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1. BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL
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STATEMENTS
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Nature of operations
\n
The principal activities of Thunderbird Resorts Inc and its subsidiaries \u201cthe Group\u201d is to develop,
\n
own and operate hospitality and other real estate properties.
\n
These activities are grouped into the following service lines:
\n
\u2022 Gaming \u2013 the provision of table and slot games within a number of operating locations in the
\n
Group's chosen markets. The Group also has a limited sportsbook offering, however, it is
\n
considered to be immaterial to the Group's performance.
\n
\u2022 Offices \u2013 the Group has office spaces in Peru that it leases to 3
\n
rd
\n
parties.
\n
General information and statement of compliance with IFRS
\n
Thunderbird Resorts Inc, the Group\u2019s ultimate parent company, is a limited by shares company,
\n
incorporated and domiciled in the British Virgin Islands, number 1055634.
\n
The Group\u2019s common shares are listed on Euronext Amsterdam under the symbol \u201cTBIRD.\u201d
\n\n
The Group\u2019s 2022 consolidated financial statements have been prepared in accordance with
\n
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC)
\n
interpretations applicable to companies reporting under IFRS. The consolidated financial
\n
statements have been prepared under the historical cost convention, financial assets and financial
\n
liabilities (including derivative instruments) at fair value through profit or loss.
\n

\n\n
The preparation of financial statements in conformity with IFRS requires the use of certain critical
\n
accounting estimates. It also requires management to exercise its judgment in the process of
\n
applying the group\u2019s accounting policies. The areas involving a higher degree of judgment or
\n
complexity, or areas where assumptions and estimates are significant to the consolidated financial
\n
statements are disclosed in note 3, page 56.
\n

\n\n

\n\n

\n\n

\n\n
2. MANAGEMENT STATEMENT ON \u201cGOING CONCERN\u201d
\n
Management has reviewed their plan with the Directors and has collectively formed a judgment
\n
about the going concern of the Group. In arriving at this judgment, Management has prepared the
\n
cash flow projections of the Group. The Group has suffered recurring losses the past years. In
\n
response to the recurring losses of the previous years, Management has taken actions which will be
\n
described in the following paragraphs.
\n
Directors have reviewed this information provided by Management and have considered the
\n
information in relation to the financing uncertainties in the current economic climate, the Group\u2019s
\n
existing commitments and the financial resources available to the Group. Specifically, Directors
\n
have considered: (i) there are probably no sources of new financing available to the Group; (ii) the
\n
Group has limited trading exposures to our local suppliers and retail customers; (iii) other risks to
\n
which the Group is exposed, the most significant of which is considered to be regulatory risk; (iv)
\n
sources of Group income, including management fees charged to and income distributed from its
\n
various operations; (v) cash generation and debt amortization levels; (vi) fundamental trends of the
\n
Group\u2019s businesses; (vii) ability to re-amortize and unsecured lenders; and (vii) level of interest of
\n
third parties in the acquisition of certain operating assets, and status of genuine progress and
\n
probability of closing within the Going Concern period. The Directors have also considered certain
\n
critical factors that might affect continuing operations, as follows:
\n
\n
\u2022 Special Resolution: On September 21, 2016, the Group\u2019s shareholders approved a special
\n
resolution that, among other items, authorized the Board of Directors of the Corporate to sell
\n
\u201cany or all remaining assets of the Corporation in such amounts and at such times as determined
\n
by the Board of Directors.\u201d This resolution facilitates the sale of any one or any combination
\n
of assets required to support maintaining of a going concern by the Group.
\n
\u2022 Corporate Expense and Cash Flow: Corporate expense has decreased materially in recent years
\n
but still must accommodate for compliance as a public company.
\n
\u2022 Liquidity and Working Capital: As of the date of publication of this 2022 Annual Report, the
\n
Group forecasts to operate with higher levels of reserves and working capital than in recent
\n
years, but to create a healthy level of working capital reserves for periods beyond the Going
\n
Concern period may require the sale of additional assets.
\n
In part, the Group believes that it is in a stronger position to sustain going concern as of the
\n
publication date of this 2022 Annual Report as compared to recent years during the covid crisis
\n
because of the following.
\n
\u2022 Peru Real Estate Sales: As of the date of publication of this 2022 Annual Report, the Group
\n
has converted it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium apartment complex.
\n
The Group has: i) Legally sub-divided the former hotel in to 66 individually titled apartment
\n
units, procured all change of use and other regulatory approvals, and sold the majority of those
\n
units; and ii) Paid off over $4.5 million of senior debt in Lima, Peru. The projection is to
\n
generate in excess of $10 million from all unit sales, which will likely be completed during
\n
2023.
\n
\u2022 Other liquidity events: The Group continues to work with unsecured lenders and, in some
\n
cases, to negotiate payment plans and balances that meet the Group\u2019s cash flow. If the Group
\n

\n\n

\n\n

\n

\n\n
is not able to create other liquidity events from its remaining Peru, Costa Rica and Nicaragua
\n
assets in 2023-2024, it is reasonable to expect that some unsecured lenders may pursue years
\n
of litigation at that time, though as to whether this would then have an impact on Going Concern
\n
is hard to assess.
\n
Considering the above, Management and Directors are satisfied that the consolidated Group has
\n
adequate resources to mitigate the uncertainty and that the Group is able to continue as a going
\n
concern for at least the 12 months following the filing date of this report. For these reasons,
\n
Management and Directors have therefore prepared the consolidated financial statements on a
\n
going concern basis.
\n

\n\n\n

\n
3. SIGNIFICANT ACCOUNTING POLICIES
\n\n

\n
3.1 Changes in accounting policies
\n
The consolidated financial statements have been prepared in accordance with the accounting
\n
policies adopted in the last annual consolidated financial statements for the year ended
\n
December 31, 2022, except for the adoption of the following new interpretations, revisions,
\n
and amendments to IFRS issued by the International Accounting Standards Board, which are
\n
relevant to, and effective for the Group\u2019s consolidated financial statements for the annual
\n
period beginning January 1, 2022.
\n\n
New currently effective requirements
\n
These Standards are required to be applied by an entity with an annual reporting period
\n
beginning on January 1, 2022:
\n
\u2022 Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022 COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022 Property, Plant and Equipment: Proceeds Before Intended Use (Amendments to IAS 16)
\n
\u2022 Onerous Contracts \u2013 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022 Annual Improvements (2018-2020 Cycle):
\n
\u2013 Subsidiary as a First-time Adopter (Amendments to IFRS 1)
\n
\u2013 Fees in the \u201810 per cent\u2019 Test for Derecognition of Liabilities (Amendments to IFRS 9)
\n
\u2013 Lease Incentives (Amendments to IFRS 16)
\n
\u2013 Taxation in Fair Value Measurements
\n
The new requirements listed above did not have any impact on the amounts recognized in
\n
prior periods and are not expected to significantly affect the current or future periods.
\n

\n\n
Standards issued but not yet effective
\n
At the date of authorization of these consolidated financial statements, several new, but not
\n
yet effective, Standards and amendments to existing Standards, and Interpretations have been
\n
published by the IASB or IFRIC. None of these Standards or amendments to existing Standards
\n
have been adopted early by the Group and no Interpretations have been issued that are
\n
applicable and need to be taken into consideration by the Group at either reporting date.
\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n\n
Management anticipates that all relevant pronouncements will be adopted for the first period
\n
beginning on or after the effective date of the pronouncement. New Standards, amendments
\n
and Interpretations not adopted in the current year have not been disclosed as they are not
\n
expected to have a material impact on the Group\u2019s consolidated financial statements
\n

\n\n
3.3 Summary of accounting policies
\n
The accounting policies have been applied consistently throughout the Group for the purposes
\n
of preparation of these consolidated financial statements.
\n
A summary of the Group\u2019s significant accounting policies is set out below.
\n\n

\n
Critical accounting estimates and judgments
\n
The preparation of financial statements with IFRS requires the use of estimates and
\n
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
\n
information and the reported amounts of revenues and expenses during the reporting period.
\n
Estimates and judgments are continually evaluated and are based on historical experience and
\n
other factors, including expectations of future events that are believed to be reasonable under
\n
the circumstances. The areas involving a higher degree of judgment or complexity, or areas
\n
where assumptions and estimates are significant to the financial statements are set out below.
\n\n
The best estimates of the Directors may differ from the actual results.
\n
3.3 a Depreciable lives of assets and realisable
\n
residual value
\n
10
\n
3.3 b
\n
Future operating results growth rates, and
\n
discount factor applied
\n
9
\n
3.3 c Recognition of deferred tax asset 8
\n
3.3 e Determination of control over economic
\n
activities
\n
29
\n
Recoverability of amounts due from related
\n
parties
\n
21
\n
3.3 h Judgments on probability of payment as a
\n
result of disputes
\n
23
\n
3.3 i Assessment of significance of debt
\n
modifications
\n
17
\n

\n\n

\n\n
\n\n

\n
a. Property, plant and equipment
\n
All property, plant and equipment is stated at acquired cost less depreciation and
\n
impairment. Land is not depreciated as no finite useful life can be determined. Acquired
\n
cost includes expenditures that are directly attributable to the acquisition of the asset.
\n\n
Depreciation on assets is calculated using the straight-line method to allocate their cost
\n
over their estimated useful lives, as follows:
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n\n

\n

\n\n
Properties 20 \u2013 30 years
\n
Furniture and equipment 3 \u2013 10 years
\n
Gaming machines 5 \u2013 10 years
\n
Leasehold improvements over the lease term
\n

\n\n
Profits and losses on disposals are determined by comparing proceeds with carrying
\n
amount. These are included in profit or loss.
\n\n
Construction in progress represents properties under construction and is stated at cost. This
\n
includes cost of construction, borrowing costs, and other direct costs. The assets are not
\n
depreciated until such time that the assets are completed and available for use. Transfers
\n
are made from the construction in progress category to the appropriate property, plant and
\n
equipment asset categories when the construction of the asset has been substantially
\n
completed.
\n

\n\n
Management reviews the useful lives of depreciable assets at least each reporting date. At
\n
December 31, 2022, Management assesses that the useful lives represent the expected
\n
utility of the assets of the Group. The carrying amounts are analyzed in Note 10. Actual
\n
results, however, may vary due to obsolescence.
\n

\n\n\n
b. Investment property
\n
Investment properties are lands with no defined use, and are accounted for using the cost
\n
model.
\n
Investment properties are recorded at cost, which comprises its purchase price and any
\n
directly attributable expenditure; subsequently, on each reporting date these investment
\n
properties are measured at cost less impairment losses.
\n

\n\n\n

\n\n
c. Impairment testing of intangible assets and property, plant and equipment
\n
For impairment assessment purposes, assets are grouped at the lowest levels for which
\n
there are largely independent cash inflows (cash-generating units). As a result, some assets
\n
are tested individually for impairment and some are tested at cash-generating unit level.
\n
Goodwill is allocated to those cash-generating units that are expected to benefit from
\n
synergies of the related business combination and represent the lowest level within the
\n
Group at which Management monitors goodwill.
\n
Cash-generating units to which goodwill has been allocated are tested for impairment at
\n
least annually, as set out in Note 9.
\n
All other individual assets or cash-generating units are tested for impairment whenever
\n
events or changes in circumstances indicate that the carrying amount may not be
\n
recoverable.
\n
An impairment loss is recognized for the amount by which the asset\u2019s or cash-generating
\n
unit\u2019s carrying amount exceeds its recoverable amount, which is the higher of fair value
\n
less costs of disposal and value-in-use. To determine the value-in-use, Management
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
estimates expected future cash flows from each cash-generating unit and determines a
\n
suitable rate in order to calculate the present value of those cash flows. The data used for
\n
impairment testing procedures are directly linked to the Group\u2019s latest approved budget,
\n
adjusted as necessary to exclude the effects of future reorganizations and asset
\n
enhancements. Discount factors are determined individually for each cash-generating unit
\n
and reflect Management\u2019s assessment of respective risk profiles, such as market and asset-
\n
specific risks factors. Impairment losses for cash-generating units reduce first the carrying
\n
amount of any goodwill allocated to that cash-generating unit. Any remaining impairment
\n
loss is charged pro rata to the other assets in the cash-generating unit. With the exception
\n
of goodwill, all assets are subsequently reassessed for indications that an impairment loss
\n
previously recognized may no longer exist. An impairment loss is reversed if the asset\u2019s or
\n
cash-generating unit\u2019s recoverable amount exceeds its carrying amount.
\n
Impairment losses of continuing operations are recognized in our statement of
\n
comprehensive income in those expense categories consistent with the function of the
\n
impaired asset under review.
\n

\n\n

\n\n\n

\n
c. Taxation including deferred tax
\n
The income tax expense recognized in profit or loss comprises the sum of deferred tax and
\n
current tax not recognized in other comprehensive income or directly in equity. Current
\n
tax is applied to taxable profits at the prevailing rate in the relevant country. Current tax
\n
assets and liabilities are measured at the amount expected to be paid to (recovered from)
\n
taxation authorities, using the rates/laws that have been enacted or substantively enacted
\n
by the balance sheet date (IAS 12).
\n
Current income tax assets and/or liabilities comprise those obligations to, or claims from,
\n
fiscal authorities relating to the current or prior reporting periods, that are unpaid at the
\n
reporting date. Current tax is payable on taxable profit, which differs from profit or loss in
\n
the financial statements.
\n\n
Deferred tax is provided for in full, using the liability method, on temporary differences
\n
arising between the tax bases of assets and liabilities and their carrying amounts in the
\n
consolidated financial statements. However, if deferred tax arises from the initial
\n
recognition of goodwill, it is not recognized nor is deferred tax arising on the initial
\n
recognition of an asset or liability unless the related transaction is a business combination
\n
or affects tax or accounting profit. Deferred tax is determined using tax rates (and laws)
\n
that have been enacted or substantively enacted by the reporting date and are expected to
\n
apply when the related deferred tax asset is realized or the deferred tax liability is settled.
\n
Withholding taxes on earnings of foreign operations are provided in the accounts only to
\n
the extent earnings are expected to be repatriated.
\n
Deferred tax assets are recognized to the extent that it is probable that future taxable profit
\n
will be available against which the temporary differences can be utilized.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set
\n
off current taxation assets against current taxation liabilities and it is the intention to settle
\n
these on a net basis.
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
Deferred tax is provided on temporary differences arising on investments in subsidiaries
\n
and associates, except where the timing of the reversal of the temporary difference is
\n
controlled by the Group and it is probable that the temporary difference will not reverse in
\n
the foreseeable future.
\n
Management\u2019s assessment over the probability of future taxable income in which deferred
\n
tax assets can be utilized is based on forecasts. The tax rules in the jurisdictions in which
\n
the Group operates are also taken into consideration. The recognition of deferred tax assets
\n
subject to legal or economic uncertainties are assessed by Management on the individual
\n
facts and circumstances.
\n

\n\n

\n\n\n

\n
d. Reporting and foreign currency translation
\n\n
(a) Functional and presentation currency
\n
Items included in the financial statements of each of the Group\u2019s entities are measured
\n
using the currency of the primary economic environment in which the entity operates
\n
(the \u201cfunctional currency\u201d). The consolidated financial statements are presented in US-
\n
dollars, which is also the Parent Company\u2019s functional currency.
\n

\n\n
(b) Transactions and balances
\n
Foreign currency transactions are translated into the functional currency of each
\n
individual entity using the exchange rates prevailing at the dates of the transactions.
\n
Foreign exchange gains and losses resulting from the settlement of such transactions
\n
and from the translation at year-end exchange rates of monetary assets and liabilities
\n
denominated in foreign currencies are recognized in profit or loss in financing costs.
\n
When a gain or loss on a non-monetary item is recognized in other comprehensive
\n
income, any exchange component of that gain or loss is recognized in other
\n
comprehensive income. When a gain or loss on a non-monetary item is recognized in
\n
profit or loss, any exchange component of that gain or loss is recognized in profit or
\n
loss.
\n
(c) Foreign operations
\n
The results and financial position of all the Group entities (none of which has the
\n
currency of a hyper-inflationary economy) that have a functional currency other than
\n
the presentation currency are translated into the presentation currency on consolidation
\n
as follows:
\n
(i) Assets and liabilities for each statement of financial position presented are
\n
translated at the closing rate at each reporting date.
\n
(ii) Income and expenses for each statement of comprehensive income are translated
\n
at average exchange rates (unless this average is not a reasonable approximation
\n
of the cumulative effect of the rates prevailing on the transaction dates, in which
\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n
case income and expenses are translated at the dates of the transactions) for the
\n
period presented.
\n
(iii) All resulting exchange differences are recognized in other comprehensive
\n
income and accumulated in a separate component of equity.
\n
When a foreign operation is disposed of or control is lost, the cumulative amount of
\n
the exchange differences relating to that operation accumulated in the separate
\n
component of equity is reclassified from equity to profit or loss and recognized as part
\n
of the gain or loss on disposal. Goodwill and fair value adjustments arising on the
\n
acquisition of a foreign entity are treated as assets and liabilities of the foreign entity
\n
and are translated at the closing rate.
\n

\n\n\n

\n

\n
e. Consolidation
\n
The Group\u2019s consolidated financial statements consolidate the financial statements of
\n
Thunderbird Resorts Inc. and the entities it controls drawn up to December 31, 2022 and
\n
its comparative periods.
\n\n
(a) Subsidiaries
\n
The parent controls a subsidiary if it is exposed, or has rights, to variable returns from
\n
its involvement with the subsidiary and has the ability to affect those returns through
\n
its power over the subsidiary. All subsidiaries are fully consolidated from the date on
\n
which control is transferred to the Group. They are de-consolidated from the date that
\n
control ceases.
\n
Inter-company transactions, balances and unrealized gains on transactions between
\n
Group subsidiaries are eliminated. Unrealized losses are also eliminated unless the
\n
transaction provides evidence of an impairment of the asset transferred. Accounting
\n
policies as applied to the subsidiaries have been changed where necessary to ensure
\n
consistency with the policies adopted by the Group.
\n
Non-controlling interests represent the portion of profit or loss and net assets in
\n
subsidiaries that are not held by the Group and are presented separately within equity
\n
in the consolidated statement of financial position, from parent shareholders\u2019 equity.
\n

\n\n\n

\n\n
(b) Business combinations
\n
The Group applies the acquisition method of accounting when accounting for business
\n
combinations. The cost of an acquisition is measured at the fair value of the assets
\n
transferred, equity instruments issued and liabilities incurred or assumed at the date of
\n
exchange. Costs directly attributable to the acquisition are charged to profit or loss as
\n
incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a
\n
business combination are measured initially at their fair values at the acquisition date,
\n
irrespective of any non-controlling interest. The excess of the cost of acquisition over
\n
the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n

\n\n

\n\n
goodwill. If the cost of acquisition is less than the fair value of the net assets for the
\n
subsidiary acquired, the difference is recognized directly in profit or loss.
\n

\n\n

\n\n\n

\n\n
(c) Investment in Joint ventures
\n
The Group has contractual arrangements with other parties which represent joint
\n
ventures. In this case, the arrangements take the form of agreements to share control
\n
over economic activities with Costa Rican assets. Strategic financial and operating
\n
decisions relating to these assets require the unanimous consent of both parties.
\n
Investments in joint ventures are accounted for using the equity method.
\n
Any goodwill or fair value adjustment attributable to the Group\u2019s share in the joint
\n
venture is not recognized separately and is included in the amount recognized as
\n
investment.
\n
The carrying amount of the investment in joint ventures is increased or decreased to
\n
recognize the Group\u2019s share of the profit or loss and other comprehensive income of
\n
the associate and joint venture, adjusted where necessary to ensure consistency with
\n
the accounting policies of the Group.
\n
Unrealized gains and losses on transactions between the Group and its joint ventures
\n
are eliminated to the extent of the Group\u2019s interest in those entities. Where unrealized
\n
losses are eliminated, the underlying asset is also tested for impairment.
\n

\n\n

\n\n

\n\n\n

\n

\n
f. Intangible assets
\n\n
(a) Goodwill
\n
Goodwill represents the excess of the fair value of consideration transferred in a
\n
business combination over the fair value of the Group\u2019s share of the net identifiable
\n
assets, liabilities and contingent liabilities at the date of the business combinations and
\n
is not amortized. Goodwill is tested annually for impairment and carried at cost less
\n
accumulated impairment losses.
\n
Gains and losses on the disposal of an entity include the carrying amount of goodwill
\n
relating to the entity sold.
\n

\n\n\n
(b) Software and software licenses
\n
The Group includes acquired and internally developed software used in operations or
\n
administration as intangible assets. They are accounted for using the cost model
\n
whereby capitalized costs are amortized on a straight-line basis over their estimated
\n
useful life. Residual values and useful lives are reviewed at each reporting date. In
\n
addition, they are subject to impairment testing as described in Note 10. The following
\n
useful lives are applied:
\n
Software 2 \u2013 5 years
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
Amortization has been included within depreciation, amortization and impairment of
\n
non-financial assets. Acquired computer software licenses are capitalized on the basis
\n
of the costs incurred to acquire and install the specific software.
\n

\n\n

\n\n\n
g. Leases
\n
The Group as a lessee
\n
For any new contracts entered into, the Group considers whether a contract is, or contains
\n
a lease. A lease is defined as \u201ca contract, or part of a contract, that conveys the right to use
\n
an asset (the underlying asset) for a period of time in exchange for consideration\u201d. To apply
\n
this definition, the Group assesses whether the contract meets three key evaluations which
\n
are whether or not:
\n
\u2022 the contract contains an identified asset, which is either explicitly identified in the
\n
contract or implicitly specified by being identified at the time the asset is made
\n
available to the Group;
\n
\u2022 the Group has the right to obtain substantially all of the economic benefits from use of
\n
the identified asset throughout the period of use, considering its rights within the
\n
defined scope of the contract; and
\n
\u2022 the Group has the right to direct the use of the identified asset throughout the period of
\n
use. The Group assess whether it has the right to direct \u201chow and for what purpose\u201d
\n
the asset is used throughout the period of use.
\n
Measurement and recognition of leases as a lessee
\n
At lease commencement date, the Group recognizes a right-of-use asset and a lease liability
\n
on the balance sheet. The right-of-use asset is measured at cost, which is made up of the
\n
initial measurement of the lease liability, any initial direct costs incurred by the Group, an
\n
estimate of any costs to dismantle and remove the asset at the end of the lease, and any
\n
lease payments made in advance of the lease commencement date (net of any incentives
\n
received).
\n
The Group depreciates the right-of-use assets on a straight-line basis from the lease
\n
commencement date to the earlier of the end of the useful life of the right-of-use asset or
\n
the end of the lease term.
\n
The Group also assesses the right-of-use asset for impairment when such indicators exist.
\n
At the commencement date, the Group measures the lease liability at the present value of
\n
the lease payments unpaid at that date, discounted using the interest rate implicit in the
\n
lease if that rate is readily available or the Group\u2019s incremental borrowing rate.
\n
Lease payments included in the measurement of the lease liability are made up of fixed
\n
payments (including in substance fixed), variable payments based on an index or rate,
\n
amounts expected to be payable under a residual value guarantee and payments arising
\n
from options reasonably certain to be exercised.
\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n
Subsequent to initial measurement, the liability will be reduced for payments made and
\n
increased for interest. Interest is charged on the lease liability at an even rate on the
\n
carrying amount of that liability (see above). It is re-measured to reflect any reassessment
\n
or modification, or if there are changes in lease liability.
\n
When the lease liability is re-measured, the corresponding adjustment is reflected in the
\n
right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
\n
The Group has elected to account for short-term leases and leases of low-value assets using
\n
the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the
\n
payments in relation to these are recognized as an expense in profit or loss on a straight-
\n
line basis over the lease term. On the statement of financial position, right-of-use assets
\n
have been included in property, plant and equipment (except those meeting the definition
\n
of investment property) and lease liabilities have been included in Obligations underleases
\n
and hire purchase contracts.
\n

\n\n\n

\n
h. Provisions
\n\n
(a) Employee benefits
\n
The Group recognizes a liability and an expense for bonuses and profit-sharing based
\n
on a formula that takes into consideration the Group\u2019s profits. The Group recognizes a
\n
provision where it is contractually obliged to pay the benefits, and/or where there is a
\n
past practice that has created a constructive obligation.
\n
Defined Benefit Obligation (DBO)
\n
Management\u2019s estimate of the DBO is based on a number of critical underlying
\n
assumptions such as standard rates of inflation, mortality, discount rate and
\n
anticipation of future salary increase. Variation in these assumptions may significantly
\n
impact the DBO amount and the annual defined benefit expenses. The liability
\n
recognized in the statement of financial position for DBO\u2019s is the present value of the
\n
DBO at the report date.
\n
Management estimates the DBO annually using simplifications of the projected unit
\n
credit method as follow: (i) ignore estimated future salary increases, (ii) ignore future
\n
service of current employees and (iii) ignore possible in-service mortality of current
\n
employees between the reporting date and the date employees are expected to begin
\n
receiving post-employment benefits. Discount factors are determined close to each
\n
year-end by reference to high quality corporate bonds that are denominated in the
\n
currency in which the benefits will be paid and that have terms to maturity
\n
approximating the terms of the related liability.
\n
Service cost on the Group\u2019s defined benefit plan is included in employee benefit
\n
expense. Net interest expense on the net defined benefit liability is included in finance
\n
cost. Gains and losses resulting from re-measurements of the defined benefit liability
\n
are included in other comprehensive income and are not reclassified to profit or loss in
\n
subsequent periods.
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n
(b) Other
\n
Provisions are recognized when the Group has a present legal or constructive
\n
obligation as a result of past events; it is more likely than not that an outflow of
\n
resources will be required to settle the obligation, and the amount can be reliably
\n
estimated. Provisions are measured at the best estimate of the expenditure required to
\n
settle the present obligation at the end of each reporting period.
\n
(c) Litigation provisions
\n
The Group provides against various litigation proceedings once judgments are
\n
rendered against it, as in Management\u2019s view this provides the best indication that
\n
payment has become probable. The award amount is used as the Directors\u2019 best
\n
estimate of the potential liability, even if the Group is appealing the judgment.
\n
Provisions are discounted to their present value, where the time value of money is material.
\n

\n\n\n

\n

\n

\n
i. Financial instruments
\n
Non-derivative financial instruments consist of:
\n\n

\n
Financial assets
\n
Financial assets, which include cash and cash equivalents, trade receivables, unbilled
\n
revenues, finance lease receivables, employee and other advances, investments in equity
\n
and debt securities and eligible current and non-current assets.
\n\n
Financial assets are derecognized when substantial risks and rewards of ownership of the
\n
financial asset have been transferred. In cases where substantial risks and rewards of
\n
ownership of the financial assets are neither transferred nor retained, financial assets are
\n
derecognized only when the Company has not retained control over the financial asset.
\n

\n\n

\n\n\n
Financial liabilities
\n
Financial liabilities, which include long and short-term loans and borrowings, bank
\n
overdrafts, trade payables, eligible current and non-current liabilities.
\n

\n\n
Subsequent measurement of financial assets
\n
Non-derivative financial instruments are recognized initially at fair value. Subsequent to
\n
initial recognition, non-derivative financial instruments are measured as described below:
\n\n
Financial assets
\n
Financial assets are measured at initial recognition at fair value and are classified and
\n
subsequently measured at fair value through profit or loss, fair value through other
\n
comprehensive income or amortized cost. Financial assets are assigned to these different
\n
categories by Management on initial recognition, depending on the purpose for which they
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n

\n

\n
were acquired. The designation of financial assets is re-evaluated at every reporting date at
\n
which a choice of classification or accounting treatment is available.
\n
All financial assets are recognized when the Group becomes a party to the contractual
\n
provisions of the instrument.
\n\n

\n

\n
Trade receivables, related party receivables and cash and cash equivalents are measured
\n
subsequent to initial recognition at amortized cost using the effective interest method, less
\n
provision for impairment. Any change in their value through impairment or reversal of
\n
impairment is recognized in profit or loss.
\n\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n\n

\n\n\n
A financial asset is derecognized only where the contractual rights to the cash flows from
\n
the asset expire or the financial asset is transferred, and that transfer qualifies for de-
\n
recognition. A financial asset is transferred if the contractual rights to receive the cash
\n
flows of the asset have been transferred or the Group retains the contractual rights to
\n
receive the cash flows of the asset but assumes a contractual obligation to pay the cash
\n
flows to one or more recipients. A financial asset that is transferred qualifies for de-
\n
recognition if the Group transfers substantially all the risks and rewards of ownership of
\n
the asset, or if the Group neither retains nor transfers substantially all the risks and rewards
\n
of ownership but does transfer control of that asset.
\n

\n\n

\n\n\n

\n

\n
Financial liabilities
\n
Financial liabilities are obligations to pay cash or other financial assets and are recognized
\n
when the Group becomes a party to the contractual provisions of the instrument. Financial
\n
liabilities categorized at fair value through profit or loss, are recorded initially at fair value.
\n
All other financial liabilities are recorded initially at fair value, net of direct issue costs.
\n\n
Financial liabilities categorized as at fair value through profit or loss, are measured at each
\n
reporting date at fair value, with changes in fair value being recognized in profit or loss.
\n

\n\n\n

\n\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n

\n\n

\n\n
\n

\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n\n

\n\n\n
A financial liability is derecognized only when the obligation is extinguished, that is, when
\n
the obligation is discharged, cancelled or expires. Where an existing financial liability is
\n
replaced by another from the same lender on substantially different terms, or the terms of
\n
an existing liability are substantially modified, such an exchange or modification is treated
\n
as de-recognition of the original liability and the recognition of a new liability, such that
\n
the difference in the respective carrying amounts together with any costs or fees incurred
\n
are recognized in profit or loss.
\n
\n\n\n
Trade and other payables are initially recognized at fair value, and subsequently carried at
\n
amortized cost using the effective interest method. For these financial instruments, the
\n
carrying amounts approximate fair value due to the short-term maturity of these
\n
instruments.
\n

\n\n

\n\n

\n\n\n
j. Inventories
\n
Inventories are valued at the lower of cost and net realizable value. Cost of inventory is
\n
determined on a \u2018first-in-first-out\u2019 basis. Inventory consists of food, beverages and
\n
supplies.
\n

\n\n\n

\n
k. Cash and cash equivalents
\n
Cash and cash equivalents include cash in hand, deposits held at call with banks with
\n
maturities of 3 months or less from inception, other short term highly liquid investments
\n
that are readily convertible into known amounts of cash and which are subject to an
\n
insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown
\n
within borrowings in current liabilities on the statement of financial position.
\n\n
Restricted cash includes all cash balances that are required to be maintained under
\n
regulatory requirements. Casino industry regulations vary by country but all require our
\n
casino operations to maintain specified minimum levels of cash to support chips in play,
\n
slot hoppers, and reserves.
\n

\n\n

\n\n\n

\n
l. Borrowings and borrowing costs
\n
Borrowings are classified as current liabilities unless the Group has an unconditional right
\n
to defer settlement of the liability for at least 12 months after the period end date.
\n\n
Borrowing costs directly attributable to the acquisition, construction or production of a
\n
qualifying asset, or assets that take a substantial period of time to prepare for their intended
\n
use or sale are added to the cost of those assets, until such time as the assets are substantially
\n
ready for their intended use or sale.
\n
Investment income earned on the temporary investment of specific borrowings pending
\n
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
\n
capitalization.
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n

\n\n

\n\n
All other borrowing costs are recognized in profit or loss in the period in which they are
\n
incurred.
\n

\n\n

\n\n\n

\n
m. Share capital
\n
Common shares are classified as equity.
\n\n
Where the Group purchases the Group\u2019s equity share capital (treasury shares), the
\n
consideration paid, including any directly attributable incremental costs (net of income
\n
taxes) is deducted from equity attributable to the Group\u2019s equity holders until the shares
\n
are cancelled or reissued. Where such shares are subsequently sold or reissued, any
\n
consideration received, net of any directly attributable incremental transaction costs and
\n
the related income tax effects are included in equity attributable to the Group\u2019s equity
\n
holders.
\n

\n\n

\n\n\n
n. Share-based payments
\n
Where share options are awarded to employees, the fair value of the options at the date of
\n
grant is charged to profit or loss over the vesting period, with the corresponding credit to
\n
the share option reserve. Non-market vesting conditions are taken into account by adjusting
\n
the number of equity instruments expected to vest at each Balance Sheet date so that,
\n
ultimately, the cumulative amount recognized over the vesting period is based on the
\n
number of options that eventually vest.
\n
Market vesting conditions are factored into the fair value of the options granted. As long
\n
as all other vesting conditions are satisfied, a change is made irrespective of whether the
\n
market vesting conditions are satisfied. The cumulative expense is not adjusted for failure
\n
to achieve a market vesting condition. Where the terms of the options are modified before
\n
they vest, the increase in the fair value of the options, measured immediately before and
\n
after the modification, is also charged over the remaining vesting period.
\n
All share-based remuneration is ultimately recognized as an expense in profit or loss with
\n
a corresponding credit to retained earnings. If vesting periods or other vesting conditions
\n
apply, the expense is allocated over the vesting period, based on the best available estimate
\n
of the number of share options expected to vest. Upon exercise of share options, the
\n
proceeds received net of any directly attributable transaction costs up are recognized as
\n
share capital.
\n
Where equity instruments are granted to persons other than employees, the Statement of
\n
Comprehensive Income is charged with the fair value of goods and services received. If
\n
fair value cannot be reliably measured the fair value of the goods or services received, the
\n
value of the services are recognized, and the corresponding increase in equity, is recognized
\n
indirectly, by reference to the fair value of the equity instruments granted.
\n

\n\n\n
o. Net gaming wins and revenue recognition
\n
Revenue is recognized to the extent that it is probable that the economic benefits will flow
\n
to the Group, the revenue can be reliably measured, the risks and rewards of ownership
\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n

\n

\n\n

\n
have been transferred to the buyer, the Group no longer has control over the goods, and the
\n
costs incurred in respect of the transaction can be reliably measured. Revenue is
\n
recognized on specific items as follows:
\n
(a) Net gaming wins \u2013 Casino revenues represent the net wins/(losses) from gaming
\n
activities, which is, for slot machines, the difference between coins and currencies
\n
deposited into the machines and the payments to customers and, for other (table and
\n
sports book) games, the difference between gaming wins and losses. Net gaming wins
\n
are recognized when they occur.
\n
(b) Food, beverage and hospitality sales \u2013 Revenue is recognized at the point of sale or
\n
upon the actual rendering of service.
\n\n

\n\n
(c) Interest income \u2013 Revenue is recognized as the interest is accrued (taking into account
\n
the effective yield on the asset).
\n

\n\n

\n\n
Costs and expenses are recognized in profit or loss upon utilization of the service or at the
\n
date they are incurred.
\n

\n\n\n
p. Earnings per share
\n
Basic earnings per share is calculated using the weighted-average number of shares
\n
outstanding during the period.
\n
The Group uses the treasury stock method to compute the dilutive effect of options,
\n
warrants and similar instruments. Under this method, the dilutive effect on earnings per
\n
share is recognized on the use of the proceeds that could be obtained upon exercise of
\n
options, warrants and similar instruments. It assumes that the proceeds would be used to
\n
purchase common shares at the average market price during the period.
\n

\n\n\n
q. Project development costs
\n
Project development costs incurred in an effort to identify and develop new gaming
\n
locations are expensed as incurred.
\n

\n\n\n

\n\n
r. Profit or loss from discontinued operations
\n
A discontinued operation is a component of the entity that either has been disposed of, or
\n
is classified as held for sale, and:
\n
\u2022 represents a separate major line of business or geographical area of operations;
\n
\u2022 is part of a single coordinated plan to dispose of a separate major line of business or
\n
geographical area of operations; or
\n
\u2022 is a subsidiary acquired exclusively with a view to resell.
\n
Profit or loss from discontinued operations, including prior year components of profit or
\n
loss, are presented in a single amount in the statement of comprehensive income.
\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
s. Fair value measurement
\n
Fair value is defined as the price that would be received to sell an asset or paid to transfer
\n
a liability in an orderly transaction between market participants at the measurement date.
\n
Management uses valuation techniques to determine the fair value of financial instruments
\n
(where active market quotes are not available) and non-financial assets. This involves
\n
developing estimates and assumptions consistent with how market participants would price
\n
the instrument. Management bases its assumptions on observable data as far as possible
\n
but this is not always available. In that case Management uses the best information
\n
available.
\n
Estimated fair values may vary from the actual prices that would be achieved in an arm\u2019s
\n
length transaction at the reporting date.
\n

\n\n

\n\n\n

\n
4. SEGMENTAL INFORMATION
\n
In identifying its operating segments, Management generally follows the Group's geographic
\n
country lines. These operating segments are monitored by the Group\u2019s chief operating decision
\n
makers and strategic decisions are made on the basis of adjusted operating results.
\n
The activities undertaken by each operating segment include the operation of casinos and related
\n
food, beverage and hospitality activities.
\n
Each of these operating segments is managed separately by country managers as each country has
\n
a different regulatory environment and customs, as well as, different marketing approaches. All
\n
inter-segment transfers are carried out at arm's length prices when they occur.
\n\n
\n\n
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those
\n
used in its financial statements, except that expenses relating to share-based payments are not
\n
included in arriving at the operating profit of the operating segments and results for the Group\u2019s
\n
equity accounted joint venture is shown proportionally. Corporate assets that are not directly
\n
attributable to the business activities of any operating segment are not allocated to a segment.
\n
There have been no changes from prior periods in the measurement methods used to determine
\n
reported segment profit or loss. No asymmetrical allocations have been applied between segments.
\n
\n\n

\n\n

\n\n

\n\n

\n\n
Operating segments
\n
Costa Rica Nicaragua Peru
\n
2022 2021 2022 2021 2022 2021
\n
Continuing operations
\n
Total revenue
\n
- - 13,461 12,222 946 740
\n
Operating profit / (loss) before: project development, depreciation,
\n
amortization and other gains and losses (Adjusted EBITDA)
\n
- - 4,261 4,237 426 433
\n
Project development
\n
- - - (46) - -
\n
Depreciation and amortization
\n
- - (1,075) (1,572) (117) (48)
\n
Other gains and (losses)
\n
- - (50) (101) (1) (50)
\n
Segments result
\n
- - 3,136 2,518 308 335
\n
Foreign exchange gain / (loss)
\n
- - (17) (9) 40 (290)
\n
Share of profit / (loss) from equity accounted investments
\n
93 (134) - - - -
\n
Finance costs
\n
- - (499) (557) (234) (290)
\n
Finance income
\n
- - 13 13 - -
\n
Other interest
\n
- - (29) (34) (52) (1)
\n
Management fees - intercompany charges
\n
- - (1,057) (757) - -
\n
Profit / (loss) before taxation
\n
93 (134) 1,547 1,174 62 (246)
\n
Taxation
\n
- - (457) (370) (982) 374
\n
Profit / (loss) for the year-continuing operations
\n
93 (134) 1,090 804 (920) 128
\n
Profit / (loss) for the year-discontinued operations
\n
- - - - 4,865 (566)
\n
Profit / (loss) for the year
\n
93 (134) 1,090 804 3,945 (438)
\n
Currency translation reserve and remeasurement of employee benefits
\n
- - - - - -
\n
Total comprehensive income for the year
\n
93 (134) 1,090 804 3,945 (438)
\n
Non-controlling interest
\n
- - (481) (359) - -
\n
Total comprehensive income attributable to owners of the parent
\n
93 (134) 609 445 3,945 (438)
\n
Assets and liabilities
\n
Segment intangible assets:
\n
Intangible assets with indefinite useful lives
\n
- - 1,387 1,387 - -
\n
Intangible assets with finite useful lives
\n
- - - - 5 4
\n
Segment as sets:
\n
Property, plant and equipment
\n
- - 5,557 6,120 2,341 2,365
\n
Other segment assets (including cas h)
\n
(1,043) - 3,057 2,976 18,792 18,336
\n
Total segment assets
\n
(1,043) - 10,001 10,483 21,138 20,705
\n
Assets classified as held for sale
\n
4,251 3,965 - - 674 2,475
\n
Total assets
\n
3,208 3,965 10,001 10,483 21,812 23,180
\n
Total segment liabilities
\n
- - 6,190 6,437 2,420 6,976
\n
Liabilities associated with assets held for sale
\n
- - - - - -
\n
Total liabilities
\n
- - 6,190 6,437 2,420 6,976
\n
Net assets
\n
3,208 3,965 3,811 4,046 19,392 16,204
\n
Non-controlling interest
\n
- - 1,747 2,228 - -
\n
Other segment items
\n
Capital expenditure
\n
- - 498 1,250 672 48
\n
Depreciation and amortization
\n
- - 1,075 1,572 117 48
\n

\n\n

\n\n

\n\n
Total Operation
\n
Corporate and non-allocated
\n
(1)
\n
Costa Rica IFRS 11
\n
Adjustments (2) Total
\n
2022 2021 2022 2021 2022 2021 2022 2021
\n
Continuing operations
\n
Total revenue
\n
14,407 12,962 120 180 - - 14,527 13,142
\n
Operating profit / (loss) before: project development, depreciation,
\n
amortization and other gains and losses (Adjusted EBITDA)
\n
4,687 4,670 (1,057) (868) - - 3,630 3,802
\n
Project development
\n
- (46) - - - - (46)
\n
Depreciation and amortization
\n
(1,192) (1,620) - - - - (1,192) (1,620)
\n
Other gains and (losses )
\n
(51) (151) 1,534 842 - - 1,483 691
\n
Segments result
\n
3,444 2,853 477 (26) - - 3,921 2,827
\n
Foreign exchange gain / (loss)
\n
23 (299) 138 67 - - 161 (232)
\n
Share of profit / (loss) from equity accounted investments
\n
93 (134) - - - - 93 (134)
\n
Finance costs
\n
(733) (847) (836) (1,149) - - (1,569) (1,996)
\n
Finance income
\n
13 13 27 12 - - 40 25
\n
Other interest
\n
(81) (35) - - - - (81) (35)
\n
Management fees - intercompany charges
\n
(1,057) (757) 1,050 750 - - (7) (7)
\n
Profit / (loss) before taxation
\n
1,702 794 856 (346) - - 2,558 448
\n
Taxation
\n
(1,439) 4 (192) (163) - - (1,631) (159)
\n
Profit / (loss) for the year-continuing operations
\n
263 798 664 (509) - - 927 289
\n
Profit / (loss) for the year-discontinued operations
\n
4,865 (566) - - - - 4,865 (566)
\n
Profit / (loss) for the year
\n
5,128 232 664 (509) - - 5,792 (277)
\n
Currency translation reserve and remeasurement of employee benefits
\n
- - 74 (401) - - 74 (401)
\n
Total comprehensive income for the year
\n
5,128 232 738 (910) - - 5,866 (678)
\n
Non-controlling interest
\n
(481) (359) - - - - (481) (359)
\n
Total comprehensive income attributable to owners of the parent
\n
4,647 (127) 738 (910) - - 5,385 (1,037)
\n
Ass ets and liabilities
\n
Segment intangible assets:
\n
Intangible assets with indefinite useful lives
\n
1,387 1,387 - - - - 1,387 1,387
\n
Intangible assets with finite useful lives
\n
5 4 - - - - 5 4
\n
Segment assets :
\n
Property, plant and equipment
\n
7,898 8,485 - - - - 7,898 8,485
\n
Other segment assets (including cash)
\n
20,806 21,312 (6,579) (8,855) 784 (498) 15,011 11,959
\n
Total segment assets
\n
30,096 31,188 (6,579) (8,855) 784 (498) 24,301 21,835
\n
Assets classified as held for sale
\n
4,925 6,440 - - (4,251) (3,965) 674 2,475
\n
Total assets
\n
35,021 37,628 (6,579) (8,855) (3,467) (4,463) 24,975 24,310
\n
Total segment liabilities
\n
8,610 13,413 15,428 14,864 - - 24,038 28,277
\n
Liabilities associated with assets held for sale
\n
- - - - - - - -
\n
Total liabilities
\n
8,610 13,413 15,428 14,864 - - 24,038 28,277
\n
Net assets / (liabilities)
\n
26,411 24,215 (22,007) (23,719) (3,467) (4,463) 937 (3,967)
\n
Non-controlling interest
\n
1,747 2,228 - - - - 1,747 2,228
\n
Other segment items
\n
Capital expenditure
\n
1,170 1,298 - - - - 1,170 1,298
\n
Depreciation and amortization
\n
1,192 1,620 - - - - 1,192 1,620
\n
\n
(1)
\n
Includes non-operating entities
\n
(2)
\n
Includes adjustment to Costa Rica segment results for equity accounting under IFRS 11.
\n

\n\n

\n\n

\n\n
\n
\n\n
\n\n
5. OTHER GAINS AND (LOSSES)
\n
\n
2022 2021
\n
Sun Nippon Company S.A.C. - Coin-in Settlement (a)
\n
1,643$ -$
\n
Tax provision Guatemala (b) (109) -
\n
Loss on disposal, write off of assets and liabilities (c) (40) (95)
\n
Restructuring costs (d) (11) (55)
\n
Reimburesment to Group on lender settlement - 866
\n
Other - (25)
\n
Total 1,483$ 691$
\n
\n
a. Sun Nippon Company S.A.C. - Coin-in Settlement
\n
During the year ended December 31, 2022, the group collected reimbursements related to an
\n
outstanding tax case that was settled with the tax authority in Peru. Additional details can be
\n
found in Note 23 - Commitments and Contingencies, a. Peru tax controversies.
\n
\n\n
b. Tax provision Guatemala
\n
During the year ended December 31, 2022 the group recorded a provision of $109,000 due to
\n
a tax judgement in Thunderbird de Guatemala for a case related to the 2009 tax period.
\n
c. Loss on disposal, write off of assets and liabilities
\n
During the year ended December 31, 2022, the Group recognised losses on the disposal of
\n
property, plant, and equipment of $37,000 and fair value loss on financial asset through profit
\n
and loss of $3,000.
\n
d. Restructuring costs
\n
During the year ended December 31, 2022, in an effort to restructure Peru overhead, the Group
\n
reduced it's Peru head count. The restructuring costs are made up of severance settlements to
\n
liquidate employees totaling $11,000
\n
\n\n

\n\n

\n\n

\n\n
6. COMPENSATION OF KEY PERSONNEL
\n
Key Management of the Group are the members of the Board of Directors and officers.
\n
The remuneration of key management personnel during the year was as follows:
\n
2022 2021
\n
Salaries and bonuses 669 588
\n
Short-term benefits 29 -
\n
Total 698$ 588$
\n
\n
The following table provides additional detail of remuneration to key management personnel
\n
during the year:
\n
Name
\n
Officer/Director Salary Bonus
\n
Short-term
\n
benefits
\n
Total
\n
compensation
\n
Salomon Guggenheim
\n
(1)
\n
Director-Officer 226$ -$ 4$ 230$
\n
Albert Atallah
\n
(2)
\n
Officer 180 - 10 190
\n
Peter Lesar
\n
(3)
\n
Director-Officer 215 - 15 230
\n
Stephan Fitch Director 24 - - 24
\n
Reto Stadelmann Director 24 - - 24
\n
Total 669$ -$ 29$ 698$
\n
(1)
\n
Aggregate other compensation includes discretionary expenses of $4,000.
\n
(2)
\n
Aggregate other compensation includes discretionary expenses of $10,000.
\n
(3)
\n
Aggregate other compensation includes discretionary expenses of $15,000.
\n
\n
\n
The remuneration of key personnel is determined by the compensation committee taking into
\n
account the performance of individuals and market trends.
\n

\n\n

\n\n

\n\n
\n\n
\n\n
\n\n
\n\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
8. INCOME TAXES AND DEFERRED TAX LIABILITY
\n
a) Tax charged in profit or loss
\n
2022 2021
\n
Current Income Tax
\n
Foreign tax
\n
1,130$ 543$
\n
Total current income tax
\n
1,130 543
\n
Deferred Tax
\n
Origination and reversal of temporary differences
\n
501 (384)
\n
Total deferred tax
\n
501 (384)
\n
Tax charged in the statement of comprehensive income
\n
1,631$ 159$
\n
Taxes allocated to:
\n
Loss for the year
\n
1,631 159
\n
Totals
\n
1,631$ 159$
\n
\n\n

\n\n

\n\n

\n\n
\n

\n

\n

\n

\n\n
b) Reconciliation of the total tax charge
\n
The tax expense in the statement of comprehensive income for the year is higher than the
\n
standard rate of corporate tax in the British Virgin Islands of 0%. The differences are
\n
reconciled below:
\n
2022 2021
\n
Accounting profit / (loss) before income tax
\n
2,558$ 448$
\n
Effect of different tax rates on overseas earnings
\n
1,631 159
\n
Total tax expense reported in the statement of income
\n
1,631$ 159$
\n
Deferred income tax assets
\n
Non-capital loss carryforwards
\n
- 297
\n
Temporary differences on net assets
\n
589 776
\n
Total deferred tax
\n
589$ 1,073$
\n
Deferred income tax liabilities
\n
Other
\n
36 37
\n
Total deferred tax liabilities
\n
36$ 37$
\n
\n
At December 31, 2022, the Group has unrecognized United States income tax net operating losses
\n
of $18,622,000 (2021 - $19,055,000). These operating losses expire at various dates for up to 20
\n
years. The potential income tax benefits related to United States loss carry forwards have not been
\n
reflected in the accounts as the Group does not anticipate future United States net income. At
\n
December 31, 2022, the Group has unrecognized Peru income tax net operating losses of $1,114.
\n
The $447 tax benefit associated with the Peru loss carry forwards has not been recognized as it is
\n
probable that the subsidiaries that hold the losses will not have sufficient net income to make use
\n
of the tax benefits before, they expire in one to four years.
\n
The Group has recorded a deferred tax asset in the amount of $589,000 (2021 - $1,073,000), related
\n
to leases in the Group\u2019s Nicaragua Subsidiary and to provisions and book reserves in certain Peru
\n
subsidiaries.
\n
Statement of Financial Position
\n
2022
\n
Statement of Financial Position
\n
2021
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Balance at beginning of year
\n
1,073$ (37)$ 1,036$ 733$ (44)$ 689$
\n
Movement in profit or loss
\n
(501) - (501) 388 6 394
\n
Foreign exchange and other
\n
17 1 18 (48) 1 (47)
\n
Balance at end of year
\n
589$ (36)$ 553$ 1,073$ (37)$ 1,036$
\n
\n\n

\n\n

\n\n

\n\n
\n

\n

\n\n
\n\n
\n\n
\n\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
\n
Impairment review
\n
For the purposes of assessing potential impairment, the Group\u2019s assets are grouped and reviewed
\n
for impairment at the lowest cash generating unit (CGU) level, where cash flows are independent
\n
of one another. The review is focused on our ongoing operating segments located in Nicaragua,
\n
where GCU is deemed by operating location/venue.
\n
For the purpose of annual impairment testing, goodwill in Nicaragua was allocated to each
\n
individual CGU proportional to its percentage of country-wide revenue.
\n
2022
\n
Goodwill
\n
Other assets
\n
considered for
\n
impairment
\n
Total assets
\n
considered for
\n
impairment
\n
Nicaragua 1,387 5,603 6,990
\n
Total 1,387$ 5,603$ 6,990$
\n
\n
(1) Calculated as net asset of the CGU plus borrowings less cash and cash equivalents.
\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
\n\n
The recoverable amount of each CGU was determined based on value-in-use calculations. The
\n
following paragraphs describe the key assumptions on which Management has based its cash flow
\n
projections for the period covered by the most recent budgets/forecasts and a description of
\n
Management\u2019s approach to determining the value(s) assigned to each key assumption.
\n
Management\u2019s key assumptions to forecast cash flow include:
\n
1. Revenue and revenue growth / reduction: Revenue and revenue growth / reduction were both
\n
considered as key assumptions. Specifically, revenue for future years was forecasted by: a)
\n
Taking into account as a base line the revenue generated in each CGU in 2022; b) Increasing
\n
that base line revenue equal to an organic growth that is equal to the long-term GDP growth
\n
forecasted by independent analysts for Nicaragua; and c) Adjusting for management actions
\n
that have recently been made or are significantly advanced and considered non-speculative,
\n
which could generate a net growth of revenue or a net reduction of revenue resulting from the
\n
net impact of the identified non-speculative events.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Cost of goods sold and
\n
growth / reduction in cost of goods sold were both considered as key assumptions. Specifically,
\n
costs of goods sold for future years was forecasted by: a) Taking into account as a base line the
\n
cost of goods sold in each CGU in 2022; b) Increasing that base line cost of goods sold by the
\n
long-term rate of inflation rate forecasted by independent analysts for Nicaragua; and c)
\n
Adjusting for management actions that have recently been made or are significantly advanced
\n
and considered non-speculative, which could generate a net growth of cost of goods sold or a
\n
net reduction of cost of goods sold resulting from the net impact of the identified non-
\n
speculative events.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs and growth /
\n
reduction in operating costs were both considered as key assumptions. Specifically, operating
\n
costs for future years were forecasted by: a) Taking into account as a base line the operating
\n
cost of in each CGU in 2022; b) Increasing those base line operating costs by the long-term
\n
rate of inflation rate forecasted by independent analysts for Nicaragua; and c) Adjusting for
\n
management actions that have recently been made or are significantly advanced and considered
\n
non-speculative, which could generate a net growth of operating costs or a net reduction of
\n
operating costs sold resulting from the net impact of the identified non-speculative events.
\n
4. Depreciation and amortization: Depreciation and amortization are forecasted based on the
\n
known future schedule of depreciation and amortization as of December 31, 2022 for each
\n
CGU, and then adjusted based on the future depreciation of assets to be purchased in the future
\n
using maintenance capex. For the purpose of annual impairment testing, depreciation and
\n
amortization in Nicaragua were allocated to each individual CGU proportional to its percentage
\n
of country-wide revenue.
\n
5. Financing costs, net: Financing costs, net are forecasted based on the schedule of all known
\n
debt as of December 31, 2022 for each CGU. For the purpose of annual impairment testing,
\n
financing costs, net in Nicaragua were allocated to each individual CGU proportional to its
\n
percentage of country-wide revenue.
\n
6. Direct and indirect taxes: Direct and indirect taxes were forecasted based on the tax regime in
\n
place as of December 31, 2022.
\n
7. Maintenance Capex: Maintenance capex was forecasted for future years based on the
\n
percentage of revenue allocated to maintenance capex in 2022 for each CGU.
\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
\n\n
Discount rates
\n
The present value of the expected cash flows of each segment is determined by applying a suitable
\n
discount rate. The discount rate was derived based on the calculation of Weighted Average Cost of
\n
Capital (WACC) for the Group, adjusted to reflect market data for companies in the gaming
\n
industry. The discount rates reflect appropriate adjustments relating to market risk and specific risk
\n
factors of each segment (incorporating adjustments for geographic location and currency risk). The
\n
discount rate applied to Nicaragua was 18.69%.
\n
With regard to the assessment of value in use of each acquisition, there are possible changes in key
\n
assumptions that could cause the carrying value of the unit to exceed its recoverable amount. These
\n
are discussed below:
\n
1. Revenue and revenue growth / reduction: Gaming revenue can be impacted by a) Changes in
\n
drop levels, which may be affected by the number of customers, seasonality, effective
\n
marketing efforts, a change in technology, competition or regulatory changes; and b) Changes
\n
in Hold %, representing the probability of individual games, which change can happen through
\n
chance, changes in gaming regulation and changes in gaming technology. Hotel revenue can
\n
be impacted by competition and seasonality. Growth rates, which are based on estimated GDP
\n
growth may be affected by material shifts in disposable income available for entertainment and
\n
hospitality.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Costs of goods sold can be
\n
impacted by changes in the market price of different goods and services, our competitiveness
\n
and requirements to increase promotional allowances, and by payroll adjustments because of
\n
changes in labor market conditions and/or management efficiencies. Cost of goods growth
\n
rates, which are based on estimated inflation rates, may be affected by changes in market and/or
\n
economic conditions.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs can be impacted by
\n
changes in the market price of different goods and services, our competitiveness and
\n
requirements to increase marketing expense, and by payroll adjustments because of changes in
\n
labor market conditions and/or management efficiencies. Operating cost growth rates, which
\n
are based on estimated inflation rates, may be affected by changes in market and/or economic
\n
conditions.
\n
4. Depreciation and amortization: Depreciation and amortization may be affected by the addition
\n
or sale of depreciable property, plant and equipment, including capital expenditures for
\n
maintenance purposes.
\n
5. Financing costs, net: Financial Costs, net may be affected by the addition or pre-payment of
\n
debt from the current debt schedule and by changes in the financial interest charged by banks.
\n
6. Direct and indirect taxes: Direct and indirect taxes may be affected by changes in tax
\n
legislation, regulation and judicial rulings.
\n
7. Maintenance Capex: Maintenance capex may be affected by the non-planned deterioration of
\n
assets, whose replacement will deviate from the investment time and investment amount
\n
considered in our estimations.
\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n

\n

\n

\n

\n

\n

\n

\n

\n\n
10. PROPERTY, PLANT AND EQUIPMENT
\n
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2022 10,465$ 1,654$ 4,834$ 3,914$ 18$ 20,885$
\n
Foreign exchange adjustments (7) (32) (73) (50) 1 (161)
\n
Additions 617 (4) 248 307 2 1,170
\n
Transfer to Assets Held for Sale (672) - - - - (672)
\n
Disposals (32) (255) (277) - (564)
\n
Transfers 15 4 - 2 (21) -
\n
As of December 31, 2022 10,386 1,622 4,754 3,896 - 20,658
\n
Depreciation
\n
As of January 1, 2022 2,818$ 1,511$ 4,463$ 3,608$ -$ 12,400$
\n
Foreign exchange adjustments (14) (30) (66) (45) - (155)
\n
Charge for the year 797 53 196 146 - 1,192
\n
Transfer to Assets Held for Sale - - - - - -
\n
Correction to accumulated depreciation (176) - - - - (176)
\n
Disposals (21) (245) (235) - (501)
\n
As of December 31, 2022 3,404 1,534 4,348 3,474 - 12,760
\n
Net book value as of January 1, 2022
\n
\n
\n
7,647
\n
\n
\n
143
\n
\n
\n
371
\n
\n
\n
306
\n
\n
\n
18
\n
\n
\n
8,485
\n
Net book value as of December 31, 2022
\n
$
\n
\n
6,982
\n
$
\n
\n
88
\n
$
\n
\n
406
\n
$
\n
\n
422
\n
$
\n
\n
-
\n
$
\n
\n
7,898
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2021 23,493$ 1,678$ 4,833$ 5,664$ 37$ 35,705$
\n
Foreign exchange adjustments (1,254) (32) (74) (1,425) (23) (2,808)
\n
Additions 901 8 161 150 78 1,298
\n
Transfer to Assets Held for Sale (11,607) (11,607)
\n
Transfer to Investment Property (1,124) (1,124)
\n
Disposals (14)
\n
-
\n
(86) (479)
\n
-
\n
(579)
\n
Transfers 70
\n
-
\n
-
\n
4 (74) -
\n
As of December 31, 2021 10,465 1,654 4,834 3,914 18 20,885
\n
Depreciation*
\n
As of January 1, 2021 11,056$ 1,490$ 4,329$ 5,098$ -$ 21,973$
\n
Foreign exchange adjustments (676) (30) (65) (1,360) - (2,131)
\n
Charge for the year 1,617 51 254 302 - 2,224
\n
Transfer to Assets Held for Sale (9,174)
\n
-
\n
-
\n
-
\n
- (9,174)
\n
Disposals (5)
\n
-
\n
(55) (432) - (492)
\n
As of December 31, 2021 2,818 1,511 4,463 3,608 - 12,400
\n
Net book value as of January 1, 2021
\n
\n
\n
12,437
\n
\n
\n
188
\n
\n
\n
504
\n
\n
\n
566
\n
\n
\n
37
\n
\n
\n
13,732
\n
Net book value as of December 31, 2021
\n
$
\n
\n
7,647
\n
$
\n
\n
143
\n
$
\n
\n
371
\n
$
\n
\n
306
\n
$
\n
\n
18
\n
$
\n
8,485
\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
Assets pledged as security
\n
Assets with the following amounts have been pledged to secure borrowings of the Group:
\n
December 31, 2022
\n
December 31, 2021
\n
Cost Amortized cost Cost Amortized cost
\n
Property 2,043$ 711$ 15,864$ 5,518$
\n
Total 2,043$ 711$ 15,864$ 5,518$
\n
\n
\n
The carrying value of assets held under finance leases and hire purchase contracts at December
\n
31, 2022 was $2,729,000 (2021 - $3,261,000).
\n

\n\n

\n\n\n
11. Investment Property
\n
Investment property includes land in the Group's Nicaraguan subsidiary located adjacent to its
\n
headquarters on the highway to Masaya, whose use has not been defined by the Group. The land
\n
is carried at historical cost.
\n
2022 2021
\n
Land 1,091$ 1,113$
\n
Total 1,091$ 1,113$
\n
\n
The fair value of this property is up to $4,249,000, according to the last valuation performed by an
\n
independent appraisal.
\n

