Page 53 - SIGA Annual Report 2014

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NOTES TO
THE FINANCIAL
STATEMENTS
YEAR ENDED
MARCH 31, 2014
53
9. DUE TO SASKATCHEWAN LIQUOR AND GAMING AUTHORITY
March 31, 2014
March 31, 2013
Balance, beginning of year
$ 54,860,290
$ 60,277,788
Income due to Saskatchewan Liquor and Gaming Authority
80,215,337
86,456,595
Payments to Saskatchewan Liquor and Gaming Authority
(68,845,214)
(91,874,093)
Balance, end of the year
$ 66,230,413
$ 54,860,290
As described in Note 1, SIGA is required to remit to Saskatchewan Liquor and Gaming Authority (“SLGA”) the net income from the
operation of the slot machines in accordance with a formula as defined in the Agreement. According to the Agreement, unrealized
gains and losses on interest rate swaps are excluded from the calculation of net casino profits payable to SLGA.
Included in the above balance of the due to SLGA is the $5,000,000 that has been retained as a capital reserve as disclosed in Note 1.
10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
SIGA is required to pay SLGA an amount equivalent to the imputed Goods and Services Tax (“GST”) that is payable by SLGA on
gaming expenses incurred by SIGA related to its slot machine operations. Included in accounts payable and accrued liabilities are
amounts owing to SLGA for GST of $292,887 (2013 – $358,189). Also, $1,948,272 (2013 – $1,580,375) is due to SLGA for slot
machine and operating system reimbursement and is included in accounts payable and accrued liabilities.
11. LONG-TERM DEBT
Casino Projects Financing
In 2007, SIGA entered into a long-term financing agreement with a financial institution (“Bank”) for $79 million to finance all of its
casino projects. The Bank syndicated this financing with a secondary lender to provide SIGA with $20 million. The Bank, as the lead
lender, provided SIGA with the remaining $59 million.
SIGA has drawn on the remaining approved financing to complete the construction of its casinos.
The long-term financing agreement is secured by a general security agreement and mortgage of leasehold interests of SIGA’s casinos.
The long-term debt obligations are as follows:
March 31, 2014
March 31, 2013
Term Loan Tranche D – Part A
repayable in monthly instalments of $116,667 plus interest at bankers acceptance rate
plus 1%, maturity April 2018.
$ 12,716,667
$ 14,116,666
Term Loan Tranche D – Part B
repayable in monthly instalments of $127,000 including interest at 1.5%,
maturity April 2018.
13,830,000
15,226,317
Term Loan Tranche E
repayable in monthly instalments of $117,762 plus interest at bankers acceptance rate
plus 1.5%, maturity September 2018.
14,838,104
16,251,248
Term Loan Tranche F
repayable in monthly instalments of $88,889 plus interest at bankers acceptance rate
plus 1.5%, maturity September 2018.
11,199,994
12,266,662
Term Loan Tranche F – Fixed Rate
repayable in monthly instalments of $4,460 plus interest at 3%,
maturity September 2018.
368,310
421,827
52,953,075
58,282,720
Less current portion
(5,455,333)
(58,282,720)
$ 47,497,742
$