23. COMMITMENTS AND CONTINGENCIES
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, 2016
March 31, 2015
Less than one year
Between one and five years
More than five years
The above commitments include amounts committed to related parties of $6,841,812 for years 2016/17 through 2020/21 and
$3,697,357 for the years beyond 2020/21.
During the year ended March 31, 2016, an amount of $5,106,364 (2015 – $6,418,036) 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 $11,280,779 (2015 – $9,518,564) 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:
Letters of Credit
SIGA has three letters of credit with First Nations Bank of Canada, $50,000 payable to the City of Swift Current, $200,000
payable to the City of Yorkton and $30,000 payable to Saskatchewan Sport Distributors Inc.
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 2016-2017
(2015-2016 – $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.
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.
NOTES TO THE FINANCIAL STATEMENTS
Year Ended March 31, 2016