\n\n

\n\n

\n\n

\n\n

\n\n
12. ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED
\n
OPERATIONS
\n
In 2021, the Group decided to convert it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium
\n
apartment complex. As of October 31, 2021 the Group\u2019s Peru hotel ceased operations as a hotel
\n
and legally cancelled its hotel operating license. The Group has completed the process to: i) Legally
\n
sub-divide the former hotel in to 66 individually titled apartment units; ii) Procure all change of
\n
use and other regulatory approvals. The decision was taken in line with the Group\u2019s strategy to
\n
reduce debt and to improve the Group\u2019s financial position. The Peru hotel operation has been
\n
reported as a discontinued operation. As of the date of publication of this 2022 Annual Report, the
\n
Group has sold 65 out of the 66 apartment units: 50 apartments were sold in 2022 and 15 in 2023.
\n
\n
Revenues and expenses, gains and losses relating to the Peru hotel operation have been eliminated
\n
from the Group\u2019s statement of comprehensive income and are shown in a single line item on the
\n
face of the statement of comprehensive income (see \u201cprofit/ (loss) for the period from discontinued
\n
operations\u201d).
\n
2022 2021
\n
Food, beverage, hospitality and other sales -$ 583$
\n
Total revenue
\n
- 583
\n
Cost of goods sold - (229)
\n
Gross profit
\n
- 354
\n
Other operating costs
\n
Operating, general and administrative (483) (320)
\n
Depreciation and amortization - (604)
\n
Other (losses) and gains 62 4
\n
Operating (loss) / profit
\n
(421) (566)
\n
Loss before tax
\n
(421) (566)
\n
Profit for the year
\n
(421) (566)
\n
Gain on disposal 5,286
\n
Profit / (loss) for the year from discontinued
\n
operations
\n
4,865$ (566)$
\n
\n
The carrying amount of Peru hotel assets that are held for sale may be summarized as follows:
\n
Peru Hotel
\n
2022 2021
\n
Property, plant and equipment
\n
674$ 2,475$
\n
Assets classified as held for sale 674$ 2,475$
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
Cash flows generated by the Peru Hotel operation for the reporting period are summarized as
\n
follows:
\n
2022 2021
\n
Net cash from operating activities
\n
(421) (566)
\n
Net cash (used) for investing activities
\n
(672) -
\n
Net cash (used) for financing activities
\n
- -
\n
Effect of foreign exchange adjustment - -
\n
Cash flows from discontinued operations (1,093)$ (566)$
\n
\n
Gain on disposal
\n
During the period ended December 31, 2022, a portion of the apartment held for sale were sold and
\n
the remainder should be sold by the end of 2023. The transactions resulted in a gain on disposal to
\n
the Group of approximately $5.29 million. The consideration received was approximately $7.86
\n
million in cash as described below.
\n
\n
Peru Asset Sales
\n
Property, plant and equipment
\n
2,571$
\n
Net assets disposed
\n
2,571$
\n
Consideration in cash
\n
7,857
\n
Fair value of proceeds
\n
7,857$
\n
Gain on Disposal 5,286$
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
13. TRADE AND OTHER RECEIVABLES
\n
Trade and other receivables consist of the following:
\n
2022 2021
\n
Trade and other receivables (Non-current)
\n
Deposits for rental, land and equipment
\n
83 69
\n
Other receivables
\n
753 754
\n
Total trade and other receivables (non-current)
\n
836$ 823$
\n
Trade and other receivables (Current)
\n
Trade receivables, gross
\n
\n
\n
994
\n
\n
\n
1,038
\n
Allowance for credit losses
\n
\n
\n
(813)
\n
\n
\n
(813)
\n
Notes receivable
\n
2 2
\n
Prepaid expense
\n
155 129
\n
Value added tax and employee receivables
\n
335 291
\n
Total trade and other receivables (current)
\n
673$ 647$
\n
\n
Trade and other receivables
\n
The carrying value of the trade receivables is considered a reasonable approximation of fair value.
\n
All of the Group\u2019s trade and other receivables have been reviewed for indicators of impairment.
\n
Certain trade receivables were found to be impaired and a provision of $Nil (2021 - $10,000) has
\n
been recorded accordingly.
\n

\n\n
The age of the trade receivables past due but not impaired is as follows:
\n
2022 2021
\n
Not more than 3 months 99 112
\n
More than 3 months but not more than 6 months 27 81
\n
More than 6 months but not more than 1 year 37 27
\n
More than 1 year 18 5
\n
Total 181$ 225$
\n

\n\n

\n\n

\n

\n\n
14. INVENTORIES
\n
2022 2021
\n
Food and beverage supplies 77 52
\n
Casino goods and promotional items 63 41
\n
Hotel food service and room supplies - 2
\n
Uniform and operational supplies 56 54
\n
Gaming machine parts 33 36
\n
Total 229$ 185$
\n
\n
Cost of goods sold within Cost of sales was $921,098 for the year ended December 31, 2022 and
\n
$684,214 for the year ended December 31, 2021. There were no inventory write downs for the year
\n
ended December 31, 2022.
\n

\n\n\n

\n\n

\n

\n\n
15. CASH AND CASH EQUIVALENTS
\n
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the
\n
following at December 31, 2022 and December 31, 2021:
\n
2022 2021
\n
Cash at banks and on hand 5,957 2,064
\n
Restricted cash 618 1,328
\n
Short-term deposits 205 203
\n
Total 6,780$ 3,595$
\n

\n\n
\n
\n
\n
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits
\n
are made for varying periods of time between one day and three months, depending on the
\n
immediate cash requirements of the Group, and earn interest at the respective short-term deposit
\n
rates. The fair value of cash and short-term deposits is $5,957,000 as of December 31, 2022 (2021
\n
- $2,064,000).
\n\n
Restricted cash includes the casino\u2019s bankroll, hopper loads, and a certificate of deposit that renews
\n
monthly and yields interest of 1.5% per year that is required by the gaming authorities in Nicaragua.
\n
The Group classifies the casino bankroll as restricted, as these balances are required to operate the
\n
business, thus these funds cannot be used to pay the obligations of the Group. The fair value of
\n
restricted cash is $823,000 at December 31, 2022 (2021 - $1,531,000).
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
16. TRADE AND OTHER PAYABLES
\n
2022 2021
\n
Trade and other payables (Non-current)
\n
Trade and other payables
\n
32 32
\n
Other liabilities
\n
197 162
\n
Deferred Income
\n
14 21
\n
Total trade and other payables (non-current)
\n
243$ 215$
\n
Trade and other payables (current)
\n
Trade and other payables
\n
3,684 2,999
\n
Other accrued liabilities
\n
2,509 2,414
\n
Total trade and other payables (current)
\n
6,193$ 5,413$
\n
\n
Current - trade payables are non-interest bearing and are normally settled on 30-to-90-day terms.
\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n
17. BORROWINGS
\n
Borrowings consist of loans payable detailed as follows:
\n
Schedule of principal repayments
\n
2023 2024 2025 2026 2027 Thereafter
\n
Unamortized
\n
premiums, discounts
\n
& issuance costs
\n
Total
\n
(1)
\n
Interest Rate
\n
:
\n
>10% 131$ -$ -$ -$ -$ -$ -$ 131$
\n
(2)
\n
8% to 9%
\n
\n
\n
8,100
\n
\n
\n
293
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
8,393
\n
6% to 7% - - - - - - - -
\n
<5% 533 - - - - - - 533
\n
Total principal repayments 8,764$ 293$ -$ -$ -$ -$ -$ 9,057$
\n
1. Floating rate loans are calculated as of the effective rate on December 31, 2022.
\n
2023 2024 2025 2026 2027 Thereafter
\n
Unamortized
\n
premiums, discounts
\n
& issuance costs
\n
Total
\n
Country:
\n
Corporate
\n
(2)
\n
8,692$ -$ -$ -$ -$ -$ -$ 8,692$
\n
Nicaragua 72 293 - - - - - 365
\n
Peru - - - - - - - -
\n
Total principal repayments 8,764$ 293$ -$ -$ -$ -$ -$ 9,057$
\n
2. The Group's parent entity (Corporate) assumed outstanding debt balances of our Guatemala and Poland entities. The balances outstanding at December 31, 2022 for
\n
Guatemala and Poland were $129,675 and $288,635 respectively.
\n
Borrowing summary
\n
2022 2021
\n
Total borrowing 9,057 13,493
\n
Less current portion of borrowings (8,764) (8,316)
\n
Borrowing non-current 293$ 5,177$
\n
\n
The following table provides additional detail of additions, refinancing, repayments, and disposals
\n

\n
taking place during the year:
\n

\n
Additions Summary
\n
Balance
\n

\n
Dec 31, 2021
\n
(1)
\n

\n
Additions
\n
Interest
\n

\n
Capitalization
\n

\n
Repayments
\n
Unamortized
\n
premiums,
\n
discounts &
\n
issuance costs
\n
Balance
\n
Dec 31, 2022
\n
\n
Loans with financial entities 5,446$ -$ -$ (5,081)$ -$ 365$
\n
Loans with non-financial entities 8,055 - 637 - - 8,692
\n
Total 13,501$ -$ 637$ (5,081)$ -$ 9,057$
\n
\n
(1) Does not include unamortized premiums, discounts & issuance costs of $8,000.
\n

\n\n

\n\n

\n\n
Notes
\n
Additions
\n
There were no new loans for the year ended December 31, 2022.
\n
Interest Capitalization
\n
a. During the year ended December 31, 2016, the Group executed various amendments to
\n
promissory notes with private lenders resulting in deferring principal and interest payments and
\n
capitalizing any interest accrued during 2022. Accrued interest of $637,000 was capitalized
\n
and added to outstanding principal balances of $7,109,000.
\n
Repayments
\n
a. During the year ended December 31, 2022, the Group repaid a total of $5,081,000 of loan
\n
principal on loans with financial entities.
\n

\n\n

\n\n

\n\n

\n\n
18. PROVISIONS
\n
Current Non-Current Current Non-Current
\n
2022 2022 2021 2021
\n
Employee benefits
\n
392$ 357$ 192$ 359$
\n
Other
\n
25 - 26 -
\n
Litigation provisions
\n
- 467 - 922
\n
417$ 824$ 218$ 1,281$
\n
Employee
\n
benefits
\n
Litigation Other Total
\n
Balance at January 1, 2021
\n
545$ 1,017$ 21$ 1,583$
\n
Provisions recognized
\n
300 - 90 390
\n
Provisions utilized
\n
\n
\n
(279)
\n
\n
\n
-
\n
\n
\n
(51)
\n
\n
\n
(330)
\n
Provisions released
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
(33)
\n
\n
\n
(33)
\n
Differences arising from foreign exchange
\n
(15) (95) (1) (111)
\n
Balance at December 31, 2021
\n
551 922 26 1,499
\n
Provisions recognized
\n
591 - 62 653
\n
Provisions utilized
\n
\n
\n
(385)
\n
\n
\n
(493)
\n
\n
\n
(63)
\n
\n
\n
(941)
\n
Differences arising from foreign exchange
\n
(8) 38 - 30
\n
Balance at December 31, 2022
\n
749$ 467$ 25$ 1,241$
\n
\n
Employee benefits
\n
Current employee benefits are paid time off for vacations and sick time earned but not yet used by
\n
the employee. Non-current employee benefits include severance pay, which is the cost associated
\n
with the severance packages as described below:
\n
The subsidiary employee provisions by country are as follows:
\n
Nicaragua
\n
The Nicaraguan Labor Code established a severance payment plan for employees in the event of
\n
death, retirement or dismissal without just cause. This compensation is determined according to
\n
employee length of service. The plan compiles a month of salary for each labor year (for the first
\n
three labor years) and twenty days of salary after the fourth labor year, until the compensation
\n
reaches a maximum of five months\u2019 salary. Compensation cannot be less than one month\u2019s salary
\n
or more than five months\u2019 salary.
\n
The amount of $749,000 (2021- $551,000) includes $471,000 of retirement benefit obligations.
\n
For determination of the retirement benefit obligations in 2022 and 2021, the following actuarial
\n
assumptions were used:
\n

\n\n

\n\n

\n\n

\n\n

\n\n
2022 2021
\n
Discount rates
\n
7.87% and 8.01% 9.33% and 10.26%
\n
Expected rate of salary increases
\n
0.01 0.02
\n
Staff turnover
\n
5 and 7 years 5 and 8 years
\n
\n
The Group records a monthly provision as an expense to the respective period to cover any
\n
severance payment reimbursement incurred by the Group to terminated employees under this plan.
\n
As of December 31, 2022, the Group has recorded provisions amounting to $334,000 (2021 -
\n
$110,000), which represents Management\u2019s best estimate of the liability. This is an accrual under
\n
Nicaraguan law and is not a pension scheme.
\n
Additionally, the other countries in which the Group operates have various severance requirements
\n
as described in Note 3. The severance requirements are classified as long term. The short-term
\n
employee benefits are primarily accrued vacation payable to employees.
\n

\n\n
Litigation
\n
Peru THLA tax cases
\n
During the year ended December 31, 2016, THLA filed an appeal procedure of a Tax Court decision
\n
(case file 5396-2012). The Tax Court held against THLA position that Intendencia Resolution
\n
0150140010152 is unfounded. This Resolution involves SUNAT imposing a General Sales Tax
\n
(IGV tax credit originated in the purchase of hotels) with a potential contingency in the amount of
\n
S/. 3,245,168 plus interest of S/. 4,442,733 (US$849,520, interest US$1,163,019).
\n
The same case contains matters related to Resolution no. 0120030026291 for the tax year 2007, in
\n
which the tax authorities imposed an income tax of S/. 558,950 plus interest of S/. 703,176
\n
(US$146,322, interest: US$184,077) due to a rejection of certain deductions in 2007 for interest
\n
payments made to lenders/investors domiciled abroad on certain loans and investments. In
\n
addition, the tax authorities imposed a fine in relation to this resolution in the amount of S/. 279,474
\n
plus interest of S/. 402,870 (US$73,161, interest: US$105,463).
\n
In 2022, the Company was served with a Resolution N\u00b0 11395-4-2021 in which the Tax Court has
\n
confirmed that the above mentioned SUNAT\u2019s resolutions related to 2007 income tax are already
\n
\u201cenforceable\u201d. THLA is entitled to appeal the Tax Court Decision before the Judiciary. THLA is
\n
considering all its options and have not made a decision concerning this appeal as of the date of the
\n
publication of the annual report.
\n
With respect to IGV, management believes it could generate a favorable result; and with reference
\n
with the Income Tax, the chances of success are relatively less favorable. A provision has been
\n
recognized for cases where the Group\u2019s chances of success are relatively less favorable. The
\n
provision recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As
\n
of December 31, 2022 the 2007 tax cases have been paid in full and the provision totaling S/.
\n
1,900,746 has been released.
\n

\n\n

\n\n

\n

\n\n
Likewise, there is another appeal procedure in a ruling by the tax Court (Tax Court File 15182-
\n
2014), involving SUNAT resolutions 0220030035681-0220030035690 for the tax year 2008
\n
related to withholding on payments made abroad. The tax assessment is made up of principal of
\n
S/. 257,954 plus interest of S/. 317,825 (US$ 67,527, interest: US$83,200). In separate Resolutions
\n
0220020013107-0220020013114, the tax authorities issued fines related to the prior mentioned
\n
resolutions in the amount of S/.107,530 plus interest of S/.134,033 (US$28,149 interest:
\n
US$35,087). A provision had been recognized in connection with the resolution above totaling S/.
\n
843,741 (US$220,875) including tax, penalties and interest.
\n
The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008 related
\n
to payments in advance of the income tax of S/. 45,337 plus interest of S/. 49,585 (US$11,868,
\n
interest: US$12,980). Resolutions 0220020013229-0220020013238 imposed fines related to the
\n
prior mentioned resolutions of S/. 381,969 plus interest of S/. 456,403 (US$99,992, interest:
\n
US$119,477). A provision has been recognized in connection with the resolution above totaling
\n
S/. 940,923 (US$246,315) including tax, penalties and interest.
\n

\n\n\n

\n

\n\n

\n

\n\n
19. SHARE CAPITAL AND RESERVES
\n
A majority of the Group\u2019s shareholders voted in favor of continuing the Group\u2019s charter from the
\n
Yukon, Canada to the British Virgin Islands (\u201cBVI\u201d). The Group formally continued its corporate
\n
charter into the BVI effective October 6, 2006 and filed \u201cdiscontinuation documents\u201d with the
\n
Yukon Registrar. Holders of common shares are entitled to one vote for each share held. There are
\n
no restrictions that limit the Group\u2019s ability to pay dividends on its common stock. The Group has
\n
not issued preferred shares. The Group\u2019s common stock has no par value.
\n
Number of
\n
shares
\n
Share capital
\n
($USD in 000's)
\n
Shares authorized
\n
500,000,000 common shares without par value
\n
500,000,000 preferred shares without par value
\n
Shares issued
\n
Balance as at December 31, 2020 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2021 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2022 30,914,077 111,757$
\n

\n\n
\n\n
Options
\n
The Group, through its Board of Directors and shareholders, adopted two Stock Option Plans, the
\n
first on July 1, 1997, and the second on June 25, 2005. Both plans will continue separate and apart
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
from one another. The Group has granted a number of stock options and entered into various
\n
agreements of which up to no shares remain available for purchase pursuant to options granted
\n
under these plans. All of the stock options issued under these plans are nontransferable and
\n
terminate on the earlier of the expiry date or 30 days after the grantee ceases to be employed by the
\n
Group.
\n
Stock option plan I dated July 1, 1997 and Stock option plan II dated June 25, 2005
\n
Options granted under these plans were awarded by the Board of Directors at its sole discretion to
\n
select Directors and employees. The options granted to the option holder may be exercised in whole
\n
or in part at any time, or from time-to-time during the exercise period. The options may lapse due
\n
to time limitations, death or change in employment status. The price at which an option holder may
\n
purchase a share upon the exercise of an option, shall be set forth in the option certificate, but not
\n
less than the market value of the Group shares as of the award date. Option grants have ceased
\n
under both plans as of November 19, 2007.
\n
2007 Equity incentive plan dated November 20, 2007 (amended in August 2009)
\n
The 2007 Equity Plan was amended in 2009 to authorize the Directors, at their discretion, to award
\n
grants in an aggregate amount of up to 5% of the Company issued and outstanding shares. Our
\n
2007 Equity Incentive Plan (the \u201c2007 Equity Plan\u201d) is designed to enable us and our affiliates to
\n
obtain and retain the services of the types of employees, consultants and directors who will
\n
contribute to our long-term success and to provide incentives that are linked directly to increases
\n
in share value which will inure to the benefits of all of our shareholders. We have reserved up to
\n
5% of our current issued and outstanding common shares, as of any given date, for the issuance of
\n
shares, which may be awarded under such Equity Plan.
\n
There are no outstanding options as of December 31, 2022.
\n

\n\n
Currency translation reserve
\n
The translation reserve represents the foreign currency translation differences arising from the
\n
translation of our subsidiary financial statements into United States dollars.
\n
Retained earnings / (loss)
\n
Retained earnings / (loss) are the accumulated retained profits and/or losses.
\n
Share options reserve
\n
The Group issues equity-settled share-based payments to certain employees and Directors. For all
\n
share-based payment arrangements granted, an expense is recognized in profit or loss with a
\n
corresponding credit to equity. The fair value of share options is expensed over the vesting period
\n
of the options, based on an estimate of the number of shares that will eventually vest, and adjusted
\n
for the effect of non-market-based vesting conditions. The corresponding credit is taken to the share
\n
options reserve. The fair value is calculated using the Black-Scholes pricing model.
\n

\n\n
\n

\n\n

\n\n

\n

\n\n
20. EARNINGS PER SHARE
\n
The following weighted average numbers of shares were used for computation of earnings per
\n
share:
\n
2022
\n
2021
\n
Shares used in computation of basic loss per share
\n
(000's)
\n
30,914 30,914
\n
Shares used in computation of diluted loss per share
\n
(000's)
\n
30,914 30,914
\n
Earnings / (loss) for the period attributable to the parent 5,311$ (632)$
\n
Basic earnings / (loss) per share 0.17 (0.02)
\n
Diluted earnings / (loss) per share 0.17 (0.02)
\n
\n
Basic earnings per share is calculated by dividing the net gain for the year by the weighted average
\n
shares used in the computation of basic earnings per share. Diluted earnings per share is calculated
\n
by dividing the net gain for the year by the weighted average shares used in the computation of
\n
diluted earnings per share.
\n

\n\n\n
21. RELATED PARTY TRANSACTIONS
\n
2022 2021
\n
Current Non-Current Current Non-Current
\n
Due from related parties
\n
Nicaraguan Partners -$ 42$ -$ 42$
\n
Costa Rican Joint Venture 2,085 - 2,038 -
\n
Trans actions with officers - 391 - 381
\n
2,085$ 433$ 2,038$ 423$
\n
Due to related parties
\n
Nicaraguan Partners 208$
\n
-$
\n
219$
\n
-$
\n
Trans action with officers 1,453
\n
-
\n
1,767
\n
-
\n
1,661$ -$ 1,986$ -$
\n

\n\n

\n\n

\n\n

\n
Due from related parties
\n
Receivables from joint ventures and related party receivables
\n
The Group charges management, marketing, administration and royalty fees to its subsidiaries and
\n
joint ventures. The income and expenses associated with management fees between subsidiaries
\n
have been eliminated in their entirety in these consolidated financial statements. The related party
\n
receivable represents amounts due from the Group\u2019s partners in its non-wholly owned subsidiaries.
\n
All receivables are non-interest bearing and are due on demand by the Group. The Group has not
\n
provided for an allowance against these amounts as these amounts are deemed collectible by the
\n
Group.
\n
Included in due from related parties is $2,085,000 (2021 \u2013 $2,038,000) due from our Costa Rica
\n
joint ventures which are accounted for under the equity method, these receivables are non-interest
\n
bearing and are due on demand by the Group. Balances will be settled upon the sale of certain real
\n
estate in Costa Rica. Additionally, $42,000 (2021 \u2013 $42,000) is due from a shareholder in the
\n
Nicaraguan operation for their portion of the loan attributed to the purchase of the majority interest
\n
in Nicaragua in October 2004.
\n
Included in due from related parties are loans to officers for $391,000 (2021 - $381,000). The
\n
amounts due from officers is as follows: Albert Atallah $248,000 ($225,000 plus $23,000 accrued
\n
interest); Peter LeSar $143,000 ($125,000 plus accrued interest $18,000).
\n
Due to related parties
\n
Payable to joint ventures and related party payables
\n
Included in due to related parties are amounts due to the Group\u2019s Nicaraguan partners $208,000
\n
(2021 \u2013 $219,000) for their portion of the accrued, but not yet paid management fees from the
\n
Nicaraguan entity.
\n
Included in due to related parties are accrued wages owed to the Groups\u2019 officers and directors
\n
totaling $1,453,000 (2021 \u2013 $1,767,000). The amounts owed are as follows: Salomon Guggenheim
\n
545,000 (2021 - $612,000); Peter LeSar $507,000 (2021 - $550,000); Albert Atallah $400,000
\n
(2021 - $419,000). There are $1,000 (2021 - $186,000) owed to directors as of December 31, 2022.
\n\n
Transaction with Officers and Directors included within borrowings
\n
Salomon Guggenheim, who previous to the middle of 2013 only held the roles of Director and
\n
advisor to the Group, is a director and not a beneficial owner in a company called India Ltd. The
\n
Group has been loaned various amounts by India Ltd. Please see Officer related party in the table
\n
below for amount due and interest paid to India Ltd. during 2022 and 2021.
\n

\n\n

\n\n

\n\n

\n

\n\n
\n\n
2022 2021
\n
Amount due Interest paid Amount due Interest paid
\n
Country
\n
Officer related party Corporate 1,372 - 1,259 -
\n
Total 1,372$ -$ 1,259$ -$
\n
\n\n

\n\n
\n\n

\n
22. OBLIGATIONS UNDER OPERATING LEASES, FINANCE LEASES
\n
AND HIRE PURCHASE CONTRACTS
\n
Obligations under finance leases and hire purchase contracts
\n
The Groups Nicaragua subsidiary has leases for four casino properties and related parking areas,
\n
two residential properties. The lease liabilities are secured by the related underlying assets. As at
\n
December 31, 2022, future minimum lease payments under leases and hire purchase contracts of
\n
the Group are as follows:
\n
Future commitments due
\n
December 31, 2022
\n
Future commitments due
\n
December 31, 2021
\n
Minimun Lease
\n
Payments
\n
Present value
\n
Minimun Lease
\n
Payments
\n
Present value
\n
Not longer than one year 1,353$ 877$ 1,223$ 633$
\n
After one year but not more than five years 3,567 2,558 4,268 2,854
\n
After five years 867 684 1,503 1,192
\n
Sub total 5,787 4,119 6,994 4,679
\n
Present value of minimum lease payments 5,787$ 4,119$ 6,994$ 4,679$
\n
Obligations under leases and hire purchase
\n
contracts current
\n
(877)$ (633)$
\n
Obligations under leases and hire purchase
\n
contracts non-current
\n
3,242$ 4,046$
\n
\n
Assets held under finance leases and hire purchase contracts as of December 31, 2022 and
\n
December 31, 2021:
\n
2022
\n
2021
\n
Cost Amortized cost Cost Amortized cost
\n
Right-of-use assets 4,822 2,729 4,964 3,261
\n
Total 4,822$ 2,729$ 4,964$ 3,261$
\n

\n\n

\n\n

\n\n

\n\n

\n\n
23. COMMITMENTS AND CONTINGENCIES
\n
As at December 31, 2022, principal payments required under the terms of the loan agreements and
\n
their liabilities in each for the next five years are as follows:
\n
Year ending December 31:
\n
2023
\n
8,764$
\n
2024
\n
293
\n
2025
\n
-
\n
2026
\n
-
\n
2027
\n
-
\n
Thereafter
\n
-
\n
Subtotal
\n
9,057
\n
Less: Debt issuance costs
\n
-
\n
9,057$
\n
\n
Set out below is an overview of our ongoing contingencies, many of which are as a result of
\n
regulatory uncertainty. An estimate of the financial effect of each contingency is disclosed unless
\n
a reasonable estimate of the financial effect cannot be made.
\n
a. Peru tax controversies
\n
Sun Nippon Company S.A.C. - \u201ccoin-in case\u201d:
\n
In October of 2017, the Group announced the sale of certain operation in Peru including those
\n
held by a company named Sun Nippon Company, S.A.C. \u201cSNC\u201d. As part of the sale of those
\n
operations, the purchaser agreed that irrespective of the transfer of the SNC Shares,
\n
Thunderbird will have the right to continue with the defense of certain tax refund case (the
\n
\u201cSun Nippon Coin In Case\u201d), initiated by SNC before the Peruvian Judicial Court of Justice,
\n
against a decision of the Peruvian Administrative Tax Court of January 2016. The Parties
\n
agreed that if SNC, under a final decision of the Judiciary receives any monetary refund
\n
together with any additional compensation for interests, and/or any reimbursement of costs and
\n
expenses incurred in relation to the same, the Buyer will be obliged to pay to Thunderbird
\n
within thirty (30) calendar days following its receipt by SNC, an amount equal to the sum so
\n
received by SNC deducting any applicable withholdings, taxes, commissions, charges, cost,
\n
or similar that may affect the transfer of such proceeds from SNC to the corresponding Buyer
\n
and from such Buyer to Sellers, and/or any other deductions that may apply by Law.
\n
The background of the case is as follows: On or about January 18, 2016, the Peruvian
\n
Administrative Tax Court (commonly known as the Tribunal Fiscal in Spanish) served a
\n
negative ruling against the Group\u2019s Peruvian subsidiary operation. The ruling is dated
\n
December 28, 2015 and covers a tax matter commonly known as the \u201c2006 coin-in case\u201d
\n
(hereafter \u201cthe December 28, 2016 coin in ruling\u201d. The basis of the negative ruling keyed in on
\n
whether \u201crevenue\u201d should be based on \u201cnet win\u201d or on \u201ccoin in \u201cas it relates to pre-payment of
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
income tax. After the issuance of \u201cthe December 28, 2015 \u201ccoin-in ruling\u201d, Management
\n
learned that SUNAT had issued a report dated and executed on December 24, 2015 defining
\n
\u201crevenue\u201d for purposes of the relevant tax issues (hereafter \u201cthe SUNAT Report\u201d). This
\n
SUNAT report was released to the public on February 18, 2016 and is in reply to a March 18,
\n
2015 letter of the \u201cSociedad Nacional De Juegos De Azar (SONAJA)\u201d in which SONAJA
\n
sought clarification from SUNAT on the definition of \u201crevenue\u201d in the \u201c2006 coin-in case\u201d
\n
(hereafter the \u201cSONAJA Petition\u201d). The SONAJA Petition sought an opinion from SUNAT to
\n
the effect that the pre-payment of income tax should be based on \u201cnet win\u201d and not on \u201ccoin-
\n
in\u201d. The SUNAT report opines that the pre-payment of income tax should be based on \u201cnet
\n
win\u201d and not on \u201ccoin-in\u201d. According to the Group\u2019s tax counsel, this SUNAT report is 100%
\n
legally binding on SUNAT, meaning that SUNAT will no longer audit and oppose the
\n
calculation of revenue based on \u201ccoin-in\u201d as it relates to the pre-payment of income tax. The
\n
clear conclusion by the outside counsel is that SUNAT recognizes the \u201cnet win\u201d as base for the
\n
calculation of the income tax.
\n
Unfortunately, in spite of the February 18, 2016 SUNAT report, Management must continue
\n
its appeal of the Tribunal resolutions in the SNC 2006 coin-in case. SNC has filed its appeal
\n
on March 23, 2016, in this matter to the judicial court in which it could review the entire tax
\n
case on a \u201cde novo\u201d basis, meaning that SNC will have the opportunity to present its case in
\n
full and most likely prevail on appeal in its position. One significant and material factor in the
\n
Tribunal negative ruling is that the tribunal did not take into account the main defenses that
\n
SNC presented but chose to ignore those defenses. While the Appeal was pending, SNC
\n
proceeded to pay the entire tax liability and is now seeking a refund of all taxes paid, in case
\n
SNC prevail on its case. On April 28, 2017, the 1st instance Court gave a decision in favor of
\n
SNC. Both SUNAT and the Tribunal Fiscal have appealed the decision before the Superior
\n
st
\n
Tribunal. On October 18, 2017, the Superior Tribunal confirmed the decision of the 1
\n
Instance
\n
Court in favor of SNC. On November 22, 2017, both SUNAT and the Tribunal Fiscal filed a
\n
so-called cassation writ before the Supreme Court, last and definitive instance. However,
\n
SUNAT has withdrawn its cassation writ, meaning SUNAT is no longer appealing or otherwise
\n
challenging the Lower Court\u2019s decision in favor of SNC. The Tax Court has not filed a
\n
withdrawal. And now, on September 6, 2021 the Supreme Court has served a formal resolution
\n
that Tribunal Fiscal\u2019s cassation writ has been formally accepted, meaning that that the Supreme
\n
Court would analyze the substance of the matter and eventually issue the definitive resolution
\n
(in third and last instance). As part of the Judicial procedure, a hearing took place on March
\n
31, 2022, in which the Parties had the opportunity to expose to the judges their positions in a
\n
verbal matter. On June 2022, the Supreme Court (third and last Judiciary instance) served the
\n
ruling through which it recognized that SUNAT\u00b4s assessment (confirmed by the Tax Court)
\n
was groundless. As stated above, at the time the Peru operations were sold the Group and the
\n
Purchaser agreed that if SNC, under a final decision of the Judiciary receives any monetary
\n
refund together with any additional compensation for interests, and/or any reimbursement of
\n
costs and expenses incurred in relation to the same, the Buyer will be obliged to pay to
\n
Thunderbird within thirty (30) calendar days following its receipt by SNC, an amount equal to
\n
the sum so received by SNC deducting any applicable withholdings, taxes, commissions,
\n
charges, cost, or similar that may affect the transfer of such proceeds from SNC to the
\n
corresponding Buyer and from such Buyer to Sellers, and/or any other deductions that may
\n
apply by Law. During the year ended December 31, 2022, SNC received an approximate of
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
US$ 1,642,713 as monetary refund as detailed in Note 5 and was remitted to the Group as had
\n
been agreed.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 Tax issues: In the latter part of 2011, the Group\u2019s
\n
wholly owned Peruvian subsidiary, Thunderbird Hoteles Las Americas, S.A. (\u201cTHLA\u201d),
\n
received the following resolutions issued by the Peruvian tax authority, Superintendencia
\n
Nacional de Administraci\u00f3n Tributaria (\u201cSUNAT\u201d), in relation to various major tax issues
\n
(*note: all interest mentioned in the following description have been calculated up to
\n
September 30, 2020).
\n
By Resolution no. 0120030026291 for the tax year 2007 the tax authorities imposed an income
\n
tax of S/. 558,950 plus interest of S/. 703,176 (amounts in US$139,807, interests: US$184,077)
\n
due to a rejection of certain deductions in 2007 for interest payments made to lenders/investors
\n
domiciled abroad on certain loans and investments. In addition, the tax authorities imposed a
\n
fine in relation to this resolution in the amount of S/. 279,474 plus interest of S/. 402,870
\n
(amounts in US$73,161, interest: US$105,463).
\n
In another Resolution no. 0120020018846 for the tax year 2007 the tax authorities denied
\n
certain tax credits in favor of THLA related to IGV of the purchase of the hotels for an amount
\n
of S/. 3,245,168 plus interest of S/. 4,442,733 (amounts in US$849,520, interest
\n
US$1,163,019).
\n
On November 21, 2011, THLA filed an administrative appeal with respect to the resolutions
\n
no. 0120030026291 and no. 0120020018846 On March 23, 2012, THLA was notified through
\n
a SUNAT resolution that the tax authority confirmed the resolutions as described herein.
\n
THLA thereafter filed an appeal on April 12, 2012.
\n
The tax authorities issued another \u201cResolution of Intendance no. 0150140010152\u201d which
\n
involves both of the 2007 prior mentioned tax assessments related to IGV (Resolution
\n
0120020018846) and Income Tax (Resolution 0120030026291). On October 12, 2019 a
\n
hearing took place before the Tax Court, which is the second and last administrative challenge
\n
in regards to this matter.
\n
In Relation with the income tax resolution, THLA has recently been served with the Resolution
\n
N\u00b0 11395-4-2021 through which the Tax Court has confirmed SUNAT\u2019s decision. A provision
\n
was made for this case in where the Group\u2019s chances of success were low. The provision
\n
recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As of
\n
December 31, 2022, the assessed amounts were duly paid by THLA.
\n
In relation with the IGV Resolution N\u00b0 11395-4-2021, the Tax Court has ruled that it has no
\n
legal grounds.
\n
In respect to all of these resolutions issued by the tax authorities, Management intends to
\n
vigorously defend its position at all administrative and judicial levels. The Group is not
\n
responsible for payment until the administrative and judicial process decisions are final with
\n
no further rights of appeal. However, interest on these resolutions continues to accrue while
\n
the administrative and judicial process is completed and a final decision is rendered. As a result
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
of the on-going uncertainty over the potential outcome of this matter no provision has been
\n
recorded.
\n
On a separate matter, the company has filed an appeal procedure in a ruling by the Tax Court
\n
(Tax Court File 15182-2014), related to Resolutions 0220030035681-0220030035690 for the
\n
tax year 2008 referred to withholdings of payments made abroad in a total principal amount of
\n
S/. 257,954 plus interest in a total of S/. 317,825 (amounts in US$ 67,527, interest: US$83,200).
\n
In separate Resolutions 0220020013107-0220020013114 the tax authorities issued fines
\n
related to the prior mentioned resolutions in the amount of S/.107,530 plus interest in a total of
\n
S/.134,033 (amounts in US$28,149 interest: US$35,087). A provision has been recognized in
\n
connection with the resolution above totaling S/. 843,741 (US$220,875) including tax,
\n
penalties and interest.
\n
The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008
\n
related to payments in advance of the income tax for a total amount of S/. 45,337 plus interest
\n
in a total of S/. 49,585 (amounts in US$11,868, interest: US$12,980). Resolutions
\n
0220020013229-0220020013238 imposed fines related to the prior mentioned resolutions for
\n
the amount in total of S/. 381,969 plus interest in a total of S/. 456,403 (amounts in US$99,992,
\n
interest: US$119,477). Through Resolution N\u00b0 7826-11-2022 (served on November 18, 2022)
\n
the Tax Court has solved the tax proceeding related to 2008 Income Tax. The Tax Court has
\n
confirmed the tax debt related to (i) Income Tax Retained in 2008 for interest on loans from
\n
related parties; (ii) payments on account of Income Tax for the year 2008 and (iii) income tax
\n
for 2008 (deduction of interest not recorded in the accounts). A provision was made in
\n
connection with the above resolution for a total of S/. 940,923 (US$246,315) including tax,
\n
penalties and interest. The relevant tax debt assessed in this case was duly paid in Q1 2023.
\n
Through Intendancy Resolution 0250140020952, SUNAT issued a 2013 IGV assessed tax debt
\n
amounting S/. 1,013,295.00. This tax debt was originated as a consequence of SUNAT\u2019s 2007
\n
IGV assessment which The Tax Court already confirmed as null, revoking it. Through
\n
resolution 11390-4-2019 the Tax Court has ruled that the result of this procedure depends on
\n
the result of 2007 process, which has been already declared in favor of the Company.
\n
Considering that the Tax Court has already dismissed 2007 IGV tax assessment (resolution
\n
11395-4-2021), it is more than likely that the 2013 tax debt will be also revoked.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 \u201cAlcabala\u201d (Property Transfer Tax) process: On
\n
September 25, 2007, THLA received a notification in connection with a resolution issued by
\n
the Tax Administration Service (SUNAT) demanding payment of US$ 522,824.68 (S/.
\n
1,969,742) for a property transfer tax resulting from the purchase of the land and the building
\n
located at Alcanfores 475, Miraflores. SUNAT asserted that THLA wrongly calculated the tax
\n
on the first-time sale of such property (sold by La Caja Militar to THLA).
\n
On October 24, 2007, THLA filed an appeal against the resolution issued by SUNAT. THLA
\n
asserts that it had paid the corresponding property transfer tax for the land, as well as the VAT
\n
for a part of the building. THLA argues that the property transfer tax was not paid for part of
\n
the building as the sale of such part of the building was a first-time sale performed by the
\n
contractor and was exempt from tax. On October 17, 2014, the Tax Court ruled that the
\n
resolution issued by the SUNAT was void as it had not been properly supported (such
\n

\n\n

\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
resolution did not specify the reasons why the SUNAT considered that the total of the transfer
\n
was subject to property transfer tax).
\n
On March 12, 2015, SUNAT issued a new resolution in respect of the same issues, but provided
\n
no additional evidentiary support for its position. SUNAT\u2019s new resolution (Resolution N\u00ba 045-
\n
012-00073684), demanded the payment of the property transfer tax for the same land and the
\n
same building for a total of S/. 1,052,993 (including interests and penalties). THLA argued
\n
once again that the resolution issued by SUNAT lacks the proper supporting documentation.
\n
SUNAT claims that THLA must pay the property transfer tax but does not explain the legal
\n
basis supporting such standpoint.
\n
On April 13, 2015, THLA filed its opposition against Resolution N\u00ba 045-012-00073684
\n
asserting that THLA was not required to pay any property transfer tax and requesting that the
\n
new resolution be declared void as it lacked proper support. Such claim is currently under
\n
review. THLA contends that it is probable that the Tax Court, for a second time, will declare
\n
such resolution to be void. The opposition writ is pending a ruling by the Municipal
\n
Administration (1st administrative instance). Should the opposition writ be rejected, THLA is
\n
entitled to file an appeal writ before the Tax Court (second administrative instance).
\n
b. Costa Rica tax controversies
\n
By way of background, the income tax in Costa Rica is collected by the General Income Tax
\n
Office. The Group previously owned various Costa Rica subsidiaries including, Thunderbird
\n
Gran Entretenimiento, S.A. (\u201cTGE\u201d), and Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d).
\n
On February 27, 2015, the Group sold its entire economic interest and management rights in
\n
its Costa Rican operations (of which the Group had approximately a 50% share) to CIRSA
\n
International Gaming Corporation (\u201cCIRSA\u201d), for a net price (gross price less debt payoff less
\n
working capital adjustments) of approximately $8.1 million. The $8.1 million net amount
\n
received was also net of approximately $192 thousand contingent tax liability paid by the group
\n
to the Costa Rica tax authority to cover GTCR contested tax liability and for the approximate
\n
$3.088 million TGE contested tax liability paid to the Costa Rica tax authority. These contested
\n
tax liabilities are fully described below. These payments to the Costa Rican tax authority were
\n
required to be paid as a condition to closing the sale of the Group\u2019s interest in the Costa Rica
\n
operation. The payment made by the Group and its partner was made without prejudice or
\n
admission of liability and therefore, does not alter the Group\u2019s position of taking a provision
\n
for these contingent taxes in 2014.
\n
Following the sale of the Costa Rica operations, and as part of the Group\u2019s commitment on the
\n
sale of the operations, TGE continued to be engaged in a certain tax procedure while GTCR
\n
ended up settling its tax controversy through an amnesty procedure. In addition, the Group\u2019s
\n
50% ownership in King Lion Network is engaged in a tax controversy as described below. The
\n
following sections describe the current status/outcome of these three tax controversies:
\n
(i) TGE received a proposed income tax assessment in Q1-2012 of $600 thousand for the tax
\n
year ended December 31, 2009, and a proposed tax assessment of $800 thousand for the
\n
tax year ended December 31, 2010. Additional gaming taxes of $200 thousand were
\n
assessed for each tax year ended December 31, 2009 and 2010. The assessments for both
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
tax years were related to certain expenses which were deemed to be non-allowable
\n
deductions by the General Income Tax Office and for the imputation of interest income on
\n
intercompany advance balances. These matters were appealed to the Tribunal Fiscal
\n
Administrative (\u201cTFA\u201d) during Q3 and Q4 of 2012. On January 16, 2013, the Group was
\n
advised that the Administrator Tribunal Appeal was denied in regards to the TGE tax
\n
matter. The Group filed a lawsuit at the Court level in August 2014 to revoke the tax
\n
assessment. In February 2015, the Group paid the tax authorities $3.088 million on the
\n
alleged tax liability. The payment to the Costa Rican tax authority was required to be paid
\n
as a condition to closing the sale of the Group\u2019s interest in Costa Rica to CIRSA, as
\n
described below. The payment made by the Group was made without prejudice or
\n
admission of liability. The preliminary hearing of the case was heard in June 2015 and the
\n
Administrative file is being reviewed by the Court. A trial date was set for June 2018. The
\n
Group continues with the judicial procedure and its claim to revoke the tax assessment so
\n
TGE could recover a portion of the payment over time. In relation to this, Cirsa Gran
\n
Entretenimiento de Costa Rica, S.A. (formerly TGE) filed an administrative procedure
\n
against the Tax Authority before the Administrative Court contested the legality of certain
\n
Administrative Resolutions of the Direction of Great National Tax Payers of Costa Rica
\n
and the Fiscal Tribunal. There was a hearing on this case in June 2018. The Administrative
\n
Court rendered a judgment (number 62-2018-VIII) against TGE on July 12, 2018. TGE
\n
filed an appeal on August 7, 2018 in the First Chamber of the Supreme Court in respect of
\n
the only remaining issue for this controversy case, which is the legal fees to be charged
\n
against the taxpayer TGE for failing to prevail in the lawsuit. The legal fees are
\n
approximately $310,000 and the tax appeal is pending.
\n
(ii) GTCR received a proposed tax assessment in the approximate amount of $340 thousand
\n
for the tax year ending December 31, 2011, related to certain expenses which were deemed
\n
to be non-allowable deductions by the General Income Tax Office and for the imputation
\n
of interest income on intercompany advance balances. A penalty resolution is still pending
\n
to be released by the TFA, which comprises an amount equal to 25% of the tax assessment
\n
or $113 thousand. The Tax counsel for GTCR advises that the exposure on taxes and
\n
penalties is significantly less than the proposed assessment. The amount of the non-
\n
allowable expenses was 36,960,675 colones or USD$61,280. The GTCR objections were
\n
not resolved, but under a recent change to Costa Rica tax law, (Tax Law number 9635
\n
taxpayers may take advantage of a tax amnesty, in which the principal could be paid
\n
without interest with a 60% reduction of the fine. GTCR filed for the tax amnesty and
\n
closed the tax inspection procedure for the year 2011. The amounts paid were 11,088,202
\n
colones (USD$18,384) in principal, and 1,108,820 colones (USD$1,838) for the fine.
\n
(iii) The Costa Rica Tax authorities have assessed a tax against King Lion Network for the tax
\n
year 2011 for approximately 17.2 million colones (or $30 thousand) representing tax and
\n
interests due the non-recognition of the interests paid for the purchase of the shares related
\n
to the Tres Rios Project. The Company presented the appeal to this assessment on time
\n
and the case remains pending.
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
c. Costa Rica-CIRSA Escrow claim
\n
In a related matter to the San Diego Federal District Court action, in February 2015, the Group
\n
had previously consummated Stock Purchase Agreement (SPA) in which CIRSA acquired the
\n
shares of Grupo Thunderbird De Costa Rica from Thunderbird Resorts Inc. (TRI) and Angular
\n
Investments S.A. The SPA provided that a certain portion of the monies to be paid by CIRSA
\n
to TRI/Angular were to be held in escrow pursuant to the SPA. In February 2015, CIRSA
\n
delivered $2,125,000, to the Escrow Agent (the \u201cEscrow Amount\u201d) in accordance with the
\n
terms and conditions of the SPA. The Escrow Agreement provided for a claims procedure by
\n
which certain claims could be made by third parties/tax authorities, vendors to be paid from
\n
the Escrow. In December 2017 and in March 2018, ZIMMER AND FOX as employees of
\n
GTCR filed certain claims against CIRS, GTCR and TRI. TRI position is that ZIMMER AND
\n
FOX are now claiming in bad faith that they are is entitled to a series of labor rights. The SPA
\n
and all related documents support the fact that ZIMMER AND FOX as a \"seller shareholder\"
\n
waived and released any and all claims, rights, etc. that he may have had, including social
\n
benefits under Costa Rica law. TRI believe ZIMMER AND FOX have waived all his claims
\n
and therefore their labor claim is without merit. Based on our information and belief, ZIMMER
\n
intended to file this labor complaint in response to TRI\u2019s actions against him wherein TRI had
\n
filed the aforementioned lawsuit against ZIMMER in the Federal District Court of San Diego,
\n
California, Zimmer\u2019s bad faith as he is attempting to retaliate against TRI for the actions that
\n
TRI has taken against him in the USA litigation. TRI believes that ZIMMER\u2019s claim is without
\n
merit and ultimately the labor tribunal made a ruling that ZIMMER\u2019S claims against GTCR
\n
was without merit. In fact, the Costa Rica labor tribunal already ruled against Zimmer.
\n
Therefore, TRI disputed each of the claims that CIRSA made against the Escrow. The general
\n
basis for disputing each of CIRSA\u2019s claims, as well as, any claim that Thunderbird Resorts Inc.
\n
violated the Stock Purchase Agreement dated February 25, 2015 are completely without basis
\n
in law or in fact. Neither ZIMMER AND FOX are entitled to any payment as set forth in each
\n
of their respective labor cases. Moreover, TRI position in respect of the issues raised by CIRSA
\n
and so-called breach of the SPA is that TRI is not jointly and severally liable with Angular,
\n
Zimmer and Fox. The Fox claim which has not been served on TRI but only against CIRSA
\n
was filed as a way to place pressure on Thunderbird to help Zimmer in his claim. In addition,
\n
Fox will lose his claim based on the claim being barred as the statute of limitations will
\n
foreclose Fox from succeeding in the courts.
\n
In relation to the Murray Jo Zimmer case, a ruling was issued by the Labor Judge of the 1st
\n
judicial circuit of San Jose on October 8, 2018, in which the Labor Judge declared that the
\n
lawsuit filed by Jo Zimmer against Grupo Cirsa de Costa Rica had no legal basis and issued an
\n
order against Zimmer to pay the costs and expenses of the judicial process. Murray Jo Zimmer
\n
appealed ruling No. 2080 on October 12, 2018. In June 2022, the 2nd Tribunal of the Supreme
\n
Court ruled the Resolution 2022-001356, which is final and non-appealable, confirming the
\n
prior decisions against the plaintiff Murray Jo Zimmer.
\n
In relation to the Michael Fox case, TRI was not served with this labor lawsuit, but in the aim
\n
of affording evidence and facts to the procedure, it filed voluntarily its response to the labor
\n
claim before the 2nd Labor Court of San Jose, Costa Rica. A hearing for this case scheduled
\n
for November 2020, which was suspended on account of the Court\u2019s request to amend certain
\n
evidence previously received. New hearing date was appointed on October 4th, 2022, but it
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
was suspended due the requirement of a professional translator for the plaintiff. Currently both
\n
parties are awaiting a new hearing date to be appointed by the Labor Court.
\n
In March of 2020, MMG Bank Corporation notified CIRSA, Thunderbird Resorts Inc. and
\n
Angular Investments S.A. that MMG Bank Corporation intended to make a disbursement of
\n
$532,906 to Thunder Resorts Inc. and to Angular Investments S.A. pursuant to that certain
\n
Escrow Agreement dated February 25, 2015. CIRSA filed an objection to release of escrow
\n
proceeds on the basis that CIRSA\u2019S objection is based on three sets of factors:(1) Labor Law
\n
Suit/controversy filed by Murray Jo Zimmer and Michael G. Fox (sometimes collectively
\n
referred to as \u201cZIMMER AND FOX\u201d) against Grupo Cirsa De Costa Rica S.A. in which
\n
ZIMMER AND FOX are seeking an estimated seven million dollars; (2) Certain Labor claims
\n
filed by \u201cother employees of CIRSA\u201d; (3) Certain Tax Claims filed by the Costa Rica tax
\n
administration against companies sold by Thunderbird Resorts Inc. to CIRSA Thunderbird
\n
Resorts Inc. disputed each of the claims that CIRSA. The general basis for disputing each of
\n
CIRSA\u2019s claims as well as any claim that Thunderbird Resorts Inc. violated the Stock Purchase
\n
Agreement dated February 25, 2015 are completely without basis in law or in fact. Moreover,
\n
TRI\u2019s position in respect of the issues raised by CIRSA and so called breach of the SPA is that
\n
TRI\u2019s is not jointly and severally liable with Angular, Zimmer and Fox and demanded that the
\n
escrow proceeds ought to be disbursed solely to Thunderbird. MMG Bank continues to hold
\n
the escrow proceeds and has not disbursed any part of the aforementioned $532,906.
\n
d. Canadian tax controversy
\n
Thunderbird Gaming, Inc. (\u201cTGI\u201d), a wholly-owned subsidiary of the Group that has been
\n
inactive since 1996, received notification of a reassessment from the Canada Revenue Agency
\n
(\u201cCRA\u201d) with respect to a transfer of assets in 1996 in relation to the California Indian gaming
\n
business previously operated by TGI. Specifically, this reassessment stems from a transfer of
\n
assets which CRA contends was undervalued. The reassessment is in the amount of Canadian
\n
dollar (\u201cCDN\u201d) $380 thousand (US $381 thousand at December 31, 2010).
\n
TGI submitted applications to CRA utilizing its net operating loss (\u201cNOL\u201d) in a manner that
\n
reduced the actual tax liability to zero and is taking the position that the valuation of assets was
\n
accurate in order to preserve its NOL. By taking this position, TGI believes it avoids the
\n
imposition of interest on tax, which is the subject of the reassessment.
\n
Further, TGI filed a fairness application with the appropriate Canadian taxing authority
\n
requesting a complete abatement of the alleged interest imposed on the alleged tax liability.
\n
In this filing, management alleges that TGI received unconscionable and egregious treatment
\n
from CRA in addition to experiencing excessive delays in the reassessment process. TGI also
\n
filed an appeal of CRA\u2019s assessment with the tax courts in Canada in which TGI will attempt
\n
to establish that the underlying tax liability should never have been assessed.
\n
The fairness application was rejected and in March 2007, TGI abandoned further appeal to the
\n
tax courts in Canada.
\n
Although the Group believes CRA\u2019s case is without merit, the liability is contained within an
\n
insolvent subsidiary and consequently, even though TGI is responsible for the liability, the
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
Group\u2019s parent and subsidiaries have no exposure to the TGI liability. The Group does not
\n
expect that CRA will collect the judgment as TGI is insolvent and therefore there is no accrual
\n
in these consolidated financial statements related to this reassessment.
\n
e. Guatemala Tax cases
\n
The Superintendencia de Administraci\u00f3n Tributaria-SAT (the Guatemalan tax authority) is
\n
attempting to open up Thunderbird de Guatemala, S.A. to a tax audit for 2009 and 2010, which
\n
the Group has been challenging. On March 20, 2017, Thunderbird de Guatemala was notified
\n
of decisions made by the Second Tribunal of Accounts and Controversies, which has decided
\n
over a Recusal Appeal, conceded to be in favor of Thunderbird de Guatemala and an Appeal
\n
for Reversal related to certain documents that the Tax Authority is requesting for the tax years
\n
2008 and 2009 and the company considered time-barred. The Tribunal alleged that the matter
\n
as discussed, related to whether the delivery of certain documents, were or were not legally
\n
required under a statute of limitations. With this decision made, Thunderbird de Guatemala
\n
defense is prepared to present its arguments and challenge the main matter of this case in
\n
relation to the statute of limitations of the Tax Years 2008 and 2009.
\n
In January 2021, the Company was notified that the Court ruled against Thunderbird de
\n
Guatemala in this 2009 tax case. The Company strongly believes in its arguments; specifically,
\n
that the case is time barred. The Company filed an \u201cAmparo\u201d in January of 2021 to continue
\n
defending its position before the Supreme Court and awaits the Court ruling. The writ of
\n
Amparo is generally described as a remedy available to any person whose right to life, liberty
\n
and security is violated or threatened with violation by an unlawful act or omission of a public
\n
official or employee, or of a private individual or entity. Court took knowledge of the Amparo
\n
in June 2021.
\n
In November 2019, the third economic court issued a resolution against the arguments of
\n
Thunderbird de Guatemala in a case related to 2009 tax period for an approximate amount of
\n
$100 thousand. An Administrative Cassation Appeal has been filed in July 2021 before the
\n
Third Economic Court alleging that the judge omitted some of the arguments and facts
\n
presented by Thunderbird de Guatemala. On July 20, 2022, Thunderbird de Guatemala was
\n
served with the Supreme Court Resolution 01002-2021-00644, in which was decided to
\n
maintain the prior decisions against the Company interests. At this instance, no further
\n
challenges are available. A provision has been recognized for an approximate amount of
\n
US$109,000 as described in Note 5.
\n
f. San Diego Federal District Court
\n
In June of 2015, Thunderbird Resorts filed a lawsuit in the Federal District Court, San Diego,
\n
against defendants Murray Jo Zimmer (\u201cZimmer\u201d), Angular Investments Corp. (\u201cAngular\u201d),
\n
Mitzim Properties, Inc. (\u201cMitzim Properties\u201d) Taloma Zulu, S.A., (\u201cTaloma Zulu\u201d) Jack R.
\n
Mitchell, (\u201cMitchell\u201d). The lawsuit alleges breach of fiduciary duty against Zimmer, Angular
\n
and Mitchell; breach of contract against defendant Mitchell; aiding and abetting, breach of
\n
fiduciary duty against Taloma Zulu and Mitzim Properties; fraud Civil RICO 18 U.S.C. \u00a7 1961,
\n
conversion constructive trust and an accounting against defendants Zimmer, Angular and
\n
Taloma Zulu.
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
The basis of the various claims and allegations in the lawsuit stem from the following: In 2002,
\n
Thunderbird partnered with Angular to operate casinos and related businesses in Costa Rica.
\n
Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d) was formed by Thunderbird and Angular,
\n
who agreed to split all profits from GTCR on an equal, \u201c50/50\u201d basis. Angular\u2019s principal,
\n
defendant Zimmer, became Thunderbird\u2019s \u201ccountry manager\u201d for its operations in Costa Rica.
\n
Between July 2007 and September 2014, Zimmer caused GTCR to pay over $2 million to
\n
defendant Taloma Zulu. Zimmer reported to Thunderbird\u2019s management that these amounts
\n
were being paid for legal and consulting expenses for GTCR to operate in Costa Rica. Upon
\n
further investigation, Thunderbird now believes and alleges that Zimmer and Mitchell caused
\n
Thunderbird\u2019s 50% share of the amounts paid to Taloma Zulu to be diverted, misappropriated,
\n
embezzled, and/or converted for defendants\u2019 own improper, personal uses. Thunderbird
\n
Resorts is seeking the following relief: awarding Thunderbird the damages it has sustained by
\n
reason of Mitchell, Zimmer et al conduct, and interest thereon as provided by law; awarding
\n
Thunderbird exemplary and/or punitive damages on account of defendants\u2019 willful, wanton,
\n
malicious, and/or oppressive conduct; awarding Thunderbird its costs of suit incurred therein.
\n
Thunderbird Resorts is also seeking the imposition of a constructive trust in favor of
\n
Thunderbird, and against defendants, of the benefits improperly received by defendants and an
\n
order commanding defendants to return to Thunderbird the funds they improperly received by
\n
way of their wrongful conduct. So far, Thunderbird Resorts was successful in having the court
\n
order approximately $420 thousand of the defendants\u2019 funds to be sequestered in the Federal
\n
District Court bank account pending resolution of the case.
\n
In March of 2017, Thunderbird Resorts Inc. obtained a default judgment in the approximate
\n
amount of $659 thousand against co-defendants Angular Investments S.A. and Taloma Zulu.
\n
Simultaneously with Thunderbird Resorts Inc. filing of the San Diego Federal District Court
\n
case, Jack R. Mitchell (\u201cMitchell\u201d), a former employee of Thunderbird, brought an arbitration
\n
claim in Hong Kong under the International Court of Arbitration of the International Chamber
\n
of Commerce against Thunderbird. The amount claimed is not less than $518 thousand. By
\n
way of background, in September 2012, Thunderbird Resorts entered into a settlement with
\n
Mitchell, following his termination from the company. Part of that settlement included a
\n
payment to Mitchell of approximately $1.8 million to be paid in installments over the course
\n
of several years. On or about May 2015, Thunderbird Resorts claimed that Mitchell was in
\n
default of his settlement agreement and stopped payment on the settlement amount. Mitchell
\n
instituted arbitration proceedings in Hong Kong pursuant to the terms of the settlement
\n
agreement.
\n
On September 27, 2017 the International Court of Arbitration of the International Chamber of
\n
Commerce approved its award against Thunderbird Resorts Inc. in the approximate amount of
\n
$518 thousand plus attorney\u2019s fees and costs of approximately $220 thousand. Thunderbird
\n
Resorts intends to pursue all legal challenges to the award including motions for
\n
reconsideration, appeals and challenges to the award.
\n
Thunderbird Resorts made several request to the Arbitrator that the decision in this matter be
\n
delayed pending submittal of further evidence from the related matter Thunderbird Resorts Inc.
\n
vs. Jo Murray Zimmer, Jack R. Mitchell, Angular Investments, S.A, Taloma Zulu, Mitzim case
\n
no. 15CV1304 JAH BGS filed in the United States District Court for the Southern District of
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
California in which Mitchell and his co-defendants are being sued for approximately $1.28
\n
million plus punitive damages which may rise to the level of three times the actual damages.
\n
In May of 2017 Jack Mitchell filed a motion to have the claims made against him submitted to
\n
arbitration in Hong Kong alleging that is the proper forum for Thunderbird Resorts claim. In
\n
addition, Angular Investments S.A. filed a motion to set aside the $659 thousand default
\n
judgment. The Court also granted Thunderbird leave to file additional pleadings showing
\n
default damages above $657,975, and Thunderbird submitted additional pleadings showing
\n
damages and interest totaling $825,125. In addition to Angular\u2019s motion to set aside the default
\n
judgment, Angular also filed a motion to dismiss for lack of jurisdiction.
\n
In March 30, 2018, San Diego Federal District Court Judge Houston issued an Order Granting
\n
Defendant Jack Mitchell\u2019s Motion to Compel Arbitration which states in part that:
\n
\u201cThe action is STAYED as to Defendant Mitchell until such arbitration has been held in
\n
accordance with the terms of the agreement as set forth by this order. The parties shall file a
\n
joint status report regarding the progression of Arbitration proceedings no later than
\n
September 28, 2018. The Court addressed the issue of Thunderbird\u2019s counterclaims, which
\n
Thunderbird contended should hav
\n
e been adjudicated by the U.S. Federal District Court,
\n
on pages 6, 7 and 8 of the Order. The Court\u2019s Order states, in relevant part: The Court must
\n
next determine whether the parties intended to arbitrate the issue of waiver. The question of
\n
whether the remaining five causes of action have been waived as to Mitchell u nd er the Release
\n
and Waiver provision (Clause 3.2) of the Settlement Agreement is also a \u201cdispute[], claim[],
\n
[or] controvers[y] between the parties arising out of th[e] Release [and Settlement]
\n
Agreement.\u201d The parties expressly agreed to arbitrate this issue. Therefore, it is for the
\n
arbitrator to decide which claims, or portions thereof, have or have not been waived, based on
\n
the alleged dates of Defendant\u2019s conduct. Accordingly, the Court GRANTS Defendant\u2019s Motion
\n
to Compel Arbitration whether Plaintiff waived its First, Third, Fourth, Fifth, and Sixth causes
\n
of action, or any portion thereof, against Mitchell upon execution of the Settlement Agreement.
\n
(Order, pg. 7:1-10.) Section 9.49 of the Arbitration Award dated September 26, 2017 outlined
\n
the Tribunal\u2019s Findings, stating In pertinent part: \u201cThe Claimant [Mitchell] was not in breach
\n
of the Settlement Agreement.\u201d Although the findings are decisive on the issues raised by
\n
Plaintiff in its Eighth Cause of Action for Breach of Contract, the Tribunal made no findings
\n
as to the issue of waiver. Not having Plaintiff\u2019s counterclaims before it, the Arbitrator declined
\n
to make findings as to the proper interpretation of the release and waiver clause in paragraph
\n
3.2 of the Settlement Agreement, stating:By reason of the Tribuna\u2019's findings in paragraphs
\n
[9.46] and [9.48] that the Claimant has not breached clauses 5 and 6 of the Settlement
\n
Agreement and was not in breach of the Settlement Agreement (paragraph 9.49[1]), it does not
\n
need to make a finding as to the proper construction of the release in clause 3.2 of the
\n
Settlement Agreement as no issue of the Claimant being entitled to rely on Clause 3.2 of the
\n
Settlement Agreement arises. Jack Ray Mitchell v. Thunderbird Resorts Inc., Int\u2019l Ct. of Arb.
\n
Of the Int\u2019l. Chamber of Commerce, Case No. 21243/CYK/PTA, Ch. 9, \u00b6 9.50 (2017) (Rooney,
\n
Arb.). In light of this Court\u2019s order granting Defendant\u2019s Motion to Compel Arbitration as to
\n
the issue of waiver and all remaining claims Plaintiff chooses to pursue in arbitration, the
\n
Court finds Defendant Mitchell\u2019s request to domesticate and enter the Arbitration Award
\n
against Plaintiff premature\u201d (Order, pgs. 7:23-8:13.)
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
The Court granted Mitchell\u2019s motion to compel arbitration on TRI claims against Mitchell. TRI
\n
Complaint against Mitchell included claims for Breach of contract Fraud, RICO violations. The
\n
Court \u201cstayed/froze\u201d the various causes of action as to Mitchell, including the RICO claim, and
\n
ordered the parties back to Arbitration to resolve those issues and the other causes of action
\n
against Mitchell. Essentially, The Court opined that if TRI wishes to pursue these claims
\n
against Mitchell then it must pursue them as counter-claims in the ICC Hong Kong arbitration.
\n
The Court agreed with Mitchell that all of the claims should be arbitrated in Hong Kong.
\n
Therefore, TRI\u2019s position is that Mitchell\u2019s arbitration award is not final.
\n
The Court ruled in favor of Thunderbird and against MITZIM on its motion to quash writ of
\n
attachment. Thunderbird Resorts is diligently prosecuting its claims against MITZIM and
\n
estimates that its monetary value of its claim against MITZIM, is $1,282,454.
\n
On September 27, 2018 Thunderbird Resorts Inc. filed an arbitration claim in the approximate
\n
amount of $1 million against Mitchell with the ICC in Hong Kong. Mitchell in turn filed a
\n
\u201ccounter-claim\u201d against Thunderbird in the same proceeding in Hong Kong. In October of
\n
2019, the sole arbitrator in this proceeding ruled that Thunderbird Resorts Inc. claim was barred
\n
by the doctrine of \u201cres judicata\u201d. Thunderbird Resorts Inc. thereafter filed a Petition for
\n
reconsideration of the arbitrators ruling taking the position that application of the doctrine of
\n
\u201cres judicata\u201d is without basis in law and in fact. The ICC has sought additional fees from the
\n
parties to the arbitration. Mitchell has refused to pay any fees and Thunderbird refused to pay
\n
Mitchell\u2019s share.
\n
On September 28, 2018 the Court ruled in favor of Zimmer\u2019s Motion to Dismiss for Lack of
\n
Jurisdiction. In addition, the Court ruled in favor of Angular\u2019s motion to set aside the default
\n
judgment and motion to dismiss for lack of jurisdiction.
\n
On January 13, 2019, Jack Ray Mitchell through lawyers in Costa Rica, filed a request of
\n
enforcement of an arbitration award dated January 25, 2018 which he received in his favor
\n
against Thunderbird Resorts, Inc. The request of enforcement was made in Costa Rica against
\n
King Lion Network, subsidiary of Thunderbird Resorts. Inc. and the company was notified on
\n
January 24, 2019. King Lion Network filed its response and defense for this case on February
\n
8t
\n
1s
\n
h, 2019. On January 22, 2021, the
\n
t Supreme Court of Costa Rica in a review of the request
\n
1s
\n
1s
\n
made, appoints the
\n
t Instance Civil Tribunal of the
\n
t Circuit of San Jose to initiate the
\n
procedure, recognizing the existence of the arbitral award and asking Mitchell to demonstrate
\n
the ownership of King Lion Network in that Court, since this entity was not part of the Hong
\n
Kong Arbitration.
\n
On March 19, 2019 the court ruled on Thunderbird Resorts Inc. application for default
\n
judgment against Taloma Zulu, S.A. as the Court entered default judgment in in favor of
\n
Thunderbird Resorts, Inc., in the amount of $407,643.
\n
In September 2019, Thunderbird Resorts Inc. filed a civil claim before the Tribunal Courts in
\n
San Jose, Costa Rica against Murray Jo Zmmer, Angular Investments Corp and Taloma Zulu
\n
S.A., for payments made from the Costa Rica operation owned by Thunderbird Resorts and
\n
Angular Investments, to several entities without the authorization of Thunderbird Resorts, Inc.
\n
The claimed amount is approximately \u00bd of the amount that Zimmer wired without
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
authorization, which corresponds to Thunderbird funds in the approximate amount of
\n
$837,090. In October, 2019, The Second Civil Court of the First Judicial Circuit issued a
\n
notification to the defendants giving them thirty days to answer regarding the facts of the claim.
\n
This case is in its initial phase.
\n
On the Thunderbird vs. Mitchell arbitration claim, in December 2019, the ICC placed a demand
\n
on the Parties to pay the additional fees failing which the arbitration would be considered
\n
withdrawn. The ICC advised the parties that a final award in the matter would be issued in
\n
late April 2020 but no final award has been submitted as of the date of the filing of this Annual
\n
Report. Thunderbird Resorts Inc. is also awaiting the ICC ruling on its Petition for
\n
Reconsideration of the arbitrators ruling on the issue of \u201cres judicata\u201d.
\n
In September of 2020, Mitchell and Mitzim filed a Motion in the Federal District Court lawsuit
\n
for an Order Dismissing the San Diego federal District Court lawsuit for Lack of Standing on
\n
alleging that Thunderbird Resorts Inc. \u201cTRI\u201d filed the lawsuit based on extraterritorial activities
\n
that took place in Costa Rica and barred by Costa Rica law placing Mitchell and MITZIM to
\n
exorbitant expense and inconvenience. TRI opposed the motion on the basis that the motion
\n
and/or objection based on lack of standing is not jurisdictional and thus is waivable. Mitzim
\n
waived this defense by waiting over five years to raise this objection, and only first did so after
\n
the close of fact discovery. Moreover, even if the motion was timely (it is not), the substantive
\n
argument lacks merit, as Thunderbird properly brings its claims in its direct, individual
\n
capacity. It need not bring these claims in a derivative capacity. Thunderbird is, and always has
\n
been, the proper real party in interest in this lawsuit. Accordingly, Thunderbird requested that
\n
this Court deny Mitzim\u2019s untimely and meritless motion in its entirety. On December 21, 2022,
\n
the Court ruled on the aforedescribed motion by denying MITZIM request to dismiss the case
\n
. The Court found that in light of the evidence of record demonstrating MITZIM knew or
\n
should have known of a meritorious Rule 17) objection. Specifically, MITZIM (a) failure to
\n
bring their claim until more than five years into the litigation, despite being on notice of the
\n
potentially meritorious defense based upon notice provided in the original complaint, the
\n
Court\u2019s March 29, 2018, order, and buttressed by Defendant Mitchell\u2019s own admissions, and
\n
(b) continued substantive litigation of the case for years after such notice of potentially
\n
meritorious defense constitutes waiver. The Court and the parties are is now poised to proceed
\n
to trial which is more likely to occur sometime in 2023.
\n
g. The Group\u2019s entry and exit from the India market
\n
The Group entered the India market in 2008 by initiating a hotel project in Daman, India, which
\n
is located just north of Maharashtra State whose capital is Mumbai (formerly Bombay). The
\n
project known as \u201cThunderbird Resorts \u2013 Daman\u201d has faced both regulatory delays outside the
\n
Group\u2019s control, as well as cost overruns in construction and pre-operating interest / expense
\n
due to the delays which ultimately caused the Group to exit the India market in April 2015.
\n
The entire history of the entry and exit as well as settlements with various parties is fully
\n
described in previously filed financial statements. All settlements have been completely
\n
satisfied with the exception of the settlement with Maravege. In that regard, The Group entered
\n
into a revised settlement with Maravege on the basis described in the section on \u201cSubsequent
\n
events\u201d as the revised settlement was entered into after December 31, 2022.
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n
24. RISK MANAGEMENT OBJECTIVES AND POLICIES
\n
The Group is exposed to market risk through its use of financial instruments and specifically to
\n
currency risk, interest rate risk and credit risk, which result from both its operating and investing
\n
activities. The Group\u2019s risk management is coordinated at its headquarters, in close cooperation
\n
with the Board of Directors, and focuses on actively securing the Group\u2019s short to medium term
\n
cash flows by minimizing the exposure to financial markets. Long term financial investments are
\n
managed to generate lasting returns.
\n
The Group does not actively engage in the trading of financial assets for speculative purposes nor
\n
does it write options. The most significant financial risks to which the Group is exposed to are
\n
described below.
\n\n
\n\n
Foreign currency sensitivity
\n
Most of the Group\u2019s transactions are carried out in the functional currency where the operations
\n
reside. Exposures to currency exchange rates arise from the Group\u2019s loans payable, intercompany
\n
payables and cash balances, which are primarily denominated in US-dollars.
\n
To mitigate the Group\u2019s exposure to foreign currency risk, non-functional currency cash flows are
\n
monitored. Generally, where the amounts to be paid for purchases completed in US-dollars versus
\n
the functional currency the financing of the purchase is short term; therefore, a decision is made to
\n
either finance the equipment or to pay in cash depending on the current value of the US-dollar
\n
compared to the functional currency.
\n
US-dollar currency denominated financial assets and liabilities in entities whose functional
\n
currency is not US-dollar are as follows:
\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n

