SIGA_Annual_Report_2015 - page 68

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2015
68
8. PROPERTY AND EQUIPMENT (CONTINUED)
Construction in progress represents costs incurred for capital projects under construction at existing casinos and central office. .
Upon completion, these costs are transferred into the appropriate capital asset category.
Included in casino development above are the following assets under finance lease:
Net carrying amount of leased assets
March 31, 2015 March 31, 2014
Base Building Costs
– Gold Eagle Casino
$ 15,286,273
$
– Painted Hand Casino
8,054,795
8,712,329
– Living Sky Casino
10,566,647
11,427,633
– Dakota Dunes Casino
12,731,556
13,777,817
$ 46,639,271
$ 33,917,779
9. DUE TO SASKATCHEWAN LIQUOR AND GAMING AUTHORITY
March 31, 2015 March 31, 2014
Balance, beginning of year
$ 66,230,413
$ 54,860,290
Income due to Saskatchewan Liquor and Gaming Authority
84,103,091
80,215,337
Payments to Saskatchewan Liquor and Gaming Authority
(88,914,665)
(68,845,214)
Balance, end of the year
$ 61,418,839
$ 66,230,413
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 $329,528 (2014 – $292,887). Also, $2,612,874 (2014 – $1,948,272) 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.
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