<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the quarter ended SEPTEMBER 30, 1998
-------------------
Commission file number 0-8927
------
NEVADA GOLD & CASINOS, INC.
---------------------------
(Exact name of registrant as specified in its charter)
Nevada 88-0142032
--------------------- -----------------------
(State or other jurisdiction (IRS Employer
of incorporation) Identification Number)
3040 Post Oak Blvd. Suite 675, Houston, Texas 77056
------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(713) 621-2245
--------------
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
----- -----
As of October 31, 1998 there were 9,445,592 shares of common stock
outstanding.
<PAGE>
NEVADA GOLD & CASINOS, INC.
INDEX
PART I
<TABLE>
ITEM 1. FINANCIAL STATEMENTS Page No.
--------
<S> <C>
Balance Sheets as of September 30 and March 31, 1998 3
Statements of Operations for the Three Months Ended
September 30, 1998 and 1997 4
Statements of Operations for the Six Months Ended
September 30, 1998 and 1997 5
Statements of Cash Flows for the Six Months Ended
September 30, 1998 and 1997 6
Notes to Interim Financial Statements 7
ITEM 2.
Management's Discussion and Analysis
of Financial Condition and Results of Operations 10
PART II
OTHER INFORMATION
Item 1 Through 6 11
</TABLE>
2
<PAGE>
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, March 31,
1998 1998
------------- -------------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 70,449 $ 154,367
Other assets 288,630 83,211
------------- -------------
TOTAL CURRENT ASSETS 359,079 237,578
Investment in Isle of Capri Black Hawk 331,223 599,828
Real estate and assets held for development 2,119,611 2,201,809
Note Receivable 497,240
Mining properties & claims 480,812 480,812
Furniture, fixtures and equipment, net of accumulated depreciation
of $97,499 and $81,677 on September 30, and March 31,1998, respectively 108,075 95,672
------------- -------------
TOTAL ASSETS $ 3,896,040 $ 3,615,699
------------- -------------
------------- -------------
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 75,375 $ 56,248
Accrued interest payable 87,969 49,154
Short term notes payable 1,366,667 279,591
Current portion of long term debt 51,182 73,187
------------- -------------
TOTAL CURRENT LIABILITIES 1,581,193 458,180
------------- -------------
LONG TERM DEBT
Mortgages payable, net of current portion 32,594 111,023
Notes payable, net of current portion 515,804 521,718
------------- -------------
TOTAL LONG TERM DEBT 548,398 632,741
------------- -------------
OTHER LIABILITIES
Deferred gain 0 591,404
------------- -------------
TOTAL LIABILITIES 2,129,591 1,682,325
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, $10 par value, 500,000 shares authorized, 121,490 and
141,490 shares outstanding at September 30, and March 31, 1998,
respectively 1,214,900 1,414,900
Common stock, $.12 par value, 20,000,000 shares authorized, 9,208,573 and
8,822,464 shares outstanding at September 30, and March 31, 1998,
respectively 1,105,029 1,058,696
Additional paid in capital 7,665,240 7,095,896
Accumulated deficit prior to development stage (12/27/93) (2,296,077) (2,296,077)
Accumulated deficit during development stage (5,922,643) (5,340,041)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 1,766,449 1,933,374
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 3,896,040 $ 3,615,699
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
3
<PAGE>
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
----------------------------
1998 1997
------------- ------------
<S> <C> <C>
REVENUES
Royalty income $ 4,000 $ -
Gain on sale-part interest Isle of Capri
Black Hawk 147,851 -
Other income 206,199 540,754
------------- ------------
TOTAL REVENUES 358,050 540,754
------------- ------------
EXPENSES
General & administrative 103,750 215,465
Interest expense 79,234 46,290
Salaries 65,319 59,378
Legal & professional fees 113,017 79,032
Other 15,114 10,392
------------- ------------
TOTAL EXPENSES 376,434 410,557
------------- ------------
EQUITY IN EARNINGS (LOSS) OF ISLE OF CAPRI-
BLACK HAWK 56,148 -
------------- ------------
NET INCOME (LOSS) $ 37,764 $130,197
------------- ------------
------------- ------------
PER SHARE INFORMATION
Net Income (Loss) $ 37,764 $ 130,197
Preferred stock dividends accumulated (36,347) (26,956)
------------- ------------
Income (Loss) available to common stockholders $ 1,417 $ 103,961
------------- ------------
------------- ------------
Weighted average number of common
Shares outstanding 9,076,387 8,453,689
------------- ------------
------------- ------------
Net income per common share $ (.00) $ .01
------------- ------------
------------- ------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
