Kafoury, Armstrong & Co. Letter Concerning Revenue Recognition Policy Change for Innovative Gaming Corporation of America

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Summary

This letter from Kafoury, Armstrong & Co., Certified Public Accountants, to Innovative Gaming Corporation of America confirms the firm's concurrence with the company's change in revenue recognition policy. The company will now recognize revenue after the expiration of any right of return period, rather than upon shipment of products. The accountants agree this method is preferable under the circumstances but clarify they have not audited financial statements after December 31, 2001, and thus do not express an opinion on more recent statements.

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EX-10.13 3 inngam10qsept2002ec10-1.txt KAFOURY, ARMSTRONG & CO. A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS "taking care of Nevada for 60 years." November 6, 2002 Mr. Laus Abdo, President/CFO Innovative Gaming Corporation of America 333 Orville Wright Court Las Vegas, NV 89119 Dear Laus: As discussed in Note 7 to the financial statements for the nine months ended September 30, 2002, the Company changed its method of accounting for operating revenue. The Company will report revenue on the expiration of any "Right of Return" period, which is a change from the recording of revenue upon shipment of product. As you have requested, we have discussed with you the circumstances, business judgment, and all other underlying factors that contributed to your decision to make this accounting change. Based on our review of the attendant circumstances and discussions with management, we concur that the newly adopted accounting principle of revenue recognition as described in Note 7 is preferable under the circumstances. Because we have not audited any financial statements of the Company as of any date or for any period subsequent to December 31, 2001, we do not express an opinion on the financial statements for the nine months ended September 30, 2002. Very Truly yours, /s/ Richard Schlingheyde Richard Schlingheyde CARSON CITY ELKO FALLON LAS VEGAS RENO WINNEMUCCA YERINGTON RS:bh 6140 PLUMAS STREER, RENO, NEVADA ###-###-#### ###-###-#### M ###-###-#### wwwkafourycom