\n

\n

\n

\n

\n

\n\n
\n\n
\n\n
US-dollar amounts
\n
2022 2021
\n
Nominal amounts Country
\n
Financial assets
\n
Nicaragua
\n
1,358 1,072$
\n
Peru
\n
2,234 608
\n
Financial liabilities
\n
Nicaragua
\n
(1,236) (1,143)
\n
Peru
\n
- (131)
\n
Short term exposure
\n
2,356$ 406$
\n
Financial liabilities
\n
Nicaragua
\n
(293) (389)
\n
Peru
\n
- (4,419)
\n
Long term exposure
\n
(293)$ (4,808)$
\n
\n
The following table illustrates the sensitivity of the net income (loss) for the year and equity in
\n
regards to the Group\u2019s financial assets and financial liabilities and the US-dollar exchange rates.
\n
It assumes a percentage change of the US-dollar against the other currencies for the year ended at
\n
December 31, 2022 and 2021. These percentages have been determined based on the average
\n
market volatility in exchange rates in the previous 12 months. If the US-dollar had weakened
\n
against the functional currencies according to the percentages below then this would have had the
\n
following impact on net income and equity:
\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% 6$ 152$ 2.36% (3)$ 51$
\n
Nicaragua
\n
0.04% 0 1 0.01% - 1
\n
Peru
\n
132.45% (16,102) (71,114) 8.40% (40) 1,253
\n
Total
\n
(16,096)$ (70,960)$ (43)$ 1,305$
\n
\n
\n
If the US-dollar had strengthened against the functional currencies according to the percentages
\n
below then this would have had the following impact on net income and equity:
\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n\n
\n\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% (6)$ (135)$ 2.36% 3$ (49)$
\n
Nicaragua
\n
0.04% (1) (1) 0.01% - -
\n
Peru
\n
132.45% (2,248) (9,928) 8.40% 34 (1,060)
\n
Total
\n
(2,255)$ (10,063)$ 37$ (1,109)$
\n
\n\n
\n
Interest rate sensitivity
\n
The Group\u2019s policy is to minimize interest rate cash flow risk exposures on long-term financing.
\n
Longer-term are therefore usually at fixed rates. At December 31, 2022, the Group is exposed to
\n
changes in borrowings market interest rates through some of its bank borrowings of approximately
\n
$364,925 as of December 31, 2022 (2021 - $453,781), which are subject to variable interest rates.
\n
As in the previous year, all other financial assets and liabilities have fixed rates. The impact on
\n
profit or loss of a reasonably possible change in interest rates of +/- .23% as of December 31, 2022
\n
(2021 - +/- .76%) with effect from the beginning of the year, would be an increase of $853 (2021 -
\n
$3,471) or a decrease of $853 (2021 - $3,471). These changes in interest rates are considered to be
\n
reasonably possible based on observation of current market conditions.
\n
The calculations are based on the Group\u2019s financial instruments held at each statement of financial
\n
position date. All other variables are held constant.
\n
\n\n
\n\n

\n\n

\n\n

\n\n
25. FINANCIAL INSTRUMENT BY CATEGORY
\n
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Group
\n
December 31, 2022
\n
Assets as per statement of financial position
\n
Trade and other receivable
\n
3,810$
\n
Other financial assets
\n
112
\n
Cash and cash equivalents
\n
6,780
\n
Total
\n
10,702$
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Liabilities as per statement of financial position
\n
Borrowings
\n
13,176$
\n
Trade and other payables
\n
7,854
\n
Other financial liabilities
\n
529
\n
Total
\n
21,559$
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Group
\n
December 31, 2021
\n
Assets as per statement of financial position
\n
Trade and other receivable
\n
3,745$
\n
Other financial assets
\n
118
\n
Cash and cash equivalents
\n
3,595
\n
Total
\n
7,458$
\n
Other financial
\n
liabilities
\n
Liabilities as per statement of financial position
\n
Borrowings
\n
18,172$
\n
Trade and other payables
\n
7,399
\n
Other financial liabilities
\n
504
\n
Total
\n
26,075$
\n

\n\n

\n\n

\n\n
\n\n
\n
\n
26. FINANCIAL INSTRUMENTS
\n\n
Credit risk analysis:
\n
The Group continuously monitors defaults of customers and other counter parties, identified either
\n
individually or by group, and incorporates this information into its credit risk controls. Where
\n
available at reasonable cost, external credit rating and/or reports on customers and other
\n
counterparties are obtained and used. The Group\u2019s policy is to deal only with creditworthy
\n
counterparties.
\n
The Group\u2019s Management considers that all financial assets that are not impaired for each of the
\n
reporting dates under review are of good credit quality, including those that are past due.
\n
In respect of trade and other receivables, the Group is not exposed to any significant credit risk
\n
exposure to any single counterparty or any group of counterparties having similar characteristics.
\n
The credit risk for liquid funds and other short-term financial assets is considered negligible, since
\n
the counterparties are reputable banks with high quality external credit ratings.
\n
\n\n\n
Liquidity risk analysis:
\n
The Group measures its liquidity needs by:
\n
\u2022 Monitoring short-term obligations on a country-by-country and global, consolidated basis, with
\n
short-term inflows and outflows forecasted for the financial year, updated weekly.
\n
\u2022 Monitoring long-term, scheduled debt servicing payments.
\n
\u2022 Rolling forward 5-year cash flow models each month based on the financial results year-to-date
\n
through the previous month.
\n
The Group has the capacity to manage liquidity with a number of different tools at its disposal,
\n
including:
\n
\u2022 Raising of debt or equity capital at both the operations and Group levels.
\n
\u2022 Selling of non-strategic assets.
\n
\u2022 Restructuring or deferral of unsecured lenders.
\n
\u2022 Restructuring of salaries of key personnel.
\n
\u2022 Deferral or aging of accounts payables.
\n
\u2022 Cost management programs at both the operations and Group levels.
\n
Based on the information available today and the liquidity tools at its disposal, Management
\n
anticipates that the Group can meet its liquidity needs over the next 12 months primarily from
\n
operational cash flows as set out in Note 2.
\n
\n\n
\n\n

\n\n

\n\n

\n\n
\n\n
\n
\n\n
As at December 31, 2022, the table set below shows the Group\u2019s liabilities maturities per year:
\n
2023
\n
2024
\n
2025
\n
2026
\n
2027
\n
Thereafter
\n
Total
\n
Long-term bank loans 113$ 316$ -$ -$ -$ -$ 429$
\n
Finance lease obligations 1,353 1,124 988 800 655 867 5,787
\n
Loans with non-financial entities
\n
9,579 - - - - - 9,579
\n
Trade and other payables 4,286 - - - - - 4,286
\n
Due to related parties
\n
\n
\n
1,661
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,661
\n
Total 16,992$ 1,440$ 988$ 800$ 655$ 867$ 21,742$
\n
\n
This compares to the maturity of the Group\u2019s financial liabilities in the previous reporting period
\n
as stated below:
\n
2022
\n
2023
\n
2024
\n
2025
\n
2026
\n
Thereafter
\n
Total
\n
Long-term bank loans 4,469$ 688$ 914$ 821$ 768$ 3,516$ 11,176$
\n
Finance lease obligations 1,223 1,302 1,138 1,008 820 1,503 6,994
\n
Convertible debt notes 5,617 - - - - - 5,617
\n
Trade and other payables 3,506 - - - - - 3,506
\n
Due to related parties
\n
\n
\n
1,986
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,986
\n
Total 16,801$ 1,990$ 2,052$ 1,829$ 1,588$ 5,019$ 29,279$
\n
\n\n
\n\n
\n\n
\n
Fair value measurement methods:
\n
The methods and valuation techniques used for the purposes of measuring fair value are unchanged
\n
from the previous reporting period. Measurement methods for financial assets and liabilities
\n
accounted for at amortized cost are described below.
\n
The carrying amount of trade and other receivables, cash and cash equivalents, and trade and other
\n
payables is considered a reasonable approximation of fair value. The fair value of borrowings has
\n
been estimated at amortized cost.
\n\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n\n
\n\n
\n\n
\n\n

\n\n

\n\n

\n

\n\n
\n\n
\n\n
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
\n
The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as
\n
a going concern in order to provide returns for shareholders and benefits for other stakeholders and
\n
to maintain an optimal capital structure to reduce the cost of capital.
\n
In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to
\n
reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of its
\n
leverage ratio. This ratio is calculated as net debt divided by EBITDA.
\n
2022 2021
\n
The leverage ratios at December 31, 2022 and 2021 were as follows:
\n
Total borrowings and finance lease obligations (Note 17 and 22)
\n
13,176$ 18,180$
\n
Less: Cash and cash equivalents and Restricted cash
\n
(6,780) (3,595)
\n
Less: Accrued interest
\n
(529) (504)
\n
Less: unamortized debt issuance cost
\n
- (8)
\n
Net Debt
\n
5,867$ 14,073$
\n
Operating loss from continuing operations before other gain and loss items
\n
2,431 2,129
\n
Add: Depreciation and amortization
\n
1,192 1,620
\n
EBITDA
\n
3,623$ 3,749$
\n
Leverage ratio
\n
1.62 3.75
\n
\n\n
\n\n

\n\n
\n\n
\n

\n\n
28. INVESTMENT IN JOINT VENTURE
\n
The Group has a material joint venture in a Costa Rican company, King Lion Network, S.A.
\n
(\u201cKLN\u201d).
\n
Name of the joint venture
\n
Country of
\n
incorporation and
\n
principal place of
\n
business
\n
Principal activity
\n
Proportion of ownership
\n
held by the Group
\n
2022 2021
\n
King Lion Network, S.A.
\n
Costa Rica Land Company 50% 50%
\n
\n\n

\n\n

\n\n

\n\n
\n\n
The investments in the Costa Rica joint venture is accounted for using the equity method in
\n
accordance with IAS 28.
\n
A reconciliation of the financial information above to the carrying amount of the investment in the
\n
Group\u2019s Costa Rica joint venture is set out below:
\n
2022 2021
\n
Current assets 8,520$ 7,948$
\n
Total assets
\n
8,520 7,948
\n
Current liabilities (4,155) (4,060)
\n
Total liabilities
\n
(4,155) (4,060)
\n
Total net assets 4,365 3,888
\n
Proportion of ownership interest held by Group 50% 50%
\n
Carrying amount of investment in joint venture
\n
2,183 1,944
\n
\n
Financial statements for the Group\u2019s Costa Rica joint venture is as follows:
\n
2022 2021
\n
Profit / (loss) for the period
\n
186 (268)
\n
Proportion of ownership interest held by Group 50% 50%
\n
Group's share of loss for the period $ 93 $ (134)
\n
\n\n

\n\n

\n\n

\n\n

\n
29. PRINCIPAL SUBSIDIARIES
\n
The Group owns directly or indirectly the following companies. The principal operations are
\n
carried out in the country of registration; all subsidiaries have a December 31 year-end. The Group
\n
comprises a large number of companies and it is not practical to list all of them below. This list
\n
therefore includes those companies which the Directors consider principally affect the results or
\n
financial position of the Group.
\n
The following is a table of our organizational structure of material subsidiaries, including our
\n
effective record ownership structure as of December 31, 2022:
\n
Name of subsidiary
\n
Jurisdiction
\n
of formation
\n
Effective
\n
ownership interest
\n
Thunderbird Entertainment, S.A, Panama 100%
\n
Thunderbird Greeley, Inc. California 100%
\n
Total Gaming, Inc. California 100%
\n
Thunderbird Hoteles Las Americas S.A. Peru 100%
\n
Buena Esperanza Limitada S.A. Nicaragua 55.9 % (indirect)
\n
Camino Real (BVI) Investments Ltd. British Virgin Islands 100%
\n
International Thunderbird (BVI) Ltd. British Virgin Islands 100%
\n
International Thunderbird Brazil (BVI) Ltd. British Virgin Islands 100%
\n
\n
The Group includes a subsidiary, Buena Esperanza Limitada, S.A. (\u201cBELSA\u201d), with material non-
\n
controlling interest (\u201cNCI\u201d):
\n
Name
\n
Country of
\n
incorporation and
\n
principal place of
\n
business
\n
Principal
\n
activity
\n
Proportion of ownership
\n
held by the NCI
\n
2022 2021
\n
Buena Ezperanza Limitada, S.A. (\"BELSA\")
\n
Nicaragua Gaming 44.10% 44.10%
\n
\n
Dividends of $962,000 were paid to the NCI of BELSA during the year 2022 and $845,000 in 2021.
\n

\n\n

\n\n

\n\n
Summarized financial information for BELSA, before intragroup eliminations, is set out below:
\n
(in thousands)
\n
BELSA
\n
2022 2021
\n
Non-current assets
\n
7,143$ 7,725$
\n
Current assets
\n
2,635 2,449
\n
Total assets
\n
9,778 10,174
\n
Non-current liabilities
\n
(3,928) (4,831)
\n
Current liabilities
\n
(3,426) (2,684)
\n
Total liabilities
\n
(7,354) (7,515)
\n
Equity attributable to the owners of the parent
\n
677 431
\n
Non-controlling interest
\n
1,747 2,228
\n
\n
(in thousands)
\n
BELSA
\n
2022 2021
\n
Revenue
\n
13,461$ 12,222$
\n
Profit / (Loss) for the year attributable to the owners of the
\n
parent
\n
609 449
\n
Profit / (Loss) for the year attributable to NCI
\n
481 355
\n
Profit / (Loss) for the year
\n
1,090
\n
804
\n
Other comprehensive income for the year attributable to the
\n
owners of the parent
\n
50 72
\n
Other comprehensive income for the year for the year
\n
attributable to NCI
\n
0 4
\n
Other comprehensive income for the year
\n
50
\n
76
\n
\n
BELSA
\n
2022 2021
\n
Net cash from operating activities
\n
$ 3,057
\n
$ 3,803
\n
Net cash used in investing activities
\n
(527)
\n
(180)
\n
Net cash (used in) from financing activities
\n
(2,419)
\n
(3,092)
\n
Effect of foreign exchange adjustment
\n
(42)
\n
(236)
\n

\n\n

\n\n

\n\n
30. SUBSEQUENT EVENTS
\n
These are the material events to disclose from December 31, 2022 through the release of this
\n
2022 Annual Report.
\n
\n
Over the course of 2023 year-to-date, the Group has negotiated new loan conditions with a number
\n
of its unsecured lenders. In total thus far, unsecured debt negotiations have led to a reduction on
\n
unsecured debt balances in excess of $1.3 million and a reduction of forecasted future interest
\n
payments in excess of $500K from either debt payoff or the elimination of interest payments on
\n
continuing balances. During recent years, employees have accumulated net loan balances to the
\n
Group of approximately $1 million, which the Group has also now paid off.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag339": { "value": "\n

\n\n

\n
1. BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL
\n
STATEMENTS
\n
Nature of operations
\n
The principal activities of Thunderbird Resorts Inc and its subsidiaries \u201cthe Group\u201d is to develop,
\n
own and operate hospitality and other real estate properties.
\n
These activities are grouped into the following service lines:
\n
\u2022 Gaming \u2013 the provision of table and slot games within a number of operating locations in the
\n
Group's chosen markets. The Group also has a limited sportsbook offering, however, it is
\n
considered to be immaterial to the Group's performance.
\n
\u2022 Offices \u2013 the Group has office spaces in Peru that it leases to 3
\n
rd
\n
parties.
\n
General information and statement of compliance with IFRS
\n
Thunderbird Resorts Inc, the Group\u2019s ultimate parent company, is a limited by shares company,
\n
incorporated and domiciled in the British Virgin Islands, number 1055634.
\n
The Group\u2019s common shares are listed on Euronext Amsterdam under the symbol \u201cTBIRD.\u201d
\n\n
The Group\u2019s 2022 consolidated financial statements have been prepared in accordance with
\n
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC)
\n
interpretations applicable to companies reporting under IFRS. The consolidated financial
\n
statements have been prepared under the historical cost convention, financial assets and financial
\n
liabilities (including derivative instruments) at fair value through profit or loss.
\n

\n\n
The preparation of financial statements in conformity with IFRS requires the use of certain critical
\n
accounting estimates. It also requires management to exercise its judgment in the process of
\n
applying the group\u2019s accounting policies. The areas involving a higher degree of judgment or
\n
complexity, or areas where assumptions and estimates are significant to the consolidated financial
\n
statements are disclosed in note 3, page 56.
\n

\n\n

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\n
1. BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL
\n
STATEMENTS
\n
Nature of operations
\n
The principal activities of Thunderbird Resorts Inc and its subsidiaries \u201cthe Group\u201d is to develop,
\n
own and operate hospitality and other real estate properties.
\n
These activities are grouped into the following service lines:
\n
\u2022 Gaming \u2013 the provision of table and slot games within a number of operating locations in the
\n
Group's chosen markets. The Group also has a limited sportsbook offering, however, it is
\n
considered to be immaterial to the Group's performance.
\n
\u2022 Offices \u2013 the Group has office spaces in Peru that it leases to 3
\n
rd
\n
parties.
\n
General information and statement of compliance with IFRS
\n
Thunderbird Resorts Inc, the Group\u2019s ultimate parent company, is a limited by shares company,
\n
incorporated and domiciled in the British Virgin Islands, number 1055634.
\n
The Group\u2019s common shares are listed on Euronext Amsterdam under the symbol \u201cTBIRD.\u201d
\n\n
The Group\u2019s 2022 consolidated financial statements have been prepared in accordance with
\n
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC)
\n
interpretations applicable to companies reporting under IFRS. The consolidated financial
\n
statements have been prepared under the historical cost convention, financial assets and financial
\n
liabilities (including derivative instruments) at fair value through profit or loss.
\n

\n\n
The preparation of financial statements in conformity with IFRS requires the use of certain critical
\n
accounting estimates. It also requires management to exercise its judgment in the process of
\n
applying the group\u2019s accounting policies. The areas involving a higher degree of judgment or
\n
complexity, or areas where assumptions and estimates are significant to the consolidated financial
\n
statements are disclosed in note 3, page 56.
\n

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The Group\u2019s 2022 consolidated financial statements have been prepared in accordance with
\n
International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC)
\n
interpretations applicable to companies reporting under IFRS. The consolidated financial
\n
statements have been prepared under the historical cost convention, financial assets and financial
\n
liabilities (including derivative instruments) at fair value through profit or loss.
\n

\n", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag334": { "value": "\n
2. MANAGEMENT STATEMENT ON \u201cGOING CONCERN\u201d
\n
Management has reviewed their plan with the Directors and has collectively formed a judgment
\n
about the going concern of the Group. In arriving at this judgment, Management has prepared the
\n
cash flow projections of the Group. The Group has suffered recurring losses the past years. In
\n
response to the recurring losses of the previous years, Management has taken actions which will be
\n
described in the following paragraphs.
\n
Directors have reviewed this information provided by Management and have considered the
\n
information in relation to the financing uncertainties in the current economic climate, the Group\u2019s
\n
existing commitments and the financial resources available to the Group. Specifically, Directors
\n
have considered: (i) there are probably no sources of new financing available to the Group; (ii) the
\n
Group has limited trading exposures to our local suppliers and retail customers; (iii) other risks to
\n
which the Group is exposed, the most significant of which is considered to be regulatory risk; (iv)
\n
sources of Group income, including management fees charged to and income distributed from its
\n
various operations; (v) cash generation and debt amortization levels; (vi) fundamental trends of the
\n
Group\u2019s businesses; (vii) ability to re-amortize and unsecured lenders; and (vii) level of interest of
\n
third parties in the acquisition of certain operating assets, and status of genuine progress and
\n
probability of closing within the Going Concern period. The Directors have also considered certain
\n
critical factors that might affect continuing operations, as follows:
\n
\n
\u2022 Special Resolution: On September 21, 2016, the Group\u2019s shareholders approved a special
\n
resolution that, among other items, authorized the Board of Directors of the Corporate to sell
\n
\u201cany or all remaining assets of the Corporation in such amounts and at such times as determined
\n
by the Board of Directors.\u201d This resolution facilitates the sale of any one or any combination
\n
of assets required to support maintaining of a going concern by the Group.
\n
\u2022 Corporate Expense and Cash Flow: Corporate expense has decreased materially in recent years
\n
but still must accommodate for compliance as a public company.
\n
\u2022 Liquidity and Working Capital: As of the date of publication of this 2022 Annual Report, the
\n
Group forecasts to operate with higher levels of reserves and working capital than in recent
\n
years, but to create a healthy level of working capital reserves for periods beyond the Going
\n
Concern period may require the sale of additional assets.
\n
In part, the Group believes that it is in a stronger position to sustain going concern as of the
\n
publication date of this 2022 Annual Report as compared to recent years during the covid crisis
\n
because of the following.
\n
\u2022 Peru Real Estate Sales: As of the date of publication of this 2022 Annual Report, the Group
\n
has converted it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium apartment complex.
\n
The Group has: i) Legally sub-divided the former hotel in to 66 individually titled apartment
\n
units, procured all change of use and other regulatory approvals, and sold the majority of those
\n
units; and ii) Paid off over $4.5 million of senior debt in Lima, Peru. The projection is to
\n
generate in excess of $10 million from all unit sales, which will likely be completed during
\n
2023.
\n
\u2022 Other liquidity events: The Group continues to work with unsecured lenders and, in some
\n
cases, to negotiate payment plans and balances that meet the Group\u2019s cash flow. If the Group
\n

\n\n
is not able to create other liquidity events from its remaining Peru, Costa Rica and Nicaragua
\n
assets in 2023-2024, it is reasonable to expect that some unsecured lenders may pursue years
\n
of litigation at that time, though as to whether this would then have an impact on Going Concern
\n
is hard to assess.
\n
Considering the above, Management and Directors are satisfied that the consolidated Group has
\n
adequate resources to mitigate the uncertainty and that the Group is able to continue as a going
\n
concern for at least the 12 months following the filing date of this report. For these reasons,
\n
Management and Directors have therefore prepared the consolidated financial statements on a
\n
going concern basis.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag337": { "value": "\n

\n
3. SIGNIFICANT ACCOUNTING POLICIES
\n\n

\n
3.1 Changes in accounting policies
\n
The consolidated financial statements have been prepared in accordance with the accounting
\n
policies adopted in the last annual consolidated financial statements for the year ended
\n
December 31, 2022, except for the adoption of the following new interpretations, revisions,
\n
and amendments to IFRS issued by the International Accounting Standards Board, which are
\n
relevant to, and effective for the Group\u2019s consolidated financial statements for the annual
\n
period beginning January 1, 2022.
\n\n
New currently effective requirements
\n
These Standards are required to be applied by an entity with an annual reporting period
\n
beginning on January 1, 2022:
\n
\u2022 Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022 COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022 Property, Plant and Equipment: Proceeds Before Intended Use (Amendments to IAS 16)
\n
\u2022 Onerous Contracts \u2013 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022 Annual Improvements (2018-2020 Cycle):
\n
\u2013 Subsidiary as a First-time Adopter (Amendments to IFRS 1)
\n
\u2013 Fees in the \u201810 per cent\u2019 Test for Derecognition of Liabilities (Amendments to IFRS 9)
\n
\u2013 Lease Incentives (Amendments to IFRS 16)
\n
\u2013 Taxation in Fair Value Measurements
\n
The new requirements listed above did not have any impact on the amounts recognized in
\n
prior periods and are not expected to significantly affect the current or future periods.
\n

\n\n
Standards issued but not yet effective
\n
At the date of authorization of these consolidated financial statements, several new, but not
\n
yet effective, Standards and amendments to existing Standards, and Interpretations have been
\n
published by the IASB or IFRIC. None of these Standards or amendments to existing Standards
\n
have been adopted early by the Group and no Interpretations have been issued that are
\n
applicable and need to be taken into consideration by the Group at either reporting date.
\n

\n\n

\n\n

\n

\n

\n\n
Management anticipates that all relevant pronouncements will be adopted for the first period
\n
beginning on or after the effective date of the pronouncement. New Standards, amendments
\n
and Interpretations not adopted in the current year have not been disclosed as they are not
\n
expected to have a material impact on the Group\u2019s consolidated financial statements
\n

\n\n
3.3 Summary of accounting policies
\n
The accounting policies have been applied consistently throughout the Group for the purposes
\n
of preparation of these consolidated financial statements.
\n
A summary of the Group\u2019s significant accounting policies is set out below.
\n\n

\n
Critical accounting estimates and judgments
\n
The preparation of financial statements with IFRS requires the use of estimates and
\n
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
\n
information and the reported amounts of revenues and expenses during the reporting period.
\n
Estimates and judgments are continually evaluated and are based on historical experience and
\n
other factors, including expectations of future events that are believed to be reasonable under
\n
the circumstances. The areas involving a higher degree of judgment or complexity, or areas
\n
where assumptions and estimates are significant to the financial statements are set out below.
\n\n
The best estimates of the Directors may differ from the actual results.
\n
3.3 a Depreciable lives of assets and realisable
\n
residual value
\n
10
\n
3.3 b
\n
Future operating results growth rates, and
\n
discount factor applied
\n
9
\n
3.3 c Recognition of deferred tax asset 8
\n
3.3 e Determination of control over economic
\n
activities
\n
29
\n
Recoverability of amounts due from related
\n
parties
\n
21
\n
3.3 h Judgments on probability of payment as a
\n
result of disputes
\n
23
\n
3.3 i Assessment of significance of debt
\n
modifications
\n
17
\n

\n\n

\n\n
\n\n

\n
a. Property, plant and equipment
\n
All property, plant and equipment is stated at acquired cost less depreciation and
\n
impairment. Land is not depreciated as no finite useful life can be determined. Acquired
\n
cost includes expenditures that are directly attributable to the acquisition of the asset.
\n\n
Depreciation on assets is calculated using the straight-line method to allocate their cost
\n
over their estimated useful lives, as follows:
\n

\n\n

\n\n

\n\n

\n

\n

\n\n

\n

\n\n
Properties 20 \u2013 30 years
\n
Furniture and equipment 3 \u2013 10 years
\n
Gaming machines 5 \u2013 10 years
\n
Leasehold improvements over the lease term
\n

\n\n
Profits and losses on disposals are determined by comparing proceeds with carrying
\n
amount. These are included in profit or loss.
\n\n
Construction in progress represents properties under construction and is stated at cost. This
\n
includes cost of construction, borrowing costs, and other direct costs. The assets are not
\n
depreciated until such time that the assets are completed and available for use. Transfers
\n
are made from the construction in progress category to the appropriate property, plant and
\n
equipment asset categories when the construction of the asset has been substantially
\n
completed.
\n

\n\n
Management reviews the useful lives of depreciable assets at least each reporting date. At
\n
December 31, 2022, Management assesses that the useful lives represent the expected
\n
utility of the assets of the Group. The carrying amounts are analyzed in Note 10. Actual
\n
results, however, may vary due to obsolescence.
\n

\n\n\n
b. Investment property
\n
Investment properties are lands with no defined use, and are accounted for using the cost
\n
model.
\n
Investment properties are recorded at cost, which comprises its purchase price and any
\n
directly attributable expenditure; subsequently, on each reporting date these investment
\n
properties are measured at cost less impairment losses.
\n

\n\n\n

\n\n
c. Impairment testing of intangible assets and property, plant and equipment
\n
For impairment assessment purposes, assets are grouped at the lowest levels for which
\n
there are largely independent cash inflows (cash-generating units). As a result, some assets
\n
are tested individually for impairment and some are tested at cash-generating unit level.
\n
Goodwill is allocated to those cash-generating units that are expected to benefit from
\n
synergies of the related business combination and represent the lowest level within the
\n
Group at which Management monitors goodwill.
\n
Cash-generating units to which goodwill has been allocated are tested for impairment at
\n
least annually, as set out in Note 9.
\n
All other individual assets or cash-generating units are tested for impairment whenever
\n
events or changes in circumstances indicate that the carrying amount may not be
\n
recoverable.
\n
An impairment loss is recognized for the amount by which the asset\u2019s or cash-generating
\n
unit\u2019s carrying amount exceeds its recoverable amount, which is the higher of fair value
\n
less costs of disposal and value-in-use. To determine the value-in-use, Management
\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
estimates expected future cash flows from each cash-generating unit and determines a
\n
suitable rate in order to calculate the present value of those cash flows. The data used for
\n
impairment testing procedures are directly linked to the Group\u2019s latest approved budget,
\n
adjusted as necessary to exclude the effects of future reorganizations and asset
\n
enhancements. Discount factors are determined individually for each cash-generating unit
\n
and reflect Management\u2019s assessment of respective risk profiles, such as market and asset-
\n
specific risks factors. Impairment losses for cash-generating units reduce first the carrying
\n
amount of any goodwill allocated to that cash-generating unit. Any remaining impairment
\n
loss is charged pro rata to the other assets in the cash-generating unit. With the exception
\n
of goodwill, all assets are subsequently reassessed for indications that an impairment loss
\n
previously recognized may no longer exist. An impairment loss is reversed if the asset\u2019s or
\n
cash-generating unit\u2019s recoverable amount exceeds its carrying amount.
\n
Impairment losses of continuing operations are recognized in our statement of
\n
comprehensive income in those expense categories consistent with the function of the
\n
impaired asset under review.
\n

\n\n

\n\n\n

\n
c. Taxation including deferred tax
\n
The income tax expense recognized in profit or loss comprises the sum of deferred tax and
\n
current tax not recognized in other comprehensive income or directly in equity. Current
\n
tax is applied to taxable profits at the prevailing rate in the relevant country. Current tax
\n
assets and liabilities are measured at the amount expected to be paid to (recovered from)
\n
taxation authorities, using the rates/laws that have been enacted or substantively enacted
\n
by the balance sheet date (IAS 12).
\n
Current income tax assets and/or liabilities comprise those obligations to, or claims from,
\n
fiscal authorities relating to the current or prior reporting periods, that are unpaid at the
\n
reporting date. Current tax is payable on taxable profit, which differs from profit or loss in
\n
the financial statements.
\n\n
Deferred tax is provided for in full, using the liability method, on temporary differences
\n
arising between the tax bases of assets and liabilities and their carrying amounts in the
\n
consolidated financial statements. However, if deferred tax arises from the initial
\n
recognition of goodwill, it is not recognized nor is deferred tax arising on the initial
\n
recognition of an asset or liability unless the related transaction is a business combination
\n
or affects tax or accounting profit. Deferred tax is determined using tax rates (and laws)
\n
that have been enacted or substantively enacted by the reporting date and are expected to
\n
apply when the related deferred tax asset is realized or the deferred tax liability is settled.
\n
Withholding taxes on earnings of foreign operations are provided in the accounts only to
\n
the extent earnings are expected to be repatriated.
\n
Deferred tax assets are recognized to the extent that it is probable that future taxable profit
\n
will be available against which the temporary differences can be utilized.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set
\n
off current taxation assets against current taxation liabilities and it is the intention to settle
\n
these on a net basis.
\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
Deferred tax is provided on temporary differences arising on investments in subsidiaries
\n
and associates, except where the timing of the reversal of the temporary difference is
\n
controlled by the Group and it is probable that the temporary difference will not reverse in
\n
the foreseeable future.
\n
Management\u2019s assessment over the probability of future taxable income in which deferred
\n
tax assets can be utilized is based on forecasts. The tax rules in the jurisdictions in which
\n
the Group operates are also taken into consideration. The recognition of deferred tax assets
\n
subject to legal or economic uncertainties are assessed by Management on the individual
\n
facts and circumstances.
\n

\n\n

\n\n\n

\n
d. Reporting and foreign currency translation
\n\n
(a) Functional and presentation currency
\n
Items included in the financial statements of each of the Group\u2019s entities are measured
\n
using the currency of the primary economic environment in which the entity operates
\n
(the \u201cfunctional currency\u201d). The consolidated financial statements are presented in US-
\n
dollars, which is also the Parent Company\u2019s functional currency.
\n

\n\n
(b) Transactions and balances
\n
Foreign currency transactions are translated into the functional currency of each
\n
individual entity using the exchange rates prevailing at the dates of the transactions.
\n
Foreign exchange gains and losses resulting from the settlement of such transactions
\n
and from the translation at year-end exchange rates of monetary assets and liabilities
\n
denominated in foreign currencies are recognized in profit or loss in financing costs.
\n
When a gain or loss on a non-monetary item is recognized in other comprehensive
\n
income, any exchange component of that gain or loss is recognized in other
\n
comprehensive income. When a gain or loss on a non-monetary item is recognized in
\n
profit or loss, any exchange component of that gain or loss is recognized in profit or
\n
loss.
\n
(c) Foreign operations
\n
The results and financial position of all the Group entities (none of which has the
\n
currency of a hyper-inflationary economy) that have a functional currency other than
\n
the presentation currency are translated into the presentation currency on consolidation
\n
as follows:
\n
(i) Assets and liabilities for each statement of financial position presented are
\n
translated at the closing rate at each reporting date.
\n
(ii) Income and expenses for each statement of comprehensive income are translated
\n
at average exchange rates (unless this average is not a reasonable approximation
\n
of the cumulative effect of the rates prevailing on the transaction dates, in which
\n

\n\n

\n\n

\n

\n\n
case income and expenses are translated at the dates of the transactions) for the
\n
period presented.
\n
(iii) All resulting exchange differences are recognized in other comprehensive
\n
income and accumulated in a separate component of equity.
\n
When a foreign operation is disposed of or control is lost, the cumulative amount of
\n
the exchange differences relating to that operation accumulated in the separate
\n
component of equity is reclassified from equity to profit or loss and recognized as part
\n
of the gain or loss on disposal. Goodwill and fair value adjustments arising on the
\n
acquisition of a foreign entity are treated as assets and liabilities of the foreign entity
\n
and are translated at the closing rate.
\n

\n\n\n

\n

\n
e. Consolidation
\n
The Group\u2019s consolidated financial statements consolidate the financial statements of
\n
Thunderbird Resorts Inc. and the entities it controls drawn up to December 31, 2022 and
\n
its comparative periods.
\n\n
(a) Subsidiaries
\n
The parent controls a subsidiary if it is exposed, or has rights, to variable returns from
\n
its involvement with the subsidiary and has the ability to affect those returns through
\n
its power over the subsidiary. All subsidiaries are fully consolidated from the date on
\n
which control is transferred to the Group. They are de-consolidated from the date that
\n
control ceases.
\n
Inter-company transactions, balances and unrealized gains on transactions between
\n
Group subsidiaries are eliminated. Unrealized losses are also eliminated unless the
\n
transaction provides evidence of an impairment of the asset transferred. Accounting
\n
policies as applied to the subsidiaries have been changed where necessary to ensure
\n
consistency with the policies adopted by the Group.
\n
Non-controlling interests represent the portion of profit or loss and net assets in
\n
subsidiaries that are not held by the Group and are presented separately within equity
\n
in the consolidated statement of financial position, from parent shareholders\u2019 equity.
\n

\n\n\n

\n\n
(b) Business combinations
\n
The Group applies the acquisition method of accounting when accounting for business
\n
combinations. The cost of an acquisition is measured at the fair value of the assets
\n
transferred, equity instruments issued and liabilities incurred or assumed at the date of
\n
exchange. Costs directly attributable to the acquisition are charged to profit or loss as
\n
incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a
\n
business combination are measured initially at their fair values at the acquisition date,
\n
irrespective of any non-controlling interest. The excess of the cost of acquisition over
\n
the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as
\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n

\n\n

\n\n
goodwill. If the cost of acquisition is less than the fair value of the net assets for the
\n
subsidiary acquired, the difference is recognized directly in profit or loss.
\n

\n\n

\n\n\n

\n\n
(c) Investment in Joint ventures
\n
The Group has contractual arrangements with other parties which represent joint
\n
ventures. In this case, the arrangements take the form of agreements to share control
\n
over economic activities with Costa Rican assets. Strategic financial and operating
\n
decisions relating to these assets require the unanimous consent of both parties.
\n
Investments in joint ventures are accounted for using the equity method.
\n
Any goodwill or fair value adjustment attributable to the Group\u2019s share in the joint
\n
venture is not recognized separately and is included in the amount recognized as
\n
investment.
\n
The carrying amount of the investment in joint ventures is increased or decreased to
\n
recognize the Group\u2019s share of the profit or loss and other comprehensive income of
\n
the associate and joint venture, adjusted where necessary to ensure consistency with
\n
the accounting policies of the Group.
\n
Unrealized gains and losses on transactions between the Group and its joint ventures
\n
are eliminated to the extent of the Group\u2019s interest in those entities. Where unrealized
\n
losses are eliminated, the underlying asset is also tested for impairment.
\n

\n\n

\n\n

\n\n\n

\n

\n
f. Intangible assets
\n\n
(a) Goodwill
\n
Goodwill represents the excess of the fair value of consideration transferred in a
\n
business combination over the fair value of the Group\u2019s share of the net identifiable
\n
assets, liabilities and contingent liabilities at the date of the business combinations and
\n
is not amortized. Goodwill is tested annually for impairment and carried at cost less
\n
accumulated impairment losses.
\n
Gains and losses on the disposal of an entity include the carrying amount of goodwill
\n
relating to the entity sold.
\n

\n\n\n
(b) Software and software licenses
\n
The Group includes acquired and internally developed software used in operations or
\n
administration as intangible assets. They are accounted for using the cost model
\n
whereby capitalized costs are amortized on a straight-line basis over their estimated
\n
useful life. Residual values and useful lives are reviewed at each reporting date. In
\n
addition, they are subject to impairment testing as described in Note 10. The following
\n
useful lives are applied:
\n
Software 2 \u2013 5 years
\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
Amortization has been included within depreciation, amortization and impairment of
\n
non-financial assets. Acquired computer software licenses are capitalized on the basis
\n
of the costs incurred to acquire and install the specific software.
\n

\n\n

\n\n\n
g. Leases
\n
The Group as a lessee
\n
For any new contracts entered into, the Group considers whether a contract is, or contains
\n
a lease. A lease is defined as \u201ca contract, or part of a contract, that conveys the right to use
\n
an asset (the underlying asset) for a period of time in exchange for consideration\u201d. To apply
\n
this definition, the Group assesses whether the contract meets three key evaluations which
\n
are whether or not:
\n
\u2022 the contract contains an identified asset, which is either explicitly identified in the
\n
contract or implicitly specified by being identified at the time the asset is made
\n
available to the Group;
\n
\u2022 the Group has the right to obtain substantially all of the economic benefits from use of
\n
the identified asset throughout the period of use, considering its rights within the
\n
defined scope of the contract; and
\n
\u2022 the Group has the right to direct the use of the identified asset throughout the period of
\n
use. The Group assess whether it has the right to direct \u201chow and for what purpose\u201d
\n
the asset is used throughout the period of use.
\n
Measurement and recognition of leases as a lessee
\n
At lease commencement date, the Group recognizes a right-of-use asset and a lease liability
\n
on the balance sheet. The right-of-use asset is measured at cost, which is made up of the
\n
initial measurement of the lease liability, any initial direct costs incurred by the Group, an
\n
estimate of any costs to dismantle and remove the asset at the end of the lease, and any
\n
lease payments made in advance of the lease commencement date (net of any incentives
\n
received).
\n
The Group depreciates the right-of-use assets on a straight-line basis from the lease
\n
commencement date to the earlier of the end of the useful life of the right-of-use asset or
\n
the end of the lease term.
\n
The Group also assesses the right-of-use asset for impairment when such indicators exist.
\n
At the commencement date, the Group measures the lease liability at the present value of
\n
the lease payments unpaid at that date, discounted using the interest rate implicit in the
\n
lease if that rate is readily available or the Group\u2019s incremental borrowing rate.
\n
Lease payments included in the measurement of the lease liability are made up of fixed
\n
payments (including in substance fixed), variable payments based on an index or rate,
\n
amounts expected to be payable under a residual value guarantee and payments arising
\n
from options reasonably certain to be exercised.
\n

\n\n

\n\n

\n

\n\n
Subsequent to initial measurement, the liability will be reduced for payments made and
\n
increased for interest. Interest is charged on the lease liability at an even rate on the
\n
carrying amount of that liability (see above). It is re-measured to reflect any reassessment
\n
or modification, or if there are changes in lease liability.
\n
When the lease liability is re-measured, the corresponding adjustment is reflected in the
\n
right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
\n
The Group has elected to account for short-term leases and leases of low-value assets using
\n
the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the
\n
payments in relation to these are recognized as an expense in profit or loss on a straight-
\n
line basis over the lease term. On the statement of financial position, right-of-use assets
\n
have been included in property, plant and equipment (except those meeting the definition
\n
of investment property) and lease liabilities have been included in Obligations underleases
\n
and hire purchase contracts.
\n

\n\n\n

\n
h. Provisions
\n\n
(a) Employee benefits
\n
The Group recognizes a liability and an expense for bonuses and profit-sharing based
\n
on a formula that takes into consideration the Group\u2019s profits. The Group recognizes a
\n
provision where it is contractually obliged to pay the benefits, and/or where there is a
\n
past practice that has created a constructive obligation.
\n
Defined Benefit Obligation (DBO)
\n
Management\u2019s estimate of the DBO is based on a number of critical underlying
\n
assumptions such as standard rates of inflation, mortality, discount rate and
\n
anticipation of future salary increase. Variation in these assumptions may significantly
\n
impact the DBO amount and the annual defined benefit expenses. The liability
\n
recognized in the statement of financial position for DBO\u2019s is the present value of the
\n
DBO at the report date.
\n
Management estimates the DBO annually using simplifications of the projected unit
\n
credit method as follow: (i) ignore estimated future salary increases, (ii) ignore future
\n
service of current employees and (iii) ignore possible in-service mortality of current
\n
employees between the reporting date and the date employees are expected to begin
\n
receiving post-employment benefits. Discount factors are determined close to each
\n
year-end by reference to high quality corporate bonds that are denominated in the
\n
currency in which the benefits will be paid and that have terms to maturity
\n
approximating the terms of the related liability.
\n
Service cost on the Group\u2019s defined benefit plan is included in employee benefit
\n
expense. Net interest expense on the net defined benefit liability is included in finance
\n
cost. Gains and losses resulting from re-measurements of the defined benefit liability
\n
are included in other comprehensive income and are not reclassified to profit or loss in
\n
subsequent periods.
\n

\n\n

\n\n

\n\n

\n

\n\n
(b) Other
\n
Provisions are recognized when the Group has a present legal or constructive
\n
obligation as a result of past events; it is more likely than not that an outflow of
\n
resources will be required to settle the obligation, and the amount can be reliably
\n
estimated. Provisions are measured at the best estimate of the expenditure required to
\n
settle the present obligation at the end of each reporting period.
\n
(c) Litigation provisions
\n
The Group provides against various litigation proceedings once judgments are
\n
rendered against it, as in Management\u2019s view this provides the best indication that
\n
payment has become probable. The award amount is used as the Directors\u2019 best
\n
estimate of the potential liability, even if the Group is appealing the judgment.
\n
Provisions are discounted to their present value, where the time value of money is material.
\n

\n\n\n

\n

\n

\n
i. Financial instruments
\n
Non-derivative financial instruments consist of:
\n\n

\n
Financial assets
\n
Financial assets, which include cash and cash equivalents, trade receivables, unbilled
\n
revenues, finance lease receivables, employee and other advances, investments in equity
\n
and debt securities and eligible current and non-current assets.
\n\n
Financial assets are derecognized when substantial risks and rewards of ownership of the
\n
financial asset have been transferred. In cases where substantial risks and rewards of
\n
ownership of the financial assets are neither transferred nor retained, financial assets are
\n
derecognized only when the Company has not retained control over the financial asset.
\n

\n\n

\n\n\n
Financial liabilities
\n
Financial liabilities, which include long and short-term loans and borrowings, bank
\n
overdrafts, trade payables, eligible current and non-current liabilities.
\n

\n\n
Subsequent measurement of financial assets
\n
Non-derivative financial instruments are recognized initially at fair value. Subsequent to
\n
initial recognition, non-derivative financial instruments are measured as described below:
\n\n
Financial assets
\n
Financial assets are measured at initial recognition at fair value and are classified and
\n
subsequently measured at fair value through profit or loss, fair value through other
\n
comprehensive income or amortized cost. Financial assets are assigned to these different
\n
categories by Management on initial recognition, depending on the purpose for which they
\n

\n\n

\n\n

\n\n

\n\n

\n

\n\n

\n

\n

\n
were acquired. The designation of financial assets is re-evaluated at every reporting date at
\n
which a choice of classification or accounting treatment is available.
\n
All financial assets are recognized when the Group becomes a party to the contractual
\n
provisions of the instrument.
\n\n

\n

\n
Trade receivables, related party receivables and cash and cash equivalents are measured
\n
subsequent to initial recognition at amortized cost using the effective interest method, less
\n
provision for impairment. Any change in their value through impairment or reversal of
\n
impairment is recognized in profit or loss.
\n\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n\n

\n\n\n
A financial asset is derecognized only where the contractual rights to the cash flows from
\n
the asset expire or the financial asset is transferred, and that transfer qualifies for de-
\n
recognition. A financial asset is transferred if the contractual rights to receive the cash
\n
flows of the asset have been transferred or the Group retains the contractual rights to
\n
receive the cash flows of the asset but assumes a contractual obligation to pay the cash
\n
flows to one or more recipients. A financial asset that is transferred qualifies for de-
\n
recognition if the Group transfers substantially all the risks and rewards of ownership of
\n
the asset, or if the Group neither retains nor transfers substantially all the risks and rewards
\n
of ownership but does transfer control of that asset.
\n

\n\n

\n\n\n

\n

\n
Financial liabilities
\n
Financial liabilities are obligations to pay cash or other financial assets and are recognized
\n
when the Group becomes a party to the contractual provisions of the instrument. Financial
\n
liabilities categorized at fair value through profit or loss, are recorded initially at fair value.
\n
All other financial liabilities are recorded initially at fair value, net of direct issue costs.
\n\n
Financial liabilities categorized as at fair value through profit or loss, are measured at each
\n
reporting date at fair value, with changes in fair value being recognized in profit or loss.
\n

\n\n\n

\n\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n

\n

\n

\n\n

\n\n
\n

\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n\n

\n\n\n
A financial liability is derecognized only when the obligation is extinguished, that is, when
\n
the obligation is discharged, cancelled or expires. Where an existing financial liability is
\n
replaced by another from the same lender on substantially different terms, or the terms of
\n
an existing liability are substantially modified, such an exchange or modification is treated
\n
as de-recognition of the original liability and the recognition of a new liability, such that
\n
the difference in the respective carrying amounts together with any costs or fees incurred
\n
are recognized in profit or loss.
\n
\n\n\n
Trade and other payables are initially recognized at fair value, and subsequently carried at
\n
amortized cost using the effective interest method. For these financial instruments, the
\n
carrying amounts approximate fair value due to the short-term maturity of these
\n
instruments.
\n

\n\n

\n\n

\n\n\n
j. Inventories
\n
Inventories are valued at the lower of cost and net realizable value. Cost of inventory is
\n
determined on a \u2018first-in-first-out\u2019 basis. Inventory consists of food, beverages and
\n
supplies.
\n

\n\n\n

\n
k. Cash and cash equivalents
\n
Cash and cash equivalents include cash in hand, deposits held at call with banks with
\n
maturities of 3 months or less from inception, other short term highly liquid investments
\n
that are readily convertible into known amounts of cash and which are subject to an
\n
insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown
\n
within borrowings in current liabilities on the statement of financial position.
\n\n
Restricted cash includes all cash balances that are required to be maintained under
\n
regulatory requirements. Casino industry regulations vary by country but all require our
\n
casino operations to maintain specified minimum levels of cash to support chips in play,
\n
slot hoppers, and reserves.
\n

\n\n

\n\n\n

\n
l. Borrowings and borrowing costs
\n
Borrowings are classified as current liabilities unless the Group has an unconditional right
\n
to defer settlement of the liability for at least 12 months after the period end date.
\n\n
Borrowing costs directly attributable to the acquisition, construction or production of a
\n
qualifying asset, or assets that take a substantial period of time to prepare for their intended
\n
use or sale are added to the cost of those assets, until such time as the assets are substantially
\n
ready for their intended use or sale.
\n
Investment income earned on the temporary investment of specific borrowings pending
\n
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
\n
capitalization.
\n

\n\n

\n\n

\n\n

\n

\n

\n

\n\n

\n\n
All other borrowing costs are recognized in profit or loss in the period in which they are
\n
incurred.
\n

\n\n

\n\n\n

\n
m. Share capital
\n
Common shares are classified as equity.
\n\n
Where the Group purchases the Group\u2019s equity share capital (treasury shares), the
\n
consideration paid, including any directly attributable incremental costs (net of income
\n
taxes) is deducted from equity attributable to the Group\u2019s equity holders until the shares
\n
are cancelled or reissued. Where such shares are subsequently sold or reissued, any
\n
consideration received, net of any directly attributable incremental transaction costs and
\n
the related income tax effects are included in equity attributable to the Group\u2019s equity
\n
holders.
\n

\n\n

\n\n\n
n. Share-based payments
\n
Where share options are awarded to employees, the fair value of the options at the date of
\n
grant is charged to profit or loss over the vesting period, with the corresponding credit to
\n
the share option reserve. Non-market vesting conditions are taken into account by adjusting
\n
the number of equity instruments expected to vest at each Balance Sheet date so that,
\n
ultimately, the cumulative amount recognized over the vesting period is based on the
\n
number of options that eventually vest.
\n
Market vesting conditions are factored into the fair value of the options granted. As long
\n
as all other vesting conditions are satisfied, a change is made irrespective of whether the
\n
market vesting conditions are satisfied. The cumulative expense is not adjusted for failure
\n
to achieve a market vesting condition. Where the terms of the options are modified before
\n
they vest, the increase in the fair value of the options, measured immediately before and
\n
after the modification, is also charged over the remaining vesting period.
\n
All share-based remuneration is ultimately recognized as an expense in profit or loss with
\n
a corresponding credit to retained earnings. If vesting periods or other vesting conditions
\n
apply, the expense is allocated over the vesting period, based on the best available estimate
\n
of the number of share options expected to vest. Upon exercise of share options, the
\n
proceeds received net of any directly attributable transaction costs up are recognized as
\n
share capital.
\n
Where equity instruments are granted to persons other than employees, the Statement of
\n
Comprehensive Income is charged with the fair value of goods and services received. If
\n
fair value cannot be reliably measured the fair value of the goods or services received, the
\n
value of the services are recognized, and the corresponding increase in equity, is recognized
\n
indirectly, by reference to the fair value of the equity instruments granted.
\n

\n\n\n
o. Net gaming wins and revenue recognition
\n
Revenue is recognized to the extent that it is probable that the economic benefits will flow
\n
to the Group, the revenue can be reliably measured, the risks and rewards of ownership
\n

