mgam_8k-043010.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report:
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April
30, 2010
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(Date
of earliest event reported)
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(April
27, 2010)
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Multimedia
Games, Inc.
(Exact
name of Registrant as Specified in its Charter)
000-28318
(Commission
File Number)
Texas
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74-2611034
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(State
or other jurisdiction
of
incorporation)
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(IRS
Employer
Identification
No.)
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206
Wild Basin Road South, Bldg. B, Suite 400,
Austin,
Texas
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78746
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: (512) 334-7500
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act 17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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On April
27, 2010, Country Crossing, one of the Alabama facilities where a subsidiary of
Multimedia’s Games, Inc. (“Company”) has historically placed games, indicated to
the Company that under current conditions it will remain closed and consequently
has substantial doubts as to its ability, in the short term, to make scheduled
payments pursuant to the terms of its development agreement with the
Company. As such, the Company has concluded that it is required,
under generally accepted accounting principles, to analyze the carrying value of
assets deployed at the Country Crossing facility for
impairment. Based on the Company’s analysis a reserve has been
established against the principal and accrued interest of a note receivable, as
well as accounts receivable, related to the Country Crossing facility in the
amount of $2.8 million. In conjunction with its review of the
carrying value of assets deployed at the Country Crossing facility, the Company
also conducted a review of its other capitalized costs associated with its
operations in Alabama and concluded that an additional $332,000 of other costs,
including install costs and portable structures, should be written-off as
well.
As a
consequence of the abovementioned review, and the continued uncertainty in the
Alabama market, the Company has also re-evaluated its revenue forecast for the
fiscal year and determined that it is unlikely that it will recover a portion of
its deferred tax assets and therefore has taken a $2.6 million charge to
increase its valuation allowance.
As a
result of these developments in Alabama, the Company will recognize total
charges of $5.7 million related to the Company’s Alabama operations in the
fiscal quarter ended March 31, 2010.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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MULTIMEDIA
GAMES, INC.
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Dated: April
30, 2010
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By:
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/s/
Uri L. Clinton
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Uri
L. Clinton
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Senior
Vice President, General Counsel and Corporate
Secretary
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