Page 59 - SIGA Annual Report 2014

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NOTES TO
THE FINANCIAL
STATEMENTS
YEAR ENDED
MARCH 31, 2014
59
20. FINANCIAL RISK MANAGEMENT (CONTINUED)
Liquidity Risk
Liquidity risk is the risk that SIGA is unable to meet its financial commitments as they become due or can only do so at excessive
cost. SIGA manages its cash resources based on financial forecasts and anticipated cash flows. The following summarizes the
contractual maturities of SIGA’s financial liabilities based on undiscounted payments:
2014
Contractual cash flows
Carrying
0 - 12
1 - 2
3 - 5
More than
Financial Liabilities
Amount
months
years
years
5 years
Total
Due to SLGA
$ 66,230,413 $ 66,230,413 $
– $
– $
– $ 66,230,413
Accounts payable and
accrued liabilities
15,128,538
15,128,538
15,128,538
Long-term debt
52,953,075
8,289,842
7,992,584
22,131,650
29,212,818
67,626,894
Finance lease obligation
42,781,618
6,531,617
6,531,617
19,594,851
53,480,785
86,138,870
Interest rate swap liability
5,203,754
5,203,754
5,203,754
$ 182,297,398 $ 96,180,410 $ 14,524,201 $ 41,726,501 $ 87,897,357 $ 240,328,469
2013
Contractual cash flows
Carrying
0 - 12
1 - 2
3 - 5
More than
Financial Liabilities
Amount
months
years
years
5 years
Total
Due to SLGA
$ 54,860,290 $ 54,860,290 $
– $
– $
– $ 54,860,290
Accounts payable and
accrued liabilities
15,623,514
15,623,514
15,623,514
Long-term debt
58,282,720
58,623,246
58,623,246
Finance lease obligation
44,019,976
6,531,617
6,531,617
19,594,851
61,728,377
94,386,462
Interest rate swap liability
7,319,250
7,319,250
7,319,250
$ 180,105,750 $ 135,638,667 $ 6,531,617 $ 19,594,851 $ 69,047,627 $ 230,812,762
Management believes its ability to generate funds will be adequate to support these financial liabilities.
Classification and Fair Value of Financial Instruments
Classification Fair value level
2014
2013
Cash and cash equivalents
L&R
N/A $ 71,637,278 $ 62,768,500
Short-term investments
L&R
N/A
5,282,500
252,500
Accounts receivable
L&R
N/A
2,400,251
4,944,394
Due to SLGA
OL
N/A
66,230,413
54,860,290
Accounts payable and accrued liabilities
OL
N/A
15,128,538
15,623,514
Long-term debt
OL
N/A
52,953,075
58,282,720
Interest rate swap liability
FVTPL
2
5,203,754
7,319,250
FVTPL – Fair value through profit and loss, L&R – Loans and receivables, OL – Other liabilities.
Derivatives are carried at their fair value. Derivative instrument fair value is calculated using pricing models that incorporate current
market prices and the contractual prices of the underlying instruments, the time value of money and yield curves.
The fair value of long-term debt, which is classified as other financial liabilities, is addressed in Note 11.