\n\n

\n\n

\n

\n

\n

\n

\n\n

\n
have been transferred to the buyer, the Group no longer has control over the goods, and the
\n
costs incurred in respect of the transaction can be reliably measured. Revenue is
\n
recognized on specific items as follows:
\n
(a) Net gaming wins \u2013 Casino revenues represent the net wins/(losses) from gaming
\n
activities, which is, for slot machines, the difference between coins and currencies
\n
deposited into the machines and the payments to customers and, for other (table and
\n
sports book) games, the difference between gaming wins and losses. Net gaming wins
\n
are recognized when they occur.
\n
(b) Food, beverage and hospitality sales \u2013 Revenue is recognized at the point of sale or
\n
upon the actual rendering of service.
\n\n

\n\n
(c) Interest income \u2013 Revenue is recognized as the interest is accrued (taking into account
\n
the effective yield on the asset).
\n

\n\n

\n\n
Costs and expenses are recognized in profit or loss upon utilization of the service or at the
\n
date they are incurred.
\n

\n\n\n
p. Earnings per share
\n
Basic earnings per share is calculated using the weighted-average number of shares
\n
outstanding during the period.
\n
The Group uses the treasury stock method to compute the dilutive effect of options,
\n
warrants and similar instruments. Under this method, the dilutive effect on earnings per
\n
share is recognized on the use of the proceeds that could be obtained upon exercise of
\n
options, warrants and similar instruments. It assumes that the proceeds would be used to
\n
purchase common shares at the average market price during the period.
\n

\n\n\n
q. Project development costs
\n
Project development costs incurred in an effort to identify and develop new gaming
\n
locations are expensed as incurred.
\n

\n\n\n

\n\n
r. Profit or loss from discontinued operations
\n
A discontinued operation is a component of the entity that either has been disposed of, or
\n
is classified as held for sale, and:
\n
\u2022 represents a separate major line of business or geographical area of operations;
\n
\u2022 is part of a single coordinated plan to dispose of a separate major line of business or
\n
geographical area of operations; or
\n
\u2022 is a subsidiary acquired exclusively with a view to resell.
\n
Profit or loss from discontinued operations, including prior year components of profit or
\n
loss, are presented in a single amount in the statement of comprehensive income.
\n

\n\n

\n\n

\n\n

\n\n
s. Fair value measurement
\n
Fair value is defined as the price that would be received to sell an asset or paid to transfer
\n
a liability in an orderly transaction between market participants at the measurement date.
\n
Management uses valuation techniques to determine the fair value of financial instruments
\n
(where active market quotes are not available) and non-financial assets. This involves
\n
developing estimates and assumptions consistent with how market participants would price
\n
the instrument. Management bases its assumptions on observable data as far as possible
\n
but this is not always available. In that case Management uses the best information
\n
available.
\n
Estimated fair values may vary from the actual prices that would be achieved in an arm\u2019s
\n
length transaction at the reporting date.
\n

\n\n

\n\n
\n\n
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those
\n
used in its financial statements, except that expenses relating to share-based payments are not
\n
included in arriving at the operating profit of the operating segments and results for the Group\u2019s
\n
equity accounted joint venture is shown proportionally. Corporate assets that are not directly
\n
attributable to the business activities of any operating segment are not allocated to a segment.
\n
There have been no changes from prior periods in the measurement methods used to determine
\n
reported segment profit or loss. No asymmetrical allocations have been applied between segments.
\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag338": { "value": "\n

\n
3.1 Changes in accounting policies
\n
The consolidated financial statements have been prepared in accordance with the accounting
\n
policies adopted in the last annual consolidated financial statements for the year ended
\n
December 31, 2022, except for the adoption of the following new interpretations, revisions,
\n
and amendments to IFRS issued by the International Accounting Standards Board, which are
\n
relevant to, and effective for the Group\u2019s consolidated financial statements for the annual
\n
period beginning January 1, 2022.
\n\n
New currently effective requirements
\n
These Standards are required to be applied by an entity with an annual reporting period
\n
beginning on January 1, 2022:
\n
\u2022 Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022 COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022 Property, Plant and Equipment: Proceeds Before Intended Use (Amendments to IAS 16)
\n
\u2022 Onerous Contracts \u2013 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022 Annual Improvements (2018-2020 Cycle):
\n
\u2013 Subsidiary as a First-time Adopter (Amendments to IFRS 1)
\n
\u2013 Fees in the \u201810 per cent\u2019 Test for Derecognition of Liabilities (Amendments to IFRS 9)
\n
\u2013 Lease Incentives (Amendments to IFRS 16)
\n
\u2013 Taxation in Fair Value Measurements
\n
The new requirements listed above did not have any impact on the amounts recognized in
\n
prior periods and are not expected to significantly affect the current or future periods.
\n

\n\n
Standards issued but not yet effective
\n
At the date of authorization of these consolidated financial statements, several new, but not
\n
yet effective, Standards and amendments to existing Standards, and Interpretations have been
\n
published by the IASB or IFRIC. None of these Standards or amendments to existing Standards
\n
have been adopted early by the Group and no Interpretations have been issued that are
\n
applicable and need to be taken into consideration by the Group at either reporting date.
\n

\n\n
Management anticipates that all relevant pronouncements will be adopted for the first period
\n
beginning on or after the effective date of the pronouncement. New Standards, amendments
\n
and Interpretations not adopted in the current year have not been disclosed as they are not
\n
expected to have a material impact on the Group\u2019s consolidated financial statements
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag336": { "value": "\n
New currently effective requirements
\n
These Standards are required to be applied by an entity with an annual reporting period
\n
beginning on January 1, 2022:
\n
\u2022 Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022 COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022 Property, Plant and Equipment: Proceeds Before Intended Use (Amendments to IAS 16)
\n
\u2022 Onerous Contracts \u2013 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022 Annual Improvements (2018-2020 Cycle):
\n
\u2013 Subsidiary as a First-time Adopter (Amendments to IFRS 1)
\n
\u2013 Fees in the \u201810 per cent\u2019 Test for Derecognition of Liabilities (Amendments to IFRS 9)
\n
\u2013 Lease Incentives (Amendments to IFRS 16)
\n
\u2013 Taxation in Fair Value Measurements
\n
The new requirements listed above did not have any impact on the amounts recognized in
\n
prior periods and are not expected to significantly affect the current or future periods.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFirstTimeAdoptionExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag330": { "value": "\n

\n
Critical accounting estimates and judgments
\n
The preparation of financial statements with IFRS requires the use of estimates and
\n
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
\n
information and the reported amounts of revenues and expenses during the reporting period.
\n
Estimates and judgments are continually evaluated and are based on historical experience and
\n
other factors, including expectations of future events that are believed to be reasonable under
\n
the circumstances. The areas involving a higher degree of judgment or complexity, or areas
\n
where assumptions and estimates are significant to the financial statements are set out below.
\n\n
The best estimates of the Directors may differ from the actual results.
\n
3.3 a Depreciable lives of assets and realisable
\n
residual value
\n
10
\n
3.3 b
\n
Future operating results growth rates, and
\n
discount factor applied
\n
9
\n
3.3 c Recognition of deferred tax asset 8
\n
3.3 e Determination of control over economic
\n
activities
\n
29
\n
Recoverability of amounts due from related
\n
parties
\n
21
\n
3.3 h Judgments on probability of payment as a
\n
result of disputes
\n
23
\n
3.3 i Assessment of significance of debt
\n
modifications
\n
17
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag344": { "value": "The areas involving a higher degree of judgment or complexity, or areaswhere assumptions and estimates are significant to the financial statements are set out below.\n
The best estimates of the Directors may differ from the actual results.
\n
3.3 a Depreciable lives of assets and realisable
\n
residual value
\n
10
\n
3.3 b
\n
Future operating results growth rates, and
\n
discount factor applied
\n
9
\n
3.3 c Recognition of deferred tax asset 8
\n
3.3 e Determination of control over economic
\n
activities
\n
29
\n
Recoverability of amounts due from related
\n
parties
\n
21
\n
3.3 h Judgments on probability of payment as a
\n
result of disputes
\n
23
\n
3.3 i Assessment of significance of debt
\n
modifications
\n
17
\n

\n", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag335": { "value": "\n

\n
a. Property, plant and equipment
\n
All property, plant and equipment is stated at acquired cost less depreciation and
\n
impairment. Land is not depreciated as no finite useful life can be determined. Acquired
\n
cost includes expenditures that are directly attributable to the acquisition of the asset.
\n\n
Depreciation on assets is calculated using the straight-line method to allocate their cost
\n
over their estimated useful lives, as follows:
\n

\n\n

\n\n

\n

\n\n
Properties 20 \u2013 30 years
\n
Furniture and equipment 3 \u2013 10 years
\n
Gaming machines 5 \u2013 10 years
\n
Leasehold improvements over the lease term
\n

\n\n
Profits and losses on disposals are determined by comparing proceeds with carrying
\n
amount. These are included in profit or loss.
\n\n
Construction in progress represents properties under construction and is stated at cost. This
\n
includes cost of construction, borrowing costs, and other direct costs. The assets are not
\n
depreciated until such time that the assets are completed and available for use. Transfers
\n
are made from the construction in progress category to the appropriate property, plant and
\n
equipment asset categories when the construction of the asset has been substantially
\n
completed.
\n

\n\n
Management reviews the useful lives of depreciable assets at least each reporting date. At
\n
December 31, 2022, Management assesses that the useful lives represent the expected
\n
utility of the assets of the Group. The carrying amounts are analyzed in Note 10. Actual
\n
results, however, may vary due to obsolescence.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag349": { "value": "Land is not depreciated as no finite useful life can be determined.\n
Depreciation on assets is calculated using the straight-line method to allocate their cost
\n
over their estimated useful lives, as follows:
\n

\n\n
Properties 20 \u2013 30 years
\n
Furniture and equipment 3 \u2013 10 years
\n
Gaming machines 5 \u2013 10 years
\n
Leasehold improvements over the lease term
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag333": { "value": "\n
Construction in progress represents properties under construction and is stated at cost. This
\n
includes cost of construction, borrowing costs, and other direct costs. The assets are not
\n
depreciated until such time that the assets are completed and available for use. Transfers
\n
are made from the construction in progress category to the appropriate property, plant and
\n
equipment asset categories when the construction of the asset has been substantially
\n
completed.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag345": { "value": "\n
b. Investment property
\n
Investment properties are lands with no defined use, and are accounted for using the cost
\n
model.
\n
Investment properties are recorded at cost, which comprises its purchase price and any
\n
directly attributable expenditure; subsequently, on each reporting date these investment
\n
properties are measured at cost less impairment losses.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag332": { "value": "\n

\n\n
c. Impairment testing of intangible assets and property, plant and equipment
\n
For impairment assessment purposes, assets are grouped at the lowest levels for which
\n
there are largely independent cash inflows (cash-generating units). As a result, some assets
\n
are tested individually for impairment and some are tested at cash-generating unit level.
\n
Goodwill is allocated to those cash-generating units that are expected to benefit from
\n
synergies of the related business combination and represent the lowest level within the
\n
Group at which Management monitors goodwill.
\n
Cash-generating units to which goodwill has been allocated are tested for impairment at
\n
least annually, as set out in Note 9.
\n
All other individual assets or cash-generating units are tested for impairment whenever
\n
events or changes in circumstances indicate that the carrying amount may not be
\n
recoverable.
\n
An impairment loss is recognized for the amount by which the asset\u2019s or cash-generating
\n
unit\u2019s carrying amount exceeds its recoverable amount, which is the higher of fair value
\n
less costs of disposal and value-in-use. To determine the value-in-use, Management
\n

\n\n

\n\n

\n\n
estimates expected future cash flows from each cash-generating unit and determines a
\n
suitable rate in order to calculate the present value of those cash flows. The data used for
\n
impairment testing procedures are directly linked to the Group\u2019s latest approved budget,
\n
adjusted as necessary to exclude the effects of future reorganizations and asset
\n
enhancements. Discount factors are determined individually for each cash-generating unit
\n
and reflect Management\u2019s assessment of respective risk profiles, such as market and asset-
\n
specific risks factors. Impairment losses for cash-generating units reduce first the carrying
\n
amount of any goodwill allocated to that cash-generating unit. Any remaining impairment
\n
loss is charged pro rata to the other assets in the cash-generating unit. With the exception
\n
of goodwill, all assets are subsequently reassessed for indications that an impairment loss
\n
previously recognized may no longer exist. An impairment loss is reversed if the asset\u2019s or
\n
cash-generating unit\u2019s recoverable amount exceeds its carrying amount.
\n
Impairment losses of continuing operations are recognized in our statement of
\n
comprehensive income in those expense categories consistent with the function of the
\n
impaired asset under review.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag340": { "value": "\n
c. Impairment testing of intangible assets and property, plant and equipment
\n
For impairment assessment purposes, assets are grouped at the lowest levels for which
\n
there are largely independent cash inflows (cash-generating units). As a result, some assets
\n
are tested individually for impairment and some are tested at cash-generating unit level.
\n
Goodwill is allocated to those cash-generating units that are expected to benefit from
\n
synergies of the related business combination and represent the lowest level within the
\n
Group at which Management monitors goodwill.
\n
Cash-generating units to which goodwill has been allocated are tested for impairment at
\n
least annually, as set out in Note 9.
\n
All other individual assets or cash-generating units are tested for impairment whenever
\n
events or changes in circumstances indicate that the carrying amount may not be
\n
recoverable.
\n
An impairment loss is recognized for the amount by which the asset\u2019s or cash-generating
\n
unit\u2019s carrying amount exceeds its recoverable amount, which is the higher of fair value
\n
less costs of disposal and value-in-use. To determine the value-in-use, Management
\n

\n\n
estimates expected future cash flows from each cash-generating unit and determines a
\n
suitable rate in order to calculate the present value of those cash flows. The data used for
\n
impairment testing procedures are directly linked to the Group\u2019s latest approved budget,
\n
adjusted as necessary to exclude the effects of future reorganizations and asset
\n
enhancements. Discount factors are determined individually for each cash-generating unit
\n
and reflect Management\u2019s assessment of respective risk profiles, such as market and asset-
\n
specific risks factors. Impairment losses for cash-generating units reduce first the carrying
\n
amount of any goodwill allocated to that cash-generating unit. Any remaining impairment
\n
loss is charged pro rata to the other assets in the cash-generating unit. With the exception
\n
of goodwill, all assets are subsequently reassessed for indications that an impairment loss
\n
previously recognized may no longer exist. An impairment loss is reversed if the asset\u2019s or
\n
cash-generating unit\u2019s recoverable amount exceeds its carrying amount.
\n
Impairment losses of continuing operations are recognized in our statement of
\n
comprehensive income in those expense categories consistent with the function of the
\n
impaired asset under review.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag342": { "value": "\n

\n
c. Taxation including deferred tax
\n
The income tax expense recognized in profit or loss comprises the sum of deferred tax and
\n
current tax not recognized in other comprehensive income or directly in equity. Current
\n
tax is applied to taxable profits at the prevailing rate in the relevant country. Current tax
\n
assets and liabilities are measured at the amount expected to be paid to (recovered from)
\n
taxation authorities, using the rates/laws that have been enacted or substantively enacted
\n
by the balance sheet date (IAS 12).
\n
Current income tax assets and/or liabilities comprise those obligations to, or claims from,
\n
fiscal authorities relating to the current or prior reporting periods, that are unpaid at the
\n
reporting date. Current tax is payable on taxable profit, which differs from profit or loss in
\n
the financial statements.
\n\n
Deferred tax is provided for in full, using the liability method, on temporary differences
\n
arising between the tax bases of assets and liabilities and their carrying amounts in the
\n
consolidated financial statements. However, if deferred tax arises from the initial
\n
recognition of goodwill, it is not recognized nor is deferred tax arising on the initial
\n
recognition of an asset or liability unless the related transaction is a business combination
\n
or affects tax or accounting profit. Deferred tax is determined using tax rates (and laws)
\n
that have been enacted or substantively enacted by the reporting date and are expected to
\n
apply when the related deferred tax asset is realized or the deferred tax liability is settled.
\n
Withholding taxes on earnings of foreign operations are provided in the accounts only to
\n
the extent earnings are expected to be repatriated.
\n
Deferred tax assets are recognized to the extent that it is probable that future taxable profit
\n
will be available against which the temporary differences can be utilized.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set
\n
off current taxation assets against current taxation liabilities and it is the intention to settle
\n
these on a net basis.
\n

\n\n

\n\n

\n\n
Deferred tax is provided on temporary differences arising on investments in subsidiaries
\n
and associates, except where the timing of the reversal of the temporary difference is
\n
controlled by the Group and it is probable that the temporary difference will not reverse in
\n
the foreseeable future.
\n
Management\u2019s assessment over the probability of future taxable income in which deferred
\n
tax assets can be utilized is based on forecasts. The tax rules in the jurisdictions in which
\n
the Group operates are also taken into consideration. The recognition of deferred tax assets
\n
subject to legal or economic uncertainties are assessed by Management on the individual
\n
facts and circumstances.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag341": { "value": "\n
Deferred tax is provided for in full, using the liability method, on temporary differences
\n
arising between the tax bases of assets and liabilities and their carrying amounts in the
\n
consolidated financial statements. However, if deferred tax arises from the initial
\n
recognition of goodwill, it is not recognized nor is deferred tax arising on the initial
\n
recognition of an asset or liability unless the related transaction is a business combination
\n
or affects tax or accounting profit. Deferred tax is determined using tax rates (and laws)
\n
that have been enacted or substantively enacted by the reporting date and are expected to
\n
apply when the related deferred tax asset is realized or the deferred tax liability is settled.
\n
Withholding taxes on earnings of foreign operations are provided in the accounts only to
\n
the extent earnings are expected to be repatriated.
\n
Deferred tax assets are recognized to the extent that it is probable that future taxable profit
\n
will be available against which the temporary differences can be utilized.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set
\n
off current taxation assets against current taxation liabilities and it is the intention to settle
\n
these on a net basis.
\n

\n\n
Deferred tax is provided on temporary differences arising on investments in subsidiaries
\n
and associates, except where the timing of the reversal of the temporary difference is
\n
controlled by the Group and it is probable that the temporary difference will not reverse in
\n
the foreseeable future.
\n
Management\u2019s assessment over the probability of future taxable income in which deferred
\n
tax assets can be utilized is based on forecasts. The tax rules in the jurisdictions in which
\n
the Group operates are also taken into consideration. The recognition of deferred tax assets
\n
subject to legal or economic uncertainties are assessed by Management on the individual
\n
facts and circumstances.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag347": { "value": "\n

\n
d. Reporting and foreign currency translation
\n\n
(a) Functional and presentation currency
\n
Items included in the financial statements of each of the Group\u2019s entities are measured
\n
using the currency of the primary economic environment in which the entity operates
\n
(the \u201cfunctional currency\u201d). The consolidated financial statements are presented in US-
\n
dollars, which is also the Parent Company\u2019s functional currency.
\n

\n\n
(b) Transactions and balances
\n
Foreign currency transactions are translated into the functional currency of each
\n
individual entity using the exchange rates prevailing at the dates of the transactions.
\n
Foreign exchange gains and losses resulting from the settlement of such transactions
\n
and from the translation at year-end exchange rates of monetary assets and liabilities
\n
denominated in foreign currencies are recognized in profit or loss in financing costs.
\n
When a gain or loss on a non-monetary item is recognized in other comprehensive
\n
income, any exchange component of that gain or loss is recognized in other
\n
comprehensive income. When a gain or loss on a non-monetary item is recognized in
\n
profit or loss, any exchange component of that gain or loss is recognized in profit or
\n
loss.
\n
(c) Foreign operations
\n
The results and financial position of all the Group entities (none of which has the
\n
currency of a hyper-inflationary economy) that have a functional currency other than
\n
the presentation currency are translated into the presentation currency on consolidation
\n
as follows:
\n
(i) Assets and liabilities for each statement of financial position presented are
\n
translated at the closing rate at each reporting date.
\n
(ii) Income and expenses for each statement of comprehensive income are translated
\n
at average exchange rates (unless this average is not a reasonable approximation
\n
of the cumulative effect of the rates prevailing on the transaction dates, in which
\n

\n\n
case income and expenses are translated at the dates of the transactions) for the
\n
period presented.
\n
(iii) All resulting exchange differences are recognized in other comprehensive
\n
income and accumulated in a separate component of equity.
\n
When a foreign operation is disposed of or control is lost, the cumulative amount of
\n
the exchange differences relating to that operation accumulated in the separate
\n
component of equity is reclassified from equity to profit or loss and recognized as part
\n
of the gain or loss on disposal. Goodwill and fair value adjustments arising on the
\n
acquisition of a foreign entity are treated as assets and liabilities of the foreign entity
\n
and are translated at the closing rate.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag343": { "value": "\n
(a) Functional and presentation currency
\n
Items included in the financial statements of each of the Group\u2019s entities are measured
\n
using the currency of the primary economic environment in which the entity operates
\n
(the \u201cfunctional currency\u201d). The consolidated financial statements are presented in US-
\n
dollars, which is also the Parent Company\u2019s functional currency.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag321": { "value": "\n

\n

\n
e. Consolidation
\n
The Group\u2019s consolidated financial statements consolidate the financial statements of
\n
Thunderbird Resorts Inc. and the entities it controls drawn up to December 31, 2022 and
\n
its comparative periods.
\n\n
(a) Subsidiaries
\n
The parent controls a subsidiary if it is exposed, or has rights, to variable returns from
\n
its involvement with the subsidiary and has the ability to affect those returns through
\n
its power over the subsidiary. All subsidiaries are fully consolidated from the date on
\n
which control is transferred to the Group. They are de-consolidated from the date that
\n
control ceases.
\n
Inter-company transactions, balances and unrealized gains on transactions between
\n
Group subsidiaries are eliminated. Unrealized losses are also eliminated unless the
\n
transaction provides evidence of an impairment of the asset transferred. Accounting
\n
policies as applied to the subsidiaries have been changed where necessary to ensure
\n
consistency with the policies adopted by the Group.
\n
Non-controlling interests represent the portion of profit or loss and net assets in
\n
subsidiaries that are not held by the Group and are presented separately within equity
\n
in the consolidated statement of financial position, from parent shareholders\u2019 equity.
\n

\n\n\n

\n\n
(b) Business combinations
\n
The Group applies the acquisition method of accounting when accounting for business
\n
combinations. The cost of an acquisition is measured at the fair value of the assets
\n
transferred, equity instruments issued and liabilities incurred or assumed at the date of
\n
exchange. Costs directly attributable to the acquisition are charged to profit or loss as
\n
incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a
\n
business combination are measured initially at their fair values at the acquisition date,
\n
irrespective of any non-controlling interest. The excess of the cost of acquisition over
\n
the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as
\n

\n\n

\n\n

\n\n

\n

\n\n

\n\n
goodwill. If the cost of acquisition is less than the fair value of the net assets for the
\n
subsidiary acquired, the difference is recognized directly in profit or loss.
\n

\n\n

\n\n\n

\n\n
(c) Investment in Joint ventures
\n
The Group has contractual arrangements with other parties which represent joint
\n
ventures. In this case, the arrangements take the form of agreements to share control
\n
over economic activities with Costa Rican assets. Strategic financial and operating
\n
decisions relating to these assets require the unanimous consent of both parties.
\n
Investments in joint ventures are accounted for using the equity method.
\n
Any goodwill or fair value adjustment attributable to the Group\u2019s share in the joint
\n
venture is not recognized separately and is included in the amount recognized as
\n
investment.
\n
The carrying amount of the investment in joint ventures is increased or decreased to
\n
recognize the Group\u2019s share of the profit or loss and other comprehensive income of
\n
the associate and joint venture, adjusted where necessary to ensure consistency with
\n
the accounting policies of the Group.
\n
Unrealized gains and losses on transactions between the Group and its joint ventures
\n
are eliminated to the extent of the Group\u2019s interest in those entities. Where unrealized
\n
losses are eliminated, the underlying asset is also tested for impairment.
\n

\n\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag326": { "value": "\n
(a) Subsidiaries
\n
The parent controls a subsidiary if it is exposed, or has rights, to variable returns from
\n
its involvement with the subsidiary and has the ability to affect those returns through
\n
its power over the subsidiary. All subsidiaries are fully consolidated from the date on
\n
which control is transferred to the Group. They are de-consolidated from the date that
\n
control ceases.
\n
Inter-company transactions, balances and unrealized gains on transactions between
\n
Group subsidiaries are eliminated. Unrealized losses are also eliminated unless the
\n
transaction provides evidence of an impairment of the asset transferred. Accounting
\n
policies as applied to the subsidiaries have been changed where necessary to ensure
\n
consistency with the policies adopted by the Group.
\n
Non-controlling interests represent the portion of profit or loss and net assets in
\n
subsidiaries that are not held by the Group and are presented separately within equity
\n
in the consolidated statement of financial position, from parent shareholders\u2019 equity.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag322": { "value": "\n

\n\n
(b) Business combinations
\n
The Group applies the acquisition method of accounting when accounting for business
\n
combinations. The cost of an acquisition is measured at the fair value of the assets
\n
transferred, equity instruments issued and liabilities incurred or assumed at the date of
\n
exchange. Costs directly attributable to the acquisition are charged to profit or loss as
\n
incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a
\n
business combination are measured initially at their fair values at the acquisition date,
\n
irrespective of any non-controlling interest. The excess of the cost of acquisition over
\n
the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as
\n

\n\n

\n\n

\n\n
goodwill. If the cost of acquisition is less than the fair value of the net assets for the
\n
subsidiary acquired, the difference is recognized directly in profit or loss.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag320": { "value": "\n
(b) Business combinations
\n
The Group applies the acquisition method of accounting when accounting for business
\n
combinations. The cost of an acquisition is measured at the fair value of the assets
\n
transferred, equity instruments issued and liabilities incurred or assumed at the date of
\n
exchange. Costs directly attributable to the acquisition are charged to profit or loss as
\n
incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a
\n
business combination are measured initially at their fair values at the acquisition date,
\n
irrespective of any non-controlling interest. The excess of the cost of acquisition over
\n
the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as
\n

\n\n
goodwill. If the cost of acquisition is less than the fair value of the net assets for the
\n
subsidiary acquired, the difference is recognized directly in profit or loss.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag306": { "value": "\n

\n\n
(c) Investment in Joint ventures
\n
The Group has contractual arrangements with other parties which represent joint
\n
ventures. In this case, the arrangements take the form of agreements to share control
\n
over economic activities with Costa Rican assets. Strategic financial and operating
\n
decisions relating to these assets require the unanimous consent of both parties.
\n
Investments in joint ventures are accounted for using the equity method.
\n
Any goodwill or fair value adjustment attributable to the Group\u2019s share in the joint
\n
venture is not recognized separately and is included in the amount recognized as
\n
investment.
\n
The carrying amount of the investment in joint ventures is increased or decreased to
\n
recognize the Group\u2019s share of the profit or loss and other comprehensive income of
\n
the associate and joint venture, adjusted where necessary to ensure consistency with
\n
the accounting policies of the Group.
\n
Unrealized gains and losses on transactions between the Group and its joint ventures
\n
are eliminated to the extent of the Group\u2019s interest in those entities. Where unrealized
\n
losses are eliminated, the underlying asset is also tested for impairment.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag325": { "value": "\n
(c) Investment in Joint ventures
\n
The Group has contractual arrangements with other parties which represent joint
\n
ventures. In this case, the arrangements take the form of agreements to share control
\n
over economic activities with Costa Rican assets. Strategic financial and operating
\n
decisions relating to these assets require the unanimous consent of both parties.
\n
Investments in joint ventures are accounted for using the equity method.
\n
Any goodwill or fair value adjustment attributable to the Group\u2019s share in the joint
\n
venture is not recognized separately and is included in the amount recognized as
\n
investment.
\n
The carrying amount of the investment in joint ventures is increased or decreased to
\n
recognize the Group\u2019s share of the profit or loss and other comprehensive income of
\n
the associate and joint venture, adjusted where necessary to ensure consistency with
\n
the accounting policies of the Group.
\n
Unrealized gains and losses on transactions between the Group and its joint ventures
\n
are eliminated to the extent of the Group\u2019s interest in those entities. Where unrealized
\n
losses are eliminated, the underlying asset is also tested for impairment.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag301": { "value": "\n

\n

\n
f. Intangible assets
\n\n
(a) Goodwill
\n
Goodwill represents the excess of the fair value of consideration transferred in a
\n
business combination over the fair value of the Group\u2019s share of the net identifiable
\n
assets, liabilities and contingent liabilities at the date of the business combinations and
\n
is not amortized. Goodwill is tested annually for impairment and carried at cost less
\n
accumulated impairment losses.
\n
Gains and losses on the disposal of an entity include the carrying amount of goodwill
\n
relating to the entity sold.
\n

\n\n\n
(b) Software and software licenses
\n
The Group includes acquired and internally developed software used in operations or
\n
administration as intangible assets. They are accounted for using the cost model
\n
whereby capitalized costs are amortized on a straight-line basis over their estimated
\n
useful life. Residual values and useful lives are reviewed at each reporting date. In
\n
addition, they are subject to impairment testing as described in Note 10. The following
\n
useful lives are applied:
\n
Software 2 \u2013 5 years
\n

\n\n

\n\n

\n\n
Amortization has been included within depreciation, amortization and impairment of
\n
non-financial assets. Acquired computer software licenses are capitalized on the basis
\n
of the costs incurred to acquire and install the specific software.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag294": { "value": "\n
(a) Goodwill
\n
Goodwill represents the excess of the fair value of consideration transferred in a
\n
business combination over the fair value of the Group\u2019s share of the net identifiable
\n
assets, liabilities and contingent liabilities at the date of the business combinations and
\n
is not amortized. Goodwill is tested annually for impairment and carried at cost less
\n
accumulated impairment losses.
\n
Gains and losses on the disposal of an entity include the carrying amount of goodwill
\n
relating to the entity sold.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag312": { "value": "\n
(b) Software and software licenses
\n
The Group includes acquired and internally developed software used in operations or
\n
administration as intangible assets. They are accounted for using the cost model
\n
whereby capitalized costs are amortized on a straight-line basis over their estimated
\n
useful life. Residual values and useful lives are reviewed at each reporting date. In
\n
addition, they are subject to impairment testing as described in Note 10. The following
\n
useful lives are applied:
\n
Software 2 \u2013 5 years
\n

\n\n
Amortization has been included within depreciation, amortization and impairment of
\n
non-financial assets. Acquired computer software licenses are capitalized on the basis
\n
of the costs incurred to acquire and install the specific software.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag327": { "value": "\n
g. Leases
\n
The Group as a lessee
\n
For any new contracts entered into, the Group considers whether a contract is, or contains
\n
a lease. A lease is defined as \u201ca contract, or part of a contract, that conveys the right to use
\n
an asset (the underlying asset) for a period of time in exchange for consideration\u201d. To apply
\n
this definition, the Group assesses whether the contract meets three key evaluations which
\n
are whether or not:
\n
\u2022 the contract contains an identified asset, which is either explicitly identified in the
\n
contract or implicitly specified by being identified at the time the asset is made
\n
available to the Group;
\n
\u2022 the Group has the right to obtain substantially all of the economic benefits from use of
\n
the identified asset throughout the period of use, considering its rights within the
\n
defined scope of the contract; and
\n
\u2022 the Group has the right to direct the use of the identified asset throughout the period of
\n
use. The Group assess whether it has the right to direct \u201chow and for what purpose\u201d
\n
the asset is used throughout the period of use.
\n
Measurement and recognition of leases as a lessee
\n
At lease commencement date, the Group recognizes a right-of-use asset and a lease liability
\n
on the balance sheet. The right-of-use asset is measured at cost, which is made up of the
\n
initial measurement of the lease liability, any initial direct costs incurred by the Group, an
\n
estimate of any costs to dismantle and remove the asset at the end of the lease, and any
\n
lease payments made in advance of the lease commencement date (net of any incentives
\n
received).
\n
The Group depreciates the right-of-use assets on a straight-line basis from the lease
\n
commencement date to the earlier of the end of the useful life of the right-of-use asset or
\n
the end of the lease term.
\n
The Group also assesses the right-of-use asset for impairment when such indicators exist.
\n
At the commencement date, the Group measures the lease liability at the present value of
\n
the lease payments unpaid at that date, discounted using the interest rate implicit in the
\n
lease if that rate is readily available or the Group\u2019s incremental borrowing rate.
\n
Lease payments included in the measurement of the lease liability are made up of fixed
\n
payments (including in substance fixed), variable payments based on an index or rate,
\n
amounts expected to be payable under a residual value guarantee and payments arising
\n
from options reasonably certain to be exercised.
\n

\n\n
Subsequent to initial measurement, the liability will be reduced for payments made and
\n
increased for interest. Interest is charged on the lease liability at an even rate on the
\n
carrying amount of that liability (see above). It is re-measured to reflect any reassessment
\n
or modification, or if there are changes in lease liability.
\n
When the lease liability is re-measured, the corresponding adjustment is reflected in the
\n
right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
\n
The Group has elected to account for short-term leases and leases of low-value assets using
\n
the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the
\n
payments in relation to these are recognized as an expense in profit or loss on a straight-
\n
line basis over the lease term. On the statement of financial position, right-of-use assets
\n
have been included in property, plant and equipment (except those meeting the definition
\n
of investment property) and lease liabilities have been included in Obligations underleases
\n
and hire purchase contracts.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag324": { "value": "\n

\n
h. Provisions
\n\n
(a) Employee benefits
\n
The Group recognizes a liability and an expense for bonuses and profit-sharing based
\n
on a formula that takes into consideration the Group\u2019s profits. The Group recognizes a
\n
provision where it is contractually obliged to pay the benefits, and/or where there is a
\n
past practice that has created a constructive obligation.
\n
Defined Benefit Obligation (DBO)
\n
Management\u2019s estimate of the DBO is based on a number of critical underlying
\n
assumptions such as standard rates of inflation, mortality, discount rate and
\n
anticipation of future salary increase. Variation in these assumptions may significantly
\n
impact the DBO amount and the annual defined benefit expenses. The liability
\n
recognized in the statement of financial position for DBO\u2019s is the present value of the
\n
DBO at the report date.
\n
Management estimates the DBO annually using simplifications of the projected unit
\n
credit method as follow: (i) ignore estimated future salary increases, (ii) ignore future
\n
service of current employees and (iii) ignore possible in-service mortality of current
\n
employees between the reporting date and the date employees are expected to begin
\n
receiving post-employment benefits. Discount factors are determined close to each
\n
year-end by reference to high quality corporate bonds that are denominated in the
\n
currency in which the benefits will be paid and that have terms to maturity
\n
approximating the terms of the related liability.
\n
Service cost on the Group\u2019s defined benefit plan is included in employee benefit
\n
expense. Net interest expense on the net defined benefit liability is included in finance
\n
cost. Gains and losses resulting from re-measurements of the defined benefit liability
\n
are included in other comprehensive income and are not reclassified to profit or loss in
\n
subsequent periods.
\n

\n\n

\n\n
(b) Other
\n
Provisions are recognized when the Group has a present legal or constructive
\n
obligation as a result of past events; it is more likely than not that an outflow of
\n
resources will be required to settle the obligation, and the amount can be reliably
\n
estimated. Provisions are measured at the best estimate of the expenditure required to
\n
settle the present obligation at the end of each reporting period.
\n
(c) Litigation provisions
\n
The Group provides against various litigation proceedings once judgments are
\n
rendered against it, as in Management\u2019s view this provides the best indication that
\n
payment has become probable. The award amount is used as the Directors\u2019 best
\n
estimate of the potential liability, even if the Group is appealing the judgment.
\n
Provisions are discounted to their present value, where the time value of money is material.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag314": { "value": "\n
(a) Employee benefits
\n
The Group recognizes a liability and an expense for bonuses and profit-sharing based
\n
on a formula that takes into consideration the Group\u2019s profits. The Group recognizes a
\n
provision where it is contractually obliged to pay the benefits, and/or where there is a
\n
past practice that has created a constructive obligation.
\n
Defined Benefit Obligation (DBO)
\n
Management\u2019s estimate of the DBO is based on a number of critical underlying
\n
assumptions such as standard rates of inflation, mortality, discount rate and
\n
anticipation of future salary increase. Variation in these assumptions may significantly
\n
impact the DBO amount and the annual defined benefit expenses. The liability
\n
recognized in the statement of financial position for DBO\u2019s is the present value of the
\n
DBO at the report date.
\n
Management estimates the DBO annually using simplifications of the projected unit
\n
credit method as follow: (i) ignore estimated future salary increases, (ii) ignore future
\n
service of current employees and (iii) ignore possible in-service mortality of current
\n
employees between the reporting date and the date employees are expected to begin
\n
receiving post-employment benefits. Discount factors are determined close to each
\n
year-end by reference to high quality corporate bonds that are denominated in the
\n
currency in which the benefits will be paid and that have terms to maturity
\n
approximating the terms of the related liability.
\n
Service cost on the Group\u2019s defined benefit plan is included in employee benefit
\n
expense. Net interest expense on the net defined benefit liability is included in finance
\n
cost. Gains and losses resulting from re-measurements of the defined benefit liability
\n
are included in other comprehensive income and are not reclassified to profit or loss in
\n
subsequent periods.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag318": { "value": "\n

\n

\n

\n
i. Financial instruments
\n
Non-derivative financial instruments consist of:
\n\n

\n
Financial assets
\n
Financial assets, which include cash and cash equivalents, trade receivables, unbilled
\n
revenues, finance lease receivables, employee and other advances, investments in equity
\n
and debt securities and eligible current and non-current assets.
\n\n
Financial assets are derecognized when substantial risks and rewards of ownership of the
\n
financial asset have been transferred. In cases where substantial risks and rewards of
\n
ownership of the financial assets are neither transferred nor retained, financial assets are
\n
derecognized only when the Company has not retained control over the financial asset.
\n

\n\n

\n\n\n
Financial liabilities
\n
Financial liabilities, which include long and short-term loans and borrowings, bank
\n
overdrafts, trade payables, eligible current and non-current liabilities.
\n

\n\n
Subsequent measurement of financial assets
\n
Non-derivative financial instruments are recognized initially at fair value. Subsequent to
\n
initial recognition, non-derivative financial instruments are measured as described below:
\n\n
Financial assets
\n
Financial assets are measured at initial recognition at fair value and are classified and
\n
subsequently measured at fair value through profit or loss, fair value through other
\n
comprehensive income or amortized cost. Financial assets are assigned to these different
\n
categories by Management on initial recognition, depending on the purpose for which they
\n

\n\n

\n\n

\n

\n\n

\n

\n

\n
were acquired. The designation of financial assets is re-evaluated at every reporting date at
\n
which a choice of classification or accounting treatment is available.
\n
All financial assets are recognized when the Group becomes a party to the contractual
\n
provisions of the instrument.
\n\n

\n

\n
Trade receivables, related party receivables and cash and cash equivalents are measured
\n
subsequent to initial recognition at amortized cost using the effective interest method, less
\n
provision for impairment. Any change in their value through impairment or reversal of
\n
impairment is recognized in profit or loss.
\n\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n\n

\n\n\n
A financial asset is derecognized only where the contractual rights to the cash flows from
\n
the asset expire or the financial asset is transferred, and that transfer qualifies for de-
\n
recognition. A financial asset is transferred if the contractual rights to receive the cash
\n
flows of the asset have been transferred or the Group retains the contractual rights to
\n
receive the cash flows of the asset but assumes a contractual obligation to pay the cash
\n
flows to one or more recipients. A financial asset that is transferred qualifies for de-
\n
recognition if the Group transfers substantially all the risks and rewards of ownership of
\n
the asset, or if the Group neither retains nor transfers substantially all the risks and rewards
\n
of ownership but does transfer control of that asset.
\n

\n\n

\n\n\n

\n

\n
Financial liabilities
\n
Financial liabilities are obligations to pay cash or other financial assets and are recognized
\n
when the Group becomes a party to the contractual provisions of the instrument. Financial
\n
liabilities categorized at fair value through profit or loss, are recorded initially at fair value.
\n
All other financial liabilities are recorded initially at fair value, net of direct issue costs.
\n\n
Financial liabilities categorized as at fair value through profit or loss, are measured at each
\n
reporting date at fair value, with changes in fair value being recognized in profit or loss.
\n

\n\n\n

\n\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n

\n\n

\n\n

\n\n
\n

\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n\n

\n\n\n
A financial liability is derecognized only when the obligation is extinguished, that is, when
\n
the obligation is discharged, cancelled or expires. Where an existing financial liability is
\n
replaced by another from the same lender on substantially different terms, or the terms of
\n
an existing liability are substantially modified, such an exchange or modification is treated
\n
as de-recognition of the original liability and the recognition of a new liability, such that
\n
the difference in the respective carrying amounts together with any costs or fees incurred
\n
are recognized in profit or loss.
\n
\n\n\n
Trade and other payables are initially recognized at fair value, and subsequently carried at
\n
amortized cost using the effective interest method. For these financial instruments, the
\n
carrying amounts approximate fair value due to the short-term maturity of these
\n
instruments.
\n

\n\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag293": { "value": "\n

\n
Financial assets
\n
Financial assets, which include cash and cash equivalents, trade receivables, unbilled
\n
revenues, finance lease receivables, employee and other advances, investments in equity
\n
and debt securities and eligible current and non-current assets.
\n\n
Financial assets are derecognized when substantial risks and rewards of ownership of the
\n
financial asset have been transferred. In cases where substantial risks and rewards of
\n
ownership of the financial assets are neither transferred nor retained, financial assets are
\n
derecognized only when the Company has not retained control over the financial asset.
\n

\n\n

\n\n
Financial assets
\n
Financial assets are measured at initial recognition at fair value and are classified and
\n
subsequently measured at fair value through profit or loss, fair value through other
\n
comprehensive income or amortized cost. Financial assets are assigned to these different
\n
categories by Management on initial recognition, depending on the purpose for which they
\n

\n\n

\n

\n

\n
were acquired. The designation of financial assets is re-evaluated at every reporting date at
\n
which a choice of classification or accounting treatment is available.
\n
All financial assets are recognized when the Group becomes a party to the contractual
\n
provisions of the instrument.
\n\n

\n

\n
Trade receivables, related party receivables and cash and cash equivalents are measured
\n
subsequent to initial recognition at amortized cost using the effective interest method, less
\n
provision for impairment. Any change in their value through impairment or reversal of
\n
impairment is recognized in profit or loss.
\n\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n\n

\n\n\n
A financial asset is derecognized only where the contractual rights to the cash flows from
\n
the asset expire or the financial asset is transferred, and that transfer qualifies for de-
\n
recognition. A financial asset is transferred if the contractual rights to receive the cash
\n
flows of the asset have been transferred or the Group retains the contractual rights to
\n
receive the cash flows of the asset but assumes a contractual obligation to pay the cash
\n
flows to one or more recipients. A financial asset that is transferred qualifies for de-
\n
recognition if the Group transfers substantially all the risks and rewards of ownership of
\n
the asset, or if the Group neither retains nor transfers substantially all the risks and rewards
\n
of ownership but does transfer control of that asset.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag311": { "value": "\n
Financial assets are derecognized when substantial risks and rewards of ownership of the
\n
financial asset have been transferred. In cases where substantial risks and rewards of
\n
ownership of the financial assets are neither transferred nor retained, financial assets are
\n
derecognized only when the Company has not retained control over the financial asset.
\n

\n\n
A financial asset is derecognized only where the contractual rights to the cash flows from
\n
the asset expire or the financial asset is transferred, and that transfer qualifies for de-
\n
recognition. A financial asset is transferred if the contractual rights to receive the cash
\n
flows of the asset have been transferred or the Group retains the contractual rights to
\n
receive the cash flows of the asset but assumes a contractual obligation to pay the cash
\n
flows to one or more recipients. A financial asset that is transferred qualifies for de-
\n
recognition if the Group transfers substantially all the risks and rewards of ownership of
\n
the asset, or if the Group neither retains nor transfers substantially all the risks and rewards
\n
of ownership but does transfer control of that asset.
\n

\n\n
A financial liability is derecognized only when the obligation is extinguished, that is, when
\n
the obligation is discharged, cancelled or expires. Where an existing financial liability is
\n
replaced by another from the same lender on substantially different terms, or the terms of
\n
an existing liability are substantially modified, such an exchange or modification is treated
\n
as de-recognition of the original liability and the recognition of a new liability, such that
\n
the difference in the respective carrying amounts together with any costs or fees incurred
\n
are recognized in profit or loss.
\n
\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag315": { "value": "\n
Financial liabilities
\n
Financial liabilities, which include long and short-term loans and borrowings, bank
\n
overdrafts, trade payables, eligible current and non-current liabilities.
\n

\n\n

\n

\n
Financial liabilities
\n
Financial liabilities are obligations to pay cash or other financial assets and are recognized
\n
when the Group becomes a party to the contractual provisions of the instrument. Financial
\n
liabilities categorized at fair value through profit or loss, are recorded initially at fair value.
\n
All other financial liabilities are recorded initially at fair value, net of direct issue costs.
\n\n
Financial liabilities categorized as at fair value through profit or loss, are measured at each
\n
reporting date at fair value, with changes in fair value being recognized in profit or loss.
\n

\n\n\n

\n\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n

\n\n
\n

\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n\n

\n\n\n
A financial liability is derecognized only when the obligation is extinguished, that is, when
\n
the obligation is discharged, cancelled or expires. Where an existing financial liability is
\n
replaced by another from the same lender on substantially different terms, or the terms of
\n
an existing liability are substantially modified, such an exchange or modification is treated
\n
as de-recognition of the original liability and the recognition of a new liability, such that
\n
the difference in the respective carrying amounts together with any costs or fees incurred
\n
are recognized in profit or loss.
\n
\n\n\n
Trade and other payables are initially recognized at fair value, and subsequently carried at
\n
amortized cost using the effective interest method. For these financial instruments, the
\n
carrying amounts approximate fair value due to the short-term maturity of these
\n
instruments.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag303": { "value": "\n

\n

\n
Trade receivables, related party receivables and cash and cash equivalents are measured
\n
subsequent to initial recognition at amortized cost using the effective interest method, less
\n
provision for impairment. Any change in their value through impairment or reversal of
\n
impairment is recognized in profit or loss.
\n\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag296": { "value": "\n
Provision against trade receivables is made when there is objective evidence that the Group
\n
will not be able to collect all amounts due to it in accordance with the original terms of
\n
those receivables. The Group applies the expected credit loss model for recognizing
\n
impairment loss on trade receivables. Expected credit loss is the difference between the
\n
contractual cash flows and the cash flows that the entity expects to receive, discounted
\n
using the effective interest rate. Loss allowances for trade receivables are measured at an
\n
amount equal to lifetime expected credit loss. Lifetime expected credit losses are the
\n
expected credit losses that result from all possible default events over the expected life of
\n
a financial instrument. Lifetime expected credit loss is computed based on a provision
\n
matrix which takes in to account risk profiling of customers and historical credit loss
\n
experience adjusted for forward looking information. Accounts receivable are presented
\n
net of an allowance for doubtful accounts. The carrying amount of the receivable is reduced
\n
through use of an allowance account.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag305": { "value": "\n
Financial liabilities categorized as at fair value through profit or loss, are measured at each
\n
reporting date at fair value, with changes in fair value being recognized in profit or loss.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag299": { "value": "\n

\n\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n\n

\n\n

\n\n
(c) Interest income \u2013 Revenue is recognized as the interest is accrued (taking into account
\n
the effective yield on the asset).
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag328": { "value": "\n

\n\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n

\n\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag300": { "value": "\n
All other financial liabilities are recorded at amortized cost using the effective interest
\n
method, with interest-related charges recognized as an expense in finance cost in the
\n
statement of comprehensive income. Finance charges, including premiums payable on
\n
settlement or redemption and direct issue costs, are charged to profit or loss on an accrual
\n

\n\n
basis using the effective interest method and are added to the carrying amount of the
\n
instrument to the extent that they are not settled in the period in which they arise.
\n

\n\n
(c) Interest income \u2013 Revenue is recognized as the interest is accrued (taking into account
\n
the effective yield on the asset).
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag292": { "value": "\n
Trade and other payables are initially recognized at fair value, and subsequently carried at
\n
amortized cost using the effective interest method. For these financial instruments, the
\n
carrying amounts approximate fair value due to the short-term maturity of these
\n
instruments.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag317": { "value": "\n
j. Inventories
\n
Inventories are valued at the lower of cost and net realizable value. Cost of inventory is
\n
determined on a \u2018first-in-first-out\u2019 basis. Inventory consists of food, beverages and
\n
supplies.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag313": { "value": "\n

\n
k. Cash and cash equivalents
\n
Cash and cash equivalents include cash in hand, deposits held at call with banks with
\n
maturities of 3 months or less from inception, other short term highly liquid investments
\n
that are readily convertible into known amounts of cash and which are subject to an
\n
insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown
\n
within borrowings in current liabilities on the statement of financial position.
\n\n
Restricted cash includes all cash balances that are required to be maintained under
\n
regulatory requirements. Casino industry regulations vary by country but all require our
\n
casino operations to maintain specified minimum levels of cash to support chips in play,
\n
slot hoppers, and reserves.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag316": { "value": "\n
Restricted cash includes all cash balances that are required to be maintained under
\n
regulatory requirements. Casino industry regulations vary by country but all require our
\n
casino operations to maintain specified minimum levels of cash to support chips in play,
\n
slot hoppers, and reserves.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag302": { "value": "\n

\n
l. Borrowings and borrowing costs
\n
Borrowings are classified as current liabilities unless the Group has an unconditional right
\n
to defer settlement of the liability for at least 12 months after the period end date.
\n\n
Borrowing costs directly attributable to the acquisition, construction or production of a
\n
qualifying asset, or assets that take a substantial period of time to prepare for their intended
\n
use or sale are added to the cost of those assets, until such time as the assets are substantially
\n
ready for their intended use or sale.
\n
Investment income earned on the temporary investment of specific borrowings pending
\n
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
\n
capitalization.
\n

\n\n

\n\n

\n\n
All other borrowing costs are recognized in profit or loss in the period in which they are
\n
incurred.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag298": { "value": "\n
Borrowing costs directly attributable to the acquisition, construction or production of a
\n
qualifying asset, or assets that take a substantial period of time to prepare for their intended
\n
use or sale are added to the cost of those assets, until such time as the assets are substantially
\n
ready for their intended use or sale.
\n
Investment income earned on the temporary investment of specific borrowings pending
\n
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
\n
capitalization.
\n

\n\n
All other borrowing costs are recognized in profit or loss in the period in which they are
\n
incurred.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag297": { "value": "\n

\n
m. Share capital
\n
Common shares are classified as equity.
\n\n
Where the Group purchases the Group\u2019s equity share capital (treasury shares), the
\n
consideration paid, including any directly attributable incremental costs (net of income
\n
taxes) is deducted from equity attributable to the Group\u2019s equity holders until the shares
\n
are cancelled or reissued. Where such shares are subsequently sold or reissued, any
\n
consideration received, net of any directly attributable incremental transaction costs and
\n
the related income tax effects are included in equity attributable to the Group\u2019s equity
\n
holders.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag304": { "value": "\n
Where the Group purchases the Group\u2019s equity share capital (treasury shares), the
\n
consideration paid, including any directly attributable incremental costs (net of income
\n
taxes) is deducted from equity attributable to the Group\u2019s equity holders until the shares
\n
are cancelled or reissued. Where such shares are subsequently sold or reissued, any
\n
consideration received, net of any directly attributable incremental transaction costs and
\n
the related income tax effects are included in equity attributable to the Group\u2019s equity
\n
holders.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag309": { "value": "\n
n. Share-based payments
\n
Where share options are awarded to employees, the fair value of the options at the date of
\n
grant is charged to profit or loss over the vesting period, with the corresponding credit to
\n
the share option reserve. Non-market vesting conditions are taken into account by adjusting
\n
the number of equity instruments expected to vest at each Balance Sheet date so that,
\n
ultimately, the cumulative amount recognized over the vesting period is based on the
\n
number of options that eventually vest.
\n
Market vesting conditions are factored into the fair value of the options granted. As long
\n
as all other vesting conditions are satisfied, a change is made irrespective of whether the
\n
market vesting conditions are satisfied. The cumulative expense is not adjusted for failure
\n
to achieve a market vesting condition. Where the terms of the options are modified before
\n
they vest, the increase in the fair value of the options, measured immediately before and
\n
after the modification, is also charged over the remaining vesting period.
\n
All share-based remuneration is ultimately recognized as an expense in profit or loss with
\n
a corresponding credit to retained earnings. If vesting periods or other vesting conditions
\n
apply, the expense is allocated over the vesting period, based on the best available estimate
\n
of the number of share options expected to vest. Upon exercise of share options, the
\n
proceeds received net of any directly attributable transaction costs up are recognized as
\n
share capital.
\n
Where equity instruments are granted to persons other than employees, the Statement of
\n
Comprehensive Income is charged with the fair value of goods and services received. If
\n
fair value cannot be reliably measured the fair value of the goods or services received, the
\n
value of the services are recognized, and the corresponding increase in equity, is recognized
\n
indirectly, by reference to the fair value of the equity instruments granted.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag319": { "value": "\n
o. Net gaming wins and revenue recognition
\n
Revenue is recognized to the extent that it is probable that the economic benefits will flow
\n
to the Group, the revenue can be reliably measured, the risks and rewards of ownership
\n

\n\n

\n
have been transferred to the buyer, the Group no longer has control over the goods, and the
\n
costs incurred in respect of the transaction can be reliably measured. Revenue is
\n
recognized on specific items as follows:
\n
(a) Net gaming wins \u2013 Casino revenues represent the net wins/(losses) from gaming
\n
activities, which is, for slot machines, the difference between coins and currencies
\n
deposited into the machines and the payments to customers and, for other (table and
\n
sports book) games, the difference between gaming wins and losses. Net gaming wins
\n
are recognized when they occur.
\n
(b) Food, beverage and hospitality sales \u2013 Revenue is recognized at the point of sale or
\n
upon the actual rendering of service.
\n\n

\n\n
(c) Interest income \u2013 Revenue is recognized as the interest is accrued (taking into account
\n
the effective yield on the asset).
\n

\n\n

\n\n
Costs and expenses are recognized in profit or loss upon utilization of the service or at the
\n
date they are incurred.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag295": { "value": "\n
p. Earnings per share
\n
Basic earnings per share is calculated using the weighted-average number of shares
\n
outstanding during the period.
\n
The Group uses the treasury stock method to compute the dilutive effect of options,
\n
warrants and similar instruments. Under this method, the dilutive effect on earnings per
\n
share is recognized on the use of the proceeds that could be obtained upon exercise of
\n
options, warrants and similar instruments. It assumes that the proceeds would be used to
\n
purchase common shares at the average market price during the period.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag307": { "value": "\n
q. Project development costs
\n
Project development costs incurred in an effort to identify and develop new gaming
\n
locations are expensed as incurred.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag310": { "value": "\n

\n\n
r. Profit or loss from discontinued operations
\n
A discontinued operation is a component of the entity that either has been disposed of, or
\n
is classified as held for sale, and:
\n
\u2022 represents a separate major line of business or geographical area of operations;
\n
\u2022 is part of a single coordinated plan to dispose of a separate major line of business or
\n
geographical area of operations; or
\n
\u2022 is a subsidiary acquired exclusively with a view to resell.
\n
Profit or loss from discontinued operations, including prior year components of profit or
\n
loss, are presented in a single amount in the statement of comprehensive income.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag291": { "value": "\n
r. Profit or loss from discontinued operations
\n
A discontinued operation is a component of the entity that either has been disposed of, or
\n
is classified as held for sale, and:
\n
\u2022 represents a separate major line of business or geographical area of operations;
\n
\u2022 is part of a single coordinated plan to dispose of a separate major line of business or
\n
geographical area of operations; or
\n
\u2022 is a subsidiary acquired exclusively with a view to resell.
\n
Profit or loss from discontinued operations, including prior year components of profit or
\n
loss, are presented in a single amount in the statement of comprehensive income.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag290": { "value": "\n
s. Fair value measurement
\n
Fair value is defined as the price that would be received to sell an asset or paid to transfer
\n
a liability in an orderly transaction between market participants at the measurement date.
\n
Management uses valuation techniques to determine the fair value of financial instruments
\n
(where active market quotes are not available) and non-financial assets. This involves
\n
developing estimates and assumptions consistent with how market participants would price
\n
the instrument. Management bases its assumptions on observable data as far as possible
\n
but this is not always available. In that case Management uses the best information
\n
available.
\n
Estimated fair values may vary from the actual prices that would be achieved in an arm\u2019s
\n
length transaction at the reporting date.
\n

\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag323": { "value": "\n

\n
4. SEGMENTAL INFORMATION
\n
In identifying its operating segments, Management generally follows the Group's geographic
\n
country lines. These operating segments are monitored by the Group\u2019s chief operating decision
\n
makers and strategic decisions are made on the basis of adjusted operating results.
\n
The activities undertaken by each operating segment include the operation of casinos and related
\n
food, beverage and hospitality activities.
\n
Each of these operating segments is managed separately by country managers as each country has
\n
a different regulatory environment and customs, as well as, different marketing approaches. All
\n
inter-segment transfers are carried out at arm's length prices when they occur.
\n\n
\n\n
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those
\n
used in its financial statements, except that expenses relating to share-based payments are not
\n
included in arriving at the operating profit of the operating segments and results for the Group\u2019s
\n
equity accounted joint venture is shown proportionally. Corporate assets that are not directly
\n
attributable to the business activities of any operating segment are not allocated to a segment.
\n
There have been no changes from prior periods in the measurement methods used to determine
\n
reported segment profit or loss. No asymmetrical allocations have been applied between segments.
\n
\n\n

\n\n

\n\n
Operating segments
\n
Costa Rica Nicaragua Peru
\n
2022 2021 2022 2021 2022 2021
\n
Continuing operations
\n
Total revenue
\n
- - 13,461 12,222 946 740
\n
Operating profit / (loss) before: project development, depreciation,
\n
amortization and other gains and losses (Adjusted EBITDA)
\n
- - 4,261 4,237 426 433
\n
Project development
\n
- - - (46) - -
\n
Depreciation and amortization
\n
- - (1,075) (1,572) (117) (48)
\n
Other gains and (losses)
\n
- - (50) (101) (1) (50)
\n
Segments result
\n
- - 3,136 2,518 308 335
\n
Foreign exchange gain / (loss)
\n
- - (17) (9) 40 (290)
\n
Share of profit / (loss) from equity accounted investments
\n
93 (134) - - - -
\n
Finance costs
\n
- - (499) (557) (234) (290)
\n
Finance income
\n
- - 13 13 - -
\n
Other interest
\n
- - (29) (34) (52) (1)
\n
Management fees - intercompany charges
\n
- - (1,057) (757) - -
\n
Profit / (loss) before taxation
\n
93 (134) 1,547 1,174 62 (246)
\n
Taxation
\n
- - (457) (370) (982) 374
\n
Profit / (loss) for the year-continuing operations
\n
93 (134) 1,090 804 (920) 128
\n
Profit / (loss) for the year-discontinued operations
\n
- - - - 4,865 (566)
\n
Profit / (loss) for the year
\n
93 (134) 1,090 804 3,945 (438)
\n
Currency translation reserve and remeasurement of employee benefits
\n
- - - - - -
\n
Total comprehensive income for the year
\n
93 (134) 1,090 804 3,945 (438)
\n
Non-controlling interest
\n
- - (481) (359) - -
\n
Total comprehensive income attributable to owners of the parent
\n
93 (134) 609 445 3,945 (438)
\n
Assets and liabilities
\n
Segment intangible assets:
\n
Intangible assets with indefinite useful lives
\n
- - 1,387 1,387 - -
\n
Intangible assets with finite useful lives
\n
- - - - 5 4
\n
Segment as sets:
\n
Property, plant and equipment
\n
- - 5,557 6,120 2,341 2,365
\n
Other segment assets (including cas h)
\n
(1,043) - 3,057 2,976 18,792 18,336
\n
Total segment assets
\n
(1,043) - 10,001 10,483 21,138 20,705
\n
Assets classified as held for sale
\n
4,251 3,965 - - 674 2,475
\n
Total assets
\n
3,208 3,965 10,001 10,483 21,812 23,180
\n
Total segment liabilities
\n
- - 6,190 6,437 2,420 6,976
\n
Liabilities associated with assets held for sale
\n
- - - - - -
\n
Total liabilities
\n
- - 6,190 6,437 2,420 6,976
\n
Net assets
\n
3,208 3,965 3,811 4,046 19,392 16,204
\n
Non-controlling interest
\n
- - 1,747 2,228 - -
\n
Other segment items
\n
Capital expenditure
\n
- - 498 1,250 672 48
\n
Depreciation and amortization
\n
- - 1,075 1,572 117 48
\n

