SIGA_Annual_Report_2015 - page 77

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2015
77
23. COMMITMENTS AND CONTINGENCIES
OPERATING LEASES
SIGA has obligations under operating leases for buildings, equipment and vehicles. The minimum lease payments required under these
operating leases are as follows:
March 31, 2015 March 31, 2014
Less than one year
$ 4,596,051
$ 5,399,628
Between one and five years
8,230,586
13,449,583
More than five years
4,461,734
2,189,781
$ 17,288,371
$ 21,038,992
The above commitments include amounts committed to related parties of $16,421,450 for years 2015/16 through 2019/20 and
$4,461,734 for the years beyond 2019/20.
During the year ended March 31, 2015, an amount of $6,418,036 (2014 – $6,157,624) was recognized as an expense in comprehensive
income in respect of operating leases.
CAPITAL COMMITMENT – SLOT MACHINES
The Casino Operating Agreement requires SLGA to supply slot machines and the slot management system to SIGA for use in its casinos
and for SIGA to reimburse to SLGA the cost of these machines over the estimated useful life of the equipment. Included in expenses is
$9,518,564 (2014 – $8,921,102) for reimbursement of the purchase of slot machines and the slot machine management system. SIGA
estimates total costs over the next five years, based on the machines currently in use, as follows:
2016
$ 5,690,341
2017
5,129,900
2018
4,456,905
2019
3,971,379
2020
3,061,955
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 2015-2016 .
(2014-2015 – $3,300,000).
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.
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