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Merger and Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Number of Shares Common Stock Issued with Merger

The total number of shares of the Company’s common stock issued in connection with the Merger was as follows:

Pre-Merger

Value of Lakes

Lakes %

Pre-Merger

Value of Sartini

Gaming

Sartini

Gaming %

Total Post-Closing

Shares⁽¹⁾

Total Shares Issued

in Connection

with Merger⁽²⁾

134,615,083

62.6%

80,523,753

37.4%

22,592,260

8,453,565

(1)

Calculated as the sum of the number of shares of the Company’s common stock outstanding immediately after the Merger (on a fully diluted basis, including shares issuable upon the exercise of outstanding in-the-money stock options) and the number of shares of the Company’s common stock issued pursuant to the post-closing adjustment provisions of the Merger Agreement.

(2)	Includes 457,172 shares of the Company’s common stock that were issued to certain former holders of warrants issued by a subsidiary of Sartini Gaming upon the closing of the Merger.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Allocation. The preliminary allocation of the $77.4 million final purchase price to the assets acquired and liabilities assumed as of July 31, 2015 was as follows (in thousands):

	Amount
Cash	$	25,539
Other current assets		14,830
Property and equipment		84,104
Intangible assets		80,460
Goodwill		96,537
Current liabilities		(13,245	)
Warrant liability		(3,435	)
Debt		(190,587	)
Deferred tax liability		(14,582	)
Other long-term liabilities		(2,217	)
Total purchase price	$	77,404

Summary of Property Plant and Equipment Acquired

The amounts assigned preliminarily to property and equipment by category are summarized in the table below (in thousands):

	Remaining Useful Life (Years)	Amount Assigned
Land	Not applicable	$	12,470
Land improvements	5-14		4,030
Building and improvements	19-25		21,310
Leasehold improvements	1-28		20,793
Furniture, fixtures and equipment	1-11		22,866
Construction in process	Not applicable		2,635
Total property and equipment		$	84,104

Summary of Intangible Assets

The amounts assigned preliminarily to intangible assets by category are summarized in the table below (in thousands):

	Remaining Useful Life (Years)	Amount Assigned
Trade names	Indefinite	$	12,200
Player relationships	8-14		7,300
Customer relationships	13-16		59,200
Gaming licenses	Indefinite		960
Other intangible assets	2-10		800
Total intangible assets		$	80,460

Summary of Finite-lived Intangible Assets Amortization Expense

Preliminary estimates of future amortization expense related to the finite-lived intangible assets acquired in the Merger are as follows:

	Remainder of
	2016		2017		2018		2019		2020		2021		Thereafter
	(In thousands)
Estimated amortization expense	$	2,514	$	4,965	$	4,877	$	4,877	$	4,877	$	4,877	$	35,705

Summary of Unaudited Pro Forma Combined Financial Information

Unaudited Pro Forma Combined Financial Information. The following unaudited pro forma combined financial information is presented as if the Merger had occurred at the beginning of the period presented:

	Three Months Ended			Six Months Ended
	June 28, 2015			June 28, 2015
	(In thousands, except per share data)
Pro forma combined net revenues	$	88,011		$	172,781
Pro forma combined net loss		(1,594	)		(5,345	)

Pro forma combined net loss per share:
Basic and diluted	$	(0.07	)	$	(0.24	)

Weighted average common shares outstanding:
Basic and diluted		21,846			21,845