Page 62 - SIGA Annual Report 2014

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NOTES TO
THE FINANCIAL
STATEMENTS
YEAR ENDED
MARCH 31, 2014
62
23. COMMITMENTS AND CONTINGENCIES (CONTINUED)
Letters of Credit
SIGA has three letters of credit with First Nations Bank of Canada, $52,500 payable to the City of Swift Current, $200,000 payable
to the City of Yorkton and $30,000 payable to Saskatchewan Sport Distributors Inc.
Other
The Casino Operating Agreement requires SIGA, upon receiving direction from SLGA, to pay to Indigenous Gaming Regulators
Inc. (“IGR”) the amount of IGR’s annual operating budget. SLGA has directed SIGA to pay IGR $3,300,000 for 2014-2015
(2013-2014 – $2,900,000).
SIGA entered into an agreement with Saskatoon Prairieland Park Corporation (“SPPC”) regarding the maintenance of a certain level
of income when SPPC closed its casino. Under this agreement, SIGA agreed to pay SPPC $216,667 monthly, subject to certain
conditions, effective August 10, 2007 and continuing for 30 years.
Contingencies
SIGA enters into contractual arrangements with suppliers of services, products and facilities in the normal course of business.
Contracts are subject to legal interpretation from time to time and disputes do arise. Management plans to account for such dispute
resolutions in the year such disputes are settled, as they cannot be reasonably estimated prior to this time.
In addition, various other claims and lawsuits are pending against SIGA in the ordinary course of business. While it is not possible to
determine the ultimate outcome of such actions at this time, and there exist inherent uncertainties in predicting such outcomes, it
is SIGA’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its financial
position or results of operations.
24. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform to the current year’s presentation.