The accompanying notes are an integral part
of these interim financial statements.
The accompanying notes are an integral part
of these interim financial statements.
The accompanying notes are an integral part
of these interim financial statements.
NOTES
TO FINANCIAL STATEMENTS
SEPTEMBER
30, 2016
(Unaudited)
NOTE
1. BASIS OF PRESENTATION, ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation and Organization
The
accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America for interim financial information and with Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by accounting principles generally accepted in the United States of America
for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals considered
necessary for a fair presentation, have been included, Operating results for the three and nine months ended September 30, 2016
are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other period.
For further information, refer to the financial statements and footnotes thereto, included in the Company’s Annual Report
on Form 10K for the year ending December 31, 2015.
As
used in these Notes to the Financial Statements, the terms the "Company", "we", "us", "our"
and similar terms refer to Empire Global Gaming, Inc.
Empire
Global Gaming, Inc. (the “Company”) was incorporated in the State of Nevada on May 11, 2010 in order to acquire certain
U.S Patent license agreements pertaining to roulette and actively engage in the gaming business worldwide and commenced operations
in June, 2010. The Company was founded to develop, manufacture and sell Class II & Class III Casino electronic
and table games for the general public and casinos worldwide. The Company owns exclusive rights through license agreements to
four U.S. Patents consisting of 14 roulette games patents. We also sells a complete line of public and casino grade gaming products
for roulette, blackjack, craps, baccarat, mini baccarat, pinwheels, Sic Bo, slot machines, poker tables and bingo games. These
patents are certified by Gaming Laboratories International to minimize any unfairness in the multi-number bets in roulette (American
double 0 & European single 0) to both players and casinos. One of the patents controlled by the Company is for a “new
number pattern and board layout” that will insure, the various gaming control boards and commissions in the United States
and eventually worldwide, that the highest standards of security and integrity are met.
The
Company developed a website (
www.lottopick3.com
) which provides analytical data to consumers on several different lottery
type games. This program is not a gambling/consulting program. It is strictly an analysis program. The website does not offer
any advice one way or the other. It offers an in depth breakdown of all the previous numbers that have been drawn in all states
that have the pick 3 games. The software breaks things down into all the possible categories and shows any types of trends that
may occur.
Significant
Accounting Policies
Use
of Estimates
The
preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
NOTE
1. BASIS OF PRESENTATION, ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue
Recognition
The
Company derives its revenue from sale of gaming products and from fees earned for the use of its online lottery number selecting
application. The Company recognizes revenue from product sales only when there is persuasive evidence of an arrangement, delivery
has occurred, the sale price is determinable and collectability is reasonably assured and from fees as paid for in an online transaction.
Recent
Issued Accounting Pronouncements
From
time to time, new accounting pronouncements are issues by the Financial Accounting Standards Board or other standard bodies that
may have an impact on the Company's accounting and reporting. The Company believes that such recently issued accounting pronouncements
and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting
or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.
NOTE
2. GOING CONCERN
The
accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate
continuation of the Company as a going concern. To date, the Company has generated minimal revenues, has accumulated deficit
of $859,555, experienced recurring net operating losses and had a net loss of $24,324 for the nine months ended September 30,
2016. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
These financial statements do not include any adjustments relating to the recoverability and classification of recorded
asset amounts, or amounts and classification of liabilities that might result from this uncertainty. We will need to raise funds
or implement our business plan to continue operations.
In
order to continue as a going concern, the Company may need, if revenues do not continue to grow, among other things, additional
capital resources. Management’s plan is to obtain such resources, if needed, for the Company by obtaining capital from management
and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However
management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
The
ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described
in the preceding paragraph. The accompanying financial statements do not include any adjustments that might be necessary if the
Company is unable to continue as a going concern.
NOTE
3. RELATED PARTY TRANSACTIONS
The
Company had notes payable to stockholders who are our chief executive officer and chief financial officer. The notes bear interest
at 4% per annum and are due on December 31, 2018. The notes payable had unpaid balance of $123,820 as of September 30, 2016 and
$90,620 as of December 31, 2015.
The
Company borrowed $33,200 and $20,500 from stockholders during the nine months ended September 30, 2016 and 2015, respectively.
The
Company recorded interest expense of $1,204 and $859 for the three months ended September 30, 2016 and 2015, respectively and
$3,342 and $2,287 for the nine months ended September 30, 2016 and 2015, respectively for these notes payable and the balances
of accrued interest were $8,944 and $5,602 as of September 30, 2016 and December 31, 2015, respectively
.
NOTE
4. INCOME TAX
The
Company had a net operating loss carryforward of approximately $860,000 as of September 30, 2016, which expires between 2031 to
2035. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some
portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable income during the periods in which those temporary differences become deductible.
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies
in making this assessment. Based on the assessment, management has established a full valuation allowance against the entire
deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will
not be realized.
NOTE
5. SUBSEQUENT EVENTS
The
Company has evaluated all activity of the Company after September 30, 2016 through the issue date of the financial statement and
determined that there was no subsequent events that would require disclosure in the financial statements.