4
<PAGE>
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
September 30, Cumulative Amounts
---------------------- During Development
1998 1997 Stage (Since 12/27/93)
---------- ---------- ----------------------
<S> <C> <C> <C>
REVENUES
Royalty income $ 4,000 $ 15,000 $ 223,000
Gain on sale-part interest Isle of Capri
Black Hawk 147,851 - 282,967
Other income 207,008 541,119 706,273
------------ ------------ ------------
TOTAL REVENUES 358,859 556,119 1,212,240
------------ ------------ ------------
EXPENSES
General & administrative 205,344 320,877 1,903,652
Interest expense 99,895 112,228 804,487
Salaries 131,402 111,219 660,597
Legal & professional fees 148,922 120,110 2,060,939
Other 30,845 20,463 408,653
------------ ------------ ------------
616,409
TOTAL EXPENSES 684,896 5,838,328
------------ ------------ ------------
EQUITY IN EARNINGS (loss) OF ISLE OF CAPRI-
BLACK HAWK (325,052) - (1,296,556)
------------ ------------ ------------
NET INCOME (Loss) $(582,601) (128,777) $ (5,922,643)
------------ ------------ ------------
------------ ------------ ------------
PER SHARE INFORMATION
Net Income (Loss) $(582,601) (128,777) $ (5,922,643)
Preferred stock dividends accumulated 78,678 53,912 (224,725)
------------ ------------ ------------
Income (Loss) available to common stockholders $(661,279) (182,689) $ (6,148,785)
------------ ------------ ------------
------------ ------------ ------------
Weighted average number of common
Shares outstanding 9,076,387 8,404,638 7,046,585
------------ ------------ ------------
------------ ------------ ------------
Net income per common share $ (.07) (.02) $ (.87)
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
5
<PAGE>
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
September 30, Cumulative Amounts
-------------------------- During Development
1998 1997 Stage (Since 12/27/93)
------------ ------------ ----------------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (582,601) $ (128,777) $ (5,922,642)
Adjustments to reconcile net loss to net cash
Provided (used) by operating activities:
Depreciation 15,822 13,306 88,693
Equity in net loss of Isle of Capri
Black Hawk 268,605 1,240,109
Consultant and investment banker
option expense 27,444 - 790,513
Gain on sale-part interest Isle of
Capri Black Hawk (147,851) - (282,967)
Other - - 231
Changes in operating assets and liabilities:
Other (655,536) (700) (451,995)
Accounts payable and accrued liabilities 69,185 (31,902) 1,247,850
------------ ------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (1,004,932) (148,073) (3,290,208)
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate and assets held for development (497,104) (45,532) (1,854,829)
Purchase of furniture, fixtures and equipment (3,227) (6,827) (51,886)
Proceeds from sale of part interest of Isle of
Capri Black Hawk - - 833,334
Proceeds on disposition of property 168,249 8,866
------------ ------------ ------------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (500,331) 115,890 (1,064,515)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt 1,416,667 773,795 6,182,325
Common stock issued for cash, net of
Offering costs 412,628 135,000 1,789,583
Fractional shares redeemed - - (36)
Payments on debt (407,950) (906,326) (3,849,487)
Salaries contributed by officers - - 1,000
Prepaid stock subscription - - 295,500
------------ ------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,421,345 2,469 4,418,885
------------ ------------ ------------
Net increase (decrease) in cash (83,918) (29,714) 64,162
Beginning cash balance 154,367 78,245 6,287
------------ ------------ ------------
Ending cash balance $ 70,449 $ 48,531 $ 70,449
------------ ------------ ------------
------------ ------------ ------------
SUPPLEMENTAL INFORMATION:
Cash paid for interest $ 59,525 $ 88,231 $ 473,025
------------ ------------ ------------
------------ ------------ ------------
Cash paid for taxes $ - $ - $ -
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
6
<PAGE>
NEVADA GOLD & CASINOS, INC.
SEPTEMBER 30, 1998
NOTES TO INTERIM FINANCIAL STATEMENTS
ITEM 1.
BUSINESS
Nevada Gold & Casinos, Inc. ("Nevada Gold" or the "Company") was formed
in 1977 under the name Pacific Gold & Uranium Corporation for the principal
purpose of operating and managing mining activities, primarily in the western
United States. On December 27, 1993, control of the Company changed and the
Company's primary focus was redirected toward the development of gaming and
real estate properties in Colorado. The Company is considered to be in the
development stage since December 27, 1993. In January 1994, the Company
changed its name from Pacific Gold Corporation to Nevada Gold & Casinos, Inc.
