9. SUBSEQUENT EVENTS

Grand Lodge Casino Lease Extension through December 2034

On July 1, 2024, the Company’s subsidiary, Gaming Entertainment (Nevada), LLC entered into a Seventh Amendment (the “Amendment”) with the landlord to amend the terms of the Hyatt Lease. The Amendment extends the term of the casino operations lease by 10 years to December 31, 2034. The current annual rent of $2.00 million will increase nominally in 2025 to $2.01 million, followed by annual increases of 2% for the remainder of this extended term. In the event of a significant renovation, the lessor may terminate the lease early with six months’ notice. Similar to previous lease arrangements, the lessor also has an option to purchase the Company’s leasehold interest and related operating assets of the Grand Lodge Casino at any time prior to lease expiration, subject to assumption of applicable liabilities. The option price is an amount equal to Grand Lodge Casino’s positive working capital, plus its EBITDA for the 12-month period preceding the acquisition (or pro-rated if less than 12 months remain on the lease), plus the fair market value of Grand Lodge Casino’s personal property. Except as set forth in the Amendment, all other terms of the Hyatt Lease remain in full force and effect.

Amended Sports Wagering Contracts and Settlements

On July 22, 2024, the Company’s two subsidiaries – Gaming Entertainment (Indiana) LLC and FHR-Colorado LLC – separately entered into amended Sports Agreements with a contracted party to settle overdue payments owed to the Company totaling $2.9 million for approximately $2.1 million, with such payment due to the Company in the third quarter of 2024. These amended Sports Agreements also included the reduction of certain future annual amounts, which are now required to be paid in advance of each annual term. Except as set forth in the respective amendments, all other terms of the Sports Agreements remain in full force and effect.

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