\n\n
Total Operation
\n
Corporate and non-allocated
\n
(1)
\n
Costa Rica IFRS 11
\n
Adjustments (2) Total
\n
2022 2021 2022 2021 2022 2021 2022 2021
\n
Continuing operations
\n
Total revenue
\n
14,407 12,962 120 180 - - 14,527 13,142
\n
Operating profit / (loss) before: project development, depreciation,
\n
amortization and other gains and losses (Adjusted EBITDA)
\n
4,687 4,670 (1,057) (868) - - 3,630 3,802
\n
Project development
\n
- (46) - - - - (46)
\n
Depreciation and amortization
\n
(1,192) (1,620) - - - - (1,192) (1,620)
\n
Other gains and (losses )
\n
(51) (151) 1,534 842 - - 1,483 691
\n
Segments result
\n
3,444 2,853 477 (26) - - 3,921 2,827
\n
Foreign exchange gain / (loss)
\n
23 (299) 138 67 - - 161 (232)
\n
Share of profit / (loss) from equity accounted investments
\n
93 (134) - - - - 93 (134)
\n
Finance costs
\n
(733) (847) (836) (1,149) - - (1,569) (1,996)
\n
Finance income
\n
13 13 27 12 - - 40 25
\n
Other interest
\n
(81) (35) - - - - (81) (35)
\n
Management fees - intercompany charges
\n
(1,057) (757) 1,050 750 - - (7) (7)
\n
Profit / (loss) before taxation
\n
1,702 794 856 (346) - - 2,558 448
\n
Taxation
\n
(1,439) 4 (192) (163) - - (1,631) (159)
\n
Profit / (loss) for the year-continuing operations
\n
263 798 664 (509) - - 927 289
\n
Profit / (loss) for the year-discontinued operations
\n
4,865 (566) - - - - 4,865 (566)
\n
Profit / (loss) for the year
\n
5,128 232 664 (509) - - 5,792 (277)
\n
Currency translation reserve and remeasurement of employee benefits
\n
- - 74 (401) - - 74 (401)
\n
Total comprehensive income for the year
\n
5,128 232 738 (910) - - 5,866 (678)
\n
Non-controlling interest
\n
(481) (359) - - - - (481) (359)
\n
Total comprehensive income attributable to owners of the parent
\n
4,647 (127) 738 (910) - - 5,385 (1,037)
\n
Ass ets and liabilities
\n
Segment intangible assets:
\n
Intangible assets with indefinite useful lives
\n
1,387 1,387 - - - - 1,387 1,387
\n
Intangible assets with finite useful lives
\n
5 4 - - - - 5 4
\n
Segment assets :
\n
Property, plant and equipment
\n
7,898 8,485 - - - - 7,898 8,485
\n
Other segment assets (including cash)
\n
20,806 21,312 (6,579) (8,855) 784 (498) 15,011 11,959
\n
Total segment assets
\n
30,096 31,188 (6,579) (8,855) 784 (498) 24,301 21,835
\n
Assets classified as held for sale
\n
4,925 6,440 - - (4,251) (3,965) 674 2,475
\n
Total assets
\n
35,021 37,628 (6,579) (8,855) (3,467) (4,463) 24,975 24,310
\n
Total segment liabilities
\n
8,610 13,413 15,428 14,864 - - 24,038 28,277
\n
Liabilities associated with assets held for sale
\n
- - - - - - - -
\n
Total liabilities
\n
8,610 13,413 15,428 14,864 - - 24,038 28,277
\n
Net assets / (liabilities)
\n
26,411 24,215 (22,007) (23,719) (3,467) (4,463) 937 (3,967)
\n
Non-controlling interest
\n
1,747 2,228 - - - - 1,747 2,228
\n
Other segment items
\n
Capital expenditure
\n
1,170 1,298 - - - - 1,170 1,298
\n
Depreciation and amortization
\n
1,192 1,620 - - - - 1,192 1,620
\n
\n
(1)
\n
Includes non-operating entities
\n
(2)
\n
Includes adjustment to Costa Rica segment results for equity accounting under IFRS 11.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag308": { "value": "\n
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those
\n
used in its financial statements, except that expenses relating to share-based payments are not
\n
included in arriving at the operating profit of the operating segments and results for the Group\u2019s
\n
equity accounted joint venture is shown proportionally. Corporate assets that are not directly
\n
attributable to the business activities of any operating segment are not allocated to a segment.
\n
There have been no changes from prior periods in the measurement methods used to determine
\n
reported segment profit or loss. No asymmetrical allocations have been applied between segments.
\n
\n", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag208": { "value": "\n
\n
\n\n
\n\n
5. OTHER GAINS AND (LOSSES)
\n
\n
2022 2021
\n
Sun Nippon Company S.A.C. - Coin-in Settlement (a)
\n
1,643$ -$
\n
Tax provision Guatemala (b) (109) -
\n
Loss on disposal, write off of assets and liabilities (c) (40) (95)
\n
Restructuring costs (d) (11) (55)
\n
Reimburesment to Group on lender settlement - 866
\n
Other - (25)
\n
Total 1,483$ 691$
\n
\n
a. Sun Nippon Company S.A.C. - Coin-in Settlement
\n
During the year ended December 31, 2022, the group collected reimbursements related to an
\n
outstanding tax case that was settled with the tax authority in Peru. Additional details can be
\n
found in Note 23 - Commitments and Contingencies, a. Peru tax controversies.
\n
\n\n
b. Tax provision Guatemala
\n
During the year ended December 31, 2022 the group recorded a provision of $109,000 due to
\n
a tax judgement in Thunderbird de Guatemala for a case related to the 2009 tax period.
\n
c. Loss on disposal, write off of assets and liabilities
\n
During the year ended December 31, 2022, the Group recognised losses on the disposal of
\n
property, plant, and equipment of $37,000 and fair value loss on financial asset through profit
\n
and loss of $3,000.
\n
d. Restructuring costs
\n
During the year ended December 31, 2022, in an effort to restructure Peru overhead, the Group
\n
reduced it's Peru head count. The restructuring costs are made up of severance settlements to
\n
liquidate employees totaling $11,000
\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag211": { "value": "\n
\n\n
5. OTHER GAINS AND (LOSSES)
\n
\n
2022 2021
\n
Sun Nippon Company S.A.C. - Coin-in Settlement (a)
\n
1,643$ -$
\n
Tax provision Guatemala (b) (109) -
\n
Loss on disposal, write off of assets and liabilities (c) (40) (95)
\n
Restructuring costs (d) (11) (55)
\n
Reimburesment to Group on lender settlement - 866
\n
Other - (25)
\n
Total 1,483$ 691$
\n
\n
a. Sun Nippon Company S.A.C. - Coin-in Settlement
\n
During the year ended December 31, 2022, the group collected reimbursements related to an
\n
outstanding tax case that was settled with the tax authority in Peru. Additional details can be
\n
found in Note 23 - Commitments and Contingencies, a. Peru tax controversies.
\n
\n\n
b. Tax provision Guatemala
\n
During the year ended December 31, 2022 the group recorded a provision of $109,000 due to
\n
a tax judgement in Thunderbird de Guatemala for a case related to the 2009 tax period.
\n
c. Loss on disposal, write off of assets and liabilities
\n
During the year ended December 31, 2022, the Group recognised losses on the disposal of
\n
property, plant, and equipment of $37,000 and fair value loss on financial asset through profit
\n
and loss of $3,000.
\n
d. Restructuring costs
\n
During the year ended December 31, 2022, in an effort to restructure Peru overhead, the Group
\n
reduced it's Peru head count. The restructuring costs are made up of severance settlements to
\n
liquidate employees totaling $11,000
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag218": { "value": "\n
5. OTHER GAINS AND (LOSSES)
\n
\n
2022 2021
\n
Sun Nippon Company S.A.C. - Coin-in Settlement (a)
\n
1,643$ -$
\n
Tax provision Guatemala (b) (109) -
\n
Loss on disposal, write off of assets and liabilities (c) (40) (95)
\n
Restructuring costs (d) (11) (55)
\n
Reimburesment to Group on lender settlement - 866
\n
Other - (25)
\n
Total 1,483$ 691$
\n
\n
a. Sun Nippon Company S.A.C. - Coin-in Settlement
\n
During the year ended December 31, 2022, the group collected reimbursements related to an
\n
outstanding tax case that was settled with the tax authority in Peru. Additional details can be
\n
found in Note 23 - Commitments and Contingencies, a. Peru tax controversies.
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag220": { "value": "\n
6. COMPENSATION OF KEY PERSONNEL
\n
Key Management of the Group are the members of the Board of Directors and officers.
\n
The remuneration of key management personnel during the year was as follows:
\n
2022 2021
\n
Salaries and bonuses 669 588
\n
Short-term benefits 29 -
\n
Total 698$ 588$
\n
\n
The following table provides additional detail of remuneration to key management personnel
\n
during the year:
\n
Name
\n
Officer/Director Salary Bonus
\n
Short-term
\n
benefits
\n
Total
\n
compensation
\n
Salomon Guggenheim
\n
(1)
\n
Director-Officer 226$ -$ 4$ 230$
\n
Albert Atallah
\n
(2)
\n
Officer 180 - 10 190
\n
Peter Lesar
\n
(3)
\n
Director-Officer 215 - 15 230
\n
Stephan Fitch Director 24 - - 24
\n
Reto Stadelmann Director 24 - - 24
\n
Total 669$ -$ 29$ 698$
\n
(1)
\n
Aggregate other compensation includes discretionary expenses of $4,000.
\n
(2)
\n
Aggregate other compensation includes discretionary expenses of $10,000.
\n
(3)
\n
Aggregate other compensation includes discretionary expenses of $15,000.
\n
\n
\n
The remuneration of key personnel is determined by the compensation committee taking into
\n
account the performance of individuals and market trends.
\n

\n\n
Transaction with Officers and Directors included within borrowings
\n
Salomon Guggenheim, who previous to the middle of 2013 only held the roles of Director and
\n
advisor to the Group, is a director and not a beneficial owner in a company called India Ltd. The
\n
Group has been loaned various amounts by India Ltd. Please see Officer related party in the table
\n
below for amount due and interest paid to India Ltd. during 2022 and 2021.
\n

\n\n
2022 2021
\n
Amount due Interest paid Amount due Interest paid
\n
Country
\n
Officer related party Corporate 1,372 - 1,259 -
\n
Total 1,372$ -$ 1,259$ -$
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag217": { "value": "\n
\n\n
\n\n
\n\n
\n\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n\n
\n\n
\n\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag215": { "value": "\n
\n\n
\n\n
\n\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n\n
\n\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag206": { "value": "\n
\n\n
\n\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag219": { "value": "\n
\n\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag222": { "value": "\n
\n\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag216": { "value": "\n
7. FINANCING COSTS AND INCOME
\n
Finance cost and income includes all interest-related expenses and income, other than those arising
\n
from financial assets at fair value through profit or loss. The following amounts have been included
\n
in profit or loss for the reporting periods presented:
\n
2022 2021
\n
Finance cost
\n
Bank loans 267$ 335$
\n
Other loans 597 557
\n
Related party loans 113 104
\n
Related party payables 120 482
\n
Finance charges payable under finance leases and hire purchase contracts 453 510
\n
Amortization of borrowing costs 8 2
\n
Other finance charges 11 6
\n
Total finance costs (on a historical cost basis) 1,569 1,996
\n
Finance income
\n
Bank interest receivable 29 15
\n
Amortization of transaction discounts - -
\n
Related party interest receivable 11 10
\n
Third party interest receivable - -
\n
Total finance income (on a historical cost basis) 40$ 25$
\n
Other interest
\n
Other interest 81 35
\n
Total other interest 81$ 35$
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag207": { "value": "\n
\n\n
8. INCOME TAXES AND DEFERRED TAX LIABILITY
\n
a) Tax charged in profit or loss
\n
2022 2021
\n
Current Income Tax
\n
Foreign tax
\n
1,130$ 543$
\n
Total current income tax
\n
1,130 543
\n
Deferred Tax
\n
Origination and reversal of temporary differences
\n
501 (384)
\n
Total deferred tax
\n
501 (384)
\n
Tax charged in the statement of comprehensive income
\n
1,631$ 159$
\n
Taxes allocated to:
\n
Loss for the year
\n
1,631 159
\n
Totals
\n
1,631$ 159$
\n
\n\n

\n\n
\n

\n

\n

\n

\n\n
b) Reconciliation of the total tax charge
\n
The tax expense in the statement of comprehensive income for the year is higher than the
\n
standard rate of corporate tax in the British Virgin Islands of 0%. The differences are
\n
reconciled below:
\n
2022 2021
\n
Accounting profit / (loss) before income tax
\n
2,558$ 448$
\n
Effect of different tax rates on overseas earnings
\n
1,631 159
\n
Total tax expense reported in the statement of income
\n
1,631$ 159$
\n
Deferred income tax assets
\n
Non-capital loss carryforwards
\n
- 297
\n
Temporary differences on net assets
\n
589 776
\n
Total deferred tax
\n
589$ 1,073$
\n
Deferred income tax liabilities
\n
Other
\n
36 37
\n
Total deferred tax liabilities
\n
36$ 37$
\n
\n
At December 31, 2022, the Group has unrecognized United States income tax net operating losses
\n
of $18,622,000 (2021 - $19,055,000). These operating losses expire at various dates for up to 20
\n
years. The potential income tax benefits related to United States loss carry forwards have not been
\n
reflected in the accounts as the Group does not anticipate future United States net income. At
\n
December 31, 2022, the Group has unrecognized Peru income tax net operating losses of $1,114.
\n
The $447 tax benefit associated with the Peru loss carry forwards has not been recognized as it is
\n
probable that the subsidiaries that hold the losses will not have sufficient net income to make use
\n
of the tax benefits before, they expire in one to four years.
\n
The Group has recorded a deferred tax asset in the amount of $589,000 (2021 - $1,073,000), related
\n
to leases in the Group\u2019s Nicaragua Subsidiary and to provisions and book reserves in certain Peru
\n
subsidiaries.
\n
Statement of Financial Position
\n
2022
\n
Statement of Financial Position
\n
2021
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Balance at beginning of year
\n
1,073$ (37)$ 1,036$ 733$ (44)$ 689$
\n
Movement in profit or loss
\n
(501) - (501) 388 6 394
\n
Foreign exchange and other
\n
17 1 18 (48) 1 (47)
\n
Balance at end of year
\n
589$ (36)$ 553$ 1,073$ (37)$ 1,036$
\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag209": { "value": "\n
8. INCOME TAXES AND DEFERRED TAX LIABILITY
\n
a) Tax charged in profit or loss
\n
2022 2021
\n
Current Income Tax
\n
Foreign tax
\n
1,130$ 543$
\n
Total current income tax
\n
1,130 543
\n
Deferred Tax
\n
Origination and reversal of temporary differences
\n
501 (384)
\n
Total deferred tax
\n
501 (384)
\n
Tax charged in the statement of comprehensive income
\n
1,631$ 159$
\n
Taxes allocated to:
\n
Loss for the year
\n
1,631 159
\n
Totals
\n
1,631$ 159$
\n
\n\n
b) Reconciliation of the total tax charge
\n
The tax expense in the statement of comprehensive income for the year is higher than the
\n
standard rate of corporate tax in the British Virgin Islands of 0%. The differences are
\n
reconciled below:
\n
2022 2021
\n
Accounting profit / (loss) before income tax
\n
2,558$ 448$
\n
Effect of different tax rates on overseas earnings
\n
1,631 159
\n
Total tax expense reported in the statement of income
\n
1,631$ 159$
\n
Deferred income tax assets
\n
Non-capital loss carryforwards
\n
- 297
\n
Temporary differences on net assets
\n
589 776
\n
Total deferred tax
\n
589$ 1,073$
\n
Deferred income tax liabilities
\n
Other
\n
36 37
\n
Total deferred tax liabilities
\n
36$ 37$
\n
\n
At December 31, 2022, the Group has unrecognized United States income tax net operating losses
\n
of $18,622,000 (2021 - $19,055,000). These operating losses expire at various dates for up to 20
\n
years. The potential income tax benefits related to United States loss carry forwards have not been
\n
reflected in the accounts as the Group does not anticipate future United States net income. At
\n
December 31, 2022, the Group has unrecognized Peru income tax net operating losses of $1,114.
\n
The $447 tax benefit associated with the Peru loss carry forwards has not been recognized as it is
\n
probable that the subsidiaries that hold the losses will not have sufficient net income to make use
\n
of the tax benefits before, they expire in one to four years.
\n
The Group has recorded a deferred tax asset in the amount of $589,000 (2021 - $1,073,000), related
\n
to leases in the Group\u2019s Nicaragua Subsidiary and to provisions and book reserves in certain Peru
\n
subsidiaries.
\n
Statement of Financial Position
\n
2022
\n
Statement of Financial Position
\n
2021
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Deferred Tax
\n
Assets
\n
Deferred Tax
\n
Liabilities
\n
Deferred Tax
\n
Total
\n
Balance at beginning of year
\n
1,073$ (37)$ 1,036$ 733$ (44)$ 689$
\n
Movement in profit or loss
\n
(501) - (501) 388 6 394
\n
Foreign exchange and other
\n
17 1 18 (48) 1 (47)
\n
Balance at end of year
\n
589$ (36)$ 553$ 1,073$ (37)$ 1,036$
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag213": { "value": "\n
\n

\n

\n\n
\n\n
\n\n
\n\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
\n
Impairment review
\n
For the purposes of assessing potential impairment, the Group\u2019s assets are grouped and reviewed
\n
for impairment at the lowest cash generating unit (CGU) level, where cash flows are independent
\n
of one another. The review is focused on our ongoing operating segments located in Nicaragua,
\n
where GCU is deemed by operating location/venue.
\n
For the purpose of annual impairment testing, goodwill in Nicaragua was allocated to each
\n
individual CGU proportional to its percentage of country-wide revenue.
\n
2022
\n
Goodwill
\n
Other assets
\n
considered for
\n
impairment
\n
Total assets
\n
considered for
\n
impairment
\n
Nicaragua 1,387 5,603 6,990
\n
Total 1,387$ 5,603$ 6,990$
\n
\n
(1) Calculated as net asset of the CGU plus borrowings less cash and cash equivalents.
\n
\n\n
\n\n
\n\n

\n\n
\n\n
\n\n
\n\n
The recoverable amount of each CGU was determined based on value-in-use calculations. The
\n
following paragraphs describe the key assumptions on which Management has based its cash flow
\n
projections for the period covered by the most recent budgets/forecasts and a description of
\n
Management\u2019s approach to determining the value(s) assigned to each key assumption.
\n
Management\u2019s key assumptions to forecast cash flow include:
\n
1. Revenue and revenue growth / reduction: Revenue and revenue growth / reduction were both
\n
considered as key assumptions. Specifically, revenue for future years was forecasted by: a)
\n
Taking into account as a base line the revenue generated in each CGU in 2022; b) Increasing
\n
that base line revenue equal to an organic growth that is equal to the long-term GDP growth
\n
forecasted by independent analysts for Nicaragua; and c) Adjusting for management actions
\n
that have recently been made or are significantly advanced and considered non-speculative,
\n
which could generate a net growth of revenue or a net reduction of revenue resulting from the
\n
net impact of the identified non-speculative events.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Cost of goods sold and
\n
growth / reduction in cost of goods sold were both considered as key assumptions. Specifically,
\n
costs of goods sold for future years was forecasted by: a) Taking into account as a base line the
\n
cost of goods sold in each CGU in 2022; b) Increasing that base line cost of goods sold by the
\n
long-term rate of inflation rate forecasted by independent analysts for Nicaragua; and c)
\n
Adjusting for management actions that have recently been made or are significantly advanced
\n
and considered non-speculative, which could generate a net growth of cost of goods sold or a
\n
net reduction of cost of goods sold resulting from the net impact of the identified non-
\n
speculative events.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs and growth /
\n
reduction in operating costs were both considered as key assumptions. Specifically, operating
\n
costs for future years were forecasted by: a) Taking into account as a base line the operating
\n
cost of in each CGU in 2022; b) Increasing those base line operating costs by the long-term
\n
rate of inflation rate forecasted by independent analysts for Nicaragua; and c) Adjusting for
\n
management actions that have recently been made or are significantly advanced and considered
\n
non-speculative, which could generate a net growth of operating costs or a net reduction of
\n
operating costs sold resulting from the net impact of the identified non-speculative events.
\n
4. Depreciation and amortization: Depreciation and amortization are forecasted based on the
\n
known future schedule of depreciation and amortization as of December 31, 2022 for each
\n
CGU, and then adjusted based on the future depreciation of assets to be purchased in the future
\n
using maintenance capex. For the purpose of annual impairment testing, depreciation and
\n
amortization in Nicaragua were allocated to each individual CGU proportional to its percentage
\n
of country-wide revenue.
\n
5. Financing costs, net: Financing costs, net are forecasted based on the schedule of all known
\n
debt as of December 31, 2022 for each CGU. For the purpose of annual impairment testing,
\n
financing costs, net in Nicaragua were allocated to each individual CGU proportional to its
\n
percentage of country-wide revenue.
\n
6. Direct and indirect taxes: Direct and indirect taxes were forecasted based on the tax regime in
\n
place as of December 31, 2022.
\n
7. Maintenance Capex: Maintenance capex was forecasted for future years based on the
\n
percentage of revenue allocated to maintenance capex in 2022 for each CGU.
\n
\n\n
\n\n
\n\n

\n\n
\n\n
\n\n
\n\n
Discount rates
\n
The present value of the expected cash flows of each segment is determined by applying a suitable
\n
discount rate. The discount rate was derived based on the calculation of Weighted Average Cost of
\n
Capital (WACC) for the Group, adjusted to reflect market data for companies in the gaming
\n
industry. The discount rates reflect appropriate adjustments relating to market risk and specific risk
\n
factors of each segment (incorporating adjustments for geographic location and currency risk). The
\n
discount rate applied to Nicaragua was 18.69%.
\n
With regard to the assessment of value in use of each acquisition, there are possible changes in key
\n
assumptions that could cause the carrying value of the unit to exceed its recoverable amount. These
\n
are discussed below:
\n
1. Revenue and revenue growth / reduction: Gaming revenue can be impacted by a) Changes in
\n
drop levels, which may be affected by the number of customers, seasonality, effective
\n
marketing efforts, a change in technology, competition or regulatory changes; and b) Changes
\n
in Hold %, representing the probability of individual games, which change can happen through
\n
chance, changes in gaming regulation and changes in gaming technology. Hotel revenue can
\n
be impacted by competition and seasonality. Growth rates, which are based on estimated GDP
\n
growth may be affected by material shifts in disposable income available for entertainment and
\n
hospitality.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Costs of goods sold can be
\n
impacted by changes in the market price of different goods and services, our competitiveness
\n
and requirements to increase promotional allowances, and by payroll adjustments because of
\n
changes in labor market conditions and/or management efficiencies. Cost of goods growth
\n
rates, which are based on estimated inflation rates, may be affected by changes in market and/or
\n
economic conditions.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs can be impacted by
\n
changes in the market price of different goods and services, our competitiveness and
\n
requirements to increase marketing expense, and by payroll adjustments because of changes in
\n
labor market conditions and/or management efficiencies. Operating cost growth rates, which
\n
are based on estimated inflation rates, may be affected by changes in market and/or economic
\n
conditions.
\n
4. Depreciation and amortization: Depreciation and amortization may be affected by the addition
\n
or sale of depreciable property, plant and equipment, including capital expenditures for
\n
maintenance purposes.
\n
5. Financing costs, net: Financial Costs, net may be affected by the addition or pre-payment of
\n
debt from the current debt schedule and by changes in the financial interest charged by banks.
\n
6. Direct and indirect taxes: Direct and indirect taxes may be affected by changes in tax
\n
legislation, regulation and judicial rulings.
\n
7. Maintenance Capex: Maintenance capex may be affected by the non-planned deterioration of
\n
assets, whose replacement will deviate from the investment time and investment amount
\n
considered in our estimations.
\n
\n\n
\n\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag221": { "value": "\n
\n\n
\n\n
\n\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
\n
Impairment review
\n
For the purposes of assessing potential impairment, the Group\u2019s assets are grouped and reviewed
\n
for impairment at the lowest cash generating unit (CGU) level, where cash flows are independent
\n
of one another. The review is focused on our ongoing operating segments located in Nicaragua,
\n
where GCU is deemed by operating location/venue.
\n
For the purpose of annual impairment testing, goodwill in Nicaragua was allocated to each
\n
individual CGU proportional to its percentage of country-wide revenue.
\n
2022
\n
Goodwill
\n
Other assets
\n
considered for
\n
impairment
\n
Total assets
\n
considered for
\n
impairment
\n
Nicaragua 1,387 5,603 6,990
\n
Total 1,387$ 5,603$ 6,990$
\n
\n
(1) Calculated as net asset of the CGU plus borrowings less cash and cash equivalents.
\n
\n\n
\n\n
\n\n
\n\n
\n\n
The recoverable amount of each CGU was determined based on value-in-use calculations. The
\n
following paragraphs describe the key assumptions on which Management has based its cash flow
\n
projections for the period covered by the most recent budgets/forecasts and a description of
\n
Management\u2019s approach to determining the value(s) assigned to each key assumption.
\n
Management\u2019s key assumptions to forecast cash flow include:
\n
1. Revenue and revenue growth / reduction: Revenue and revenue growth / reduction were both
\n
considered as key assumptions. Specifically, revenue for future years was forecasted by: a)
\n
Taking into account as a base line the revenue generated in each CGU in 2022; b) Increasing
\n
that base line revenue equal to an organic growth that is equal to the long-term GDP growth
\n
forecasted by independent analysts for Nicaragua; and c) Adjusting for management actions
\n
that have recently been made or are significantly advanced and considered non-speculative,
\n
which could generate a net growth of revenue or a net reduction of revenue resulting from the
\n
net impact of the identified non-speculative events.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Cost of goods sold and
\n
growth / reduction in cost of goods sold were both considered as key assumptions. Specifically,
\n
costs of goods sold for future years was forecasted by: a) Taking into account as a base line the
\n
cost of goods sold in each CGU in 2022; b) Increasing that base line cost of goods sold by the
\n
long-term rate of inflation rate forecasted by independent analysts for Nicaragua; and c)
\n
Adjusting for management actions that have recently been made or are significantly advanced
\n
and considered non-speculative, which could generate a net growth of cost of goods sold or a
\n
net reduction of cost of goods sold resulting from the net impact of the identified non-
\n
speculative events.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs and growth /
\n
reduction in operating costs were both considered as key assumptions. Specifically, operating
\n
costs for future years were forecasted by: a) Taking into account as a base line the operating
\n
cost of in each CGU in 2022; b) Increasing those base line operating costs by the long-term
\n
rate of inflation rate forecasted by independent analysts for Nicaragua; and c) Adjusting for
\n
management actions that have recently been made or are significantly advanced and considered
\n
non-speculative, which could generate a net growth of operating costs or a net reduction of
\n
operating costs sold resulting from the net impact of the identified non-speculative events.
\n
4. Depreciation and amortization: Depreciation and amortization are forecasted based on the
\n
known future schedule of depreciation and amortization as of December 31, 2022 for each
\n
CGU, and then adjusted based on the future depreciation of assets to be purchased in the future
\n
using maintenance capex. For the purpose of annual impairment testing, depreciation and
\n
amortization in Nicaragua were allocated to each individual CGU proportional to its percentage
\n
of country-wide revenue.
\n
5. Financing costs, net: Financing costs, net are forecasted based on the schedule of all known
\n
debt as of December 31, 2022 for each CGU. For the purpose of annual impairment testing,
\n
financing costs, net in Nicaragua were allocated to each individual CGU proportional to its
\n
percentage of country-wide revenue.
\n
6. Direct and indirect taxes: Direct and indirect taxes were forecasted based on the tax regime in
\n
place as of December 31, 2022.
\n
7. Maintenance Capex: Maintenance capex was forecasted for future years based on the
\n
percentage of revenue allocated to maintenance capex in 2022 for each CGU.
\n
\n\n
\n\n
\n\n
\n\n
\n\n
Discount rates
\n
The present value of the expected cash flows of each segment is determined by applying a suitable
\n
discount rate. The discount rate was derived based on the calculation of Weighted Average Cost of
\n
Capital (WACC) for the Group, adjusted to reflect market data for companies in the gaming
\n
industry. The discount rates reflect appropriate adjustments relating to market risk and specific risk
\n
factors of each segment (incorporating adjustments for geographic location and currency risk). The
\n
discount rate applied to Nicaragua was 18.69%.
\n
With regard to the assessment of value in use of each acquisition, there are possible changes in key
\n
assumptions that could cause the carrying value of the unit to exceed its recoverable amount. These
\n
are discussed below:
\n
1. Revenue and revenue growth / reduction: Gaming revenue can be impacted by a) Changes in
\n
drop levels, which may be affected by the number of customers, seasonality, effective
\n
marketing efforts, a change in technology, competition or regulatory changes; and b) Changes
\n
in Hold %, representing the probability of individual games, which change can happen through
\n
chance, changes in gaming regulation and changes in gaming technology. Hotel revenue can
\n
be impacted by competition and seasonality. Growth rates, which are based on estimated GDP
\n
growth may be affected by material shifts in disposable income available for entertainment and
\n
hospitality.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Costs of goods sold can be
\n
impacted by changes in the market price of different goods and services, our competitiveness
\n
and requirements to increase promotional allowances, and by payroll adjustments because of
\n
changes in labor market conditions and/or management efficiencies. Cost of goods growth
\n
rates, which are based on estimated inflation rates, may be affected by changes in market and/or
\n
economic conditions.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs can be impacted by
\n
changes in the market price of different goods and services, our competitiveness and
\n
requirements to increase marketing expense, and by payroll adjustments because of changes in
\n
labor market conditions and/or management efficiencies. Operating cost growth rates, which
\n
are based on estimated inflation rates, may be affected by changes in market and/or economic
\n
conditions.
\n
4. Depreciation and amortization: Depreciation and amortization may be affected by the addition
\n
or sale of depreciable property, plant and equipment, including capital expenditures for
\n
maintenance purposes.
\n
5. Financing costs, net: Financial Costs, net may be affected by the addition or pre-payment of
\n
debt from the current debt schedule and by changes in the financial interest charged by banks.
\n
6. Direct and indirect taxes: Direct and indirect taxes may be affected by changes in tax
\n
legislation, regulation and judicial rulings.
\n
7. Maintenance Capex: Maintenance capex may be affected by the non-planned deterioration of
\n
assets, whose replacement will deviate from the investment time and investment amount
\n
considered in our estimations.
\n
\n\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag210": { "value": "\n
\n\n
\n\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
\n
Impairment review
\n
For the purposes of assessing potential impairment, the Group\u2019s assets are grouped and reviewed
\n
for impairment at the lowest cash generating unit (CGU) level, where cash flows are independent
\n
of one another. The review is focused on our ongoing operating segments located in Nicaragua,
\n
where GCU is deemed by operating location/venue.
\n
For the purpose of annual impairment testing, goodwill in Nicaragua was allocated to each
\n
individual CGU proportional to its percentage of country-wide revenue.
\n
2022
\n
Goodwill
\n
Other assets
\n
considered for
\n
impairment
\n
Total assets
\n
considered for
\n
impairment
\n
Nicaragua 1,387 5,603 6,990
\n
Total 1,387$ 5,603$ 6,990$
\n
\n
(1) Calculated as net asset of the CGU plus borrowings less cash and cash equivalents.
\n
\n\n
\n\n
\n\n
The recoverable amount of each CGU was determined based on value-in-use calculations. The
\n
following paragraphs describe the key assumptions on which Management has based its cash flow
\n
projections for the period covered by the most recent budgets/forecasts and a description of
\n
Management\u2019s approach to determining the value(s) assigned to each key assumption.
\n
Management\u2019s key assumptions to forecast cash flow include:
\n
1. Revenue and revenue growth / reduction: Revenue and revenue growth / reduction were both
\n
considered as key assumptions. Specifically, revenue for future years was forecasted by: a)
\n
Taking into account as a base line the revenue generated in each CGU in 2022; b) Increasing
\n
that base line revenue equal to an organic growth that is equal to the long-term GDP growth
\n
forecasted by independent analysts for Nicaragua; and c) Adjusting for management actions
\n
that have recently been made or are significantly advanced and considered non-speculative,
\n
which could generate a net growth of revenue or a net reduction of revenue resulting from the
\n
net impact of the identified non-speculative events.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Cost of goods sold and
\n
growth / reduction in cost of goods sold were both considered as key assumptions. Specifically,
\n
costs of goods sold for future years was forecasted by: a) Taking into account as a base line the
\n
cost of goods sold in each CGU in 2022; b) Increasing that base line cost of goods sold by the
\n
long-term rate of inflation rate forecasted by independent analysts for Nicaragua; and c)
\n
Adjusting for management actions that have recently been made or are significantly advanced
\n
and considered non-speculative, which could generate a net growth of cost of goods sold or a
\n
net reduction of cost of goods sold resulting from the net impact of the identified non-
\n
speculative events.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs and growth /
\n
reduction in operating costs were both considered as key assumptions. Specifically, operating
\n
costs for future years were forecasted by: a) Taking into account as a base line the operating
\n
cost of in each CGU in 2022; b) Increasing those base line operating costs by the long-term
\n
rate of inflation rate forecasted by independent analysts for Nicaragua; and c) Adjusting for
\n
management actions that have recently been made or are significantly advanced and considered
\n
non-speculative, which could generate a net growth of operating costs or a net reduction of
\n
operating costs sold resulting from the net impact of the identified non-speculative events.
\n
4. Depreciation and amortization: Depreciation and amortization are forecasted based on the
\n
known future schedule of depreciation and amortization as of December 31, 2022 for each
\n
CGU, and then adjusted based on the future depreciation of assets to be purchased in the future
\n
using maintenance capex. For the purpose of annual impairment testing, depreciation and
\n
amortization in Nicaragua were allocated to each individual CGU proportional to its percentage
\n
of country-wide revenue.
\n
5. Financing costs, net: Financing costs, net are forecasted based on the schedule of all known
\n
debt as of December 31, 2022 for each CGU. For the purpose of annual impairment testing,
\n
financing costs, net in Nicaragua were allocated to each individual CGU proportional to its
\n
percentage of country-wide revenue.
\n
6. Direct and indirect taxes: Direct and indirect taxes were forecasted based on the tax regime in
\n
place as of December 31, 2022.
\n
7. Maintenance Capex: Maintenance capex was forecasted for future years based on the
\n
percentage of revenue allocated to maintenance capex in 2022 for each CGU.
\n
\n\n
\n\n
\n\n
Discount rates
\n
The present value of the expected cash flows of each segment is determined by applying a suitable
\n
discount rate. The discount rate was derived based on the calculation of Weighted Average Cost of
\n
Capital (WACC) for the Group, adjusted to reflect market data for companies in the gaming
\n
industry. The discount rates reflect appropriate adjustments relating to market risk and specific risk
\n
factors of each segment (incorporating adjustments for geographic location and currency risk). The
\n
discount rate applied to Nicaragua was 18.69%.
\n
With regard to the assessment of value in use of each acquisition, there are possible changes in key
\n
assumptions that could cause the carrying value of the unit to exceed its recoverable amount. These
\n
are discussed below:
\n
1. Revenue and revenue growth / reduction: Gaming revenue can be impacted by a) Changes in
\n
drop levels, which may be affected by the number of customers, seasonality, effective
\n
marketing efforts, a change in technology, competition or regulatory changes; and b) Changes
\n
in Hold %, representing the probability of individual games, which change can happen through
\n
chance, changes in gaming regulation and changes in gaming technology. Hotel revenue can
\n
be impacted by competition and seasonality. Growth rates, which are based on estimated GDP
\n
growth may be affected by material shifts in disposable income available for entertainment and
\n
hospitality.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Costs of goods sold can be
\n
impacted by changes in the market price of different goods and services, our competitiveness
\n
and requirements to increase promotional allowances, and by payroll adjustments because of
\n
changes in labor market conditions and/or management efficiencies. Cost of goods growth
\n
rates, which are based on estimated inflation rates, may be affected by changes in market and/or
\n
economic conditions.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs can be impacted by
\n
changes in the market price of different goods and services, our competitiveness and
\n
requirements to increase marketing expense, and by payroll adjustments because of changes in
\n
labor market conditions and/or management efficiencies. Operating cost growth rates, which
\n
are based on estimated inflation rates, may be affected by changes in market and/or economic
\n
conditions.
\n
4. Depreciation and amortization: Depreciation and amortization may be affected by the addition
\n
or sale of depreciable property, plant and equipment, including capital expenditures for
\n
maintenance purposes.
\n
5. Financing costs, net: Financial Costs, net may be affected by the addition or pre-payment of
\n
debt from the current debt schedule and by changes in the financial interest charged by banks.
\n
6. Direct and indirect taxes: Direct and indirect taxes may be affected by changes in tax
\n
legislation, regulation and judicial rulings.
\n
7. Maintenance Capex: Maintenance capex may be affected by the non-planned deterioration of
\n
assets, whose replacement will deviate from the investment time and investment amount
\n
considered in our estimations.
\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag214": { "value": "\n
\n\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
\n
Impairment review
\n
For the purposes of assessing potential impairment, the Group\u2019s assets are grouped and reviewed
\n
for impairment at the lowest cash generating unit (CGU) level, where cash flows are independent
\n
of one another. The review is focused on our ongoing operating segments located in Nicaragua,
\n
where GCU is deemed by operating location/venue.
\n
For the purpose of annual impairment testing, goodwill in Nicaragua was allocated to each
\n
individual CGU proportional to its percentage of country-wide revenue.
\n
2022
\n
Goodwill
\n
Other assets
\n
considered for
\n
impairment
\n
Total assets
\n
considered for
\n
impairment
\n
Nicaragua 1,387 5,603 6,990
\n
Total 1,387$ 5,603$ 6,990$
\n
\n
(1) Calculated as net asset of the CGU plus borrowings less cash and cash equivalents.
\n
\n\n
The recoverable amount of each CGU was determined based on value-in-use calculations. The
\n
following paragraphs describe the key assumptions on which Management has based its cash flow
\n
projections for the period covered by the most recent budgets/forecasts and a description of
\n
Management\u2019s approach to determining the value(s) assigned to each key assumption.
\n
Management\u2019s key assumptions to forecast cash flow include:
\n
1. Revenue and revenue growth / reduction: Revenue and revenue growth / reduction were both
\n
considered as key assumptions. Specifically, revenue for future years was forecasted by: a)
\n
Taking into account as a base line the revenue generated in each CGU in 2022; b) Increasing
\n
that base line revenue equal to an organic growth that is equal to the long-term GDP growth
\n
forecasted by independent analysts for Nicaragua; and c) Adjusting for management actions
\n
that have recently been made or are significantly advanced and considered non-speculative,
\n
which could generate a net growth of revenue or a net reduction of revenue resulting from the
\n
net impact of the identified non-speculative events.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Cost of goods sold and
\n
growth / reduction in cost of goods sold were both considered as key assumptions. Specifically,
\n
costs of goods sold for future years was forecasted by: a) Taking into account as a base line the
\n
cost of goods sold in each CGU in 2022; b) Increasing that base line cost of goods sold by the
\n
long-term rate of inflation rate forecasted by independent analysts for Nicaragua; and c)
\n
Adjusting for management actions that have recently been made or are significantly advanced
\n
and considered non-speculative, which could generate a net growth of cost of goods sold or a
\n
net reduction of cost of goods sold resulting from the net impact of the identified non-
\n
speculative events.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs and growth /
\n
reduction in operating costs were both considered as key assumptions. Specifically, operating
\n
costs for future years were forecasted by: a) Taking into account as a base line the operating
\n
cost of in each CGU in 2022; b) Increasing those base line operating costs by the long-term
\n
rate of inflation rate forecasted by independent analysts for Nicaragua; and c) Adjusting for
\n
management actions that have recently been made or are significantly advanced and considered
\n
non-speculative, which could generate a net growth of operating costs or a net reduction of
\n
operating costs sold resulting from the net impact of the identified non-speculative events.
\n
4. Depreciation and amortization: Depreciation and amortization are forecasted based on the
\n
known future schedule of depreciation and amortization as of December 31, 2022 for each
\n
CGU, and then adjusted based on the future depreciation of assets to be purchased in the future
\n
using maintenance capex. For the purpose of annual impairment testing, depreciation and
\n
amortization in Nicaragua were allocated to each individual CGU proportional to its percentage
\n
of country-wide revenue.
\n
5. Financing costs, net: Financing costs, net are forecasted based on the schedule of all known
\n
debt as of December 31, 2022 for each CGU. For the purpose of annual impairment testing,
\n
financing costs, net in Nicaragua were allocated to each individual CGU proportional to its
\n
percentage of country-wide revenue.
\n
6. Direct and indirect taxes: Direct and indirect taxes were forecasted based on the tax regime in
\n
place as of December 31, 2022.
\n
7. Maintenance Capex: Maintenance capex was forecasted for future years based on the
\n
percentage of revenue allocated to maintenance capex in 2022 for each CGU.
\n
\n\n
Discount rates
\n
The present value of the expected cash flows of each segment is determined by applying a suitable
\n
discount rate. The discount rate was derived based on the calculation of Weighted Average Cost of
\n
Capital (WACC) for the Group, adjusted to reflect market data for companies in the gaming
\n
industry. The discount rates reflect appropriate adjustments relating to market risk and specific risk
\n
factors of each segment (incorporating adjustments for geographic location and currency risk). The
\n
discount rate applied to Nicaragua was 18.69%.
\n
With regard to the assessment of value in use of each acquisition, there are possible changes in key
\n
assumptions that could cause the carrying value of the unit to exceed its recoverable amount. These
\n
are discussed below:
\n
1. Revenue and revenue growth / reduction: Gaming revenue can be impacted by a) Changes in
\n
drop levels, which may be affected by the number of customers, seasonality, effective
\n
marketing efforts, a change in technology, competition or regulatory changes; and b) Changes
\n
in Hold %, representing the probability of individual games, which change can happen through
\n
chance, changes in gaming regulation and changes in gaming technology. Hotel revenue can
\n
be impacted by competition and seasonality. Growth rates, which are based on estimated GDP
\n
growth may be affected by material shifts in disposable income available for entertainment and
\n
hospitality.
\n
2. Cost of goods sold and growth / reduction of costs of goods sold: Costs of goods sold can be
\n
impacted by changes in the market price of different goods and services, our competitiveness
\n
and requirements to increase promotional allowances, and by payroll adjustments because of
\n
changes in labor market conditions and/or management efficiencies. Cost of goods growth
\n
rates, which are based on estimated inflation rates, may be affected by changes in market and/or
\n
economic conditions.
\n
3. Operating costs and growth / reduction of operating costs: Operating costs can be impacted by
\n
changes in the market price of different goods and services, our competitiveness and
\n
requirements to increase marketing expense, and by payroll adjustments because of changes in
\n
labor market conditions and/or management efficiencies. Operating cost growth rates, which
\n
are based on estimated inflation rates, may be affected by changes in market and/or economic
\n
conditions.
\n
4. Depreciation and amortization: Depreciation and amortization may be affected by the addition
\n
or sale of depreciable property, plant and equipment, including capital expenditures for
\n
maintenance purposes.
\n
5. Financing costs, net: Financial Costs, net may be affected by the addition or pre-payment of
\n
debt from the current debt schedule and by changes in the financial interest charged by banks.
\n
6. Direct and indirect taxes: Direct and indirect taxes may be affected by changes in tax
\n
legislation, regulation and judicial rulings.
\n
7. Maintenance Capex: Maintenance capex may be affected by the non-planned deterioration of
\n
assets, whose replacement will deviate from the investment time and investment amount
\n
considered in our estimations.
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag212": { "value": "\n
9. INTANGIBLE ASSETS
\n
2022 2021
\n
Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total Goodwill
\n
Others
\n
(Software and
\n
license)
\n
Total
\n
Cost
\n
Balance at beginning of year
\n
1,387$ 3,044$ 4,431$ 1,387$ 3,044$ 4,431$
\n
Additions
\n
- - - - - -
\n
Sale of subsidiary
\n
- - - - - -
\n
Balance at end of year
\n
1,387 3,044 4,431 1,387 3,044 4,431
\n
Accumulated amortization and impairment
\n
Balance at beginning of year
\n
- 3,040 3,040 - 3,039 3,039
\n
Change for the year
\n
- (1) (1) - 1 1
\n
Balance at end of year
\n
- 3,039 3,039 - 3,040 3,040
\n
Carrying amount
\n
At beginning of year
\n
1,387 4 1,391 1,387 5 1,392
\n
At end of year
\n
1,387$ 5$ 1,392$ 1,387$ 4$ 1,391$
\n
\n\n
10. PROPERTY, PLANT AND EQUIPMENT
\n
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2022 10,465$ 1,654$ 4,834$ 3,914$ 18$ 20,885$
\n
Foreign exchange adjustments (7) (32) (73) (50) 1 (161)
\n
Additions 617 (4) 248 307 2 1,170
\n
Transfer to Assets Held for Sale (672) - - - - (672)
\n
Disposals (32) (255) (277) - (564)
\n
Transfers 15 4 - 2 (21) -
\n
As of December 31, 2022 10,386 1,622 4,754 3,896 - 20,658
\n
Depreciation
\n
As of January 1, 2022 2,818$ 1,511$ 4,463$ 3,608$ -$ 12,400$
\n
Foreign exchange adjustments (14) (30) (66) (45) - (155)
\n
Charge for the year 797 53 196 146 - 1,192
\n
Transfer to Assets Held for Sale - - - - - -
\n
Correction to accumulated depreciation (176) - - - - (176)
\n
Disposals (21) (245) (235) - (501)
\n
As of December 31, 2022 3,404 1,534 4,348 3,474 - 12,760
\n
Net book value as of January 1, 2022
\n
\n
\n
7,647
\n
\n
\n
143
\n
\n
\n
371
\n
\n
\n
306
\n
\n
\n
18
\n
\n
\n
8,485
\n
Net book value as of December 31, 2022
\n
$
\n
\n
6,982
\n
$
\n
\n
88
\n
$
\n
\n
406
\n
$
\n
\n
422
\n
$
\n
\n
-
\n
$
\n
\n
7,898
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2021 23,493$ 1,678$ 4,833$ 5,664$ 37$ 35,705$
\n
Foreign exchange adjustments (1,254) (32) (74) (1,425) (23) (2,808)
\n
Additions 901 8 161 150 78 1,298
\n
Transfer to Assets Held for Sale (11,607) (11,607)
\n
Transfer to Investment Property (1,124) (1,124)
\n
Disposals (14)
\n
-
\n
(86) (479)
\n
-
\n
(579)
\n
Transfers 70
\n
-
\n
-
\n
4 (74) -
\n
As of December 31, 2021 10,465 1,654 4,834 3,914 18 20,885
\n
Depreciation*
\n
As of January 1, 2021 11,056$ 1,490$ 4,329$ 5,098$ -$ 21,973$
\n
Foreign exchange adjustments (676) (30) (65) (1,360) - (2,131)
\n
Charge for the year 1,617 51 254 302 - 2,224
\n
Transfer to Assets Held for Sale (9,174)
\n
-
\n
-
\n
-
\n
- (9,174)
\n
Disposals (5)
\n
-
\n
(55) (432) - (492)
\n
As of December 31, 2021 2,818 1,511 4,463 3,608 - 12,400
\n
Net book value as of January 1, 2021
\n
\n
\n
12,437
\n
\n
\n
188
\n
\n
\n
504
\n
\n
\n
566
\n
\n
\n
37
\n
\n
\n
13,732
\n
Net book value as of December 31, 2021
\n
$
\n
\n
7,647
\n
$
\n
\n
143
\n
$
\n
\n
371
\n
$
\n
\n
306
\n
$
\n
\n
18
\n
$
\n
8,485
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag358": { "value": "\n

\n

\n

\n

\n

\n

\n

\n

\n\n
10. PROPERTY, PLANT AND EQUIPMENT
\n
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2022 10,465$ 1,654$ 4,834$ 3,914$ 18$ 20,885$
\n
Foreign exchange adjustments (7) (32) (73) (50) 1 (161)
\n
Additions 617 (4) 248 307 2 1,170
\n
Transfer to Assets Held for Sale (672) - - - - (672)
\n
Disposals (32) (255) (277) - (564)
\n
Transfers 15 4 - 2 (21) -
\n
As of December 31, 2022 10,386 1,622 4,754 3,896 - 20,658
\n
Depreciation
\n
As of January 1, 2022 2,818$ 1,511$ 4,463$ 3,608$ -$ 12,400$
\n
Foreign exchange adjustments (14) (30) (66) (45) - (155)
\n
Charge for the year 797 53 196 146 - 1,192
\n
Transfer to Assets Held for Sale - - - - - -
\n
Correction to accumulated depreciation (176) - - - - (176)
\n
Disposals (21) (245) (235) - (501)
\n
As of December 31, 2022 3,404 1,534 4,348 3,474 - 12,760
\n
Net book value as of January 1, 2022
\n
\n
\n
7,647
\n
\n
\n
143
\n
\n
\n
371
\n
\n
\n
306
\n
\n
\n
18
\n
\n
\n
8,485
\n
Net book value as of December 31, 2022
\n
$
\n
\n
6,982
\n
$
\n
\n
88
\n
$
\n
\n
406
\n
$
\n
\n
422
\n
$
\n
\n
-
\n
$
\n
\n
7,898
\n
Property
\n
Leasehold
\n
improvements
\n
Gaming machines
\n
Furniture and
\n
equipment
\n
Construction in
\n
progress and
\n
advances
\n
Total
\n
Cost
\n
As of January 1, 2021 23,493$ 1,678$ 4,833$ 5,664$ 37$ 35,705$
\n
Foreign exchange adjustments (1,254) (32) (74) (1,425) (23) (2,808)
\n
Additions 901 8 161 150 78 1,298
\n
Transfer to Assets Held for Sale (11,607) (11,607)
\n
Transfer to Investment Property (1,124) (1,124)
\n
Disposals (14)
\n
-
\n
(86) (479)
\n
-
\n
(579)
\n
Transfers 70
\n
-
\n
-
\n
4 (74) -
\n
As of December 31, 2021 10,465 1,654 4,834 3,914 18 20,885
\n
Depreciation*
\n
As of January 1, 2021 11,056$ 1,490$ 4,329$ 5,098$ -$ 21,973$
\n
Foreign exchange adjustments (676) (30) (65) (1,360) - (2,131)
\n
Charge for the year 1,617 51 254 302 - 2,224
\n
Transfer to Assets Held for Sale (9,174)
\n
-
\n
-
\n
-
\n
- (9,174)
\n
Disposals (5)
\n
-
\n
(55) (432) - (492)
\n
As of December 31, 2021 2,818 1,511 4,463 3,608 - 12,400
\n
Net book value as of January 1, 2021
\n
\n
\n
12,437
\n
\n
\n
188
\n
\n
\n
504
\n
\n
\n
566
\n
\n
\n
37
\n
\n
\n
13,732
\n
Net book value as of December 31, 2021
\n
$
\n
\n
7,647
\n
$
\n
\n
143
\n
$
\n
\n
371
\n
$
\n
\n
306
\n
$
\n
\n
18
\n
$
\n
8,485
\n

\n\n

\n\n

\n\n
Assets pledged as security
\n
Assets with the following amounts have been pledged to secure borrowings of the Group:
\n
December 31, 2022
\n
December 31, 2021
\n
Cost Amortized cost Cost Amortized cost
\n
Property 2,043$ 711$ 15,864$ 5,518$
\n
Total 2,043$ 711$ 15,864$ 5,518$
\n
\n
\n
The carrying value of assets held under finance leases and hire purchase contracts at December
\n
31, 2022 was $2,729,000 (2021 - $3,261,000).
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag364": { "value": "\n
Assets pledged as security
\n
Assets with the following amounts have been pledged to secure borrowings of the Group:
\n
December 31, 2022
\n
December 31, 2021
\n
Cost Amortized cost Cost Amortized cost
\n
Property 2,043$ 711$ 15,864$ 5,518$
\n
Total 2,043$ 711$ 15,864$ 5,518$
\n
\n
\n
The carrying value of assets held under finance leases and hire purchase contracts at December
\n
31, 2022 was $2,729,000 (2021 - $3,261,000).
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag360": { "value": "\n
11. Investment Property
\n
Investment property includes land in the Group's Nicaraguan subsidiary located adjacent to its
\n
headquarters on the highway to Masaya, whose use has not been defined by the Group. The land
\n
is carried at historical cost.
\n
2022 2021
\n
Land 1,091$ 1,113$
\n
Total 1,091$ 1,113$
\n
\n
The fair value of this property is up to $4,249,000, according to the last valuation performed by an
\n
independent appraisal.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag363": { "value": "\n

\n\n

\n\n
12. ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED
\n
OPERATIONS
\n
In 2021, the Group decided to convert it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium
\n
apartment complex. As of October 31, 2021 the Group\u2019s Peru hotel ceased operations as a hotel
\n
and legally cancelled its hotel operating license. The Group has completed the process to: i) Legally
\n
sub-divide the former hotel in to 66 individually titled apartment units; ii) Procure all change of
\n
use and other regulatory approvals. The decision was taken in line with the Group\u2019s strategy to
\n
reduce debt and to improve the Group\u2019s financial position. The Peru hotel operation has been
\n
reported as a discontinued operation. As of the date of publication of this 2022 Annual Report, the
\n
Group has sold 65 out of the 66 apartment units: 50 apartments were sold in 2022 and 15 in 2023.
\n
\n
Revenues and expenses, gains and losses relating to the Peru hotel operation have been eliminated
\n
from the Group\u2019s statement of comprehensive income and are shown in a single line item on the
\n
face of the statement of comprehensive income (see \u201cprofit/ (loss) for the period from discontinued
\n
operations\u201d).
\n
2022 2021
\n
Food, beverage, hospitality and other sales -$ 583$
\n
Total revenue
\n
- 583
\n
Cost of goods sold - (229)
\n
Gross profit
\n
- 354
\n
Other operating costs
\n
Operating, general and administrative (483) (320)
\n
Depreciation and amortization - (604)
\n
Other (losses) and gains 62 4
\n
Operating (loss) / profit
\n
(421) (566)
\n
Loss before tax
\n
(421) (566)
\n
Profit for the year
\n
(421) (566)
\n
Gain on disposal 5,286
\n
Profit / (loss) for the year from discontinued
\n
operations
\n
4,865$ (566)$
\n
\n
The carrying amount of Peru hotel assets that are held for sale may be summarized as follows:
\n
Peru Hotel
\n
2022 2021
\n
Property, plant and equipment
\n
674$ 2,475$
\n
Assets classified as held for sale 674$ 2,475$
\n

\n\n

\n\n

\n\n

\n\n

\n\n
Cash flows generated by the Peru Hotel operation for the reporting period are summarized as
\n
follows:
\n
2022 2021
\n
Net cash from operating activities
\n
(421) (566)
\n
Net cash (used) for investing activities
\n
(672) -
\n
Net cash (used) for financing activities
\n
- -
\n
Effect of foreign exchange adjustment - -
\n
Cash flows from discontinued operations (1,093)$ (566)$
\n
\n
Gain on disposal
\n
During the period ended December 31, 2022, a portion of the apartment held for sale were sold and
\n
the remainder should be sold by the end of 2023. The transactions resulted in a gain on disposal to
\n
the Group of approximately $5.29 million. The consideration received was approximately $7.86
\n
million in cash as described below.
\n
\n
Peru Asset Sales
\n
Property, plant and equipment
\n
2,571$
\n
Net assets disposed
\n
2,571$
\n
Consideration in cash
\n
7,857
\n
Fair value of proceeds
\n
7,857$
\n
Gain on Disposal 5,286$
\n

\n\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag355": { "value": "\n

\n\n
12. ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED
\n
OPERATIONS
\n
In 2021, the Group decided to convert it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium
\n
apartment complex. As of October 31, 2021 the Group\u2019s Peru hotel ceased operations as a hotel
\n
and legally cancelled its hotel operating license. The Group has completed the process to: i) Legally
\n
sub-divide the former hotel in to 66 individually titled apartment units; ii) Procure all change of
\n
use and other regulatory approvals. The decision was taken in line with the Group\u2019s strategy to
\n
reduce debt and to improve the Group\u2019s financial position. The Peru hotel operation has been
\n
reported as a discontinued operation. As of the date of publication of this 2022 Annual Report, the
\n
Group has sold 65 out of the 66 apartment units: 50 apartments were sold in 2022 and 15 in 2023.
\n
\n
Revenues and expenses, gains and losses relating to the Peru hotel operation have been eliminated
\n
from the Group\u2019s statement of comprehensive income and are shown in a single line item on the
\n
face of the statement of comprehensive income (see \u201cprofit/ (loss) for the period from discontinued
\n
operations\u201d).
\n
2022 2021
\n
Food, beverage, hospitality and other sales -$ 583$
\n
Total revenue
\n
- 583
\n
Cost of goods sold - (229)
\n
Gross profit
\n
- 354
\n
Other operating costs
\n
Operating, general and administrative (483) (320)
\n
Depreciation and amortization - (604)
\n
Other (losses) and gains 62 4
\n
Operating (loss) / profit
\n
(421) (566)
\n
Loss before tax
\n
(421) (566)
\n
Profit for the year
\n
(421) (566)
\n
Gain on disposal 5,286
\n
Profit / (loss) for the year from discontinued
\n
operations
\n
4,865$ (566)$
\n
\n
The carrying amount of Peru hotel assets that are held for sale may be summarized as follows:
\n
Peru Hotel
\n
2022 2021
\n
Property, plant and equipment
\n
674$ 2,475$
\n
Assets classified as held for sale 674$ 2,475$
\n

\n\n

\n\n

\n\n
Cash flows generated by the Peru Hotel operation for the reporting period are summarized as
\n
follows:
\n
2022 2021
\n
Net cash from operating activities
\n
(421) (566)
\n
Net cash (used) for investing activities
\n
(672) -
\n
Net cash (used) for financing activities
\n
- -
\n
Effect of foreign exchange adjustment - -
\n
Cash flows from discontinued operations (1,093)$ (566)$
\n
\n
Gain on disposal
\n
During the period ended December 31, 2022, a portion of the apartment held for sale were sold and
\n
the remainder should be sold by the end of 2023. The transactions resulted in a gain on disposal to
\n
the Group of approximately $5.29 million. The consideration received was approximately $7.86
\n
million in cash as described below.
\n
\n
Peru Asset Sales
\n
Property, plant and equipment
\n
2,571$
\n
Net assets disposed
\n
2,571$
\n
Consideration in cash
\n
7,857
\n
Fair value of proceeds
\n
7,857$
\n
Gain on Disposal 5,286$
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag367": { "value": "\n
12. ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED
\n
OPERATIONS
\n
In 2021, the Group decided to convert it\u2019s 66-suite hotel in Lima, Peru into a 66-unit condominium
\n
apartment complex. As of October 31, 2021 the Group\u2019s Peru hotel ceased operations as a hotel
\n
and legally cancelled its hotel operating license. The Group has completed the process to: i) Legally
\n
sub-divide the former hotel in to 66 individually titled apartment units; ii) Procure all change of
\n
use and other regulatory approvals. The decision was taken in line with the Group\u2019s strategy to
\n
reduce debt and to improve the Group\u2019s financial position. The Peru hotel operation has been
\n
reported as a discontinued operation. As of the date of publication of this 2022 Annual Report, the
\n
Group has sold 65 out of the 66 apartment units: 50 apartments were sold in 2022 and 15 in 2023.
\n
\n
Revenues and expenses, gains and losses relating to the Peru hotel operation have been eliminated
\n
from the Group\u2019s statement of comprehensive income and are shown in a single line item on the
\n
face of the statement of comprehensive income (see \u201cprofit/ (loss) for the period from discontinued
\n
operations\u201d).
\n
2022 2021
\n
Food, beverage, hospitality and other sales -$ 583$
\n
Total revenue
\n
- 583
\n
Cost of goods sold - (229)
\n
Gross profit
\n
- 354
\n
Other operating costs
\n
Operating, general and administrative (483) (320)
\n
Depreciation and amortization - (604)
\n
Other (losses) and gains 62 4
\n
Operating (loss) / profit
\n
(421) (566)
\n
Loss before tax
\n
(421) (566)
\n
Profit for the year
\n
(421) (566)
\n
Gain on disposal 5,286
\n
Profit / (loss) for the year from discontinued
\n
operations
\n
4,865$ (566)$
\n
\n
The carrying amount of Peru hotel assets that are held for sale may be summarized as follows:
\n
Peru Hotel
\n
2022 2021
\n
Property, plant and equipment
\n
674$ 2,475$
\n
Assets classified as held for sale 674$ 2,475$
\n

\n\n
Cash flows generated by the Peru Hotel operation for the reporting period are summarized as
\n
follows:
\n
2022 2021
\n
Net cash from operating activities
\n
(421) (566)
\n
Net cash (used) for investing activities
\n
(672) -
\n
Net cash (used) for financing activities
\n
- -
\n
Effect of foreign exchange adjustment - -
\n
Cash flows from discontinued operations (1,093)$ (566)$
\n
\n
Gain on disposal
\n
During the period ended December 31, 2022, a portion of the apartment held for sale were sold and
\n
the remainder should be sold by the end of 2023. The transactions resulted in a gain on disposal to
\n
the Group of approximately $5.29 million. The consideration received was approximately $7.86
\n
million in cash as described below.
\n
\n
Peru Asset Sales
\n
Property, plant and equipment
\n
2,571$
\n
Net assets disposed
\n
2,571$
\n
Consideration in cash
\n
7,857
\n
Fair value of proceeds
\n
7,857$
\n
Gain on Disposal 5,286$
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag357": { "value": "\n

