Iao Kun Group Holding Co Ltd

CIK:0001417754|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue from VIP Gaming Operations	$ 32,366,660	$ 105,002,184	$ 233,822,859
Total Revenues	32,366,660	105,002,184	233,822,859
Expenses
- Commission to Junket Agents	26,569,582	76,979,677	188,448,178
- Selling, General and Administrative Expenses	14,212,578	18,351,625	26,506,299
- Special Rolling Tax	241,414	642,268	1,662,714
- Impairment of Goodwill	0	17,757,113	0
- Amortization of Intangible Assets	8,136,369	16,369,467	16,365,034
- Restructuring charges	518,381	0	0
- Impairment of Intangible Assets	97,279,517	0	0
- Bad debts	100,391,631	0	0
Total Expenses	247,349,472	130,100,150	232,982,225
Operating (loss) income attributable to ordinary shareholders before change in fair value of contingent consideration	(214,982,812)	(25,097,966)	840,634
Change in Fair Value of Contingent Consideration for the Acquisitions of King’s Gaming, Bao Li Gaming and Oriental VIP Room	0	30,215,735	(60,918,569)
Net (Loss) Income Attributable to Ordinary Shareholders	(214,982,812)	5,117,769	(60,077,935)
Other Comprehensive (Loss) Income
Foreign Currency - Translation Adjustment	(330,605)	89,182	65,092
Total Comprehensive (Loss) Income	$ (215,313,417)	$ 5,206,951	$ (60,012,843)
Net (Loss) Income Per Share
Basic	$ (3.41)	$ 0.08	$ (0.99)
Diluted	$ (3.41)	$ 0.08	$ (0.99)
Weighted Average Shares Outstanding
Basic	63,103,781	62,116,749	60,781,915
Diluted	63,103,781	62,292,834	60,781,915

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (214,982,812)	$ 5,117,769	$ (60,077,935)
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Amortization of intangible assets	8,136,369	16,369,467	16,365,034
Impairment of intangible assets	97,279,517	0	0
Bad debts	100,391,631	0	0
Change in fair value of contingent purchase price obligation for the acquisition of King’s Gaming, Bao Li Gaming and Oriental VIP Room	0	(30,215,735)	60,918,569
Impairment of goodwill	0	17,757,113	0
Depreciation	72,920	82,961	77,224
Loss on sale of equipment	19,331	0	14,958
Change in assets and liabilities
Accounts Receivable	788,958	69,416	3,652,903
Markers Receivable	(4,447,078)	17,730,826	53,793,183
Prepaid Expenses and Other Assets	(385,150)	(1,075,548)	153,220
Lines of Credit Payable	3,526,491	9,501,385	(10,277,075)
Accrued Expenses	(1,855,956)	(5,455,168)	(4,018,538)
Net cash (used in) provided by operating activities	(11,455,779)	29,882,486	60,601,543
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from the sale of equipment	13,527	0	12,895
Purchase of property and equipment	0	(2,623)	(303,819)
Net cash provided by (used in) investing activities	13,527	(2,623)	(290,924)
CASH FLOW FROM FINANCING ACTIVITIES
Cash paid for shares repurchased	0	0	(4,193,554)
Payment of dividends	(499,630)	(1,909,712)	(1,539,260)
Proceeds from/(repayment of) shareholder loans, net	8,895,003	213,966	(3,196,222)
Net cash provided by (used in) financing activities	8,395,373	(37,965,746)	(56,929,036)
Net (decrease) increase in cash and cash equivalents	(3,046,879)	(8,085,883)	3,381,583
Effect of foreign currency translation on cash	67,490	(7,957)	201,854
Cash and cash equivalents at beginning of period	3,052,694	11,146,534	7,563,097
Cash and cash equivalents at end of period	73,305	3,052,694	11,146,534
Non-cash Financing Activities
Ordinary shares issued for repayment of debt	0	1,645,938	3,875,000
Directors Shares issued for compensation	200,000	200,000	200,000
Oriental VIP Room [Member]
CASH FLOW FROM FINANCING ACTIVITIES
Contingent consideration paid	0	(14,950,000)	(26,000,000)
Bao Li Gaming [Member]
CASH FLOW FROM FINANCING ACTIVITIES
Contingent consideration paid	0	(21,320,000)	(13,000,000)
Non-cash Financing Activities
Ordinary shares issued for repayment of debt	0	1,342,750	3,837,500
Kings Gaming [Member]
CASH FLOW FROM FINANCING ACTIVITIES
Contingent consideration paid	$ 0	$ 0	$ (9,000,000)

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and Cash Equivalents	$ 73,305	$ 3,052,694
Accounts Receivable	669,767	1,460,251
Markers Receivable	0	170,892,037
Other Current Assets	1,832,965	1,448,155
Total Current Assets	2,576,037	176,853,137
Markers Receivable (net of allowance for doubtful accounts of $100,198,392 and $0 at December 31, 2016 and 2015, respectively)	74,765,307	0
Intangible Assets, net	0	105,645,737
Property and Equipment (net of accumulated depreciation of $178,989 and $169,798 at December 31, 2016 and 2015, respectively)	135,920	241,927
TOTAL ASSETS	77,477,264	282,740,801
CURRENT LIABILITIES
Lines of Credit Payable	45,417,314	41,908,984
Accrued Expenses	3,621,743	6,030,996
Bao Li Gaming Acquisition-Purchase Price Obligation	14,228,500	14,228,500
Loan Payable, Shareholders, current	12,078,017	2,827,584
Total Current Liabilities	75,345,574	64,996,064
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred Shares, $0.0001 par value Authorized 1,150,000 shares; none issued	0	0
Ordinary Shares, $0.0001 par value, Authorized 500,000,000 shares; 62,453,774 and 62,307,794 issued and outstanding at June 30, 2016 and December 31, 2015, respectively.	6,245	6,230
Additional Paid-in Capital	133,436,640	133,236,655
Retained (Deficit) Earnings	(131,621,195)	83,861,247
Accumulated Other Comprehensive Income	310,000	640,605
Total Shareholders' Equity	2,131,690	217,744,737
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 77,477,264	$ 282,740,801