In April 1997, the Company and Isle of Capri Casinos, Inc. ("Isle of
Capri Casinos"), formerly Casino America, Inc. ("Casino America") through
wholly owned subsidiaries, BlackHawk Gold Ltd. ("BlackHawk Gold") and Casino
Colorado of Colorado, Inc. ("Casino Colorado"), respectively, formed a
limited liability company, the Isle of Capri Black Hawk. The limited
liability company's purpose is the construction and operation of the Isle of
Capri Black Hawk Casino (the "Casino") on the Black Hawk Property. Casino
America will operate the Casino under a management agreement for a fee based
upon a percentage of revenues.
The Company also owns approximately 150 acres of real property in the
vicinity of Black Hawk, Colorado, and completed additional acquisitions in
July 1998. The Company intends to develop a commercial and residential real
estate project on the property.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared by the Company
without audit and, in the opinion of management, reflect all adjustments of a
normal recurring nature necessary for a fair statement of (a) the results of
operations for the three months ended September 30, 1998 and 1997, (b) the
results of operations for the six months ended September 30, 1998 and 1997,
(c) the financial position as of September 30, 1998, and (d) the cash flows
for the six month period ended September 30, 1998 and 1997. Interim results
are not necessarily indicative of results for a full year.
The consolidated balance sheet presented as of September 30, 1998 has
been derived from the consolidated financial statements that have been
audited by the Company's independent public accountants. The consolidated
financial statements and notes are condensed as permitted by Form 10-QSB and
do not contain certain information included in the annual financial
statements and notes of the Company. The consolidated financial statements
and notes included herein should be read in conjunction with the financial
statements and notes included in the Company's Annual Report on Form 10-K.
3. ISLE OF CAPRI BLACK HAWK
On April 25, 1997, the Isle of Capri Black Hawk, a Colorado limited
liability company, was formed. The Isle of Capri Black Hawk is owned by
Casino Colorado, a wholly owned subsidiary of Isle of Capri Casinos and Black
Hawk Gold, a wholly owned subsidiary of Nevada Gold. The Isle of Capri Black
Hawk is a development stage company and has not commenced gaming operations.
The principal
7
<PAGE>
NEVADA GOLD & CASINOS, INC.
SEPTEMBER 30, 1998
NOTES TO INTERIM FINANCIAL STATEMENTS
purpose of the Isle of Capri Black Hawk is to develop and operate a casino
entertainment complex in Black Hawk, Colorado, which is anticipated to open
in December 1998 or January 1999. The Company's capital contribution to the
limited liability company was 4 lots within the City of Black Hawk
that are zoned for gaming and adjacent land totaling approximately 6.5 acres,
all with a value of $7.9 million. The real estate was subject to notes
payable and accrued interest of approximately $400,000 that was paid by the
Isle of Capri Black Hawk. The Company's initial interest in the Isle of
Capri Black Hawk was 45%.
On August 20, 1997, the Isle of Capri Black Hawk and Isle of Capri
Capital Corp., a wholly owned subsidiary of the Isle of Capri Black Hawk,
that had no operations, assets or liabilities, issued $75,000,000 of 13%
First Mortgage Notes due 2004, with contingent interest, in order to finance
the construction and development of the Casino.
The rights and obligations of Casino Colorado and BlackHawk Gold are
governed in part by the Amended and Restated Operating Agreement of the Isle
of Capri Black Hawk (the "Agreement") dated as of July 1997. The Agreement
provides that the Isle of Capri Black Hawk will continue until December 31,
2096, or until such date that dissolution may occur. Pursuant to the
Agreement, Casino Colorado contributed cash, land purchase rights and
development costs to the Isle of Capri Black Hawk and BlackHawk Gold
contributed cash and land to the Isle of Capri Black Hawk.
On July 29, 1997, Casino Colorado, Casino America, BlackHawk Gold and
Nevada Gold also entered into a Members Agreement (the "Members Agreement")
which addressed the development of the Casino, management of the Isle of
Capri Black Hawk, additional capital contributions, and other matters. On
August 20, 1997, pursuant to the Members Agreement, Casino Colorado purchased
from BlackHawk Gold a 4.2% ownership interest (the "Transferred Interest") in
the Isle of Capri Black Hawk for $700,000 and BlackHawk Gold had 180 days
within which to reacquire all or a portion of the Transferred Interest for
$700,000 together with interest. In addition, pursuant to the Members
Agreement, BlackHawk Gold had the right to sell up to an additional 4.8%
ownership interest in the Isle of Capri Black Hawk to Casino Colorado (the
"Put"), for up to $800,000, and to repurchase, within 180 days, any ownership
interest sold pursuant to the Put, with the repurchase price being the price
for which such ownership interest was sold, together with interest. Pursuant
to the Put, Casino America purchased from BlackHawk Gold (i) an additional
.8% interest on November 13, 1997 for $133,333 and (ii) an additional 4.0%
ownership interest on February 16, 1998 for $666,667, exhausting BlackHawk
Gold's right to sell any additional interest under the terms of the Put.
