
2,530,778 3,075,244
Other Long-Term Liabilities
242,111 530,071
2,772,889 3,605,615
Redeemable Series A Preferred Stock (3,238 shares)
323,800 323,800
7,240,503 10,229,387
STOCKHOLDERS' EQUITY
Series A Preferred Stock—10% cumulative; $100.00 par and liquidation value; 18,924 shares authorized; 10,924 shares outstanding
1,092,400 1,092,400
Common Stock—$0.01 par value; 25,000,000 shares authorized; 8,129,879 shares issued
81,299 81,299
Additional Paid-In Capital
12,589,318 12,361,309
Deficit
(12,154,528 ) (12,996,579 )
Treasury Stock, at cost (61,100 shares)
(327,493 ) (327,493 )
1,280,996 210,936
$ 8,521,499 $ 10,440,323
AMERICAN WAGERING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JANUARY 31, 2010 AND 2009
2010 2009
REVENUES:
Wagering
$ 9,235,783 $ 9,115,501
Hotel/Casino
2,289,646 2,677,644
Systems
3,023,026 3,695,255
14,548,455 15,488,400
OPERATING COSTS AND EXPENSES:
Direct Costs:
Wagering
6,381,494 8,576,477
Hotel/Casino
1,831,136 2,060,634
Systems
862,939 1,113,187
9,075,569 11,750,298
Operating Expenses:
Research and Development
672,899 591,121
Selling, General and Administrative
2,723,004 3,232,566
Depreciation and Amortization
946,818 1,027,551
4,342,721 4,851,238
OPERATING INCOME (LOSS)
1,130,165 (1,113,136 )
OTHER INCOME (EXPENSE):
Interest Income
8,476 45,835
Interest Expense
(296,208 ) (273,215 )
Litigation Income (Expense)
59,951 299,847
Other
81,322 112,566
(146,459 ) 185,033
INCOME (LOSS) BEFORE TAXES
983,706 (928,103 )
TAX PROVISION
— 71,481
NET INCOME (LOSS)
$ 983,706 $ (999,584 )
NET INCOME (LOSS) PER COMMON SHARE
BASIC
$ 0.10 $ (0.14 )
DILUTED
$ 0.10 N/A