\n\n
13. TRADE AND OTHER RECEIVABLES
\n
Trade and other receivables consist of the following:
\n
2022 2021
\n
Trade and other receivables (Non-current)
\n
Deposits for rental, land and equipment
\n
83 69
\n
Other receivables
\n
753 754
\n
Total trade and other receivables (non-current)
\n
836$ 823$
\n
Trade and other receivables (Current)
\n
Trade receivables, gross
\n
\n
\n
994
\n
\n
\n
1,038
\n
Allowance for credit losses
\n
\n
\n
(813)
\n
\n
\n
(813)
\n
Notes receivable
\n
2 2
\n
Prepaid expense
\n
155 129
\n
Value added tax and employee receivables
\n
335 291
\n
Total trade and other receivables (current)
\n
673$ 647$
\n
\n
Trade and other receivables
\n
The carrying value of the trade receivables is considered a reasonable approximation of fair value.
\n
All of the Group\u2019s trade and other receivables have been reviewed for indicators of impairment.
\n
Certain trade receivables were found to be impaired and a provision of $Nil (2021 - $10,000) has
\n
been recorded accordingly.
\n

\n\n
The age of the trade receivables past due but not impaired is as follows:
\n
2022 2021
\n
Not more than 3 months 99 112
\n
More than 3 months but not more than 6 months 27 81
\n
More than 6 months but not more than 1 year 37 27
\n
More than 1 year 18 5
\n
Total 181$ 225$
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag365": { "value": "\n
13. TRADE AND OTHER RECEIVABLES
\n
Trade and other receivables consist of the following:
\n
2022 2021
\n
Trade and other receivables (Non-current)
\n
Deposits for rental, land and equipment
\n
83 69
\n
Other receivables
\n
753 754
\n
Total trade and other receivables (non-current)
\n
836$ 823$
\n
Trade and other receivables (Current)
\n
Trade receivables, gross
\n
\n
\n
994
\n
\n
\n
1,038
\n
Allowance for credit losses
\n
\n
\n
(813)
\n
\n
\n
(813)
\n
Notes receivable
\n
2 2
\n
Prepaid expense
\n
155 129
\n
Value added tax and employee receivables
\n
335 291
\n
Total trade and other receivables (current)
\n
673$ 647$
\n
\n
Trade and other receivables
\n
The carrying value of the trade receivables is considered a reasonable approximation of fair value.
\n
All of the Group\u2019s trade and other receivables have been reviewed for indicators of impairment.
\n
Certain trade receivables were found to be impaired and a provision of $Nil (2021 - $10,000) has
\n
been recorded accordingly.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag356": { "value": "\n
14. INVENTORIES
\n
2022 2021
\n
Food and beverage supplies 77 52
\n
Casino goods and promotional items 63 41
\n
Hotel food service and room supplies - 2
\n
Uniform and operational supplies 56 54
\n
Gaming machine parts 33 36
\n
Total 229$ 185$
\n
\n
Cost of goods sold within Cost of sales was $921,098 for the year ended December 31, 2022 and
\n
$684,214 for the year ended December 31, 2021. There were no inventory write downs for the year
\n
ended December 31, 2022.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag359": { "value": "Cost of goods sold within Cost of sales was $921,098 for the year ended December 31, 2022 and$684,214 for the year ended December 31, 2021.", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag361": { "value": "\n

\n\n

\n

\n\n
15. CASH AND CASH EQUIVALENTS
\n
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the
\n
following at December 31, 2022 and December 31, 2021:
\n
2022 2021
\n
Cash at banks and on hand 5,957 2,064
\n
Restricted cash 618 1,328
\n
Short-term deposits 205 203
\n
Total 6,780$ 3,595$
\n

\n\n
\n
\n
\n
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits
\n
are made for varying periods of time between one day and three months, depending on the
\n
immediate cash requirements of the Group, and earn interest at the respective short-term deposit
\n
rates. The fair value of cash and short-term deposits is $5,957,000 as of December 31, 2022 (2021
\n
- $2,064,000).
\n\n
Restricted cash includes the casino\u2019s bankroll, hopper loads, and a certificate of deposit that renews
\n
monthly and yields interest of 1.5% per year that is required by the gaming authorities in Nicaragua.
\n
The Group classifies the casino bankroll as restricted, as these balances are required to operate the
\n
business, thus these funds cannot be used to pay the obligations of the Group. The fair value of
\n
restricted cash is $823,000 at December 31, 2022 (2021 - $1,531,000).
\n

\n\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag366": { "value": "\n

\n

\n\n
15. CASH AND CASH EQUIVALENTS
\n
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the
\n
following at December 31, 2022 and December 31, 2021:
\n
2022 2021
\n
Cash at banks and on hand 5,957 2,064
\n
Restricted cash 618 1,328
\n
Short-term deposits 205 203
\n
Total 6,780$ 3,595$
\n

\n\n
\n
\n
\n
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits
\n
are made for varying periods of time between one day and three months, depending on the
\n
immediate cash requirements of the Group, and earn interest at the respective short-term deposit
\n
rates. The fair value of cash and short-term deposits is $5,957,000 as of December 31, 2022 (2021
\n
- $2,064,000).
\n\n
Restricted cash includes the casino\u2019s bankroll, hopper loads, and a certificate of deposit that renews
\n
monthly and yields interest of 1.5% per year that is required by the gaming authorities in Nicaragua.
\n
The Group classifies the casino bankroll as restricted, as these balances are required to operate the
\n
business, thus these funds cannot be used to pay the obligations of the Group. The fair value of
\n
restricted cash is $823,000 at December 31, 2022 (2021 - $1,531,000).
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag354": { "value": "\n
15. CASH AND CASH EQUIVALENTS
\n
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the
\n
following at December 31, 2022 and December 31, 2021:
\n
2022 2021
\n
Cash at banks and on hand 5,957 2,064
\n
Restricted cash 618 1,328
\n
Short-term deposits 205 203
\n
Total 6,780$ 3,595$
\n

\n\n
Restricted cash includes the casino\u2019s bankroll, hopper loads, and a certificate of deposit that renews
\n
monthly and yields interest of 1.5% per year that is required by the gaming authorities in Nicaragua.
\n
The Group classifies the casino bankroll as restricted, as these balances are required to operate the
\n
business, thus these funds cannot be used to pay the obligations of the Group. The fair value of
\n
restricted cash is $823,000 at December 31, 2022 (2021 - $1,531,000).
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag369": { "value": "\n

\n\n
16. TRADE AND OTHER PAYABLES
\n
2022 2021
\n
Trade and other payables (Non-current)
\n
Trade and other payables
\n
32 32
\n
Other liabilities
\n
197 162
\n
Deferred Income
\n
14 21
\n
Total trade and other payables (non-current)
\n
243$ 215$
\n
Trade and other payables (current)
\n
Trade and other payables
\n
3,684 2,999
\n
Other accrued liabilities
\n
2,509 2,414
\n
Total trade and other payables (current)
\n
6,193$ 5,413$
\n
\n
Current - trade payables are non-interest bearing and are normally settled on 30-to-90-day terms.
\n

\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag362": { "value": "\n
16. TRADE AND OTHER PAYABLES
\n
2022 2021
\n
Trade and other payables (Non-current)
\n
Trade and other payables
\n
32 32
\n
Other liabilities
\n
197 162
\n
Deferred Income
\n
14 21
\n
Total trade and other payables (non-current)
\n
243$ 215$
\n
Trade and other payables (current)
\n
Trade and other payables
\n
3,684 2,999
\n
Other accrued liabilities
\n
2,509 2,414
\n
Total trade and other payables (current)
\n
6,193$ 5,413$
\n
\n
Current - trade payables are non-interest bearing and are normally settled on 30-to-90-day terms.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag370": { "value": "\n

\n

\n

\n
17. BORROWINGS
\n
Borrowings consist of loans payable detailed as follows:
\n
Schedule of principal repayments
\n
2023 2024 2025 2026 2027 Thereafter
\n
Unamortized
\n
premiums, discounts
\n
& issuance costs
\n
Total
\n
(1)
\n
Interest Rate
\n
:
\n
>10% 131$ -$ -$ -$ -$ -$ -$ 131$
\n
(2)
\n
8% to 9%
\n
\n
\n
8,100
\n
\n
\n
293
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
8,393
\n
6% to 7% - - - - - - - -
\n
<5% 533 - - - - - - 533
\n
Total principal repayments 8,764$ 293$ -$ -$ -$ -$ -$ 9,057$
\n
1. Floating rate loans are calculated as of the effective rate on December 31, 2022.
\n
2023 2024 2025 2026 2027 Thereafter
\n
Unamortized
\n
premiums, discounts
\n
& issuance costs
\n
Total
\n
Country:
\n
Corporate
\n
(2)
\n
8,692$ -$ -$ -$ -$ -$ -$ 8,692$
\n
Nicaragua 72 293 - - - - - 365
\n
Peru - - - - - - - -
\n
Total principal repayments 8,764$ 293$ -$ -$ -$ -$ -$ 9,057$
\n
2. The Group's parent entity (Corporate) assumed outstanding debt balances of our Guatemala and Poland entities. The balances outstanding at December 31, 2022 for
\n
Guatemala and Poland were $129,675 and $288,635 respectively.
\n
Borrowing summary
\n
2022 2021
\n
Total borrowing 9,057 13,493
\n
Less current portion of borrowings (8,764) (8,316)
\n
Borrowing non-current 293$ 5,177$
\n
\n
The following table provides additional detail of additions, refinancing, repayments, and disposals
\n

\n
taking place during the year:
\n

\n
Additions Summary
\n
Balance
\n

\n
Dec 31, 2021
\n
(1)
\n

\n
Additions
\n
Interest
\n

\n
Capitalization
\n

\n
Repayments
\n
Unamortized
\n
premiums,
\n
discounts &
\n
issuance costs
\n
Balance
\n
Dec 31, 2022
\n
\n
Loans with financial entities 5,446$ -$ -$ (5,081)$ -$ 365$
\n
Loans with non-financial entities 8,055 - 637 - - 8,692
\n
Total 13,501$ -$ 637$ (5,081)$ -$ 9,057$
\n
\n
(1) Does not include unamortized premiums, discounts & issuance costs of $8,000.
\n

\n\n
Notes
\n
Additions
\n
There were no new loans for the year ended December 31, 2022.
\n
Interest Capitalization
\n
a. During the year ended December 31, 2016, the Group executed various amendments to
\n
promissory notes with private lenders resulting in deferring principal and interest payments and
\n
capitalizing any interest accrued during 2022. Accrued interest of $637,000 was capitalized
\n
and added to outstanding principal balances of $7,109,000.
\n
Repayments
\n
a. During the year ended December 31, 2022, the Group repaid a total of $5,081,000 of loan
\n
principal on loans with financial entities.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag368": { "value": "\n

\n\n
18. PROVISIONS
\n
Current Non-Current Current Non-Current
\n
2022 2022 2021 2021
\n
Employee benefits
\n
392$ 357$ 192$ 359$
\n
Other
\n
25 - 26 -
\n
Litigation provisions
\n
- 467 - 922
\n
417$ 824$ 218$ 1,281$
\n
Employee
\n
benefits
\n
Litigation Other Total
\n
Balance at January 1, 2021
\n
545$ 1,017$ 21$ 1,583$
\n
Provisions recognized
\n
300 - 90 390
\n
Provisions utilized
\n
\n
\n
(279)
\n
\n
\n
-
\n
\n
\n
(51)
\n
\n
\n
(330)
\n
Provisions released
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
(33)
\n
\n
\n
(33)
\n
Differences arising from foreign exchange
\n
(15) (95) (1) (111)
\n
Balance at December 31, 2021
\n
551 922 26 1,499
\n
Provisions recognized
\n
591 - 62 653
\n
Provisions utilized
\n
\n
\n
(385)
\n
\n
\n
(493)
\n
\n
\n
(63)
\n
\n
\n
(941)
\n
Differences arising from foreign exchange
\n
(8) 38 - 30
\n
Balance at December 31, 2022
\n
749$ 467$ 25$ 1,241$
\n
\n
Employee benefits
\n
Current employee benefits are paid time off for vacations and sick time earned but not yet used by
\n
the employee. Non-current employee benefits include severance pay, which is the cost associated
\n
with the severance packages as described below:
\n
The subsidiary employee provisions by country are as follows:
\n
Nicaragua
\n
The Nicaraguan Labor Code established a severance payment plan for employees in the event of
\n
death, retirement or dismissal without just cause. This compensation is determined according to
\n
employee length of service. The plan compiles a month of salary for each labor year (for the first
\n
three labor years) and twenty days of salary after the fourth labor year, until the compensation
\n
reaches a maximum of five months\u2019 salary. Compensation cannot be less than one month\u2019s salary
\n
or more than five months\u2019 salary.
\n
The amount of $749,000 (2021- $551,000) includes $471,000 of retirement benefit obligations.
\n
For determination of the retirement benefit obligations in 2022 and 2021, the following actuarial
\n
assumptions were used:
\n

\n\n

\n\n

\n\n
2022 2021
\n
Discount rates
\n
7.87% and 8.01% 9.33% and 10.26%
\n
Expected rate of salary increases
\n
0.01 0.02
\n
Staff turnover
\n
5 and 7 years 5 and 8 years
\n
\n
The Group records a monthly provision as an expense to the respective period to cover any
\n
severance payment reimbursement incurred by the Group to terminated employees under this plan.
\n
As of December 31, 2022, the Group has recorded provisions amounting to $334,000 (2021 -
\n
$110,000), which represents Management\u2019s best estimate of the liability. This is an accrual under
\n
Nicaraguan law and is not a pension scheme.
\n
Additionally, the other countries in which the Group operates have various severance requirements
\n
as described in Note 3. The severance requirements are classified as long term. The short-term
\n
employee benefits are primarily accrued vacation payable to employees.
\n

\n\n
Litigation
\n
Peru THLA tax cases
\n
During the year ended December 31, 2016, THLA filed an appeal procedure of a Tax Court decision
\n
(case file 5396-2012). The Tax Court held against THLA position that Intendencia Resolution
\n
0150140010152 is unfounded. This Resolution involves SUNAT imposing a General Sales Tax
\n
(IGV tax credit originated in the purchase of hotels) with a potential contingency in the amount of
\n
S/. 3,245,168 plus interest of S/. 4,442,733 (US$849,520, interest US$1,163,019).
\n
The same case contains matters related to Resolution no. 0120030026291 for the tax year 2007, in
\n
which the tax authorities imposed an income tax of S/. 558,950 plus interest of S/. 703,176
\n
(US$146,322, interest: US$184,077) due to a rejection of certain deductions in 2007 for interest
\n
payments made to lenders/investors domiciled abroad on certain loans and investments. In
\n
addition, the tax authorities imposed a fine in relation to this resolution in the amount of S/. 279,474
\n
plus interest of S/. 402,870 (US$73,161, interest: US$105,463).
\n
In 2022, the Company was served with a Resolution N\u00b0 11395-4-2021 in which the Tax Court has
\n
confirmed that the above mentioned SUNAT\u2019s resolutions related to 2007 income tax are already
\n
\u201cenforceable\u201d. THLA is entitled to appeal the Tax Court Decision before the Judiciary. THLA is
\n
considering all its options and have not made a decision concerning this appeal as of the date of the
\n
publication of the annual report.
\n
With respect to IGV, management believes it could generate a favorable result; and with reference
\n
with the Income Tax, the chances of success are relatively less favorable. A provision has been
\n
recognized for cases where the Group\u2019s chances of success are relatively less favorable. The
\n
provision recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As
\n
of December 31, 2022 the 2007 tax cases have been paid in full and the provision totaling S/.
\n
1,900,746 has been released.
\n

\n\n
Likewise, there is another appeal procedure in a ruling by the tax Court (Tax Court File 15182-
\n
2014), involving SUNAT resolutions 0220030035681-0220030035690 for the tax year 2008
\n
related to withholding on payments made abroad. The tax assessment is made up of principal of
\n
S/. 257,954 plus interest of S/. 317,825 (US$ 67,527, interest: US$83,200). In separate Resolutions
\n
0220020013107-0220020013114, the tax authorities issued fines related to the prior mentioned
\n
resolutions in the amount of S/.107,530 plus interest of S/.134,033 (US$28,149 interest:
\n
US$35,087). A provision had been recognized in connection with the resolution above totaling S/.
\n
843,741 (US$220,875) including tax, penalties and interest.
\n
The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008 related
\n
to payments in advance of the income tax of S/. 45,337 plus interest of S/. 49,585 (US$11,868,
\n
interest: US$12,980). Resolutions 0220020013229-0220020013238 imposed fines related to the
\n
prior mentioned resolutions of S/. 381,969 plus interest of S/. 456,403 (US$99,992, interest:
\n
US$119,477). A provision has been recognized in connection with the resolution above totaling
\n
S/. 940,923 (US$246,315) including tax, penalties and interest.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag371": { "value": "\n
18. PROVISIONS
\n
Current Non-Current Current Non-Current
\n
2022 2022 2021 2021
\n
Employee benefits
\n
392$ 357$ 192$ 359$
\n
Other
\n
25 - 26 -
\n
Litigation provisions
\n
- 467 - 922
\n
417$ 824$ 218$ 1,281$
\n
Employee
\n
benefits
\n
Litigation Other Total
\n
Balance at January 1, 2021
\n
545$ 1,017$ 21$ 1,583$
\n
Provisions recognized
\n
300 - 90 390
\n
Provisions utilized
\n
\n
\n
(279)
\n
\n
\n
-
\n
\n
\n
(51)
\n
\n
\n
(330)
\n
Provisions released
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
(33)
\n
\n
\n
(33)
\n
Differences arising from foreign exchange
\n
(15) (95) (1) (111)
\n
Balance at December 31, 2021
\n
551 922 26 1,499
\n
Provisions recognized
\n
591 - 62 653
\n
Provisions utilized
\n
\n
\n
(385)
\n
\n
\n
(493)
\n
\n
\n
(63)
\n
\n
\n
(941)
\n
Differences arising from foreign exchange
\n
(8) 38 - 30
\n
Balance at December 31, 2022
\n
749$ 467$ 25$ 1,241$
\n
\n
Employee benefits
\n
Current employee benefits are paid time off for vacations and sick time earned but not yet used by
\n
the employee. Non-current employee benefits include severance pay, which is the cost associated
\n
with the severance packages as described below:
\n
The subsidiary employee provisions by country are as follows:
\n
Nicaragua
\n
The Nicaraguan Labor Code established a severance payment plan for employees in the event of
\n
death, retirement or dismissal without just cause. This compensation is determined according to
\n
employee length of service. The plan compiles a month of salary for each labor year (for the first
\n
three labor years) and twenty days of salary after the fourth labor year, until the compensation
\n
reaches a maximum of five months\u2019 salary. Compensation cannot be less than one month\u2019s salary
\n
or more than five months\u2019 salary.
\n
The amount of $749,000 (2021- $551,000) includes $471,000 of retirement benefit obligations.
\n
For determination of the retirement benefit obligations in 2022 and 2021, the following actuarial
\n
assumptions were used:
\n

\n\n
2022 2021
\n
Discount rates
\n
7.87% and 8.01% 9.33% and 10.26%
\n
Expected rate of salary increases
\n
0.01 0.02
\n
Staff turnover
\n
5 and 7 years 5 and 8 years
\n
\n
The Group records a monthly provision as an expense to the respective period to cover any
\n
severance payment reimbursement incurred by the Group to terminated employees under this plan.
\n
As of December 31, 2022, the Group has recorded provisions amounting to $334,000 (2021 -
\n
$110,000), which represents Management\u2019s best estimate of the liability. This is an accrual under
\n
Nicaraguan law and is not a pension scheme.
\n
Additionally, the other countries in which the Group operates have various severance requirements
\n
as described in Note 3. The severance requirements are classified as long term. The short-term
\n
employee benefits are primarily accrued vacation payable to employees.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag378": { "value": "\n

\n

\n\n

\n

\n\n
19. SHARE CAPITAL AND RESERVES
\n
A majority of the Group\u2019s shareholders voted in favor of continuing the Group\u2019s charter from the
\n
Yukon, Canada to the British Virgin Islands (\u201cBVI\u201d). The Group formally continued its corporate
\n
charter into the BVI effective October 6, 2006 and filed \u201cdiscontinuation documents\u201d with the
\n
Yukon Registrar. Holders of common shares are entitled to one vote for each share held. There are
\n
no restrictions that limit the Group\u2019s ability to pay dividends on its common stock. The Group has
\n
not issued preferred shares. The Group\u2019s common stock has no par value.
\n
Number of
\n
shares
\n
Share capital
\n
($USD in 000's)
\n
Shares authorized
\n
500,000,000 common shares without par value
\n
500,000,000 preferred shares without par value
\n
Shares issued
\n
Balance as at December 31, 2020 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2021 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2022 30,914,077 111,757$
\n

\n\n
\n\n
Options
\n
The Group, through its Board of Directors and shareholders, adopted two Stock Option Plans, the
\n
first on July 1, 1997, and the second on June 25, 2005. Both plans will continue separate and apart
\n

\n\n

\n\n

\n\n

\n\n

\n\n
from one another. The Group has granted a number of stock options and entered into various
\n
agreements of which up to no shares remain available for purchase pursuant to options granted
\n
under these plans. All of the stock options issued under these plans are nontransferable and
\n
terminate on the earlier of the expiry date or 30 days after the grantee ceases to be employed by the
\n
Group.
\n
Stock option plan I dated July 1, 1997 and Stock option plan II dated June 25, 2005
\n
Options granted under these plans were awarded by the Board of Directors at its sole discretion to
\n
select Directors and employees. The options granted to the option holder may be exercised in whole
\n
or in part at any time, or from time-to-time during the exercise period. The options may lapse due
\n
to time limitations, death or change in employment status. The price at which an option holder may
\n
purchase a share upon the exercise of an option, shall be set forth in the option certificate, but not
\n
less than the market value of the Group shares as of the award date. Option grants have ceased
\n
under both plans as of November 19, 2007.
\n
2007 Equity incentive plan dated November 20, 2007 (amended in August 2009)
\n
The 2007 Equity Plan was amended in 2009 to authorize the Directors, at their discretion, to award
\n
grants in an aggregate amount of up to 5% of the Company issued and outstanding shares. Our
\n
2007 Equity Incentive Plan (the \u201c2007 Equity Plan\u201d) is designed to enable us and our affiliates to
\n
obtain and retain the services of the types of employees, consultants and directors who will
\n
contribute to our long-term success and to provide incentives that are linked directly to increases
\n
in share value which will inure to the benefits of all of our shareholders. We have reserved up to
\n
5% of our current issued and outstanding common shares, as of any given date, for the issuance of
\n
shares, which may be awarded under such Equity Plan.
\n
There are no outstanding options as of December 31, 2022.
\n

\n\n
Currency translation reserve
\n
The translation reserve represents the foreign currency translation differences arising from the
\n
translation of our subsidiary financial statements into United States dollars.
\n
Retained earnings / (loss)
\n
Retained earnings / (loss) are the accumulated retained profits and/or losses.
\n
Share options reserve
\n
The Group issues equity-settled share-based payments to certain employees and Directors. For all
\n
share-based payment arrangements granted, an expense is recognized in profit or loss with a
\n
corresponding credit to equity. The fair value of share options is expensed over the vesting period
\n
of the options, based on an estimate of the number of shares that will eventually vest, and adjusted
\n
for the effect of non-market-based vesting conditions. The corresponding credit is taken to the share
\n
options reserve. The fair value is calculated using the Black-Scholes pricing model.
\n

\n\n
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag380": { "value": "\n

\n

\n\n
19. SHARE CAPITAL AND RESERVES
\n
A majority of the Group\u2019s shareholders voted in favor of continuing the Group\u2019s charter from the
\n
Yukon, Canada to the British Virgin Islands (\u201cBVI\u201d). The Group formally continued its corporate
\n
charter into the BVI effective October 6, 2006 and filed \u201cdiscontinuation documents\u201d with the
\n
Yukon Registrar. Holders of common shares are entitled to one vote for each share held. There are
\n
no restrictions that limit the Group\u2019s ability to pay dividends on its common stock. The Group has
\n
not issued preferred shares. The Group\u2019s common stock has no par value.
\n
Number of
\n
shares
\n
Share capital
\n
($USD in 000's)
\n
Shares authorized
\n
500,000,000 common shares without par value
\n
500,000,000 preferred shares without par value
\n
Shares issued
\n
Balance as at December 31, 2020 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2021 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2022 30,914,077 111,757$
\n

\n\n
\n\n
Options
\n
The Group, through its Board of Directors and shareholders, adopted two Stock Option Plans, the
\n
first on July 1, 1997, and the second on June 25, 2005. Both plans will continue separate and apart
\n

\n\n

\n\n

\n\n
from one another. The Group has granted a number of stock options and entered into various
\n
agreements of which up to no shares remain available for purchase pursuant to options granted
\n
under these plans. All of the stock options issued under these plans are nontransferable and
\n
terminate on the earlier of the expiry date or 30 days after the grantee ceases to be employed by the
\n
Group.
\n
Stock option plan I dated July 1, 1997 and Stock option plan II dated June 25, 2005
\n
Options granted under these plans were awarded by the Board of Directors at its sole discretion to
\n
select Directors and employees. The options granted to the option holder may be exercised in whole
\n
or in part at any time, or from time-to-time during the exercise period. The options may lapse due
\n
to time limitations, death or change in employment status. The price at which an option holder may
\n
purchase a share upon the exercise of an option, shall be set forth in the option certificate, but not
\n
less than the market value of the Group shares as of the award date. Option grants have ceased
\n
under both plans as of November 19, 2007.
\n
2007 Equity incentive plan dated November 20, 2007 (amended in August 2009)
\n
The 2007 Equity Plan was amended in 2009 to authorize the Directors, at their discretion, to award
\n
grants in an aggregate amount of up to 5% of the Company issued and outstanding shares. Our
\n
2007 Equity Incentive Plan (the \u201c2007 Equity Plan\u201d) is designed to enable us and our affiliates to
\n
obtain and retain the services of the types of employees, consultants and directors who will
\n
contribute to our long-term success and to provide incentives that are linked directly to increases
\n
in share value which will inure to the benefits of all of our shareholders. We have reserved up to
\n
5% of our current issued and outstanding common shares, as of any given date, for the issuance of
\n
shares, which may be awarded under such Equity Plan.
\n
There are no outstanding options as of December 31, 2022.
\n

\n\n
Currency translation reserve
\n
The translation reserve represents the foreign currency translation differences arising from the
\n
translation of our subsidiary financial statements into United States dollars.
\n
Retained earnings / (loss)
\n
Retained earnings / (loss) are the accumulated retained profits and/or losses.
\n
Share options reserve
\n
The Group issues equity-settled share-based payments to certain employees and Directors. For all
\n
share-based payment arrangements granted, an expense is recognized in profit or loss with a
\n
corresponding credit to equity. The fair value of share options is expensed over the vesting period
\n
of the options, based on an estimate of the number of shares that will eventually vest, and adjusted
\n
for the effect of non-market-based vesting conditions. The corresponding credit is taken to the share
\n
options reserve. The fair value is calculated using the Black-Scholes pricing model.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag376": { "value": "\n
19. SHARE CAPITAL AND RESERVES
\n
A majority of the Group\u2019s shareholders voted in favor of continuing the Group\u2019s charter from the
\n
Yukon, Canada to the British Virgin Islands (\u201cBVI\u201d). The Group formally continued its corporate
\n
charter into the BVI effective October 6, 2006 and filed \u201cdiscontinuation documents\u201d with the
\n
Yukon Registrar. Holders of common shares are entitled to one vote for each share held. There are
\n
no restrictions that limit the Group\u2019s ability to pay dividends on its common stock. The Group has
\n
not issued preferred shares. The Group\u2019s common stock has no par value.
\n
Number of
\n
shares
\n
Share capital
\n
($USD in 000's)
\n
Shares authorized
\n
500,000,000 common shares without par value
\n
500,000,000 preferred shares without par value
\n
Shares issued
\n
Balance as at December 31, 2020 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2021 30,914,077 111,757$
\n
Share based payments - -
\n
Balance as at December 31, 2022 30,914,077 111,757$
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag377": { "value": "\n
Options
\n
The Group, through its Board of Directors and shareholders, adopted two Stock Option Plans, the
\n
first on July 1, 1997, and the second on June 25, 2005. Both plans will continue separate and apart
\n

\n\n
from one another. The Group has granted a number of stock options and entered into various
\n
agreements of which up to no shares remain available for purchase pursuant to options granted
\n
under these plans. All of the stock options issued under these plans are nontransferable and
\n
terminate on the earlier of the expiry date or 30 days after the grantee ceases to be employed by the
\n
Group.
\n
Stock option plan I dated July 1, 1997 and Stock option plan II dated June 25, 2005
\n
Options granted under these plans were awarded by the Board of Directors at its sole discretion to
\n
select Directors and employees. The options granted to the option holder may be exercised in whole
\n
or in part at any time, or from time-to-time during the exercise period. The options may lapse due
\n
to time limitations, death or change in employment status. The price at which an option holder may
\n
purchase a share upon the exercise of an option, shall be set forth in the option certificate, but not
\n
less than the market value of the Group shares as of the award date. Option grants have ceased
\n
under both plans as of November 19, 2007.
\n
2007 Equity incentive plan dated November 20, 2007 (amended in August 2009)
\n
The 2007 Equity Plan was amended in 2009 to authorize the Directors, at their discretion, to award
\n
grants in an aggregate amount of up to 5% of the Company issued and outstanding shares. Our
\n
2007 Equity Incentive Plan (the \u201c2007 Equity Plan\u201d) is designed to enable us and our affiliates to
\n
obtain and retain the services of the types of employees, consultants and directors who will
\n
contribute to our long-term success and to provide incentives that are linked directly to increases
\n
in share value which will inure to the benefits of all of our shareholders. We have reserved up to
\n
5% of our current issued and outstanding common shares, as of any given date, for the issuance of
\n
shares, which may be awarded under such Equity Plan.
\n
There are no outstanding options as of December 31, 2022.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag383": { "value": "\n
20. EARNINGS PER SHARE
\n
The following weighted average numbers of shares were used for computation of earnings per
\n
share:
\n
2022
\n
2021
\n
Shares used in computation of basic loss per share
\n
(000's)
\n
30,914 30,914
\n
Shares used in computation of diluted loss per share
\n
(000's)
\n
30,914 30,914
\n
Earnings / (loss) for the period attributable to the parent 5,311$ (632)$
\n
Basic earnings / (loss) per share 0.17 (0.02)
\n
Diluted earnings / (loss) per share 0.17 (0.02)
\n
\n
Basic earnings per share is calculated by dividing the net gain for the year by the weighted average
\n
shares used in the computation of basic earnings per share. Diluted earnings per share is calculated
\n
by dividing the net gain for the year by the weighted average shares used in the computation of
\n
diluted earnings per share.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag381": { "value": "0.17", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "Tag375": { "value": "-0.02", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:984500C784DD41E4AC47", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "Tag373": { "value": "\n
21. RELATED PARTY TRANSACTIONS
\n
2022 2021
\n
Current Non-Current Current Non-Current
\n
Due from related parties
\n
Nicaraguan Partners -$ 42$ -$ 42$
\n
Costa Rican Joint Venture 2,085 - 2,038 -
\n
Trans actions with officers - 391 - 381
\n
2,085$ 433$ 2,038$ 423$
\n
Due to related parties
\n
Nicaraguan Partners 208$
\n
-$
\n
219$
\n
-$
\n
Trans action with officers 1,453
\n
-
\n
1,767
\n
-
\n
1,661$ -$ 1,986$ -$
\n

\n\n

\n
Due from related parties
\n
Receivables from joint ventures and related party receivables
\n
The Group charges management, marketing, administration and royalty fees to its subsidiaries and
\n
joint ventures. The income and expenses associated with management fees between subsidiaries
\n
have been eliminated in their entirety in these consolidated financial statements. The related party
\n
receivable represents amounts due from the Group\u2019s partners in its non-wholly owned subsidiaries.
\n
All receivables are non-interest bearing and are due on demand by the Group. The Group has not
\n
provided for an allowance against these amounts as these amounts are deemed collectible by the
\n
Group.
\n
Included in due from related parties is $2,085,000 (2021 \u2013 $2,038,000) due from our Costa Rica
\n
joint ventures which are accounted for under the equity method, these receivables are non-interest
\n
bearing and are due on demand by the Group. Balances will be settled upon the sale of certain real
\n
estate in Costa Rica. Additionally, $42,000 (2021 \u2013 $42,000) is due from a shareholder in the
\n
Nicaraguan operation for their portion of the loan attributed to the purchase of the majority interest
\n
in Nicaragua in October 2004.
\n
Included in due from related parties are loans to officers for $391,000 (2021 - $381,000). The
\n
amounts due from officers is as follows: Albert Atallah $248,000 ($225,000 plus $23,000 accrued
\n
interest); Peter LeSar $143,000 ($125,000 plus accrued interest $18,000).
\n
Due to related parties
\n
Payable to joint ventures and related party payables
\n
Included in due to related parties are amounts due to the Group\u2019s Nicaraguan partners $208,000
\n
(2021 \u2013 $219,000) for their portion of the accrued, but not yet paid management fees from the
\n
Nicaraguan entity.
\n
Included in due to related parties are accrued wages owed to the Groups\u2019 officers and directors
\n
totaling $1,453,000 (2021 \u2013 $1,767,000). The amounts owed are as follows: Salomon Guggenheim
\n
545,000 (2021 - $612,000); Peter LeSar $507,000 (2021 - $550,000); Albert Atallah $400,000
\n
(2021 - $419,000). There are $1,000 (2021 - $186,000) owed to directors as of December 31, 2022.
\n\n
Transaction with Officers and Directors included within borrowings
\n
Salomon Guggenheim, who previous to the middle of 2013 only held the roles of Director and
\n
advisor to the Group, is a director and not a beneficial owner in a company called India Ltd. The
\n
Group has been loaned various amounts by India Ltd. Please see Officer related party in the table
\n
below for amount due and interest paid to India Ltd. during 2022 and 2021.
\n

\n\n

\n\n
\n\n
2022 2021
\n
Amount due Interest paid Amount due Interest paid
\n
Country
\n
Officer related party Corporate 1,372 - 1,259 -
\n
Total 1,372$ -$ 1,259$ -$
\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag379": { "value": "\n

\n
22. OBLIGATIONS UNDER OPERATING LEASES, FINANCE LEASES
\n
AND HIRE PURCHASE CONTRACTS
\n
Obligations under finance leases and hire purchase contracts
\n
The Groups Nicaragua subsidiary has leases for four casino properties and related parking areas,
\n
two residential properties. The lease liabilities are secured by the related underlying assets. As at
\n
December 31, 2022, future minimum lease payments under leases and hire purchase contracts of
\n
the Group are as follows:
\n
Future commitments due
\n
December 31, 2022
\n
Future commitments due
\n
December 31, 2021
\n
Minimun Lease
\n
Payments
\n
Present value
\n
Minimun Lease
\n
Payments
\n
Present value
\n
Not longer than one year 1,353$ 877$ 1,223$ 633$
\n
After one year but not more than five years 3,567 2,558 4,268 2,854
\n
After five years 867 684 1,503 1,192
\n
Sub total 5,787 4,119 6,994 4,679
\n
Present value of minimum lease payments 5,787$ 4,119$ 6,994$ 4,679$
\n
Obligations under leases and hire purchase
\n
contracts current
\n
(877)$ (633)$
\n
Obligations under leases and hire purchase
\n
contracts non-current
\n
3,242$ 4,046$
\n
\n
Assets held under finance leases and hire purchase contracts as of December 31, 2022 and
\n
December 31, 2021:
\n
2022
\n
2021
\n
Cost Amortized cost Cost Amortized cost
\n
Right-of-use assets 4,822 2,729 4,964 3,261
\n
Total 4,822$ 2,729$ 4,964$ 3,261$
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag374": { "value": "\n

\n\n

\n\n
23. COMMITMENTS AND CONTINGENCIES
\n
As at December 31, 2022, principal payments required under the terms of the loan agreements and
\n
their liabilities in each for the next five years are as follows:
\n
Year ending December 31:
\n
2023
\n
8,764$
\n
2024
\n
293
\n
2025
\n
-
\n
2026
\n
-
\n
2027
\n
-
\n
Thereafter
\n
-
\n
Subtotal
\n
9,057
\n
Less: Debt issuance costs
\n
-
\n
9,057$
\n
\n
Set out below is an overview of our ongoing contingencies, many of which are as a result of
\n
regulatory uncertainty. An estimate of the financial effect of each contingency is disclosed unless
\n
a reasonable estimate of the financial effect cannot be made.
\n
a. Peru tax controversies
\n
Sun Nippon Company S.A.C. - \u201ccoin-in case\u201d:
\n
In October of 2017, the Group announced the sale of certain operation in Peru including those
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held by a company named Sun Nippon Company, S.A.C. \u201cSNC\u201d. As part of the sale of those
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operations, the purchaser agreed that irrespective of the transfer of the SNC Shares,
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Thunderbird will have the right to continue with the defense of certain tax refund case (the
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\u201cSun Nippon Coin In Case\u201d), initiated by SNC before the Peruvian Judicial Court of Justice,
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against a decision of the Peruvian Administrative Tax Court of January 2016. The Parties
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agreed that if SNC, under a final decision of the Judiciary receives any monetary refund
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together with any additional compensation for interests, and/or any reimbursement of costs and
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expenses incurred in relation to the same, the Buyer will be obliged to pay to Thunderbird
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within thirty (30) calendar days following its receipt by SNC, an amount equal to the sum so
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received by SNC deducting any applicable withholdings, taxes, commissions, charges, cost,
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or similar that may affect the transfer of such proceeds from SNC to the corresponding Buyer
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and from such Buyer to Sellers, and/or any other deductions that may apply by Law.
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The background of the case is as follows: On or about January 18, 2016, the Peruvian
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Administrative Tax Court (commonly known as the Tribunal Fiscal in Spanish) served a
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negative ruling against the Group\u2019s Peruvian subsidiary operation. The ruling is dated
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December 28, 2015 and covers a tax matter commonly known as the \u201c2006 coin-in case\u201d
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(hereafter \u201cthe December 28, 2016 coin in ruling\u201d. The basis of the negative ruling keyed in on
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whether \u201crevenue\u201d should be based on \u201cnet win\u201d or on \u201ccoin in \u201cas it relates to pre-payment of
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income tax. After the issuance of \u201cthe December 28, 2015 \u201ccoin-in ruling\u201d, Management
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learned that SUNAT had issued a report dated and executed on December 24, 2015 defining
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\u201crevenue\u201d for purposes of the relevant tax issues (hereafter \u201cthe SUNAT Report\u201d). This
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SUNAT report was released to the public on February 18, 2016 and is in reply to a March 18,
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2015 letter of the \u201cSociedad Nacional De Juegos De Azar (SONAJA)\u201d in which SONAJA
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sought clarification from SUNAT on the definition of \u201crevenue\u201d in the \u201c2006 coin-in case\u201d
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(hereafter the \u201cSONAJA Petition\u201d). The SONAJA Petition sought an opinion from SUNAT to
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the effect that the pre-payment of income tax should be based on \u201cnet win\u201d and not on \u201ccoin-
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in\u201d. The SUNAT report opines that the pre-payment of income tax should be based on \u201cnet
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win\u201d and not on \u201ccoin-in\u201d. According to the Group\u2019s tax counsel, this SUNAT report is 100%
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legally binding on SUNAT, meaning that SUNAT will no longer audit and oppose the
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calculation of revenue based on \u201ccoin-in\u201d as it relates to the pre-payment of income tax. The
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clear conclusion by the outside counsel is that SUNAT recognizes the \u201cnet win\u201d as base for the
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calculation of the income tax.
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Unfortunately, in spite of the February 18, 2016 SUNAT report, Management must continue
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its appeal of the Tribunal resolutions in the SNC 2006 coin-in case. SNC has filed its appeal
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on March 23, 2016, in this matter to the judicial court in which it could review the entire tax
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case on a \u201cde novo\u201d basis, meaning that SNC will have the opportunity to present its case in
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full and most likely prevail on appeal in its position. One significant and material factor in the
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Tribunal negative ruling is that the tribunal did not take into account the main defenses that
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SNC presented but chose to ignore those defenses. While the Appeal was pending, SNC
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proceeded to pay the entire tax liability and is now seeking a refund of all taxes paid, in case
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SNC prevail on its case. On April 28, 2017, the 1st instance Court gave a decision in favor of
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SNC. Both SUNAT and the Tribunal Fiscal have appealed the decision before the Superior
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st
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Tribunal. On October 18, 2017, the Superior Tribunal confirmed the decision of the 1
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Instance
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Court in favor of SNC. On November 22, 2017, both SUNAT and the Tribunal Fiscal filed a
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so-called cassation writ before the Supreme Court, last and definitive instance. However,
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SUNAT has withdrawn its cassation writ, meaning SUNAT is no longer appealing or otherwise
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challenging the Lower Court\u2019s decision in favor of SNC. The Tax Court has not filed a
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withdrawal. And now, on September 6, 2021 the Supreme Court has served a formal resolution
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that Tribunal Fiscal\u2019s cassation writ has been formally accepted, meaning that that the Supreme
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Court would analyze the substance of the matter and eventually issue the definitive resolution
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(in third and last instance). As part of the Judicial procedure, a hearing took place on March
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31, 2022, in which the Parties had the opportunity to expose to the judges their positions in a
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verbal matter. On June 2022, the Supreme Court (third and last Judiciary instance) served the
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ruling through which it recognized that SUNAT\u00b4s assessment (confirmed by the Tax Court)
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was groundless. As stated above, at the time the Peru operations were sold the Group and the
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Purchaser agreed that if SNC, under a final decision of the Judiciary receives any monetary
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refund together with any additional compensation for interests, and/or any reimbursement of
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costs and expenses incurred in relation to the same, the Buyer will be obliged to pay to
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Thunderbird within thirty (30) calendar days following its receipt by SNC, an amount equal to
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the sum so received by SNC deducting any applicable withholdings, taxes, commissions,
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charges, cost, or similar that may affect the transfer of such proceeds from SNC to the
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corresponding Buyer and from such Buyer to Sellers, and/or any other deductions that may
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apply by Law. During the year ended December 31, 2022, SNC received an approximate of
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US$ 1,642,713 as monetary refund as detailed in Note 5 and was remitted to the Group as had
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been agreed.
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Thunderbird Hoteles Las Americas, S.A. \u2013 Tax issues: In the latter part of 2011, the Group\u2019s
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wholly owned Peruvian subsidiary, Thunderbird Hoteles Las Americas, S.A. (\u201cTHLA\u201d),
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received the following resolutions issued by the Peruvian tax authority, Superintendencia
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Nacional de Administraci\u00f3n Tributaria (\u201cSUNAT\u201d), in relation to various major tax issues
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(*note: all interest mentioned in the following description have been calculated up to
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September 30, 2020).
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By Resolution no. 0120030026291 for the tax year 2007 the tax authorities imposed an income
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tax of S/. 558,950 plus interest of S/. 703,176 (amounts in US$139,807, interests: US$184,077)
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due to a rejection of certain deductions in 2007 for interest payments made to lenders/investors
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domiciled abroad on certain loans and investments. In addition, the tax authorities imposed a
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fine in relation to this resolution in the amount of S/. 279,474 plus interest of S/. 402,870
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(amounts in US$73,161, interest: US$105,463).
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In another Resolution no. 0120020018846 for the tax year 2007 the tax authorities denied
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certain tax credits in favor of THLA related to IGV of the purchase of the hotels for an amount
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of S/. 3,245,168 plus interest of S/. 4,442,733 (amounts in US$849,520, interest
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US$1,163,019).
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On November 21, 2011, THLA filed an administrative appeal with respect to the resolutions
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no. 0120030026291 and no. 0120020018846 On March 23, 2012, THLA was notified through
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a SUNAT resolution that the tax authority confirmed the resolutions as described herein.
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THLA thereafter filed an appeal on April 12, 2012.
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The tax authorities issued another \u201cResolution of Intendance no. 0150140010152\u201d which
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involves both of the 2007 prior mentioned tax assessments related to IGV (Resolution
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0120020018846) and Income Tax (Resolution 0120030026291). On October 12, 2019 a
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hearing took place before the Tax Court, which is the second and last administrative challenge
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in regards to this matter.
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In Relation with the income tax resolution, THLA has recently been served with the Resolution
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N\u00b0 11395-4-2021 through which the Tax Court has confirmed SUNAT\u2019s decision. A provision
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was made for this case in where the Group\u2019s chances of success were low. The provision
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recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As of
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December 31, 2022, the assessed amounts were duly paid by THLA.
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In relation with the IGV Resolution N\u00b0 11395-4-2021, the Tax Court has ruled that it has no
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legal grounds.
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In respect to all of these resolutions issued by the tax authorities, Management intends to
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vigorously defend its position at all administrative and judicial levels. The Group is not
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responsible for payment until the administrative and judicial process decisions are final with
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no further rights of appeal. However, interest on these resolutions continues to accrue while
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the administrative and judicial process is completed and a final decision is rendered. As a result
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of the on-going uncertainty over the potential outcome of this matter no provision has been
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recorded.
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On a separate matter, the company has filed an appeal procedure in a ruling by the Tax Court
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(Tax Court File 15182-2014), related to Resolutions 0220030035681-0220030035690 for the
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tax year 2008 referred to withholdings of payments made abroad in a total principal amount of
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S/. 257,954 plus interest in a total of S/. 317,825 (amounts in US$ 67,527, interest: US$83,200).
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In separate Resolutions 0220020013107-0220020013114 the tax authorities issued fines
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related to the prior mentioned resolutions in the amount of S/.107,530 plus interest in a total of
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S/.134,033 (amounts in US$28,149 interest: US$35,087). A provision has been recognized in
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connection with the resolution above totaling S/. 843,741 (US$220,875) including tax,
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penalties and interest.
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The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008
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related to payments in advance of the income tax for a total amount of S/. 45,337 plus interest
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in a total of S/. 49,585 (amounts in US$11,868, interest: US$12,980). Resolutions
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0220020013229-0220020013238 imposed fines related to the prior mentioned resolutions for
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the amount in total of S/. 381,969 plus interest in a total of S/. 456,403 (amounts in US$99,992,
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interest: US$119,477). Through Resolution N\u00b0 7826-11-2022 (served on November 18, 2022)
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the Tax Court has solved the tax proceeding related to 2008 Income Tax. The Tax Court has
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confirmed the tax debt related to (i) Income Tax Retained in 2008 for interest on loans from
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related parties; (ii) payments on account of Income Tax for the year 2008 and (iii) income tax
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for 2008 (deduction of interest not recorded in the accounts). A provision was made in
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connection with the above resolution for a total of S/. 940,923 (US$246,315) including tax,
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penalties and interest. The relevant tax debt assessed in this case was duly paid in Q1 2023.
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Through Intendancy Resolution 0250140020952, SUNAT issued a 2013 IGV assessed tax debt
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amounting S/. 1,013,295.00. This tax debt was originated as a consequence of SUNAT\u2019s 2007
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IGV assessment which The Tax Court already confirmed as null, revoking it. Through
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resolution 11390-4-2019 the Tax Court has ruled that the result of this procedure depends on
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the result of 2007 process, which has been already declared in favor of the Company.
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Considering that the Tax Court has already dismissed 2007 IGV tax assessment (resolution
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11395-4-2021), it is more than likely that the 2013 tax debt will be also revoked.
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Thunderbird Hoteles Las Americas, S.A. \u2013 \u201cAlcabala\u201d (Property Transfer Tax) process: On
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September 25, 2007, THLA received a notification in connection with a resolution issued by
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the Tax Administration Service (SUNAT) demanding payment of US$ 522,824.68 (S/.
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1,969,742) for a property transfer tax resulting from the purchase of the land and the building
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located at Alcanfores 475, Miraflores. SUNAT asserted that THLA wrongly calculated the tax
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on the first-time sale of such property (sold by La Caja Militar to THLA).
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On October 24, 2007, THLA filed an appeal against the resolution issued by SUNAT. THLA
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asserts that it had paid the corresponding property transfer tax for the land, as well as the VAT
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for a part of the building. THLA argues that the property transfer tax was not paid for part of
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the building as the sale of such part of the building was a first-time sale performed by the
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contractor and was exempt from tax. On October 17, 2014, the Tax Court ruled that the
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resolution issued by the SUNAT was void as it had not been properly supported (such
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resolution did not specify the reasons why the SUNAT considered that the total of the transfer
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was subject to property transfer tax).
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On March 12, 2015, SUNAT issued a new resolution in respect of the same issues, but provided
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no additional evidentiary support for its position. SUNAT\u2019s new resolution (Resolution N\u00ba 045-
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012-00073684), demanded the payment of the property transfer tax for the same land and the
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same building for a total of S/. 1,052,993 (including interests and penalties). THLA argued
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once again that the resolution issued by SUNAT lacks the proper supporting documentation.
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SUNAT claims that THLA must pay the property transfer tax but does not explain the legal
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basis supporting such standpoint.
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On April 13, 2015, THLA filed its opposition against Resolution N\u00ba 045-012-00073684
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asserting that THLA was not required to pay any property transfer tax and requesting that the
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new resolution be declared void as it lacked proper support. Such claim is currently under
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review. THLA contends that it is probable that the Tax Court, for a second time, will declare
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such resolution to be void. The opposition writ is pending a ruling by the Municipal
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Administration (1st administrative instance). Should the opposition writ be rejected, THLA is
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entitled to file an appeal writ before the Tax Court (second administrative instance).
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b. Costa Rica tax controversies
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By way of background, the income tax in Costa Rica is collected by the General Income Tax
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Office. The Group previously owned various Costa Rica subsidiaries including, Thunderbird
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Gran Entretenimiento, S.A. (\u201cTGE\u201d), and Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d).
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On February 27, 2015, the Group sold its entire economic interest and management rights in
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its Costa Rican operations (of which the Group had approximately a 50% share) to CIRSA
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International Gaming Corporation (\u201cCIRSA\u201d), for a net price (gross price less debt payoff less
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working capital adjustments) of approximately $8.1 million. The $8.1 million net amount
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received was also net of approximately $192 thousand contingent tax liability paid by the group
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to the Costa Rica tax authority to cover GTCR contested tax liability and for the approximate
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$3.088 million TGE contested tax liability paid to the Costa Rica tax authority. These contested
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tax liabilities are fully described below. These payments to the Costa Rican tax authority were
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required to be paid as a condition to closing the sale of the Group\u2019s interest in the Costa Rica
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operation. The payment made by the Group and its partner was made without prejudice or
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admission of liability and therefore, does not alter the Group\u2019s position of taking a provision
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for these contingent taxes in 2014.
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Following the sale of the Costa Rica operations, and as part of the Group\u2019s commitment on the
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sale of the operations, TGE continued to be engaged in a certain tax procedure while GTCR
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ended up settling its tax controversy through an amnesty procedure. In addition, the Group\u2019s
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50% ownership in King Lion Network is engaged in a tax controversy as described below. The
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following sections describe the current status/outcome of these three tax controversies:
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(i) TGE received a proposed income tax assessment in Q1-2012 of $600 thousand for the tax
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year ended December 31, 2009, and a proposed tax assessment of $800 thousand for the
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tax year ended December 31, 2010. Additional gaming taxes of $200 thousand were
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assessed for each tax year ended December 31, 2009 and 2010. The assessments for both
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tax years were related to certain expenses which were deemed to be non-allowable
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deductions by the General Income Tax Office and for the imputation of interest income on
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intercompany advance balances. These matters were appealed to the Tribunal Fiscal
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Administrative (\u201cTFA\u201d) during Q3 and Q4 of 2012. On January 16, 2013, the Group was
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advised that the Administrator Tribunal Appeal was denied in regards to the TGE tax
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matter. The Group filed a lawsuit at the Court level in August 2014 to revoke the tax
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assessment. In February 2015, the Group paid the tax authorities $3.088 million on the
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alleged tax liability. The payment to the Costa Rican tax authority was required to be paid
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as a condition to closing the sale of the Group\u2019s interest in Costa Rica to CIRSA, as
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described below. The payment made by the Group was made without prejudice or
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admission of liability. The preliminary hearing of the case was heard in June 2015 and the
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Administrative file is being reviewed by the Court. A trial date was set for June 2018. The
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Group continues with the judicial procedure and its claim to revoke the tax assessment so
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TGE could recover a portion of the payment over time. In relation to this, Cirsa Gran
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Entretenimiento de Costa Rica, S.A. (formerly TGE) filed an administrative procedure
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against the Tax Authority before the Administrative Court contested the legality of certain
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Administrative Resolutions of the Direction of Great National Tax Payers of Costa Rica
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and the Fiscal Tribunal. There was a hearing on this case in June 2018. The Administrative
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Court rendered a judgment (number 62-2018-VIII) against TGE on July 12, 2018. TGE
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filed an appeal on August 7, 2018 in the First Chamber of the Supreme Court in respect of
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the only remaining issue for this controversy case, which is the legal fees to be charged
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against the taxpayer TGE for failing to prevail in the lawsuit. The legal fees are
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approximately $310,000 and the tax appeal is pending.
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(ii) GTCR received a proposed tax assessment in the approximate amount of $340 thousand
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for the tax year ending December 31, 2011, related to certain expenses which were deemed
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to be non-allowable deductions by the General Income Tax Office and for the imputation
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of interest income on intercompany advance balances. A penalty resolution is still pending
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to be released by the TFA, which comprises an amount equal to 25% of the tax assessment
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or $113 thousand. The Tax counsel for GTCR advises that the exposure on taxes and
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penalties is significantly less than the proposed assessment. The amount of the non-
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allowable expenses was 36,960,675 colones or USD$61,280. The GTCR objections were
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not resolved, but under a recent change to Costa Rica tax law, (Tax Law number 9635
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taxpayers may take advantage of a tax amnesty, in which the principal could be paid
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without interest with a 60% reduction of the fine. GTCR filed for the tax amnesty and
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closed the tax inspection procedure for the year 2011. The amounts paid were 11,088,202
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colones (USD$18,384) in principal, and 1,108,820 colones (USD$1,838) for the fine.
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(iii) The Costa Rica Tax authorities have assessed a tax against King Lion Network for the tax
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year 2011 for approximately 17.2 million colones (or $30 thousand) representing tax and
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interests due the non-recognition of the interests paid for the purchase of the shares related
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to the Tres Rios Project. The Company presented the appeal to this assessment on time
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and the case remains pending.
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c. Costa Rica-CIRSA Escrow claim
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In a related matter to the San Diego Federal District Court action, in February 2015, the Group
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had previously consummated Stock Purchase Agreement (SPA) in which CIRSA acquired the
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shares of Grupo Thunderbird De Costa Rica from Thunderbird Resorts Inc. (TRI) and Angular
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Investments S.A. The SPA provided that a certain portion of the monies to be paid by CIRSA
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to TRI/Angular were to be held in escrow pursuant to the SPA. In February 2015, CIRSA
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delivered $2,125,000, to the Escrow Agent (the \u201cEscrow Amount\u201d) in accordance with the
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terms and conditions of the SPA. The Escrow Agreement provided for a claims procedure by
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which certain claims could be made by third parties/tax authorities, vendors to be paid from
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the Escrow. In December 2017 and in March 2018, ZIMMER AND FOX as employees of
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GTCR filed certain claims against CIRS, GTCR and TRI. TRI position is that ZIMMER AND
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FOX are now claiming in bad faith that they are is entitled to a series of labor rights. The SPA
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and all related documents support the fact that ZIMMER AND FOX as a \"seller shareholder\"
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waived and released any and all claims, rights, etc. that he may have had, including social
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benefits under Costa Rica law. TRI believe ZIMMER AND FOX have waived all his claims
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and therefore their labor claim is without merit. Based on our information and belief, ZIMMER
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intended to file this labor complaint in response to TRI\u2019s actions against him wherein TRI had
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filed the aforementioned lawsuit against ZIMMER in the Federal District Court of San Diego,
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California, Zimmer\u2019s bad faith as he is attempting to retaliate against TRI for the actions that
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TRI has taken against him in the USA litigation. TRI believes that ZIMMER\u2019s claim is without
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merit and ultimately the labor tribunal made a ruling that ZIMMER\u2019S claims against GTCR
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was without merit. In fact, the Costa Rica labor tribunal already ruled against Zimmer.
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Therefore, TRI disputed each of the claims that CIRSA made against the Escrow. The general
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basis for disputing each of CIRSA\u2019s claims, as well as, any claim that Thunderbird Resorts Inc.
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violated the Stock Purchase Agreement dated February 25, 2015 are completely without basis
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in law or in fact. Neither ZIMMER AND FOX are entitled to any payment as set forth in each
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of their respective labor cases. Moreover, TRI position in respect of the issues raised by CIRSA
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and so-called breach of the SPA is that TRI is not jointly and severally liable with Angular,
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Zimmer and Fox. The Fox claim which has not been served on TRI but only against CIRSA
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was filed as a way to place pressure on Thunderbird to help Zimmer in his claim. In addition,
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Fox will lose his claim based on the claim being barred as the statute of limitations will
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foreclose Fox from succeeding in the courts.
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In relation to the Murray Jo Zimmer case, a ruling was issued by the Labor Judge of the 1st
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judicial circuit of San Jose on October 8, 2018, in which the Labor Judge declared that the
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lawsuit filed by Jo Zimmer against Grupo Cirsa de Costa Rica had no legal basis and issued an
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order against Zimmer to pay the costs and expenses of the judicial process. Murray Jo Zimmer
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appealed ruling No. 2080 on October 12, 2018. In June 2022, the 2nd Tribunal of the Supreme
\n
Court ruled the Resolution 2022-001356, which is final and non-appealable, confirming the
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prior decisions against the plaintiff Murray Jo Zimmer.
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In relation to the Michael Fox case, TRI was not served with this labor lawsuit, but in the aim
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of affording evidence and facts to the procedure, it filed voluntarily its response to the labor
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claim before the 2nd Labor Court of San Jose, Costa Rica. A hearing for this case scheduled
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for November 2020, which was suspended on account of the Court\u2019s request to amend certain
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evidence previously received. New hearing date was appointed on October 4th, 2022, but it
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was suspended due the requirement of a professional translator for the plaintiff. Currently both
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parties are awaiting a new hearing date to be appointed by the Labor Court.
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In March of 2020, MMG Bank Corporation notified CIRSA, Thunderbird Resorts Inc. and
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Angular Investments S.A. that MMG Bank Corporation intended to make a disbursement of
\n
$532,906 to Thunder Resorts Inc. and to Angular Investments S.A. pursuant to that certain
\n
Escrow Agreement dated February 25, 2015. CIRSA filed an objection to release of escrow
\n
proceeds on the basis that CIRSA\u2019S objection is based on three sets of factors:(1) Labor Law
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Suit/controversy filed by Murray Jo Zimmer and Michael G. Fox (sometimes collectively
\n
referred to as \u201cZIMMER AND FOX\u201d) against Grupo Cirsa De Costa Rica S.A. in which
\n
ZIMMER AND FOX are seeking an estimated seven million dollars; (2) Certain Labor claims
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filed by \u201cother employees of CIRSA\u201d; (3) Certain Tax Claims filed by the Costa Rica tax
\n
administration against companies sold by Thunderbird Resorts Inc. to CIRSA Thunderbird
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Resorts Inc. disputed each of the claims that CIRSA. The general basis for disputing each of
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CIRSA\u2019s claims as well as any claim that Thunderbird Resorts Inc. violated the Stock Purchase
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Agreement dated February 25, 2015 are completely without basis in law or in fact. Moreover,
\n
TRI\u2019s position in respect of the issues raised by CIRSA and so called breach of the SPA is that
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TRI\u2019s is not jointly and severally liable with Angular, Zimmer and Fox and demanded that the
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escrow proceeds ought to be disbursed solely to Thunderbird. MMG Bank continues to hold
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the escrow proceeds and has not disbursed any part of the aforementioned $532,906.
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d. Canadian tax controversy
\n
Thunderbird Gaming, Inc. (\u201cTGI\u201d), a wholly-owned subsidiary of the Group that has been
\n
inactive since 1996, received notification of a reassessment from the Canada Revenue Agency
\n
(\u201cCRA\u201d) with respect to a transfer of assets in 1996 in relation to the California Indian gaming
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business previously operated by TGI. Specifically, this reassessment stems from a transfer of
\n
assets which CRA contends was undervalued. The reassessment is in the amount of Canadian
\n
dollar (\u201cCDN\u201d) $380 thousand (US $381 thousand at December 31, 2010).
\n
TGI submitted applications to CRA utilizing its net operating loss (\u201cNOL\u201d) in a manner that
\n
reduced the actual tax liability to zero and is taking the position that the valuation of assets was
\n
accurate in order to preserve its NOL. By taking this position, TGI believes it avoids the
\n
imposition of interest on tax, which is the subject of the reassessment.
\n
Further, TGI filed a fairness application with the appropriate Canadian taxing authority
\n
requesting a complete abatement of the alleged interest imposed on the alleged tax liability.
\n
In this filing, management alleges that TGI received unconscionable and egregious treatment
\n
from CRA in addition to experiencing excessive delays in the reassessment process. TGI also
\n
filed an appeal of CRA\u2019s assessment with the tax courts in Canada in which TGI will attempt
\n
to establish that the underlying tax liability should never have been assessed.
\n
The fairness application was rejected and in March 2007, TGI abandoned further appeal to the
\n
tax courts in Canada.
\n
Although the Group believes CRA\u2019s case is without merit, the liability is contained within an
\n
insolvent subsidiary and consequently, even though TGI is responsible for the liability, the
\n
\n\n
\n\n