BlackHawk Gold subsequently repurchased from Casino America Colorado a 4.0%
ownership interest out of the Transferred Interest for $715,000, which
includes interest. As a result, BlackHawk Gold then restored its ownership
interest in the Isle of Capri Black Hawk to 40%. BlackHawk Gold was
successful in repurchasing a 3.0% interest in August, 1998, and BlackHawk
Gold's ownership was increased to 43%. Profits and losses of the Isle of
Capri Black Hawk are allocated in proportion to ownership interests.
As of March 31, 1998, BlackHawk Gold had the right to repurchase the .8%
ownership interest and the 4.0% ownership interest purchased by Casino
Colorado on November 13, 1997 and February 16, 1998, respectively, under the
180 day repurchase provision of the Put. The 180-day period for repurchase
of the .8% ownership interest expired on May 12, 1997 and the gain resulting
from the sale has been recognized in the Company's March 31, 1998 financial
statements. The 180-day repurchase period on the ownership interest sold to
Casino Colorado on February 16, 1998 expired on August 15,
8
<PAGE>
NEVADA GOLD & CASINOS, INC.
SEPTEMBER 30, 1998
NOTES TO INTERIM FINANCIAL STATEMENTS
1998 and the $591,404 gain relating to the sale has been deferred in the
Company's March 31, 1998 financial statements.
The Company's ownership in the Isle of Capri Black Hawk is being
accounted for using the equity method of accounting. The Company's
investment in the Isle of Capri Black Hawk is stated at cost, adjusted for
its equity in the undistributed earnings or losses of the project. The
following is a summary of condensed financial information pertaining to the
Isle of Capri Black Hawk as of September 30, 1998:
<TABLE>
<CAPTION>
(in
thousands)
----------
<S> <C>
Current assets $ 934
Property and Equipment 65,385
Other assets 30,149
----------
$ 96,468
----------
----------
Current liabilities $ 8,436
Long-term debt 76,218
Stockholders' Equity 11,814
----------
$ 96,468
----------
----------
Interest income $ 686
Interest expense (1,845)
----------
Net loss $ (1,159)
----------
----------
</TABLE>
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussions of the Company's results of operations and
financial position should be read in conjunction with the financial
statements and notes pertaining thereto, appearing elsewhere in this Form
10-QSB. Management is of the opinion that inflation and changing prices will
have little, if any, effect on the Company's financial position or results of
operations.
GENERAL
Revenues from the Company have not been sufficient to cover the
Company's operating expenses during the past year. In addition, there have
been no revenues from the Company's gaming operations to date since these are
currently in the development stage. Management does not expect revenues from
operations until after the opening of the Isle of Capri Black Hawk Casino,
anticipated to open in late December 1998 or January 1999.
The Company's significant source of revenue will likely be from its
membership interest in the Isle of Capri Black Hawk. To date, no
distributions have been declared. Although it is anticipated that the casino
will commence operations in the next calendar year, there can be no
assurances that this will occur. In the event operations do commence, there
can be no assurance that the Isle of Capri Black Hawk will be profitable.
Other numerous contingencies, out of the control of the Company, may affect
distributions by the Isle of Capri Black Hawk, and there can be no assurance
that the Company will receive distributions or that they will be of an amount
substantial enough to fund the Company's operations.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED WITH THREE MONTHS ENDED
SEPTEMBER 30, 1997
Revenues decreased $182,700 for the three months ended September 30,
1998 compared to the same period in the prior year. The prior year included
$543,418 gain recorded on the sale of the Isle of Capri Black Hawk. The
current quarter includes a $197,304 gain recorded on the BLM exchange.
General and administrative expenses decreased $111,715 for the three
months ended September 30, 1998 compared to the same period in the prior
year. The decrease is attributable to a decrease in commissions and land
maintenance fees.
Interest expense increased $33,000 for the three months ended September
30, 1998 as compared to the same period last year. The current year includes
interest paid on the repurchase of the 3% interest in Isle of Capri Black
Hawk under the Put.
Legal and professional fees increased $34,000. The increase is
attributed to the amortization of the cost of 100,000 shares of common stock
issued for consulting services in December 1997 for services extending over a
36 month period.
Other expenses increased $5,000, resulting from increases in insurance,
printing and postage.
LIQUIDITY
The Company's internally generated cash flows from operations have
historically been and continue to be insufficient for its cash needs. The
Company has historically relied upon equity and debt
10
<PAGE>
financing to fund operations. The Company's current cash forecasts indicate
that there will be negative cash flows from operations for the balance of the
current fiscal year. It is likely that the Company will be required to seek
debt or equity financing or sell assets in order to brings its cash flow into
balance; however, there are currently no specific plans or commitments with
respect thereto. Management's strategy is to raise additional funds through
the sale of Company debt and equity securities, including those held by
affiliates of the Company. In the event that such actions are required,
there can be no assurance that the Company will be successful in any such
efforts.
The short term viability of the Company is dependent upon the Company's
ability to raise sufficient capital to meet its cash requirements. In
addition, the Company and its venture partner, Casino America, are in the
process of developing a casino as described above; however, there is no
assurance that the development of a successful casino will be completed. The
ownership and operation of gaming facilities are subject to extensive state
and local regulations. There is no assurance that the Company or its partner
will be able to comply or conduct business in accordance with applicable
regulations. The long term viability of the Company is dependent upon
successful completion and operation of a casino hotel complex. The factors
described above raise substantial doubt about the Company's ability to
continue as a going concern. The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. If the
Company is unable to continue as a going concern, the values realized from
the Company's assets may be less than the carrying amounts reported in its
financial statements.
IMPACT OF YEAR 2000
The Year 2000 issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of the
Company's computer programs that have time-sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000. This could
result in a system failure or miscalculations causing disruptions of
operations, including, among other things, a temporary inability to process
transactions, send payments on invoices, or engage in similar normal business
activities.
The Company intends to initiate formal communications with its business
venture associates and affiliates to determine the extent to which the
Company's interface systems are vulnerable to those third parties' failure to
remediate their own Year 2000 issues. There can be no guarantee that the
systems of other companies on which the Company's own systems may rely will
be timely converted and would not have an adverse effect on the Company's
systems. The Company believes that the Year 2000 issue will not pose
significant operational problems for its computer systems.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable
ITEM 2. CHANGES IN SECURITIES.
The following stock issuances occurred between April 1 and September 30,
1998. Each issuance was exempt from registration pursuant to Section 4(2)
and/or Regulation D promulgated under the Act as a transaction by an issuer
not involving any public offering. No underwriter was utilized in the
offering and no commissions were paid.
11
<PAGE>
The Company issued 312,192 shares of Common Stock to 14 investors for an
aggregate purchase price of approximately $601,928.
The Company issued 6,667 shares of Common Stock to an employee in lieu
of compensation.
The Company issued 10,000 shares of stock to one individual as part of
an asset exchange valued at $25,000.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable
ITEM 5. OTHER INFORMATION.
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(A) INDEX TO EXHIBITS
*3.1 - Articles of Incorporation
*3.2 - Amendment to Articles of Incorporation
*3.3 - By-laws
*4.1 - Deed of Trust
*4.2 - Master Secured Note
*4.3 - Note Participation Agreement
*10.1 - Operating Agreement Caesars Black Hawk, LLC
*10.2 - Operating Agreement of ICB LLC
*10.3 - Amended and Restated Operating Agreement of
Isle of Capri-Black Hawk, LLC
*10.4 - Members Agreement
*10.5 - License Agreement
27 - Financial Data Schedule
*Exhibits were previously filed and are incorporated by reference.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has fully caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NEVADA GOLD & CASINOS, INC.
By:/s/ H. Thomas Winn
-------------------
President and Chief Financial Officer
Date: November 13, 1998
- ----
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 70,449
<SECURITIES> 0
<RECEIVABLES> 163,201
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 359,079
<PP&E> 205,575
<DEPRECIATION> 97,499
<TOTAL-ASSETS> 3,896,040
<CURRENT-LIABILITIES> 1,581,193
<BONDS> 0
0
1,214,900
<COMMON> 1,105,029
<OTHER-SE> 7,665,240
<TOTAL-LIABILITY-AND-EQUITY> 3,896,040
<SALES> 0
<TOTAL-REVENUES> 33,807
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 616,409
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 99,895
<INCOME-PRETAX> (582,601)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (582,601)
<EPS-PRIMARY> (.07)
<EPS-DILUTED> 0
</TABLE>