\n\n
\n\n
\n\n
Group\u2019s parent and subsidiaries have no exposure to the TGI liability. The Group does not
\n
expect that CRA will collect the judgment as TGI is insolvent and therefore there is no accrual
\n
in these consolidated financial statements related to this reassessment.
\n
e. Guatemala Tax cases
\n
The Superintendencia de Administraci\u00f3n Tributaria-SAT (the Guatemalan tax authority) is
\n
attempting to open up Thunderbird de Guatemala, S.A. to a tax audit for 2009 and 2010, which
\n
the Group has been challenging. On March 20, 2017, Thunderbird de Guatemala was notified
\n
of decisions made by the Second Tribunal of Accounts and Controversies, which has decided
\n
over a Recusal Appeal, conceded to be in favor of Thunderbird de Guatemala and an Appeal
\n
for Reversal related to certain documents that the Tax Authority is requesting for the tax years
\n
2008 and 2009 and the company considered time-barred. The Tribunal alleged that the matter
\n
as discussed, related to whether the delivery of certain documents, were or were not legally
\n
required under a statute of limitations. With this decision made, Thunderbird de Guatemala
\n
defense is prepared to present its arguments and challenge the main matter of this case in
\n
relation to the statute of limitations of the Tax Years 2008 and 2009.
\n
In January 2021, the Company was notified that the Court ruled against Thunderbird de
\n
Guatemala in this 2009 tax case. The Company strongly believes in its arguments; specifically,
\n
that the case is time barred. The Company filed an \u201cAmparo\u201d in January of 2021 to continue
\n
defending its position before the Supreme Court and awaits the Court ruling. The writ of
\n
Amparo is generally described as a remedy available to any person whose right to life, liberty
\n
and security is violated or threatened with violation by an unlawful act or omission of a public
\n
official or employee, or of a private individual or entity. Court took knowledge of the Amparo
\n
in June 2021.
\n
In November 2019, the third economic court issued a resolution against the arguments of
\n
Thunderbird de Guatemala in a case related to 2009 tax period for an approximate amount of
\n
$100 thousand. An Administrative Cassation Appeal has been filed in July 2021 before the
\n
Third Economic Court alleging that the judge omitted some of the arguments and facts
\n
presented by Thunderbird de Guatemala. On July 20, 2022, Thunderbird de Guatemala was
\n
served with the Supreme Court Resolution 01002-2021-00644, in which was decided to
\n
maintain the prior decisions against the Company interests. At this instance, no further
\n
challenges are available. A provision has been recognized for an approximate amount of
\n
US$109,000 as described in Note 5.
\n
f. San Diego Federal District Court
\n
In June of 2015, Thunderbird Resorts filed a lawsuit in the Federal District Court, San Diego,
\n
against defendants Murray Jo Zimmer (\u201cZimmer\u201d), Angular Investments Corp. (\u201cAngular\u201d),
\n
Mitzim Properties, Inc. (\u201cMitzim Properties\u201d) Taloma Zulu, S.A., (\u201cTaloma Zulu\u201d) Jack R.
\n
Mitchell, (\u201cMitchell\u201d). The lawsuit alleges breach of fiduciary duty against Zimmer, Angular
\n
and Mitchell; breach of contract against defendant Mitchell; aiding and abetting, breach of
\n
fiduciary duty against Taloma Zulu and Mitzim Properties; fraud Civil RICO 18 U.S.C. \u00a7 1961,
\n
conversion constructive trust and an accounting against defendants Zimmer, Angular and
\n
Taloma Zulu.
\n
\n\n
\n\n

\n\n
\n\n
\n\n
The basis of the various claims and allegations in the lawsuit stem from the following: In 2002,
\n
Thunderbird partnered with Angular to operate casinos and related businesses in Costa Rica.
\n
Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d) was formed by Thunderbird and Angular,
\n
who agreed to split all profits from GTCR on an equal, \u201c50/50\u201d basis. Angular\u2019s principal,
\n
defendant Zimmer, became Thunderbird\u2019s \u201ccountry manager\u201d for its operations in Costa Rica.
\n
Between July 2007 and September 2014, Zimmer caused GTCR to pay over $2 million to
\n
defendant Taloma Zulu. Zimmer reported to Thunderbird\u2019s management that these amounts
\n
were being paid for legal and consulting expenses for GTCR to operate in Costa Rica. Upon
\n
further investigation, Thunderbird now believes and alleges that Zimmer and Mitchell caused
\n
Thunderbird\u2019s 50% share of the amounts paid to Taloma Zulu to be diverted, misappropriated,
\n
embezzled, and/or converted for defendants\u2019 own improper, personal uses. Thunderbird
\n
Resorts is seeking the following relief: awarding Thunderbird the damages it has sustained by
\n
reason of Mitchell, Zimmer et al conduct, and interest thereon as provided by law; awarding
\n
Thunderbird exemplary and/or punitive damages on account of defendants\u2019 willful, wanton,
\n
malicious, and/or oppressive conduct; awarding Thunderbird its costs of suit incurred therein.
\n
Thunderbird Resorts is also seeking the imposition of a constructive trust in favor of
\n
Thunderbird, and against defendants, of the benefits improperly received by defendants and an
\n
order commanding defendants to return to Thunderbird the funds they improperly received by
\n
way of their wrongful conduct. So far, Thunderbird Resorts was successful in having the court
\n
order approximately $420 thousand of the defendants\u2019 funds to be sequestered in the Federal
\n
District Court bank account pending resolution of the case.
\n
In March of 2017, Thunderbird Resorts Inc. obtained a default judgment in the approximate
\n
amount of $659 thousand against co-defendants Angular Investments S.A. and Taloma Zulu.
\n
Simultaneously with Thunderbird Resorts Inc. filing of the San Diego Federal District Court
\n
case, Jack R. Mitchell (\u201cMitchell\u201d), a former employee of Thunderbird, brought an arbitration
\n
claim in Hong Kong under the International Court of Arbitration of the International Chamber
\n
of Commerce against Thunderbird. The amount claimed is not less than $518 thousand. By
\n
way of background, in September 2012, Thunderbird Resorts entered into a settlement with
\n
Mitchell, following his termination from the company. Part of that settlement included a
\n
payment to Mitchell of approximately $1.8 million to be paid in installments over the course
\n
of several years. On or about May 2015, Thunderbird Resorts claimed that Mitchell was in
\n
default of his settlement agreement and stopped payment on the settlement amount. Mitchell
\n
instituted arbitration proceedings in Hong Kong pursuant to the terms of the settlement
\n
agreement.
\n
On September 27, 2017 the International Court of Arbitration of the International Chamber of
\n
Commerce approved its award against Thunderbird Resorts Inc. in the approximate amount of
\n
$518 thousand plus attorney\u2019s fees and costs of approximately $220 thousand. Thunderbird
\n
Resorts intends to pursue all legal challenges to the award including motions for
\n
reconsideration, appeals and challenges to the award.
\n
Thunderbird Resorts made several request to the Arbitrator that the decision in this matter be
\n
delayed pending submittal of further evidence from the related matter Thunderbird Resorts Inc.
\n
vs. Jo Murray Zimmer, Jack R. Mitchell, Angular Investments, S.A, Taloma Zulu, Mitzim case
\n
no. 15CV1304 JAH BGS filed in the United States District Court for the Southern District of
\n
\n\n
\n\n

\n\n
\n\n
\n\n
California in which Mitchell and his co-defendants are being sued for approximately $1.28
\n
million plus punitive damages which may rise to the level of three times the actual damages.
\n
In May of 2017 Jack Mitchell filed a motion to have the claims made against him submitted to
\n
arbitration in Hong Kong alleging that is the proper forum for Thunderbird Resorts claim. In
\n
addition, Angular Investments S.A. filed a motion to set aside the $659 thousand default
\n
judgment. The Court also granted Thunderbird leave to file additional pleadings showing
\n
default damages above $657,975, and Thunderbird submitted additional pleadings showing
\n
damages and interest totaling $825,125. In addition to Angular\u2019s motion to set aside the default
\n
judgment, Angular also filed a motion to dismiss for lack of jurisdiction.
\n
In March 30, 2018, San Diego Federal District Court Judge Houston issued an Order Granting
\n
Defendant Jack Mitchell\u2019s Motion to Compel Arbitration which states in part that:
\n
\u201cThe action is STAYED as to Defendant Mitchell until such arbitration has been held in
\n
accordance with the terms of the agreement as set forth by this order. The parties shall file a
\n
joint status report regarding the progression of Arbitration proceedings no later than
\n
September 28, 2018. The Court addressed the issue of Thunderbird\u2019s counterclaims, which
\n
Thunderbird contended should hav
\n
e been adjudicated by the U.S. Federal District Court,
\n
on pages 6, 7 and 8 of the Order. The Court\u2019s Order states, in relevant part: The Court must
\n
next determine whether the parties intended to arbitrate the issue of waiver. The question of
\n
whether the remaining five causes of action have been waived as to Mitchell u nd er the Release
\n
and Waiver provision (Clause 3.2) of the Settlement Agreement is also a \u201cdispute[], claim[],
\n
[or] controvers[y] between the parties arising out of th[e] Release [and Settlement]
\n
Agreement.\u201d The parties expressly agreed to arbitrate this issue. Therefore, it is for the
\n
arbitrator to decide which claims, or portions thereof, have or have not been waived, based on
\n
the alleged dates of Defendant\u2019s conduct. Accordingly, the Court GRANTS Defendant\u2019s Motion
\n
to Compel Arbitration whether Plaintiff waived its First, Third, Fourth, Fifth, and Sixth causes
\n
of action, or any portion thereof, against Mitchell upon execution of the Settlement Agreement.
\n
(Order, pg. 7:1-10.) Section 9.49 of the Arbitration Award dated September 26, 2017 outlined
\n
the Tribunal\u2019s Findings, stating In pertinent part: \u201cThe Claimant [Mitchell] was not in breach
\n
of the Settlement Agreement.\u201d Although the findings are decisive on the issues raised by
\n
Plaintiff in its Eighth Cause of Action for Breach of Contract, the Tribunal made no findings
\n
as to the issue of waiver. Not having Plaintiff\u2019s counterclaims before it, the Arbitrator declined
\n
to make findings as to the proper interpretation of the release and waiver clause in paragraph
\n
3.2 of the Settlement Agreement, stating:By reason of the Tribuna\u2019's findings in paragraphs
\n
[9.46] and [9.48] that the Claimant has not breached clauses 5 and 6 of the Settlement
\n
Agreement and was not in breach of the Settlement Agreement (paragraph 9.49[1]), it does not
\n
need to make a finding as to the proper construction of the release in clause 3.2 of the
\n
Settlement Agreement as no issue of the Claimant being entitled to rely on Clause 3.2 of the
\n
Settlement Agreement arises. Jack Ray Mitchell v. Thunderbird Resorts Inc., Int\u2019l Ct. of Arb.
\n
Of the Int\u2019l. Chamber of Commerce, Case No. 21243/CYK/PTA, Ch. 9, \u00b6 9.50 (2017) (Rooney,
\n
Arb.). In light of this Court\u2019s order granting Defendant\u2019s Motion to Compel Arbitration as to
\n
the issue of waiver and all remaining claims Plaintiff chooses to pursue in arbitration, the
\n
Court finds Defendant Mitchell\u2019s request to domesticate and enter the Arbitration Award
\n
against Plaintiff premature\u201d (Order, pgs. 7:23-8:13.)
\n
\n\n
\n\n

\n\n
\n\n
\n\n
The Court granted Mitchell\u2019s motion to compel arbitration on TRI claims against Mitchell. TRI
\n
Complaint against Mitchell included claims for Breach of contract Fraud, RICO violations. The
\n
Court \u201cstayed/froze\u201d the various causes of action as to Mitchell, including the RICO claim, and
\n
ordered the parties back to Arbitration to resolve those issues and the other causes of action
\n
against Mitchell. Essentially, The Court opined that if TRI wishes to pursue these claims
\n
against Mitchell then it must pursue them as counter-claims in the ICC Hong Kong arbitration.
\n
The Court agreed with Mitchell that all of the claims should be arbitrated in Hong Kong.
\n
Therefore, TRI\u2019s position is that Mitchell\u2019s arbitration award is not final.
\n
The Court ruled in favor of Thunderbird and against MITZIM on its motion to quash writ of
\n
attachment. Thunderbird Resorts is diligently prosecuting its claims against MITZIM and
\n
estimates that its monetary value of its claim against MITZIM, is $1,282,454.
\n
On September 27, 2018 Thunderbird Resorts Inc. filed an arbitration claim in the approximate
\n
amount of $1 million against Mitchell with the ICC in Hong Kong. Mitchell in turn filed a
\n
\u201ccounter-claim\u201d against Thunderbird in the same proceeding in Hong Kong. In October of
\n
2019, the sole arbitrator in this proceeding ruled that Thunderbird Resorts Inc. claim was barred
\n
by the doctrine of \u201cres judicata\u201d. Thunderbird Resorts Inc. thereafter filed a Petition for
\n
reconsideration of the arbitrators ruling taking the position that application of the doctrine of
\n
\u201cres judicata\u201d is without basis in law and in fact. The ICC has sought additional fees from the
\n
parties to the arbitration. Mitchell has refused to pay any fees and Thunderbird refused to pay
\n
Mitchell\u2019s share.
\n
On September 28, 2018 the Court ruled in favor of Zimmer\u2019s Motion to Dismiss for Lack of
\n
Jurisdiction. In addition, the Court ruled in favor of Angular\u2019s motion to set aside the default
\n
judgment and motion to dismiss for lack of jurisdiction.
\n
On January 13, 2019, Jack Ray Mitchell through lawyers in Costa Rica, filed a request of
\n
enforcement of an arbitration award dated January 25, 2018 which he received in his favor
\n
against Thunderbird Resorts, Inc. The request of enforcement was made in Costa Rica against
\n
King Lion Network, subsidiary of Thunderbird Resorts. Inc. and the company was notified on
\n
January 24, 2019. King Lion Network filed its response and defense for this case on February
\n
8t
\n
1s
\n
h, 2019. On January 22, 2021, the
\n
t Supreme Court of Costa Rica in a review of the request
\n
1s
\n
1s
\n
made, appoints the
\n
t Instance Civil Tribunal of the
\n
t Circuit of San Jose to initiate the
\n
procedure, recognizing the existence of the arbitral award and asking Mitchell to demonstrate
\n
the ownership of King Lion Network in that Court, since this entity was not part of the Hong
\n
Kong Arbitration.
\n
On March 19, 2019 the court ruled on Thunderbird Resorts Inc. application for default
\n
judgment against Taloma Zulu, S.A. as the Court entered default judgment in in favor of
\n
Thunderbird Resorts, Inc., in the amount of $407,643.
\n
In September 2019, Thunderbird Resorts Inc. filed a civil claim before the Tribunal Courts in
\n
San Jose, Costa Rica against Murray Jo Zmmer, Angular Investments Corp and Taloma Zulu
\n
S.A., for payments made from the Costa Rica operation owned by Thunderbird Resorts and
\n
Angular Investments, to several entities without the authorization of Thunderbird Resorts, Inc.
\n
The claimed amount is approximately \u00bd of the amount that Zimmer wired without
\n
\n\n
\n\n

\n\n
\n\n
\n\n
authorization, which corresponds to Thunderbird funds in the approximate amount of
\n
$837,090. In October, 2019, The Second Civil Court of the First Judicial Circuit issued a
\n
notification to the defendants giving them thirty days to answer regarding the facts of the claim.
\n
This case is in its initial phase.
\n
On the Thunderbird vs. Mitchell arbitration claim, in December 2019, the ICC placed a demand
\n
on the Parties to pay the additional fees failing which the arbitration would be considered
\n
withdrawn. The ICC advised the parties that a final award in the matter would be issued in
\n
late April 2020 but no final award has been submitted as of the date of the filing of this Annual
\n
Report. Thunderbird Resorts Inc. is also awaiting the ICC ruling on its Petition for
\n
Reconsideration of the arbitrators ruling on the issue of \u201cres judicata\u201d.
\n
In September of 2020, Mitchell and Mitzim filed a Motion in the Federal District Court lawsuit
\n
for an Order Dismissing the San Diego federal District Court lawsuit for Lack of Standing on
\n
alleging that Thunderbird Resorts Inc. \u201cTRI\u201d filed the lawsuit based on extraterritorial activities
\n
that took place in Costa Rica and barred by Costa Rica law placing Mitchell and MITZIM to
\n
exorbitant expense and inconvenience. TRI opposed the motion on the basis that the motion
\n
and/or objection based on lack of standing is not jurisdictional and thus is waivable. Mitzim
\n
waived this defense by waiting over five years to raise this objection, and only first did so after
\n
the close of fact discovery. Moreover, even if the motion was timely (it is not), the substantive
\n
argument lacks merit, as Thunderbird properly brings its claims in its direct, individual
\n
capacity. It need not bring these claims in a derivative capacity. Thunderbird is, and always has
\n
been, the proper real party in interest in this lawsuit. Accordingly, Thunderbird requested that
\n
this Court deny Mitzim\u2019s untimely and meritless motion in its entirety. On December 21, 2022,
\n
the Court ruled on the aforedescribed motion by denying MITZIM request to dismiss the case
\n
. The Court found that in light of the evidence of record demonstrating MITZIM knew or
\n
should have known of a meritorious Rule 17) objection. Specifically, MITZIM (a) failure to
\n
bring their claim until more than five years into the litigation, despite being on notice of the
\n
potentially meritorious defense based upon notice provided in the original complaint, the
\n
Court\u2019s March 29, 2018, order, and buttressed by Defendant Mitchell\u2019s own admissions, and
\n
(b) continued substantive litigation of the case for years after such notice of potentially
\n
meritorious defense constitutes waiver. The Court and the parties are is now poised to proceed
\n
to trial which is more likely to occur sometime in 2023.
\n
g. The Group\u2019s entry and exit from the India market
\n
The Group entered the India market in 2008 by initiating a hotel project in Daman, India, which
\n
is located just north of Maharashtra State whose capital is Mumbai (formerly Bombay). The
\n
project known as \u201cThunderbird Resorts \u2013 Daman\u201d has faced both regulatory delays outside the
\n
Group\u2019s control, as well as cost overruns in construction and pre-operating interest / expense
\n
due to the delays which ultimately caused the Group to exit the India market in April 2015.
\n
The entire history of the entry and exit as well as settlements with various parties is fully
\n
described in previously filed financial statements. All settlements have been completely
\n
satisfied with the exception of the settlement with Maravege. In that regard, The Group entered
\n
into a revised settlement with Maravege on the basis described in the section on \u201cSubsequent
\n
events\u201d as the revised settlement was entered into after December 31, 2022.
\n
\n\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag382": { "value": "\n

\n\n
23. COMMITMENTS AND CONTINGENCIES
\n
As at December 31, 2022, principal payments required under the terms of the loan agreements and
\n
their liabilities in each for the next five years are as follows:
\n
Year ending December 31:
\n
2023
\n
8,764$
\n
2024
\n
293
\n
2025
\n
-
\n
2026
\n
-
\n
2027
\n
-
\n
Thereafter
\n
-
\n
Subtotal
\n
9,057
\n
Less: Debt issuance costs
\n
-
\n
9,057$
\n
\n
Set out below is an overview of our ongoing contingencies, many of which are as a result of
\n
regulatory uncertainty. An estimate of the financial effect of each contingency is disclosed unless
\n
a reasonable estimate of the financial effect cannot be made.
\n
a. Peru tax controversies
\n
Sun Nippon Company S.A.C. - \u201ccoin-in case\u201d:
\n
In October of 2017, the Group announced the sale of certain operation in Peru including those
\n
held by a company named Sun Nippon Company, S.A.C. \u201cSNC\u201d. As part of the sale of those
\n
operations, the purchaser agreed that irrespective of the transfer of the SNC Shares,
\n
Thunderbird will have the right to continue with the defense of certain tax refund case (the
\n
\u201cSun Nippon Coin In Case\u201d), initiated by SNC before the Peruvian Judicial Court of Justice,
\n
against a decision of the Peruvian Administrative Tax Court of January 2016. The Parties
\n
agreed that if SNC, under a final decision of the Judiciary receives any monetary refund
\n
together with any additional compensation for interests, and/or any reimbursement of costs and
\n
expenses incurred in relation to the same, the Buyer will be obliged to pay to Thunderbird
\n
within thirty (30) calendar days following its receipt by SNC, an amount equal to the sum so
\n
received by SNC deducting any applicable withholdings, taxes, commissions, charges, cost,
\n
or similar that may affect the transfer of such proceeds from SNC to the corresponding Buyer
\n
and from such Buyer to Sellers, and/or any other deductions that may apply by Law.
\n
The background of the case is as follows: On or about January 18, 2016, the Peruvian
\n
Administrative Tax Court (commonly known as the Tribunal Fiscal in Spanish) served a
\n
negative ruling against the Group\u2019s Peruvian subsidiary operation. The ruling is dated
\n
December 28, 2015 and covers a tax matter commonly known as the \u201c2006 coin-in case\u201d
\n
(hereafter \u201cthe December 28, 2016 coin in ruling\u201d. The basis of the negative ruling keyed in on
\n
whether \u201crevenue\u201d should be based on \u201cnet win\u201d or on \u201ccoin in \u201cas it relates to pre-payment of
\n

\n\n

\n\n

\n\n
income tax. After the issuance of \u201cthe December 28, 2015 \u201ccoin-in ruling\u201d, Management
\n
learned that SUNAT had issued a report dated and executed on December 24, 2015 defining
\n
\u201crevenue\u201d for purposes of the relevant tax issues (hereafter \u201cthe SUNAT Report\u201d). This
\n
SUNAT report was released to the public on February 18, 2016 and is in reply to a March 18,
\n
2015 letter of the \u201cSociedad Nacional De Juegos De Azar (SONAJA)\u201d in which SONAJA
\n
sought clarification from SUNAT on the definition of \u201crevenue\u201d in the \u201c2006 coin-in case\u201d
\n
(hereafter the \u201cSONAJA Petition\u201d). The SONAJA Petition sought an opinion from SUNAT to
\n
the effect that the pre-payment of income tax should be based on \u201cnet win\u201d and not on \u201ccoin-
\n
in\u201d. The SUNAT report opines that the pre-payment of income tax should be based on \u201cnet
\n
win\u201d and not on \u201ccoin-in\u201d. According to the Group\u2019s tax counsel, this SUNAT report is 100%
\n
legally binding on SUNAT, meaning that SUNAT will no longer audit and oppose the
\n
calculation of revenue based on \u201ccoin-in\u201d as it relates to the pre-payment of income tax. The
\n
clear conclusion by the outside counsel is that SUNAT recognizes the \u201cnet win\u201d as base for the
\n
calculation of the income tax.
\n
Unfortunately, in spite of the February 18, 2016 SUNAT report, Management must continue
\n
its appeal of the Tribunal resolutions in the SNC 2006 coin-in case. SNC has filed its appeal
\n
on March 23, 2016, in this matter to the judicial court in which it could review the entire tax
\n
case on a \u201cde novo\u201d basis, meaning that SNC will have the opportunity to present its case in
\n
full and most likely prevail on appeal in its position. One significant and material factor in the
\n
Tribunal negative ruling is that the tribunal did not take into account the main defenses that
\n
SNC presented but chose to ignore those defenses. While the Appeal was pending, SNC
\n
proceeded to pay the entire tax liability and is now seeking a refund of all taxes paid, in case
\n
SNC prevail on its case. On April 28, 2017, the 1st instance Court gave a decision in favor of
\n
SNC. Both SUNAT and the Tribunal Fiscal have appealed the decision before the Superior
\n
st
\n
Tribunal. On October 18, 2017, the Superior Tribunal confirmed the decision of the 1
\n
Instance
\n
Court in favor of SNC. On November 22, 2017, both SUNAT and the Tribunal Fiscal filed a
\n
so-called cassation writ before the Supreme Court, last and definitive instance. However,
\n
SUNAT has withdrawn its cassation writ, meaning SUNAT is no longer appealing or otherwise
\n
challenging the Lower Court\u2019s decision in favor of SNC. The Tax Court has not filed a
\n
withdrawal. And now, on September 6, 2021 the Supreme Court has served a formal resolution
\n
that Tribunal Fiscal\u2019s cassation writ has been formally accepted, meaning that that the Supreme
\n
Court would analyze the substance of the matter and eventually issue the definitive resolution
\n
(in third and last instance). As part of the Judicial procedure, a hearing took place on March
\n
31, 2022, in which the Parties had the opportunity to expose to the judges their positions in a
\n
verbal matter. On June 2022, the Supreme Court (third and last Judiciary instance) served the
\n
ruling through which it recognized that SUNAT\u00b4s assessment (confirmed by the Tax Court)
\n
was groundless. As stated above, at the time the Peru operations were sold the Group and the
\n
Purchaser agreed that if SNC, under a final decision of the Judiciary receives any monetary
\n
refund together with any additional compensation for interests, and/or any reimbursement of
\n
costs and expenses incurred in relation to the same, the Buyer will be obliged to pay to
\n
Thunderbird within thirty (30) calendar days following its receipt by SNC, an amount equal to
\n
the sum so received by SNC deducting any applicable withholdings, taxes, commissions,
\n
charges, cost, or similar that may affect the transfer of such proceeds from SNC to the
\n
corresponding Buyer and from such Buyer to Sellers, and/or any other deductions that may
\n
apply by Law. During the year ended December 31, 2022, SNC received an approximate of
\n

\n\n

\n\n

\n\n
US$ 1,642,713 as monetary refund as detailed in Note 5 and was remitted to the Group as had
\n
been agreed.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 Tax issues: In the latter part of 2011, the Group\u2019s
\n
wholly owned Peruvian subsidiary, Thunderbird Hoteles Las Americas, S.A. (\u201cTHLA\u201d),
\n
received the following resolutions issued by the Peruvian tax authority, Superintendencia
\n
Nacional de Administraci\u00f3n Tributaria (\u201cSUNAT\u201d), in relation to various major tax issues
\n
(*note: all interest mentioned in the following description have been calculated up to
\n
September 30, 2020).
\n
By Resolution no. 0120030026291 for the tax year 2007 the tax authorities imposed an income
\n
tax of S/. 558,950 plus interest of S/. 703,176 (amounts in US$139,807, interests: US$184,077)
\n
due to a rejection of certain deductions in 2007 for interest payments made to lenders/investors
\n
domiciled abroad on certain loans and investments. In addition, the tax authorities imposed a
\n
fine in relation to this resolution in the amount of S/. 279,474 plus interest of S/. 402,870
\n
(amounts in US$73,161, interest: US$105,463).
\n
In another Resolution no. 0120020018846 for the tax year 2007 the tax authorities denied
\n
certain tax credits in favor of THLA related to IGV of the purchase of the hotels for an amount
\n
of S/. 3,245,168 plus interest of S/. 4,442,733 (amounts in US$849,520, interest
\n
US$1,163,019).
\n
On November 21, 2011, THLA filed an administrative appeal with respect to the resolutions
\n
no. 0120030026291 and no. 0120020018846 On March 23, 2012, THLA was notified through
\n
a SUNAT resolution that the tax authority confirmed the resolutions as described herein.
\n
THLA thereafter filed an appeal on April 12, 2012.
\n
The tax authorities issued another \u201cResolution of Intendance no. 0150140010152\u201d which
\n
involves both of the 2007 prior mentioned tax assessments related to IGV (Resolution
\n
0120020018846) and Income Tax (Resolution 0120030026291). On October 12, 2019 a
\n
hearing took place before the Tax Court, which is the second and last administrative challenge
\n
in regards to this matter.
\n
In Relation with the income tax resolution, THLA has recently been served with the Resolution
\n
N\u00b0 11395-4-2021 through which the Tax Court has confirmed SUNAT\u2019s decision. A provision
\n
was made for this case in where the Group\u2019s chances of success were low. The provision
\n
recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As of
\n
December 31, 2022, the assessed amounts were duly paid by THLA.
\n
In relation with the IGV Resolution N\u00b0 11395-4-2021, the Tax Court has ruled that it has no
\n
legal grounds.
\n
In respect to all of these resolutions issued by the tax authorities, Management intends to
\n
vigorously defend its position at all administrative and judicial levels. The Group is not
\n
responsible for payment until the administrative and judicial process decisions are final with
\n
no further rights of appeal. However, interest on these resolutions continues to accrue while
\n
the administrative and judicial process is completed and a final decision is rendered. As a result
\n

\n\n

\n\n

\n\n
of the on-going uncertainty over the potential outcome of this matter no provision has been
\n
recorded.
\n
On a separate matter, the company has filed an appeal procedure in a ruling by the Tax Court
\n
(Tax Court File 15182-2014), related to Resolutions 0220030035681-0220030035690 for the
\n
tax year 2008 referred to withholdings of payments made abroad in a total principal amount of
\n
S/. 257,954 plus interest in a total of S/. 317,825 (amounts in US$ 67,527, interest: US$83,200).
\n
In separate Resolutions 0220020013107-0220020013114 the tax authorities issued fines
\n
related to the prior mentioned resolutions in the amount of S/.107,530 plus interest in a total of
\n
S/.134,033 (amounts in US$28,149 interest: US$35,087). A provision has been recognized in
\n
connection with the resolution above totaling S/. 843,741 (US$220,875) including tax,
\n
penalties and interest.
\n
The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008
\n
related to payments in advance of the income tax for a total amount of S/. 45,337 plus interest
\n
in a total of S/. 49,585 (amounts in US$11,868, interest: US$12,980). Resolutions
\n
0220020013229-0220020013238 imposed fines related to the prior mentioned resolutions for
\n
the amount in total of S/. 381,969 plus interest in a total of S/. 456,403 (amounts in US$99,992,
\n
interest: US$119,477). Through Resolution N\u00b0 7826-11-2022 (served on November 18, 2022)
\n
the Tax Court has solved the tax proceeding related to 2008 Income Tax. The Tax Court has
\n
confirmed the tax debt related to (i) Income Tax Retained in 2008 for interest on loans from
\n
related parties; (ii) payments on account of Income Tax for the year 2008 and (iii) income tax
\n
for 2008 (deduction of interest not recorded in the accounts). A provision was made in
\n
connection with the above resolution for a total of S/. 940,923 (US$246,315) including tax,
\n
penalties and interest. The relevant tax debt assessed in this case was duly paid in Q1 2023.
\n
Through Intendancy Resolution 0250140020952, SUNAT issued a 2013 IGV assessed tax debt
\n
amounting S/. 1,013,295.00. This tax debt was originated as a consequence of SUNAT\u2019s 2007
\n
IGV assessment which The Tax Court already confirmed as null, revoking it. Through
\n
resolution 11390-4-2019 the Tax Court has ruled that the result of this procedure depends on
\n
the result of 2007 process, which has been already declared in favor of the Company.
\n
Considering that the Tax Court has already dismissed 2007 IGV tax assessment (resolution
\n
11395-4-2021), it is more than likely that the 2013 tax debt will be also revoked.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 \u201cAlcabala\u201d (Property Transfer Tax) process: On
\n
September 25, 2007, THLA received a notification in connection with a resolution issued by
\n
the Tax Administration Service (SUNAT) demanding payment of US$ 522,824.68 (S/.
\n
1,969,742) for a property transfer tax resulting from the purchase of the land and the building
\n
located at Alcanfores 475, Miraflores. SUNAT asserted that THLA wrongly calculated the tax
\n
on the first-time sale of such property (sold by La Caja Militar to THLA).
\n
On October 24, 2007, THLA filed an appeal against the resolution issued by SUNAT. THLA
\n
asserts that it had paid the corresponding property transfer tax for the land, as well as the VAT
\n
for a part of the building. THLA argues that the property transfer tax was not paid for part of
\n
the building as the sale of such part of the building was a first-time sale performed by the
\n
contractor and was exempt from tax. On October 17, 2014, the Tax Court ruled that the
\n
resolution issued by the SUNAT was void as it had not been properly supported (such
\n

\n\n

\n\n
\n\n
resolution did not specify the reasons why the SUNAT considered that the total of the transfer
\n
was subject to property transfer tax).
\n
On March 12, 2015, SUNAT issued a new resolution in respect of the same issues, but provided
\n
no additional evidentiary support for its position. SUNAT\u2019s new resolution (Resolution N\u00ba 045-
\n
012-00073684), demanded the payment of the property transfer tax for the same land and the
\n
same building for a total of S/. 1,052,993 (including interests and penalties). THLA argued
\n
once again that the resolution issued by SUNAT lacks the proper supporting documentation.
\n
SUNAT claims that THLA must pay the property transfer tax but does not explain the legal
\n
basis supporting such standpoint.
\n
On April 13, 2015, THLA filed its opposition against Resolution N\u00ba 045-012-00073684
\n
asserting that THLA was not required to pay any property transfer tax and requesting that the
\n
new resolution be declared void as it lacked proper support. Such claim is currently under
\n
review. THLA contends that it is probable that the Tax Court, for a second time, will declare
\n
such resolution to be void. The opposition writ is pending a ruling by the Municipal
\n
Administration (1st administrative instance). Should the opposition writ be rejected, THLA is
\n
entitled to file an appeal writ before the Tax Court (second administrative instance).
\n
b. Costa Rica tax controversies
\n
By way of background, the income tax in Costa Rica is collected by the General Income Tax
\n
Office. The Group previously owned various Costa Rica subsidiaries including, Thunderbird
\n
Gran Entretenimiento, S.A. (\u201cTGE\u201d), and Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d).
\n
On February 27, 2015, the Group sold its entire economic interest and management rights in
\n
its Costa Rican operations (of which the Group had approximately a 50% share) to CIRSA
\n
International Gaming Corporation (\u201cCIRSA\u201d), for a net price (gross price less debt payoff less
\n
working capital adjustments) of approximately $8.1 million. The $8.1 million net amount
\n
received was also net of approximately $192 thousand contingent tax liability paid by the group
\n
to the Costa Rica tax authority to cover GTCR contested tax liability and for the approximate
\n
$3.088 million TGE contested tax liability paid to the Costa Rica tax authority. These contested
\n
tax liabilities are fully described below. These payments to the Costa Rican tax authority were
\n
required to be paid as a condition to closing the sale of the Group\u2019s interest in the Costa Rica
\n
operation. The payment made by the Group and its partner was made without prejudice or
\n
admission of liability and therefore, does not alter the Group\u2019s position of taking a provision
\n
for these contingent taxes in 2014.
\n
Following the sale of the Costa Rica operations, and as part of the Group\u2019s commitment on the
\n
sale of the operations, TGE continued to be engaged in a certain tax procedure while GTCR
\n
ended up settling its tax controversy through an amnesty procedure. In addition, the Group\u2019s
\n
50% ownership in King Lion Network is engaged in a tax controversy as described below. The
\n
following sections describe the current status/outcome of these three tax controversies:
\n
(i) TGE received a proposed income tax assessment in Q1-2012 of $600 thousand for the tax
\n
year ended December 31, 2009, and a proposed tax assessment of $800 thousand for the
\n
tax year ended December 31, 2010. Additional gaming taxes of $200 thousand were
\n
assessed for each tax year ended December 31, 2009 and 2010. The assessments for both
\n
\n\n
\n\n
\n\n
tax years were related to certain expenses which were deemed to be non-allowable
\n
deductions by the General Income Tax Office and for the imputation of interest income on
\n
intercompany advance balances. These matters were appealed to the Tribunal Fiscal
\n
Administrative (\u201cTFA\u201d) during Q3 and Q4 of 2012. On January 16, 2013, the Group was
\n
advised that the Administrator Tribunal Appeal was denied in regards to the TGE tax
\n
matter. The Group filed a lawsuit at the Court level in August 2014 to revoke the tax
\n
assessment. In February 2015, the Group paid the tax authorities $3.088 million on the
\n
alleged tax liability. The payment to the Costa Rican tax authority was required to be paid
\n
as a condition to closing the sale of the Group\u2019s interest in Costa Rica to CIRSA, as
\n
described below. The payment made by the Group was made without prejudice or
\n
admission of liability. The preliminary hearing of the case was heard in June 2015 and the
\n
Administrative file is being reviewed by the Court. A trial date was set for June 2018. The
\n
Group continues with the judicial procedure and its claim to revoke the tax assessment so
\n
TGE could recover a portion of the payment over time. In relation to this, Cirsa Gran
\n
Entretenimiento de Costa Rica, S.A. (formerly TGE) filed an administrative procedure
\n
against the Tax Authority before the Administrative Court contested the legality of certain
\n
Administrative Resolutions of the Direction of Great National Tax Payers of Costa Rica
\n
and the Fiscal Tribunal. There was a hearing on this case in June 2018. The Administrative
\n
Court rendered a judgment (number 62-2018-VIII) against TGE on July 12, 2018. TGE
\n
filed an appeal on August 7, 2018 in the First Chamber of the Supreme Court in respect of
\n
the only remaining issue for this controversy case, which is the legal fees to be charged
\n
against the taxpayer TGE for failing to prevail in the lawsuit. The legal fees are
\n
approximately $310,000 and the tax appeal is pending.
\n
(ii) GTCR received a proposed tax assessment in the approximate amount of $340 thousand
\n
for the tax year ending December 31, 2011, related to certain expenses which were deemed
\n
to be non-allowable deductions by the General Income Tax Office and for the imputation
\n
of interest income on intercompany advance balances. A penalty resolution is still pending
\n
to be released by the TFA, which comprises an amount equal to 25% of the tax assessment
\n
or $113 thousand. The Tax counsel for GTCR advises that the exposure on taxes and
\n
penalties is significantly less than the proposed assessment. The amount of the non-
\n
allowable expenses was 36,960,675 colones or USD$61,280. The GTCR objections were
\n
not resolved, but under a recent change to Costa Rica tax law, (Tax Law number 9635
\n
taxpayers may take advantage of a tax amnesty, in which the principal could be paid
\n
without interest with a 60% reduction of the fine. GTCR filed for the tax amnesty and
\n
closed the tax inspection procedure for the year 2011. The amounts paid were 11,088,202
\n
colones (USD$18,384) in principal, and 1,108,820 colones (USD$1,838) for the fine.
\n
(iii) The Costa Rica Tax authorities have assessed a tax against King Lion Network for the tax
\n
year 2011 for approximately 17.2 million colones (or $30 thousand) representing tax and
\n
interests due the non-recognition of the interests paid for the purchase of the shares related
\n
to the Tres Rios Project. The Company presented the appeal to this assessment on time
\n
and the case remains pending.
\n
\n\n
\n\n
\n\n
c. Costa Rica-CIRSA Escrow claim
\n
In a related matter to the San Diego Federal District Court action, in February 2015, the Group
\n
had previously consummated Stock Purchase Agreement (SPA) in which CIRSA acquired the
\n
shares of Grupo Thunderbird De Costa Rica from Thunderbird Resorts Inc. (TRI) and Angular
\n
Investments S.A. The SPA provided that a certain portion of the monies to be paid by CIRSA
\n
to TRI/Angular were to be held in escrow pursuant to the SPA. In February 2015, CIRSA
\n
delivered $2,125,000, to the Escrow Agent (the \u201cEscrow Amount\u201d) in accordance with the
\n
terms and conditions of the SPA. The Escrow Agreement provided for a claims procedure by
\n
which certain claims could be made by third parties/tax authorities, vendors to be paid from
\n
the Escrow. In December 2017 and in March 2018, ZIMMER AND FOX as employees of
\n
GTCR filed certain claims against CIRS, GTCR and TRI. TRI position is that ZIMMER AND
\n
FOX are now claiming in bad faith that they are is entitled to a series of labor rights. The SPA
\n
and all related documents support the fact that ZIMMER AND FOX as a \"seller shareholder\"
\n
waived and released any and all claims, rights, etc. that he may have had, including social
\n
benefits under Costa Rica law. TRI believe ZIMMER AND FOX have waived all his claims
\n
and therefore their labor claim is without merit. Based on our information and belief, ZIMMER
\n
intended to file this labor complaint in response to TRI\u2019s actions against him wherein TRI had
\n
filed the aforementioned lawsuit against ZIMMER in the Federal District Court of San Diego,
\n
California, Zimmer\u2019s bad faith as he is attempting to retaliate against TRI for the actions that
\n
TRI has taken against him in the USA litigation. TRI believes that ZIMMER\u2019s claim is without
\n
merit and ultimately the labor tribunal made a ruling that ZIMMER\u2019S claims against GTCR
\n
was without merit. In fact, the Costa Rica labor tribunal already ruled against Zimmer.
\n
Therefore, TRI disputed each of the claims that CIRSA made against the Escrow. The general
\n
basis for disputing each of CIRSA\u2019s claims, as well as, any claim that Thunderbird Resorts Inc.
\n
violated the Stock Purchase Agreement dated February 25, 2015 are completely without basis
\n
in law or in fact. Neither ZIMMER AND FOX are entitled to any payment as set forth in each
\n
of their respective labor cases. Moreover, TRI position in respect of the issues raised by CIRSA
\n
and so-called breach of the SPA is that TRI is not jointly and severally liable with Angular,
\n
Zimmer and Fox. The Fox claim which has not been served on TRI but only against CIRSA
\n
was filed as a way to place pressure on Thunderbird to help Zimmer in his claim. In addition,
\n
Fox will lose his claim based on the claim being barred as the statute of limitations will
\n
foreclose Fox from succeeding in the courts.
\n
In relation to the Murray Jo Zimmer case, a ruling was issued by the Labor Judge of the 1st
\n
judicial circuit of San Jose on October 8, 2018, in which the Labor Judge declared that the
\n
lawsuit filed by Jo Zimmer against Grupo Cirsa de Costa Rica had no legal basis and issued an
\n
order against Zimmer to pay the costs and expenses of the judicial process. Murray Jo Zimmer
\n
appealed ruling No. 2080 on October 12, 2018. In June 2022, the 2nd Tribunal of the Supreme
\n
Court ruled the Resolution 2022-001356, which is final and non-appealable, confirming the
\n
prior decisions against the plaintiff Murray Jo Zimmer.
\n
In relation to the Michael Fox case, TRI was not served with this labor lawsuit, but in the aim
\n
of affording evidence and facts to the procedure, it filed voluntarily its response to the labor
\n
claim before the 2nd Labor Court of San Jose, Costa Rica. A hearing for this case scheduled
\n
for November 2020, which was suspended on account of the Court\u2019s request to amend certain
\n
evidence previously received. New hearing date was appointed on October 4th, 2022, but it
\n
\n\n
\n\n
\n\n
was suspended due the requirement of a professional translator for the plaintiff. Currently both
\n
parties are awaiting a new hearing date to be appointed by the Labor Court.
\n
In March of 2020, MMG Bank Corporation notified CIRSA, Thunderbird Resorts Inc. and
\n
Angular Investments S.A. that MMG Bank Corporation intended to make a disbursement of
\n
$532,906 to Thunder Resorts Inc. and to Angular Investments S.A. pursuant to that certain
\n
Escrow Agreement dated February 25, 2015. CIRSA filed an objection to release of escrow
\n
proceeds on the basis that CIRSA\u2019S objection is based on three sets of factors:(1) Labor Law
\n
Suit/controversy filed by Murray Jo Zimmer and Michael G. Fox (sometimes collectively
\n
referred to as \u201cZIMMER AND FOX\u201d) against Grupo Cirsa De Costa Rica S.A. in which
\n
ZIMMER AND FOX are seeking an estimated seven million dollars; (2) Certain Labor claims
\n
filed by \u201cother employees of CIRSA\u201d; (3) Certain Tax Claims filed by the Costa Rica tax
\n
administration against companies sold by Thunderbird Resorts Inc. to CIRSA Thunderbird
\n
Resorts Inc. disputed each of the claims that CIRSA. The general basis for disputing each of
\n
CIRSA\u2019s claims as well as any claim that Thunderbird Resorts Inc. violated the Stock Purchase
\n
Agreement dated February 25, 2015 are completely without basis in law or in fact. Moreover,
\n
TRI\u2019s position in respect of the issues raised by CIRSA and so called breach of the SPA is that
\n
TRI\u2019s is not jointly and severally liable with Angular, Zimmer and Fox and demanded that the
\n
escrow proceeds ought to be disbursed solely to Thunderbird. MMG Bank continues to hold
\n
the escrow proceeds and has not disbursed any part of the aforementioned $532,906.
\n
d. Canadian tax controversy
\n
Thunderbird Gaming, Inc. (\u201cTGI\u201d), a wholly-owned subsidiary of the Group that has been
\n
inactive since 1996, received notification of a reassessment from the Canada Revenue Agency
\n
(\u201cCRA\u201d) with respect to a transfer of assets in 1996 in relation to the California Indian gaming
\n
business previously operated by TGI. Specifically, this reassessment stems from a transfer of
\n
assets which CRA contends was undervalued. The reassessment is in the amount of Canadian
\n
dollar (\u201cCDN\u201d) $380 thousand (US $381 thousand at December 31, 2010).
\n
TGI submitted applications to CRA utilizing its net operating loss (\u201cNOL\u201d) in a manner that
\n
reduced the actual tax liability to zero and is taking the position that the valuation of assets was
\n
accurate in order to preserve its NOL. By taking this position, TGI believes it avoids the
\n
imposition of interest on tax, which is the subject of the reassessment.
\n
Further, TGI filed a fairness application with the appropriate Canadian taxing authority
\n
requesting a complete abatement of the alleged interest imposed on the alleged tax liability.
\n
In this filing, management alleges that TGI received unconscionable and egregious treatment
\n
from CRA in addition to experiencing excessive delays in the reassessment process. TGI also
\n
filed an appeal of CRA\u2019s assessment with the tax courts in Canada in which TGI will attempt
\n
to establish that the underlying tax liability should never have been assessed.
\n
The fairness application was rejected and in March 2007, TGI abandoned further appeal to the
\n
tax courts in Canada.
\n
Although the Group believes CRA\u2019s case is without merit, the liability is contained within an
\n
insolvent subsidiary and consequently, even though TGI is responsible for the liability, the
\n
\n\n
\n\n
\n\n
Group\u2019s parent and subsidiaries have no exposure to the TGI liability. The Group does not
\n
expect that CRA will collect the judgment as TGI is insolvent and therefore there is no accrual
\n
in these consolidated financial statements related to this reassessment.
\n
e. Guatemala Tax cases
\n
The Superintendencia de Administraci\u00f3n Tributaria-SAT (the Guatemalan tax authority) is
\n
attempting to open up Thunderbird de Guatemala, S.A. to a tax audit for 2009 and 2010, which
\n
the Group has been challenging. On March 20, 2017, Thunderbird de Guatemala was notified
\n
of decisions made by the Second Tribunal of Accounts and Controversies, which has decided
\n
over a Recusal Appeal, conceded to be in favor of Thunderbird de Guatemala and an Appeal
\n
for Reversal related to certain documents that the Tax Authority is requesting for the tax years
\n
2008 and 2009 and the company considered time-barred. The Tribunal alleged that the matter
\n
as discussed, related to whether the delivery of certain documents, were or were not legally
\n
required under a statute of limitations. With this decision made, Thunderbird de Guatemala
\n
defense is prepared to present its arguments and challenge the main matter of this case in
\n
relation to the statute of limitations of the Tax Years 2008 and 2009.
\n
In January 2021, the Company was notified that the Court ruled against Thunderbird de
\n
Guatemala in this 2009 tax case. The Company strongly believes in its arguments; specifically,
\n
that the case is time barred. The Company filed an \u201cAmparo\u201d in January of 2021 to continue
\n
defending its position before the Supreme Court and awaits the Court ruling. The writ of
\n
Amparo is generally described as a remedy available to any person whose right to life, liberty
\n
and security is violated or threatened with violation by an unlawful act or omission of a public
\n
official or employee, or of a private individual or entity. Court took knowledge of the Amparo
\n
in June 2021.
\n
In November 2019, the third economic court issued a resolution against the arguments of
\n
Thunderbird de Guatemala in a case related to 2009 tax period for an approximate amount of
\n
$100 thousand. An Administrative Cassation Appeal has been filed in July 2021 before the
\n
Third Economic Court alleging that the judge omitted some of the arguments and facts
\n
presented by Thunderbird de Guatemala. On July 20, 2022, Thunderbird de Guatemala was
\n
served with the Supreme Court Resolution 01002-2021-00644, in which was decided to
\n
maintain the prior decisions against the Company interests. At this instance, no further
\n
challenges are available. A provision has been recognized for an approximate amount of
\n
US$109,000 as described in Note 5.
\n
f. San Diego Federal District Court
\n
In June of 2015, Thunderbird Resorts filed a lawsuit in the Federal District Court, San Diego,
\n
against defendants Murray Jo Zimmer (\u201cZimmer\u201d), Angular Investments Corp. (\u201cAngular\u201d),
\n
Mitzim Properties, Inc. (\u201cMitzim Properties\u201d) Taloma Zulu, S.A., (\u201cTaloma Zulu\u201d) Jack R.
\n
Mitchell, (\u201cMitchell\u201d). The lawsuit alleges breach of fiduciary duty against Zimmer, Angular
\n
and Mitchell; breach of contract against defendant Mitchell; aiding and abetting, breach of
\n
fiduciary duty against Taloma Zulu and Mitzim Properties; fraud Civil RICO 18 U.S.C. \u00a7 1961,
\n
conversion constructive trust and an accounting against defendants Zimmer, Angular and
\n
Taloma Zulu.
\n
\n\n
\n\n
\n\n
The basis of the various claims and allegations in the lawsuit stem from the following: In 2002,
\n
Thunderbird partnered with Angular to operate casinos and related businesses in Costa Rica.
\n
Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d) was formed by Thunderbird and Angular,
\n
who agreed to split all profits from GTCR on an equal, \u201c50/50\u201d basis. Angular\u2019s principal,
\n
defendant Zimmer, became Thunderbird\u2019s \u201ccountry manager\u201d for its operations in Costa Rica.
\n
Between July 2007 and September 2014, Zimmer caused GTCR to pay over $2 million to
\n
defendant Taloma Zulu. Zimmer reported to Thunderbird\u2019s management that these amounts
\n
were being paid for legal and consulting expenses for GTCR to operate in Costa Rica. Upon
\n
further investigation, Thunderbird now believes and alleges that Zimmer and Mitchell caused
\n
Thunderbird\u2019s 50% share of the amounts paid to Taloma Zulu to be diverted, misappropriated,
\n
embezzled, and/or converted for defendants\u2019 own improper, personal uses. Thunderbird
\n
Resorts is seeking the following relief: awarding Thunderbird the damages it has sustained by
\n
reason of Mitchell, Zimmer et al conduct, and interest thereon as provided by law; awarding
\n
Thunderbird exemplary and/or punitive damages on account of defendants\u2019 willful, wanton,
\n
malicious, and/or oppressive conduct; awarding Thunderbird its costs of suit incurred therein.
\n
Thunderbird Resorts is also seeking the imposition of a constructive trust in favor of
\n
Thunderbird, and against defendants, of the benefits improperly received by defendants and an
\n
order commanding defendants to return to Thunderbird the funds they improperly received by
\n
way of their wrongful conduct. So far, Thunderbird Resorts was successful in having the court
\n
order approximately $420 thousand of the defendants\u2019 funds to be sequestered in the Federal
\n
District Court bank account pending resolution of the case.
\n
In March of 2017, Thunderbird Resorts Inc. obtained a default judgment in the approximate
\n
amount of $659 thousand against co-defendants Angular Investments S.A. and Taloma Zulu.
\n
Simultaneously with Thunderbird Resorts Inc. filing of the San Diego Federal District Court
\n
case, Jack R. Mitchell (\u201cMitchell\u201d), a former employee of Thunderbird, brought an arbitration
\n
claim in Hong Kong under the International Court of Arbitration of the International Chamber
\n
of Commerce against Thunderbird. The amount claimed is not less than $518 thousand. By
\n
way of background, in September 2012, Thunderbird Resorts entered into a settlement with
\n
Mitchell, following his termination from the company. Part of that settlement included a
\n
payment to Mitchell of approximately $1.8 million to be paid in installments over the course
\n
of several years. On or about May 2015, Thunderbird Resorts claimed that Mitchell was in
\n
default of his settlement agreement and stopped payment on the settlement amount. Mitchell
\n
instituted arbitration proceedings in Hong Kong pursuant to the terms of the settlement
\n
agreement.
\n
On September 27, 2017 the International Court of Arbitration of the International Chamber of
\n
Commerce approved its award against Thunderbird Resorts Inc. in the approximate amount of
\n
$518 thousand plus attorney\u2019s fees and costs of approximately $220 thousand. Thunderbird
\n
Resorts intends to pursue all legal challenges to the award including motions for
\n
reconsideration, appeals and challenges to the award.
\n
Thunderbird Resorts made several request to the Arbitrator that the decision in this matter be
\n
delayed pending submittal of further evidence from the related matter Thunderbird Resorts Inc.
\n
vs. Jo Murray Zimmer, Jack R. Mitchell, Angular Investments, S.A, Taloma Zulu, Mitzim case
\n
no. 15CV1304 JAH BGS filed in the United States District Court for the Southern District of
\n
\n\n
\n\n
\n\n
California in which Mitchell and his co-defendants are being sued for approximately $1.28
\n
million plus punitive damages which may rise to the level of three times the actual damages.
\n
In May of 2017 Jack Mitchell filed a motion to have the claims made against him submitted to
\n
arbitration in Hong Kong alleging that is the proper forum for Thunderbird Resorts claim. In
\n
addition, Angular Investments S.A. filed a motion to set aside the $659 thousand default
\n
judgment. The Court also granted Thunderbird leave to file additional pleadings showing
\n
default damages above $657,975, and Thunderbird submitted additional pleadings showing
\n
damages and interest totaling $825,125. In addition to Angular\u2019s motion to set aside the default
\n
judgment, Angular also filed a motion to dismiss for lack of jurisdiction.
\n
In March 30, 2018, San Diego Federal District Court Judge Houston issued an Order Granting
\n
Defendant Jack Mitchell\u2019s Motion to Compel Arbitration which states in part that:
\n
\u201cThe action is STAYED as to Defendant Mitchell until such arbitration has been held in
\n
accordance with the terms of the agreement as set forth by this order. The parties shall file a
\n
joint status report regarding the progression of Arbitration proceedings no later than
\n
September 28, 2018. The Court addressed the issue of Thunderbird\u2019s counterclaims, which
\n
Thunderbird contended should hav
\n
e been adjudicated by the U.S. Federal District Court,
\n
on pages 6, 7 and 8 of the Order. The Court\u2019s Order states, in relevant part: The Court must
\n
next determine whether the parties intended to arbitrate the issue of waiver. The question of
\n
whether the remaining five causes of action have been waived as to Mitchell u nd er the Release
\n
and Waiver provision (Clause 3.2) of the Settlement Agreement is also a \u201cdispute[], claim[],
\n
[or] controvers[y] between the parties arising out of th[e] Release [and Settlement]
\n
Agreement.\u201d The parties expressly agreed to arbitrate this issue. Therefore, it is for the
\n
arbitrator to decide which claims, or portions thereof, have or have not been waived, based on
\n
the alleged dates of Defendant\u2019s conduct. Accordingly, the Court GRANTS Defendant\u2019s Motion
\n
to Compel Arbitration whether Plaintiff waived its First, Third, Fourth, Fifth, and Sixth causes
\n
of action, or any portion thereof, against Mitchell upon execution of the Settlement Agreement.
\n
(Order, pg. 7:1-10.) Section 9.49 of the Arbitration Award dated September 26, 2017 outlined
\n
the Tribunal\u2019s Findings, stating In pertinent part: \u201cThe Claimant [Mitchell] was not in breach
\n
of the Settlement Agreement.\u201d Although the findings are decisive on the issues raised by
\n
Plaintiff in its Eighth Cause of Action for Breach of Contract, the Tribunal made no findings
\n
as to the issue of waiver. Not having Plaintiff\u2019s counterclaims before it, the Arbitrator declined
\n
to make findings as to the proper interpretation of the release and waiver clause in paragraph
\n
3.2 of the Settlement Agreement, stating:By reason of the Tribuna\u2019's findings in paragraphs
\n
[9.46] and [9.48] that the Claimant has not breached clauses 5 and 6 of the Settlement
\n
Agreement and was not in breach of the Settlement Agreement (paragraph 9.49[1]), it does not
\n
need to make a finding as to the proper construction of the release in clause 3.2 of the
\n
Settlement Agreement as no issue of the Claimant being entitled to rely on Clause 3.2 of the
\n
Settlement Agreement arises. Jack Ray Mitchell v. Thunderbird Resorts Inc., Int\u2019l Ct. of Arb.
\n
Of the Int\u2019l. Chamber of Commerce, Case No. 21243/CYK/PTA, Ch. 9, \u00b6 9.50 (2017) (Rooney,
\n
Arb.). In light of this Court\u2019s order granting Defendant\u2019s Motion to Compel Arbitration as to
\n
the issue of waiver and all remaining claims Plaintiff chooses to pursue in arbitration, the
\n
Court finds Defendant Mitchell\u2019s request to domesticate and enter the Arbitration Award
\n
against Plaintiff premature\u201d (Order, pgs. 7:23-8:13.)
\n
\n\n
\n\n
\n\n
The Court granted Mitchell\u2019s motion to compel arbitration on TRI claims against Mitchell. TRI
\n
Complaint against Mitchell included claims for Breach of contract Fraud, RICO violations. The
\n
Court \u201cstayed/froze\u201d the various causes of action as to Mitchell, including the RICO claim, and
\n
ordered the parties back to Arbitration to resolve those issues and the other causes of action
\n
against Mitchell. Essentially, The Court opined that if TRI wishes to pursue these claims
\n
against Mitchell then it must pursue them as counter-claims in the ICC Hong Kong arbitration.
\n
The Court agreed with Mitchell that all of the claims should be arbitrated in Hong Kong.
\n
Therefore, TRI\u2019s position is that Mitchell\u2019s arbitration award is not final.
\n
The Court ruled in favor of Thunderbird and against MITZIM on its motion to quash writ of
\n
attachment. Thunderbird Resorts is diligently prosecuting its claims against MITZIM and
\n
estimates that its monetary value of its claim against MITZIM, is $1,282,454.
\n
On September 27, 2018 Thunderbird Resorts Inc. filed an arbitration claim in the approximate
\n
amount of $1 million against Mitchell with the ICC in Hong Kong. Mitchell in turn filed a
\n
\u201ccounter-claim\u201d against Thunderbird in the same proceeding in Hong Kong. In October of
\n
2019, the sole arbitrator in this proceeding ruled that Thunderbird Resorts Inc. claim was barred
\n
by the doctrine of \u201cres judicata\u201d. Thunderbird Resorts Inc. thereafter filed a Petition for
\n
reconsideration of the arbitrators ruling taking the position that application of the doctrine of
\n
\u201cres judicata\u201d is without basis in law and in fact. The ICC has sought additional fees from the
\n
parties to the arbitration. Mitchell has refused to pay any fees and Thunderbird refused to pay
\n
Mitchell\u2019s share.
\n
On September 28, 2018 the Court ruled in favor of Zimmer\u2019s Motion to Dismiss for Lack of
\n
Jurisdiction. In addition, the Court ruled in favor of Angular\u2019s motion to set aside the default
\n
judgment and motion to dismiss for lack of jurisdiction.
\n
On January 13, 2019, Jack Ray Mitchell through lawyers in Costa Rica, filed a request of
\n
enforcement of an arbitration award dated January 25, 2018 which he received in his favor
\n
against Thunderbird Resorts, Inc. The request of enforcement was made in Costa Rica against
\n
King Lion Network, subsidiary of Thunderbird Resorts. Inc. and the company was notified on
\n
January 24, 2019. King Lion Network filed its response and defense for this case on February
\n
8t
\n
1s
\n
h, 2019. On January 22, 2021, the
\n
t Supreme Court of Costa Rica in a review of the request
\n
1s
\n
1s
\n
made, appoints the
\n
t Instance Civil Tribunal of the
\n
t Circuit of San Jose to initiate the
\n
procedure, recognizing the existence of the arbitral award and asking Mitchell to demonstrate
\n
the ownership of King Lion Network in that Court, since this entity was not part of the Hong
\n
Kong Arbitration.
\n
On March 19, 2019 the court ruled on Thunderbird Resorts Inc. application for default
\n
judgment against Taloma Zulu, S.A. as the Court entered default judgment in in favor of
\n
Thunderbird Resorts, Inc., in the amount of $407,643.
\n
In September 2019, Thunderbird Resorts Inc. filed a civil claim before the Tribunal Courts in
\n
San Jose, Costa Rica against Murray Jo Zmmer, Angular Investments Corp and Taloma Zulu
\n
S.A., for payments made from the Costa Rica operation owned by Thunderbird Resorts and
\n
Angular Investments, to several entities without the authorization of Thunderbird Resorts, Inc.
\n
The claimed amount is approximately \u00bd of the amount that Zimmer wired without
\n
\n\n
\n\n
\n\n
authorization, which corresponds to Thunderbird funds in the approximate amount of
\n
$837,090. In October, 2019, The Second Civil Court of the First Judicial Circuit issued a
\n
notification to the defendants giving them thirty days to answer regarding the facts of the claim.
\n
This case is in its initial phase.
\n
On the Thunderbird vs. Mitchell arbitration claim, in December 2019, the ICC placed a demand
\n
on the Parties to pay the additional fees failing which the arbitration would be considered
\n
withdrawn. The ICC advised the parties that a final award in the matter would be issued in
\n
late April 2020 but no final award has been submitted as of the date of the filing of this Annual
\n
Report. Thunderbird Resorts Inc. is also awaiting the ICC ruling on its Petition for
\n
Reconsideration of the arbitrators ruling on the issue of \u201cres judicata\u201d.
\n
In September of 2020, Mitchell and Mitzim filed a Motion in the Federal District Court lawsuit
\n
for an Order Dismissing the San Diego federal District Court lawsuit for Lack of Standing on
\n
alleging that Thunderbird Resorts Inc. \u201cTRI\u201d filed the lawsuit based on extraterritorial activities
\n
that took place in Costa Rica and barred by Costa Rica law placing Mitchell and MITZIM to
\n
exorbitant expense and inconvenience. TRI opposed the motion on the basis that the motion
\n
and/or objection based on lack of standing is not jurisdictional and thus is waivable. Mitzim
\n
waived this defense by waiting over five years to raise this objection, and only first did so after
\n
the close of fact discovery. Moreover, even if the motion was timely (it is not), the substantive
\n
argument lacks merit, as Thunderbird properly brings its claims in its direct, individual
\n
capacity. It need not bring these claims in a derivative capacity. Thunderbird is, and always has
\n
been, the proper real party in interest in this lawsuit. Accordingly, Thunderbird requested that
\n
this Court deny Mitzim\u2019s untimely and meritless motion in its entirety. On December 21, 2022,
\n
the Court ruled on the aforedescribed motion by denying MITZIM request to dismiss the case
\n
. The Court found that in light of the evidence of record demonstrating MITZIM knew or
\n
should have known of a meritorious Rule 17) objection. Specifically, MITZIM (a) failure to
\n
bring their claim until more than five years into the litigation, despite being on notice of the
\n
potentially meritorious defense based upon notice provided in the original complaint, the
\n
Court\u2019s March 29, 2018, order, and buttressed by Defendant Mitchell\u2019s own admissions, and
\n
(b) continued substantive litigation of the case for years after such notice of potentially
\n
meritorious defense constitutes waiver. The Court and the parties are is now poised to proceed
\n
to trial which is more likely to occur sometime in 2023.
\n
g. The Group\u2019s entry and exit from the India market
\n
The Group entered the India market in 2008 by initiating a hotel project in Daman, India, which
\n
is located just north of Maharashtra State whose capital is Mumbai (formerly Bombay). The
\n
project known as \u201cThunderbird Resorts \u2013 Daman\u201d has faced both regulatory delays outside the
\n
Group\u2019s control, as well as cost overruns in construction and pre-operating interest / expense
\n
due to the delays which ultimately caused the Group to exit the India market in April 2015.
\n
The entire history of the entry and exit as well as settlements with various parties is fully
\n
described in previously filed financial statements. All settlements have been completely
\n
satisfied with the exception of the settlement with Maravege. In that regard, The Group entered
\n
into a revised settlement with Maravege on the basis described in the section on \u201cSubsequent
\n
events\u201d as the revised settlement was entered into after December 31, 2022.
\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag372": { "value": "\n
23. COMMITMENTS AND CONTINGENCIES
\n
As at December 31, 2022, principal payments required under the terms of the loan agreements and
\n
their liabilities in each for the next five years are as follows:
\n
Year ending December 31:
\n
2023
\n
8,764$
\n
2024
\n
293
\n
2025
\n
-
\n
2026
\n
-
\n
2027
\n
-
\n
Thereafter
\n
-
\n
Subtotal
\n
9,057
\n
Less: Debt issuance costs
\n
-
\n
9,057$
\n
\n
Set out below is an overview of our ongoing contingencies, many of which are as a result of
\n
regulatory uncertainty. An estimate of the financial effect of each contingency is disclosed unless
\n
a reasonable estimate of the financial effect cannot be made.
\n
a. Peru tax controversies
\n
Sun Nippon Company S.A.C. - \u201ccoin-in case\u201d:
\n
In October of 2017, the Group announced the sale of certain operation in Peru including those
\n
held by a company named Sun Nippon Company, S.A.C. \u201cSNC\u201d. As part of the sale of those
\n
operations, the purchaser agreed that irrespective of the transfer of the SNC Shares,
\n
Thunderbird will have the right to continue with the defense of certain tax refund case (the
\n
\u201cSun Nippon Coin In Case\u201d), initiated by SNC before the Peruvian Judicial Court of Justice,
\n
against a decision of the Peruvian Administrative Tax Court of January 2016. The Parties
\n
agreed that if SNC, under a final decision of the Judiciary receives any monetary refund
\n
together with any additional compensation for interests, and/or any reimbursement of costs and
\n
expenses incurred in relation to the same, the Buyer will be obliged to pay to Thunderbird
\n
within thirty (30) calendar days following its receipt by SNC, an amount equal to the sum so
\n
received by SNC deducting any applicable withholdings, taxes, commissions, charges, cost,
\n
or similar that may affect the transfer of such proceeds from SNC to the corresponding Buyer
\n
and from such Buyer to Sellers, and/or any other deductions that may apply by Law.
\n
The background of the case is as follows: On or about January 18, 2016, the Peruvian
\n
Administrative Tax Court (commonly known as the Tribunal Fiscal in Spanish) served a
\n
negative ruling against the Group\u2019s Peruvian subsidiary operation. The ruling is dated
\n
December 28, 2015 and covers a tax matter commonly known as the \u201c2006 coin-in case\u201d
\n
(hereafter \u201cthe December 28, 2016 coin in ruling\u201d. The basis of the negative ruling keyed in on
\n
whether \u201crevenue\u201d should be based on \u201cnet win\u201d or on \u201ccoin in \u201cas it relates to pre-payment of
\n

\n\n
income tax. After the issuance of \u201cthe December 28, 2015 \u201ccoin-in ruling\u201d, Management
\n
learned that SUNAT had issued a report dated and executed on December 24, 2015 defining
\n
\u201crevenue\u201d for purposes of the relevant tax issues (hereafter \u201cthe SUNAT Report\u201d). This
\n
SUNAT report was released to the public on February 18, 2016 and is in reply to a March 18,
\n
2015 letter of the \u201cSociedad Nacional De Juegos De Azar (SONAJA)\u201d in which SONAJA
\n
sought clarification from SUNAT on the definition of \u201crevenue\u201d in the \u201c2006 coin-in case\u201d
\n
(hereafter the \u201cSONAJA Petition\u201d). The SONAJA Petition sought an opinion from SUNAT to
\n
the effect that the pre-payment of income tax should be based on \u201cnet win\u201d and not on \u201ccoin-
\n
in\u201d. The SUNAT report opines that the pre-payment of income tax should be based on \u201cnet
\n
win\u201d and not on \u201ccoin-in\u201d. According to the Group\u2019s tax counsel, this SUNAT report is 100%
\n
legally binding on SUNAT, meaning that SUNAT will no longer audit and oppose the
\n
calculation of revenue based on \u201ccoin-in\u201d as it relates to the pre-payment of income tax. The
\n
clear conclusion by the outside counsel is that SUNAT recognizes the \u201cnet win\u201d as base for the
\n
calculation of the income tax.
\n
Unfortunately, in spite of the February 18, 2016 SUNAT report, Management must continue
\n
its appeal of the Tribunal resolutions in the SNC 2006 coin-in case. SNC has filed its appeal
\n
on March 23, 2016, in this matter to the judicial court in which it could review the entire tax
\n
case on a \u201cde novo\u201d basis, meaning that SNC will have the opportunity to present its case in
\n
full and most likely prevail on appeal in its position. One significant and material factor in the
\n
Tribunal negative ruling is that the tribunal did not take into account the main defenses that
\n
SNC presented but chose to ignore those defenses. While the Appeal was pending, SNC
\n
proceeded to pay the entire tax liability and is now seeking a refund of all taxes paid, in case
\n
SNC prevail on its case. On April 28, 2017, the 1st instance Court gave a decision in favor of
\n
SNC. Both SUNAT and the Tribunal Fiscal have appealed the decision before the Superior
\n
st
\n
Tribunal. On October 18, 2017, the Superior Tribunal confirmed the decision of the 1
\n
Instance
\n
Court in favor of SNC. On November 22, 2017, both SUNAT and the Tribunal Fiscal filed a
\n
so-called cassation writ before the Supreme Court, last and definitive instance. However,
\n
SUNAT has withdrawn its cassation writ, meaning SUNAT is no longer appealing or otherwise
\n
challenging the Lower Court\u2019s decision in favor of SNC. The Tax Court has not filed a
\n
withdrawal. And now, on September 6, 2021 the Supreme Court has served a formal resolution
\n
that Tribunal Fiscal\u2019s cassation writ has been formally accepted, meaning that that the Supreme
\n
Court would analyze the substance of the matter and eventually issue the definitive resolution
\n
(in third and last instance). As part of the Judicial procedure, a hearing took place on March
\n
31, 2022, in which the Parties had the opportunity to expose to the judges their positions in a
\n
verbal matter. On June 2022, the Supreme Court (third and last Judiciary instance) served the
\n
ruling through which it recognized that SUNAT\u00b4s assessment (confirmed by the Tax Court)
\n
was groundless. As stated above, at the time the Peru operations were sold the Group and the
\n
Purchaser agreed that if SNC, under a final decision of the Judiciary receives any monetary
\n
refund together with any additional compensation for interests, and/or any reimbursement of
\n
costs and expenses incurred in relation to the same, the Buyer will be obliged to pay to
\n
Thunderbird within thirty (30) calendar days following its receipt by SNC, an amount equal to
\n
the sum so received by SNC deducting any applicable withholdings, taxes, commissions,
\n
charges, cost, or similar that may affect the transfer of such proceeds from SNC to the
\n
corresponding Buyer and from such Buyer to Sellers, and/or any other deductions that may
\n
apply by Law. During the year ended December 31, 2022, SNC received an approximate of
\n

\n\n
US$ 1,642,713 as monetary refund as detailed in Note 5 and was remitted to the Group as had
\n
been agreed.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 Tax issues: In the latter part of 2011, the Group\u2019s
\n
wholly owned Peruvian subsidiary, Thunderbird Hoteles Las Americas, S.A. (\u201cTHLA\u201d),
\n
received the following resolutions issued by the Peruvian tax authority, Superintendencia
\n
Nacional de Administraci\u00f3n Tributaria (\u201cSUNAT\u201d), in relation to various major tax issues
\n
(*note: all interest mentioned in the following description have been calculated up to
\n
September 30, 2020).
\n
By Resolution no. 0120030026291 for the tax year 2007 the tax authorities imposed an income
\n
tax of S/. 558,950 plus interest of S/. 703,176 (amounts in US$139,807, interests: US$184,077)
\n
due to a rejection of certain deductions in 2007 for interest payments made to lenders/investors
\n
domiciled abroad on certain loans and investments. In addition, the tax authorities imposed a
\n
fine in relation to this resolution in the amount of S/. 279,474 plus interest of S/. 402,870
\n
(amounts in US$73,161, interest: US$105,463).
\n
In another Resolution no. 0120020018846 for the tax year 2007 the tax authorities denied
\n
certain tax credits in favor of THLA related to IGV of the purchase of the hotels for an amount
\n
of S/. 3,245,168 plus interest of S/. 4,442,733 (amounts in US$849,520, interest
\n
US$1,163,019).
\n
On November 21, 2011, THLA filed an administrative appeal with respect to the resolutions
\n
no. 0120030026291 and no. 0120020018846 On March 23, 2012, THLA was notified through
\n
a SUNAT resolution that the tax authority confirmed the resolutions as described herein.
\n
THLA thereafter filed an appeal on April 12, 2012.
\n
The tax authorities issued another \u201cResolution of Intendance no. 0150140010152\u201d which
\n
involves both of the 2007 prior mentioned tax assessments related to IGV (Resolution
\n
0120020018846) and Income Tax (Resolution 0120030026291). On October 12, 2019 a
\n
hearing took place before the Tax Court, which is the second and last administrative challenge
\n
in regards to this matter.
\n
In Relation with the income tax resolution, THLA has recently been served with the Resolution
\n
N\u00b0 11395-4-2021 through which the Tax Court has confirmed SUNAT\u2019s decision. A provision
\n
was made for this case in where the Group\u2019s chances of success were low. The provision
\n
recognized totaled S/. 1,900,746 (US$497,577), including tax, penalties and interest. As of
\n
December 31, 2022, the assessed amounts were duly paid by THLA.
\n
In relation with the IGV Resolution N\u00b0 11395-4-2021, the Tax Court has ruled that it has no
\n
legal grounds.
\n
In respect to all of these resolutions issued by the tax authorities, Management intends to
\n
vigorously defend its position at all administrative and judicial levels. The Group is not
\n
responsible for payment until the administrative and judicial process decisions are final with
\n
no further rights of appeal. However, interest on these resolutions continues to accrue while
\n
the administrative and judicial process is completed and a final decision is rendered. As a result
\n

\n\n
of the on-going uncertainty over the potential outcome of this matter no provision has been
\n
recorded.
\n
On a separate matter, the company has filed an appeal procedure in a ruling by the Tax Court
\n
(Tax Court File 15182-2014), related to Resolutions 0220030035681-0220030035690 for the
\n
tax year 2008 referred to withholdings of payments made abroad in a total principal amount of
\n
S/. 257,954 plus interest in a total of S/. 317,825 (amounts in US$ 67,527, interest: US$83,200).
\n
In separate Resolutions 0220020013107-0220020013114 the tax authorities issued fines
\n
related to the prior mentioned resolutions in the amount of S/.107,530 plus interest in a total of
\n
S/.134,033 (amounts in US$28,149 interest: US$35,087). A provision has been recognized in
\n
connection with the resolution above totaling S/. 843,741 (US$220,875) including tax,
\n
penalties and interest.
\n
The appeal also refers to Resolution 0220030036535-0220030036541 for the tax year 2008
\n
related to payments in advance of the income tax for a total amount of S/. 45,337 plus interest
\n
in a total of S/. 49,585 (amounts in US$11,868, interest: US$12,980). Resolutions
\n
0220020013229-0220020013238 imposed fines related to the prior mentioned resolutions for
\n
the amount in total of S/. 381,969 plus interest in a total of S/. 456,403 (amounts in US$99,992,
\n
interest: US$119,477). Through Resolution N\u00b0 7826-11-2022 (served on November 18, 2022)
\n
the Tax Court has solved the tax proceeding related to 2008 Income Tax. The Tax Court has
\n
confirmed the tax debt related to (i) Income Tax Retained in 2008 for interest on loans from
\n
related parties; (ii) payments on account of Income Tax for the year 2008 and (iii) income tax
\n
for 2008 (deduction of interest not recorded in the accounts). A provision was made in
\n
connection with the above resolution for a total of S/. 940,923 (US$246,315) including tax,
\n
penalties and interest. The relevant tax debt assessed in this case was duly paid in Q1 2023.
\n
Through Intendancy Resolution 0250140020952, SUNAT issued a 2013 IGV assessed tax debt
\n
amounting S/. 1,013,295.00. This tax debt was originated as a consequence of SUNAT\u2019s 2007
\n
IGV assessment which The Tax Court already confirmed as null, revoking it. Through
\n
resolution 11390-4-2019 the Tax Court has ruled that the result of this procedure depends on
\n
the result of 2007 process, which has been already declared in favor of the Company.
\n
Considering that the Tax Court has already dismissed 2007 IGV tax assessment (resolution
\n
11395-4-2021), it is more than likely that the 2013 tax debt will be also revoked.
\n
Thunderbird Hoteles Las Americas, S.A. \u2013 \u201cAlcabala\u201d (Property Transfer Tax) process: On
\n
September 25, 2007, THLA received a notification in connection with a resolution issued by
\n
the Tax Administration Service (SUNAT) demanding payment of US$ 522,824.68 (S/.
\n
1,969,742) for a property transfer tax resulting from the purchase of the land and the building
\n
located at Alcanfores 475, Miraflores. SUNAT asserted that THLA wrongly calculated the tax
\n
on the first-time sale of such property (sold by La Caja Militar to THLA).
\n
On October 24, 2007, THLA filed an appeal against the resolution issued by SUNAT. THLA
\n
asserts that it had paid the corresponding property transfer tax for the land, as well as the VAT
\n
for a part of the building. THLA argues that the property transfer tax was not paid for part of
\n
the building as the sale of such part of the building was a first-time sale performed by the
\n
contractor and was exempt from tax. On October 17, 2014, the Tax Court ruled that the
\n
resolution issued by the SUNAT was void as it had not been properly supported (such
\n

\n\n
resolution did not specify the reasons why the SUNAT considered that the total of the transfer
\n
was subject to property transfer tax).
\n
On March 12, 2015, SUNAT issued a new resolution in respect of the same issues, but provided
\n
no additional evidentiary support for its position. SUNAT\u2019s new resolution (Resolution N\u00ba 045-
\n
012-00073684), demanded the payment of the property transfer tax for the same land and the
\n
same building for a total of S/. 1,052,993 (including interests and penalties). THLA argued
\n
once again that the resolution issued by SUNAT lacks the proper supporting documentation.
\n
SUNAT claims that THLA must pay the property transfer tax but does not explain the legal
\n
basis supporting such standpoint.
\n
On April 13, 2015, THLA filed its opposition against Resolution N\u00ba 045-012-00073684
\n
asserting that THLA was not required to pay any property transfer tax and requesting that the
\n
new resolution be declared void as it lacked proper support. Such claim is currently under
\n
review. THLA contends that it is probable that the Tax Court, for a second time, will declare
\n
such resolution to be void. The opposition writ is pending a ruling by the Municipal
\n
Administration (1st administrative instance). Should the opposition writ be rejected, THLA is
\n
entitled to file an appeal writ before the Tax Court (second administrative instance).
\n
b. Costa Rica tax controversies
\n
By way of background, the income tax in Costa Rica is collected by the General Income Tax
\n
Office. The Group previously owned various Costa Rica subsidiaries including, Thunderbird
\n
Gran Entretenimiento, S.A. (\u201cTGE\u201d), and Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d).
\n
On February 27, 2015, the Group sold its entire economic interest and management rights in
\n
its Costa Rican operations (of which the Group had approximately a 50% share) to CIRSA
\n
International Gaming Corporation (\u201cCIRSA\u201d), for a net price (gross price less debt payoff less
\n
working capital adjustments) of approximately $8.1 million. The $8.1 million net amount
\n
received was also net of approximately $192 thousand contingent tax liability paid by the group
\n
to the Costa Rica tax authority to cover GTCR contested tax liability and for the approximate
\n
$3.088 million TGE contested tax liability paid to the Costa Rica tax authority. These contested
\n
tax liabilities are fully described below. These payments to the Costa Rican tax authority were
\n
required to be paid as a condition to closing the sale of the Group\u2019s interest in the Costa Rica
\n
operation. The payment made by the Group and its partner was made without prejudice or
\n
admission of liability and therefore, does not alter the Group\u2019s position of taking a provision
\n
for these contingent taxes in 2014.
\n
Following the sale of the Costa Rica operations, and as part of the Group\u2019s commitment on the
\n
sale of the operations, TGE continued to be engaged in a certain tax procedure while GTCR
\n
ended up settling its tax controversy through an amnesty procedure. In addition, the Group\u2019s
\n
50% ownership in King Lion Network is engaged in a tax controversy as described below. The
\n
following sections describe the current status/outcome of these three tax controversies:
\n
(i) TGE received a proposed income tax assessment in Q1-2012 of $600 thousand for the tax
\n
year ended December 31, 2009, and a proposed tax assessment of $800 thousand for the
\n
tax year ended December 31, 2010. Additional gaming taxes of $200 thousand were
\n
assessed for each tax year ended December 31, 2009 and 2010. The assessments for both
\n
\n\n
tax years were related to certain expenses which were deemed to be non-allowable
\n
deductions by the General Income Tax Office and for the imputation of interest income on
\n
intercompany advance balances. These matters were appealed to the Tribunal Fiscal
\n
Administrative (\u201cTFA\u201d) during Q3 and Q4 of 2012. On January 16, 2013, the Group was
\n
advised that the Administrator Tribunal Appeal was denied in regards to the TGE tax
\n
matter. The Group filed a lawsuit at the Court level in August 2014 to revoke the tax
\n
assessment. In February 2015, the Group paid the tax authorities $3.088 million on the
\n
alleged tax liability. The payment to the Costa Rican tax authority was required to be paid
\n
as a condition to closing the sale of the Group\u2019s interest in Costa Rica to CIRSA, as
\n
described below. The payment made by the Group was made without prejudice or
\n
admission of liability. The preliminary hearing of the case was heard in June 2015 and the
\n
Administrative file is being reviewed by the Court. A trial date was set for June 2018. The
\n
Group continues with the judicial procedure and its claim to revoke the tax assessment so
\n
TGE could recover a portion of the payment over time. In relation to this, Cirsa Gran
\n
Entretenimiento de Costa Rica, S.A. (formerly TGE) filed an administrative procedure
\n
against the Tax Authority before the Administrative Court contested the legality of certain
\n
Administrative Resolutions of the Direction of Great National Tax Payers of Costa Rica
\n
and the Fiscal Tribunal. There was a hearing on this case in June 2018. The Administrative
\n
Court rendered a judgment (number 62-2018-VIII) against TGE on July 12, 2018. TGE
\n
filed an appeal on August 7, 2018 in the First Chamber of the Supreme Court in respect of
\n
the only remaining issue for this controversy case, which is the legal fees to be charged
\n
against the taxpayer TGE for failing to prevail in the lawsuit. The legal fees are
\n
approximately $310,000 and the tax appeal is pending.
\n
(ii) GTCR received a proposed tax assessment in the approximate amount of $340 thousand
\n
for the tax year ending December 31, 2011, related to certain expenses which were deemed
\n
to be non-allowable deductions by the General Income Tax Office and for the imputation
\n
of interest income on intercompany advance balances. A penalty resolution is still pending
\n
to be released by the TFA, which comprises an amount equal to 25% of the tax assessment
\n
or $113 thousand. The Tax counsel for GTCR advises that the exposure on taxes and
\n
penalties is significantly less than the proposed assessment. The amount of the non-
\n
allowable expenses was 36,960,675 colones or USD$61,280. The GTCR objections were
\n
not resolved, but under a recent change to Costa Rica tax law, (Tax Law number 9635
\n
taxpayers may take advantage of a tax amnesty, in which the principal could be paid
\n
without interest with a 60% reduction of the fine. GTCR filed for the tax amnesty and
\n
closed the tax inspection procedure for the year 2011. The amounts paid were 11,088,202
\n
colones (USD$18,384) in principal, and 1,108,820 colones (USD$1,838) for the fine.
\n
(iii) The Costa Rica Tax authorities have assessed a tax against King Lion Network for the tax
\n
year 2011 for approximately 17.2 million colones (or $30 thousand) representing tax and
\n
interests due the non-recognition of the interests paid for the purchase of the shares related
\n
to the Tres Rios Project. The Company presented the appeal to this assessment on time
\n
and the case remains pending.
\n
\n\n
c. Costa Rica-CIRSA Escrow claim
\n
In a related matter to the San Diego Federal District Court action, in February 2015, the Group
\n
had previously consummated Stock Purchase Agreement (SPA) in which CIRSA acquired the
\n
shares of Grupo Thunderbird De Costa Rica from Thunderbird Resorts Inc. (TRI) and Angular
\n
Investments S.A. The SPA provided that a certain portion of the monies to be paid by CIRSA
\n
to TRI/Angular were to be held in escrow pursuant to the SPA. In February 2015, CIRSA
\n
delivered $2,125,000, to the Escrow Agent (the \u201cEscrow Amount\u201d) in accordance with the
\n
terms and conditions of the SPA. The Escrow Agreement provided for a claims procedure by
\n
which certain claims could be made by third parties/tax authorities, vendors to be paid from
\n
the Escrow. In December 2017 and in March 2018, ZIMMER AND FOX as employees of
\n
GTCR filed certain claims against CIRS, GTCR and TRI. TRI position is that ZIMMER AND
\n
FOX are now claiming in bad faith that they are is entitled to a series of labor rights. The SPA
\n
and all related documents support the fact that ZIMMER AND FOX as a \"seller shareholder\"
\n
waived and released any and all claims, rights, etc. that he may have had, including social
\n
benefits under Costa Rica law. TRI believe ZIMMER AND FOX have waived all his claims
\n
and therefore their labor claim is without merit. Based on our information and belief, ZIMMER
\n
intended to file this labor complaint in response to TRI\u2019s actions against him wherein TRI had
\n
filed the aforementioned lawsuit against ZIMMER in the Federal District Court of San Diego,
\n
California, Zimmer\u2019s bad faith as he is attempting to retaliate against TRI for the actions that
\n
TRI has taken against him in the USA litigation. TRI believes that ZIMMER\u2019s claim is without
\n
merit and ultimately the labor tribunal made a ruling that ZIMMER\u2019S claims against GTCR
\n
was without merit. In fact, the Costa Rica labor tribunal already ruled against Zimmer.
\n
Therefore, TRI disputed each of the claims that CIRSA made against the Escrow. The general
\n
basis for disputing each of CIRSA\u2019s claims, as well as, any claim that Thunderbird Resorts Inc.
\n
violated the Stock Purchase Agreement dated February 25, 2015 are completely without basis
\n
in law or in fact. Neither ZIMMER AND FOX are entitled to any payment as set forth in each
\n
of their respective labor cases. Moreover, TRI position in respect of the issues raised by CIRSA
\n
and so-called breach of the SPA is that TRI is not jointly and severally liable with Angular,
\n
Zimmer and Fox. The Fox claim which has not been served on TRI but only against CIRSA
\n
was filed as a way to place pressure on Thunderbird to help Zimmer in his claim. In addition,
\n
Fox will lose his claim based on the claim being barred as the statute of limitations will
\n
foreclose Fox from succeeding in the courts.
\n
In relation to the Murray Jo Zimmer case, a ruling was issued by the Labor Judge of the 1st
\n
judicial circuit of San Jose on October 8, 2018, in which the Labor Judge declared that the
\n
lawsuit filed by Jo Zimmer against Grupo Cirsa de Costa Rica had no legal basis and issued an
\n
order against Zimmer to pay the costs and expenses of the judicial process. Murray Jo Zimmer
\n
appealed ruling No. 2080 on October 12, 2018. In June 2022, the 2nd Tribunal of the Supreme
\n
Court ruled the Resolution 2022-001356, which is final and non-appealable, confirming the
\n
prior decisions against the plaintiff Murray Jo Zimmer.
\n
In relation to the Michael Fox case, TRI was not served with this labor lawsuit, but in the aim
\n
of affording evidence and facts to the procedure, it filed voluntarily its response to the labor
\n
claim before the 2nd Labor Court of San Jose, Costa Rica. A hearing for this case scheduled
\n
for November 2020, which was suspended on account of the Court\u2019s request to amend certain
\n
evidence previously received. New hearing date was appointed on October 4th, 2022, but it
\n
\n\n
was suspended due the requirement of a professional translator for the plaintiff. Currently both
\n
parties are awaiting a new hearing date to be appointed by the Labor Court.
\n
In March of 2020, MMG Bank Corporation notified CIRSA, Thunderbird Resorts Inc. and
\n
Angular Investments S.A. that MMG Bank Corporation intended to make a disbursement of
\n
$532,906 to Thunder Resorts Inc. and to Angular Investments S.A. pursuant to that certain
\n
Escrow Agreement dated February 25, 2015. CIRSA filed an objection to release of escrow
\n
proceeds on the basis that CIRSA\u2019S objection is based on three sets of factors:(1) Labor Law
\n
Suit/controversy filed by Murray Jo Zimmer and Michael G. Fox (sometimes collectively
\n
referred to as \u201cZIMMER AND FOX\u201d) against Grupo Cirsa De Costa Rica S.A. in which
\n
ZIMMER AND FOX are seeking an estimated seven million dollars; (2) Certain Labor claims
\n
filed by \u201cother employees of CIRSA\u201d; (3) Certain Tax Claims filed by the Costa Rica tax
\n
administration against companies sold by Thunderbird Resorts Inc. to CIRSA Thunderbird
\n
Resorts Inc. disputed each of the claims that CIRSA. The general basis for disputing each of
\n
CIRSA\u2019s claims as well as any claim that Thunderbird Resorts Inc. violated the Stock Purchase
\n
Agreement dated February 25, 2015 are completely without basis in law or in fact. Moreover,
\n
TRI\u2019s position in respect of the issues raised by CIRSA and so called breach of the SPA is that
\n
TRI\u2019s is not jointly and severally liable with Angular, Zimmer and Fox and demanded that the
\n
escrow proceeds ought to be disbursed solely to Thunderbird. MMG Bank continues to hold
\n
the escrow proceeds and has not disbursed any part of the aforementioned $532,906.
\n
d. Canadian tax controversy
\n
Thunderbird Gaming, Inc. (\u201cTGI\u201d), a wholly-owned subsidiary of the Group that has been
\n
inactive since 1996, received notification of a reassessment from the Canada Revenue Agency
\n
(\u201cCRA\u201d) with respect to a transfer of assets in 1996 in relation to the California Indian gaming
\n
business previously operated by TGI. Specifically, this reassessment stems from a transfer of
\n
assets which CRA contends was undervalued. The reassessment is in the amount of Canadian
\n
dollar (\u201cCDN\u201d) $380 thousand (US $381 thousand at December 31, 2010).
\n
TGI submitted applications to CRA utilizing its net operating loss (\u201cNOL\u201d) in a manner that
\n
reduced the actual tax liability to zero and is taking the position that the valuation of assets was
\n
accurate in order to preserve its NOL. By taking this position, TGI believes it avoids the
\n
imposition of interest on tax, which is the subject of the reassessment.
\n
Further, TGI filed a fairness application with the appropriate Canadian taxing authority
\n
requesting a complete abatement of the alleged interest imposed on the alleged tax liability.
\n
In this filing, management alleges that TGI received unconscionable and egregious treatment
\n
from CRA in addition to experiencing excessive delays in the reassessment process. TGI also
\n
filed an appeal of CRA\u2019s assessment with the tax courts in Canada in which TGI will attempt
\n
to establish that the underlying tax liability should never have been assessed.
\n
The fairness application was rejected and in March 2007, TGI abandoned further appeal to the
\n
tax courts in Canada.
\n
Although the Group believes CRA\u2019s case is without merit, the liability is contained within an
\n
insolvent subsidiary and consequently, even though TGI is responsible for the liability, the
\n
\n\n
Group\u2019s parent and subsidiaries have no exposure to the TGI liability. The Group does not
\n
expect that CRA will collect the judgment as TGI is insolvent and therefore there is no accrual
\n
in these consolidated financial statements related to this reassessment.
\n
e. Guatemala Tax cases
\n
The Superintendencia de Administraci\u00f3n Tributaria-SAT (the Guatemalan tax authority) is
\n
attempting to open up Thunderbird de Guatemala, S.A. to a tax audit for 2009 and 2010, which
\n
the Group has been challenging. On March 20, 2017, Thunderbird de Guatemala was notified
\n
of decisions made by the Second Tribunal of Accounts and Controversies, which has decided
\n
over a Recusal Appeal, conceded to be in favor of Thunderbird de Guatemala and an Appeal
\n
for Reversal related to certain documents that the Tax Authority is requesting for the tax years
\n
2008 and 2009 and the company considered time-barred. The Tribunal alleged that the matter
\n
as discussed, related to whether the delivery of certain documents, were or were not legally
\n
required under a statute of limitations. With this decision made, Thunderbird de Guatemala
\n
defense is prepared to present its arguments and challenge the main matter of this case in
\n
relation to the statute of limitations of the Tax Years 2008 and 2009.
\n
In January 2021, the Company was notified that the Court ruled against Thunderbird de
\n
Guatemala in this 2009 tax case. The Company strongly believes in its arguments; specifically,
\n
that the case is time barred. The Company filed an \u201cAmparo\u201d in January of 2021 to continue
\n
defending its position before the Supreme Court and awaits the Court ruling. The writ of
\n
Amparo is generally described as a remedy available to any person whose right to life, liberty
\n
and security is violated or threatened with violation by an unlawful act or omission of a public
\n
official or employee, or of a private individual or entity. Court took knowledge of the Amparo
\n
in June 2021.
\n
In November 2019, the third economic court issued a resolution against the arguments of
\n
Thunderbird de Guatemala in a case related to 2009 tax period for an approximate amount of
\n
$100 thousand. An Administrative Cassation Appeal has been filed in July 2021 before the
\n
Third Economic Court alleging that the judge omitted some of the arguments and facts
\n
presented by Thunderbird de Guatemala. On July 20, 2022, Thunderbird de Guatemala was
\n
served with the Supreme Court Resolution 01002-2021-00644, in which was decided to
\n
maintain the prior decisions against the Company interests. At this instance, no further
\n
challenges are available. A provision has been recognized for an approximate amount of
\n
US$109,000 as described in Note 5.
\n
f. San Diego Federal District Court
\n
In June of 2015, Thunderbird Resorts filed a lawsuit in the Federal District Court, San Diego,
\n
against defendants Murray Jo Zimmer (\u201cZimmer\u201d), Angular Investments Corp. (\u201cAngular\u201d),
\n
Mitzim Properties, Inc. (\u201cMitzim Properties\u201d) Taloma Zulu, S.A., (\u201cTaloma Zulu\u201d) Jack R.
\n
Mitchell, (\u201cMitchell\u201d). The lawsuit alleges breach of fiduciary duty against Zimmer, Angular
\n
and Mitchell; breach of contract against defendant Mitchell; aiding and abetting, breach of
\n
fiduciary duty against Taloma Zulu and Mitzim Properties; fraud Civil RICO 18 U.S.C. \u00a7 1961,
\n
conversion constructive trust and an accounting against defendants Zimmer, Angular and
\n
Taloma Zulu.
\n
\n\n
The basis of the various claims and allegations in the lawsuit stem from the following: In 2002,
\n
Thunderbird partnered with Angular to operate casinos and related businesses in Costa Rica.
\n
Grupo Thunderbird de Costa Rica, S.A. (\u201cGTCR\u201d) was formed by Thunderbird and Angular,
\n
who agreed to split all profits from GTCR on an equal, \u201c50/50\u201d basis. Angular\u2019s principal,
\n
defendant Zimmer, became Thunderbird\u2019s \u201ccountry manager\u201d for its operations in Costa Rica.
\n
Between July 2007 and September 2014, Zimmer caused GTCR to pay over $2 million to
\n
defendant Taloma Zulu. Zimmer reported to Thunderbird\u2019s management that these amounts
\n
were being paid for legal and consulting expenses for GTCR to operate in Costa Rica. Upon
\n
further investigation, Thunderbird now believes and alleges that Zimmer and Mitchell caused
\n
Thunderbird\u2019s 50% share of the amounts paid to Taloma Zulu to be diverted, misappropriated,
\n
embezzled, and/or converted for defendants\u2019 own improper, personal uses. Thunderbird
\n
Resorts is seeking the following relief: awarding Thunderbird the damages it has sustained by
\n
reason of Mitchell, Zimmer et al conduct, and interest thereon as provided by law; awarding
\n
Thunderbird exemplary and/or punitive damages on account of defendants\u2019 willful, wanton,
\n
malicious, and/or oppressive conduct; awarding Thunderbird its costs of suit incurred therein.
\n
Thunderbird Resorts is also seeking the imposition of a constructive trust in favor of
\n
Thunderbird, and against defendants, of the benefits improperly received by defendants and an
\n
order commanding defendants to return to Thunderbird the funds they improperly received by
\n
way of their wrongful conduct. So far, Thunderbird Resorts was successful in having the court
\n
order approximately $420 thousand of the defendants\u2019 funds to be sequestered in the Federal
\n
District Court bank account pending resolution of the case.
\n
In March of 2017, Thunderbird Resorts Inc. obtained a default judgment in the approximate
\n
amount of $659 thousand against co-defendants Angular Investments S.A. and Taloma Zulu.
\n
Simultaneously with Thunderbird Resorts Inc. filing of the San Diego Federal District Court
\n
case, Jack R. Mitchell (\u201cMitchell\u201d), a former employee of Thunderbird, brought an arbitration
\n
claim in Hong Kong under the International Court of Arbitration of the International Chamber
\n
of Commerce against Thunderbird. The amount claimed is not less than $518 thousand. By
\n
way of background, in September 2012, Thunderbird Resorts entered into a settlement with
\n
Mitchell, following his termination from the company. Part of that settlement included a
\n
payment to Mitchell of approximately $1.8 million to be paid in installments over the course
\n
of several years. On or about May 2015, Thunderbird Resorts claimed that Mitchell was in
\n
default of his settlement agreement and stopped payment on the settlement amount. Mitchell
\n
instituted arbitration proceedings in Hong Kong pursuant to the terms of the settlement
\n
agreement.
\n
On September 27, 2017 the International Court of Arbitration of the International Chamber of
\n
Commerce approved its award against Thunderbird Resorts Inc. in the approximate amount of
\n
$518 thousand plus attorney\u2019s fees and costs of approximately $220 thousand. Thunderbird
\n
Resorts intends to pursue all legal challenges to the award including motions for
\n
reconsideration, appeals and challenges to the award.
\n
Thunderbird Resorts made several request to the Arbitrator that the decision in this matter be
\n
delayed pending submittal of further evidence from the related matter Thunderbird Resorts Inc.
\n
vs. Jo Murray Zimmer, Jack R. Mitchell, Angular Investments, S.A, Taloma Zulu, Mitzim case
\n
no. 15CV1304 JAH BGS filed in the United States District Court for the Southern District of
\n
\n\n
California in which Mitchell and his co-defendants are being sued for approximately $1.28
\n
million plus punitive damages which may rise to the level of three times the actual damages.
\n
In May of 2017 Jack Mitchell filed a motion to have the claims made against him submitted to
\n
arbitration in Hong Kong alleging that is the proper forum for Thunderbird Resorts claim. In
\n
addition, Angular Investments S.A. filed a motion to set aside the $659 thousand default
\n
judgment. The Court also granted Thunderbird leave to file additional pleadings showing
\n
default damages above $657,975, and Thunderbird submitted additional pleadings showing
\n
damages and interest totaling $825,125. In addition to Angular\u2019s motion to set aside the default
\n
judgment, Angular also filed a motion to dismiss for lack of jurisdiction.
\n
In March 30, 2018, San Diego Federal District Court Judge Houston issued an Order Granting
\n
Defendant Jack Mitchell\u2019s Motion to Compel Arbitration which states in part that:
\n
\u201cThe action is STAYED as to Defendant Mitchell until such arbitration has been held in
\n
accordance with the terms of the agreement as set forth by this order. The parties shall file a
\n
joint status report regarding the progression of Arbitration proceedings no later than
\n
September 28, 2018. The Court addressed the issue of Thunderbird\u2019s counterclaims, which
\n
Thunderbird contended should hav
\n
e been adjudicated by the U.S. Federal District Court,
\n
on pages 6, 7 and 8 of the Order. The Court\u2019s Order states, in relevant part: The Court must
\n
next determine whether the parties intended to arbitrate the issue of waiver. The question of
\n
whether the remaining five causes of action have been waived as to Mitchell u nd er the Release
\n
and Waiver provision (Clause 3.2) of the Settlement Agreement is also a \u201cdispute[], claim[],
\n
[or] controvers[y] between the parties arising out of th[e] Release [and Settlement]
\n
Agreement.\u201d The parties expressly agreed to arbitrate this issue. Therefore, it is for the
\n
arbitrator to decide which claims, or portions thereof, have or have not been waived, based on
\n
the alleged dates of Defendant\u2019s conduct. Accordingly, the Court GRANTS Defendant\u2019s Motion
\n
to Compel Arbitration whether Plaintiff waived its First, Third, Fourth, Fifth, and Sixth causes
\n
of action, or any portion thereof, against Mitchell upon execution of the Settlement Agreement.
\n
(Order, pg. 7:1-10.) Section 9.49 of the Arbitration Award dated September 26, 2017 outlined
\n
the Tribunal\u2019s Findings, stating In pertinent part: \u201cThe Claimant [Mitchell] was not in breach
\n
of the Settlement Agreement.\u201d Although the findings are decisive on the issues raised by
\n
Plaintiff in its Eighth Cause of Action for Breach of Contract, the Tribunal made no findings
\n
as to the issue of waiver. Not having Plaintiff\u2019s counterclaims before it, the Arbitrator declined
\n
to make findings as to the proper interpretation of the release and waiver clause in paragraph
\n
3.2 of the Settlement Agreement, stating:By reason of the Tribuna\u2019's findings in paragraphs
\n
[9.46] and [9.48] that the Claimant has not breached clauses 5 and 6 of the Settlement
\n
Agreement and was not in breach of the Settlement Agreement (paragraph 9.49[1]), it does not
\n
need to make a finding as to the proper construction of the release in clause 3.2 of the
\n
Settlement Agreement as no issue of the Claimant being entitled to rely on Clause 3.2 of the
\n
Settlement Agreement arises. Jack Ray Mitchell v. Thunderbird Resorts Inc., Int\u2019l Ct. of Arb.
\n
Of the Int\u2019l. Chamber of Commerce, Case No. 21243/CYK/PTA, Ch. 9, \u00b6 9.50 (2017) (Rooney,
\n
Arb.). In light of this Court\u2019s order granting Defendant\u2019s Motion to Compel Arbitration as to
\n
the issue of waiver and all remaining claims Plaintiff chooses to pursue in arbitration, the
\n
Court finds Defendant Mitchell\u2019s request to domesticate and enter the Arbitration Award
\n
against Plaintiff premature\u201d (Order, pgs. 7:23-8:13.)
\n
\n\n
The Court granted Mitchell\u2019s motion to compel arbitration on TRI claims against Mitchell. TRI
\n
Complaint against Mitchell included claims for Breach of contract Fraud, RICO violations. The
\n
Court \u201cstayed/froze\u201d the various causes of action as to Mitchell, including the RICO claim, and
\n
ordered the parties back to Arbitration to resolve those issues and the other causes of action
\n
against Mitchell. Essentially, The Court opined that if TRI wishes to pursue these claims
\n
against Mitchell then it must pursue them as counter-claims in the ICC Hong Kong arbitration.
\n
The Court agreed with Mitchell that all of the claims should be arbitrated in Hong Kong.
\n
Therefore, TRI\u2019s position is that Mitchell\u2019s arbitration award is not final.
\n
The Court ruled in favor of Thunderbird and against MITZIM on its motion to quash writ of
\n
attachment. Thunderbird Resorts is diligently prosecuting its claims against MITZIM and
\n
estimates that its monetary value of its claim against MITZIM, is $1,282,454.
\n
On September 27, 2018 Thunderbird Resorts Inc. filed an arbitration claim in the approximate
\n
amount of $1 million against Mitchell with the ICC in Hong Kong. Mitchell in turn filed a
\n
\u201ccounter-claim\u201d against Thunderbird in the same proceeding in Hong Kong. In October of
\n
2019, the sole arbitrator in this proceeding ruled that Thunderbird Resorts Inc. claim was barred
\n
by the doctrine of \u201cres judicata\u201d. Thunderbird Resorts Inc. thereafter filed a Petition for
\n
reconsideration of the arbitrators ruling taking the position that application of the doctrine of
\n
\u201cres judicata\u201d is without basis in law and in fact. The ICC has sought additional fees from the
\n
parties to the arbitration. Mitchell has refused to pay any fees and Thunderbird refused to pay
\n
Mitchell\u2019s share.
\n
On September 28, 2018 the Court ruled in favor of Zimmer\u2019s Motion to Dismiss for Lack of
\n
Jurisdiction. In addition, the Court ruled in favor of Angular\u2019s motion to set aside the default
\n
judgment and motion to dismiss for lack of jurisdiction.
\n
On January 13, 2019, Jack Ray Mitchell through lawyers in Costa Rica, filed a request of
\n
enforcement of an arbitration award dated January 25, 2018 which he received in his favor
\n
against Thunderbird Resorts, Inc. The request of enforcement was made in Costa Rica against
\n
King Lion Network, subsidiary of Thunderbird Resorts. Inc. and the company was notified on
\n
January 24, 2019. King Lion Network filed its response and defense for this case on February
\n
8t
\n
1s
\n
h, 2019. On January 22, 2021, the
\n
t Supreme Court of Costa Rica in a review of the request
\n
1s
\n
1s
\n
made, appoints the
\n
t Instance Civil Tribunal of the
\n
t Circuit of San Jose to initiate the
\n
procedure, recognizing the existence of the arbitral award and asking Mitchell to demonstrate
\n
the ownership of King Lion Network in that Court, since this entity was not part of the Hong
\n
Kong Arbitration.
\n
On March 19, 2019 the court ruled on Thunderbird Resorts Inc. application for default
\n
judgment against Taloma Zulu, S.A. as the Court entered default judgment in in favor of
\n
Thunderbird Resorts, Inc., in the amount of $407,643.
\n
In September 2019, Thunderbird Resorts Inc. filed a civil claim before the Tribunal Courts in
\n
San Jose, Costa Rica against Murray Jo Zmmer, Angular Investments Corp and Taloma Zulu
\n
S.A., for payments made from the Costa Rica operation owned by Thunderbird Resorts and
\n
Angular Investments, to several entities without the authorization of Thunderbird Resorts, Inc.
\n
The claimed amount is approximately \u00bd of the amount that Zimmer wired without
\n
\n\n
authorization, which corresponds to Thunderbird funds in the approximate amount of
\n
$837,090. In October, 2019, The Second Civil Court of the First Judicial Circuit issued a
\n
notification to the defendants giving them thirty days to answer regarding the facts of the claim.
\n
This case is in its initial phase.
\n
On the Thunderbird vs. Mitchell arbitration claim, in December 2019, the ICC placed a demand
\n
on the Parties to pay the additional fees failing which the arbitration would be considered
\n
withdrawn. The ICC advised the parties that a final award in the matter would be issued in
\n
late April 2020 but no final award has been submitted as of the date of the filing of this Annual
\n
Report. Thunderbird Resorts Inc. is also awaiting the ICC ruling on its Petition for
\n
Reconsideration of the arbitrators ruling on the issue of \u201cres judicata\u201d.
\n
In September of 2020, Mitchell and Mitzim filed a Motion in the Federal District Court lawsuit
\n
for an Order Dismissing the San Diego federal District Court lawsuit for Lack of Standing on
\n
alleging that Thunderbird Resorts Inc. \u201cTRI\u201d filed the lawsuit based on extraterritorial activities
\n
that took place in Costa Rica and barred by Costa Rica law placing Mitchell and MITZIM to
\n
exorbitant expense and inconvenience. TRI opposed the motion on the basis that the motion
\n
and/or objection based on lack of standing is not jurisdictional and thus is waivable. Mitzim
\n
waived this defense by waiting over five years to raise this objection, and only first did so after
\n
the close of fact discovery. Moreover, even if the motion was timely (it is not), the substantive
\n
argument lacks merit, as Thunderbird properly brings its claims in its direct, individual
\n
capacity. It need not bring these claims in a derivative capacity. Thunderbird is, and always has
\n
been, the proper real party in interest in this lawsuit. Accordingly, Thunderbird requested that
\n
this Court deny Mitzim\u2019s untimely and meritless motion in its entirety. On December 21, 2022,
\n
the Court ruled on the aforedescribed motion by denying MITZIM request to dismiss the case
\n
. The Court found that in light of the evidence of record demonstrating MITZIM knew or
\n
should have known of a meritorious Rule 17) objection. Specifically, MITZIM (a) failure to
\n
bring their claim until more than five years into the litigation, despite being on notice of the
\n
potentially meritorious defense based upon notice provided in the original complaint, the
\n
Court\u2019s March 29, 2018, order, and buttressed by Defendant Mitchell\u2019s own admissions, and
\n
(b) continued substantive litigation of the case for years after such notice of potentially
\n
meritorious defense constitutes waiver. The Court and the parties are is now poised to proceed
\n
to trial which is more likely to occur sometime in 2023.
\n
g. The Group\u2019s entry and exit from the India market
\n
The Group entered the India market in 2008 by initiating a hotel project in Daman, India, which
\n
is located just north of Maharashtra State whose capital is Mumbai (formerly Bombay). The
\n
project known as \u201cThunderbird Resorts \u2013 Daman\u201d has faced both regulatory delays outside the
\n
Group\u2019s control, as well as cost overruns in construction and pre-operating interest / expense
\n
due to the delays which ultimately caused the Group to exit the India market in April 2015.
\n
The entire history of the entry and exit as well as settlements with various parties is fully
\n
described in previously filed financial statements. All settlements have been completely
\n
satisfied with the exception of the settlement with Maravege. In that regard, The Group entered
\n
into a revised settlement with Maravege on the basis described in the section on \u201cSubsequent
\n
events\u201d as the revised settlement was entered into after December 31, 2022.
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag226": { "value": "\n
\n\n
\n
24. RISK MANAGEMENT OBJECTIVES AND POLICIES
\n
The Group is exposed to market risk through its use of financial instruments and specifically to
\n
currency risk, interest rate risk and credit risk, which result from both its operating and investing
\n
activities. The Group\u2019s risk management is coordinated at its headquarters, in close cooperation
\n
with the Board of Directors, and focuses on actively securing the Group\u2019s short to medium term
\n
cash flows by minimizing the exposure to financial markets. Long term financial investments are
\n
managed to generate lasting returns.
\n
The Group does not actively engage in the trading of financial assets for speculative purposes nor
\n
does it write options. The most significant financial risks to which the Group is exposed to are
\n
described below.
\n\n
\n\n
Foreign currency sensitivity
\n
Most of the Group\u2019s transactions are carried out in the functional currency where the operations
\n
reside. Exposures to currency exchange rates arise from the Group\u2019s loans payable, intercompany
\n
payables and cash balances, which are primarily denominated in US-dollars.
\n
To mitigate the Group\u2019s exposure to foreign currency risk, non-functional currency cash flows are
\n
monitored. Generally, where the amounts to be paid for purchases completed in US-dollars versus
\n
the functional currency the financing of the purchase is short term; therefore, a decision is made to
\n
either finance the equipment or to pay in cash depending on the current value of the US-dollar
\n
compared to the functional currency.
\n
US-dollar currency denominated financial assets and liabilities in entities whose functional
\n
currency is not US-dollar are as follows:
\n
\n\n
\n\n
\n\n

\n\n
\n

\n

\n

\n

\n

\n

\n\n
\n\n
\n\n
US-dollar amounts
\n
2022 2021
\n
Nominal amounts Country
\n
Financial assets
\n
Nicaragua
\n
1,358 1,072$
\n
Peru
\n
2,234 608
\n
Financial liabilities
\n
Nicaragua
\n
(1,236) (1,143)
\n
Peru
\n
- (131)
\n
Short term exposure
\n
2,356$ 406$
\n
Financial liabilities
\n
Nicaragua
\n
(293) (389)
\n
Peru
\n
- (4,419)
\n
Long term exposure
\n
(293)$ (4,808)$
\n
\n
The following table illustrates the sensitivity of the net income (loss) for the year and equity in
\n
regards to the Group\u2019s financial assets and financial liabilities and the US-dollar exchange rates.
\n
It assumes a percentage change of the US-dollar against the other currencies for the year ended at
\n
December 31, 2022 and 2021. These percentages have been determined based on the average
\n
market volatility in exchange rates in the previous 12 months. If the US-dollar had weakened
\n
against the functional currencies according to the percentages below then this would have had the
\n
following impact on net income and equity:
\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% 6$ 152$ 2.36% (3)$ 51$
\n
Nicaragua
\n
0.04% 0 1 0.01% - 1
\n
Peru
\n
132.45% (16,102) (71,114) 8.40% (40) 1,253
\n
Total
\n
(16,096)$ (70,960)$ (43)$ 1,305$
\n
\n
\n
If the US-dollar had strengthened against the functional currencies according to the percentages
\n
below then this would have had the following impact on net income and equity:
\n
\n\n
\n\n
\n\n

\n\n
\n\n
\n\n
\n\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% (6)$ (135)$ 2.36% 3$ (49)$
\n
Nicaragua
\n
0.04% (1) (1) 0.01% - -
\n
Peru
\n
132.45% (2,248) (9,928) 8.40% 34 (1,060)
\n
Total
\n
(2,255)$ (10,063)$ 37$ (1,109)$
\n
\n\n
\n
Interest rate sensitivity
\n
The Group\u2019s policy is to minimize interest rate cash flow risk exposures on long-term financing.
\n
Longer-term are therefore usually at fixed rates. At December 31, 2022, the Group is exposed to
\n
changes in borrowings market interest rates through some of its bank borrowings of approximately
\n
$364,925 as of December 31, 2022 (2021 - $453,781), which are subject to variable interest rates.
\n
As in the previous year, all other financial assets and liabilities have fixed rates. The impact on
\n
profit or loss of a reasonably possible change in interest rates of +/- .23% as of December 31, 2022
\n
(2021 - +/- .76%) with effect from the beginning of the year, would be an increase of $853 (2021 -
\n
$3,471) or a decrease of $853 (2021 - $3,471). These changes in interest rates are considered to be
\n
reasonably possible based on observation of current market conditions.
\n
The calculations are based on the Group\u2019s financial instruments held at each statement of financial
\n
position date. All other variables are held constant.
\n
\n\n
\n\n

\n\n
25. FINANCIAL INSTRUMENT BY CATEGORY
\n
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Group
\n
December 31, 2022
\n
Assets as per statement of financial position
\n
Trade and other receivable
\n
3,810$
\n
Other financial assets
\n
112
\n
Cash and cash equivalents
\n
6,780
\n
Total
\n
10,702$
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Liabilities as per statement of financial position
\n
Borrowings
\n
13,176$
\n
Trade and other payables
\n
7,854
\n
Other financial liabilities
\n
529
\n
Total
\n
21,559$
\n
Loans, receivables
\n
and other finacial
\n
assets
\n
Group
\n
December 31, 2021
\n
Assets as per statement of financial position
\n
Trade and other receivable
\n
3,745$
\n
Other financial assets
\n
118
\n
Cash and cash equivalents
\n
3,595
\n
Total
\n
7,458$
\n
Other financial
\n
liabilities
\n
Liabilities as per statement of financial position
\n
Borrowings
\n
18,172$
\n
Trade and other payables
\n
7,399
\n
Other financial liabilities
\n
504
\n
Total
\n
26,075$
\n

\n\n
\n\n
\n
\n
26. FINANCIAL INSTRUMENTS
\n\n
Credit risk analysis:
\n
The Group continuously monitors defaults of customers and other counter parties, identified either
\n
individually or by group, and incorporates this information into its credit risk controls. Where
\n
available at reasonable cost, external credit rating and/or reports on customers and other
\n
counterparties are obtained and used. The Group\u2019s policy is to deal only with creditworthy
\n
counterparties.
\n
The Group\u2019s Management considers that all financial assets that are not impaired for each of the
\n
reporting dates under review are of good credit quality, including those that are past due.
\n
In respect of trade and other receivables, the Group is not exposed to any significant credit risk
\n
exposure to any single counterparty or any group of counterparties having similar characteristics.
\n
The credit risk for liquid funds and other short-term financial assets is considered negligible, since
\n
the counterparties are reputable banks with high quality external credit ratings.
\n
\n\n\n
Liquidity risk analysis:
\n
The Group measures its liquidity needs by:
\n
\u2022 Monitoring short-term obligations on a country-by-country and global, consolidated basis, with
\n
short-term inflows and outflows forecasted for the financial year, updated weekly.
\n
\u2022 Monitoring long-term, scheduled debt servicing payments.
\n
\u2022 Rolling forward 5-year cash flow models each month based on the financial results year-to-date
\n
through the previous month.
\n
The Group has the capacity to manage liquidity with a number of different tools at its disposal,
\n
including:
\n
\u2022 Raising of debt or equity capital at both the operations and Group levels.
\n
\u2022 Selling of non-strategic assets.
\n
\u2022 Restructuring or deferral of unsecured lenders.
\n
\u2022 Restructuring of salaries of key personnel.
\n
\u2022 Deferral or aging of accounts payables.
\n
\u2022 Cost management programs at both the operations and Group levels.
\n
Based on the information available today and the liquidity tools at its disposal, Management
\n
anticipates that the Group can meet its liquidity needs over the next 12 months primarily from
\n
operational cash flows as set out in Note 2.
\n
\n\n
\n\n

\n\n
\n\n
\n
\n\n
As at December 31, 2022, the table set below shows the Group\u2019s liabilities maturities per year:
\n
2023
\n
2024
\n
2025
\n
2026
\n
2027
\n
Thereafter
\n
Total
\n
Long-term bank loans 113$ 316$ -$ -$ -$ -$ 429$
\n
Finance lease obligations 1,353 1,124 988 800 655 867 5,787
\n
Loans with non-financial entities
\n
9,579 - - - - - 9,579
\n
Trade and other payables 4,286 - - - - - 4,286
\n
Due to related parties
\n
\n
\n
1,661
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,661
\n
Total 16,992$ 1,440$ 988$ 800$ 655$ 867$ 21,742$
\n
\n
This compares to the maturity of the Group\u2019s financial liabilities in the previous reporting period
\n
as stated below:
\n
2022
\n
2023
\n
2024
\n
2025
\n
2026
\n
Thereafter
\n
Total
\n
Long-term bank loans 4,469$ 688$ 914$ 821$ 768$ 3,516$ 11,176$
\n
Finance lease obligations 1,223 1,302 1,138 1,008 820 1,503 6,994
\n
Convertible debt notes 5,617 - - - - - 5,617
\n
Trade and other payables 3,506 - - - - - 3,506
\n
Due to related parties
\n
\n
\n
1,986
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,986
\n
Total 16,801$ 1,990$ 2,052$ 1,829$ 1,588$ 5,019$ 29,279$
\n
\n\n
\n\n
\n\n
\n
Fair value measurement methods:
\n
The methods and valuation techniques used for the purposes of measuring fair value are unchanged
\n
from the previous reporting period. Measurement methods for financial assets and liabilities
\n
accounted for at amortized cost are described below.
\n
The carrying amount of trade and other receivables, cash and cash equivalents, and trade and other
\n
payables is considered a reasonable approximation of fair value. The fair value of borrowings has
\n
been estimated at amortized cost.
\n\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n\n
\n\n
\n\n
\n\n

\n\n
\n\n
\n\n
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
\n
The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as
\n
a going concern in order to provide returns for shareholders and benefits for other stakeholders and
\n
to maintain an optimal capital structure to reduce the cost of capital.
\n
In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to
\n
reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of its
\n
leverage ratio. This ratio is calculated as net debt divided by EBITDA.
\n
2022 2021
\n
The leverage ratios at December 31, 2022 and 2021 were as follows:
\n
Total borrowings and finance lease obligations (Note 17 and 22)
\n
13,176$ 18,180$
\n
Less: Cash and cash equivalents and Restricted cash
\n
(6,780) (3,595)
\n
Less: Accrued interest
\n
(529) (504)
\n
Less: unamortized debt issuance cost
\n
- (8)
\n
Net Debt
\n
5,867$ 14,073$
\n
Operating loss from continuing operations before other gain and loss items
\n
2,431 2,129
\n
Add: Depreciation and amortization
\n
1,192 1,620
\n
EBITDA
\n
3,623$ 3,749$
\n
Leverage ratio
\n
1.62 3.75
\n
\n\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag223": { "value": "\n
\n
24. RISK MANAGEMENT OBJECTIVES AND POLICIES
\n
The Group is exposed to market risk through its use of financial instruments and specifically to
\n
currency risk, interest rate risk and credit risk, which result from both its operating and investing
\n
activities. The Group\u2019s risk management is coordinated at its headquarters, in close cooperation
\n
with the Board of Directors, and focuses on actively securing the Group\u2019s short to medium term
\n
cash flows by minimizing the exposure to financial markets. Long term financial investments are
\n
managed to generate lasting returns.
\n
The Group does not actively engage in the trading of financial assets for speculative purposes nor
\n
does it write options. The most significant financial risks to which the Group is exposed to are
\n
described below.
\n\n
\n\n
Foreign currency sensitivity
\n
Most of the Group\u2019s transactions are carried out in the functional currency where the operations
\n
reside. Exposures to currency exchange rates arise from the Group\u2019s loans payable, intercompany
\n
payables and cash balances, which are primarily denominated in US-dollars.
\n
To mitigate the Group\u2019s exposure to foreign currency risk, non-functional currency cash flows are
\n
monitored. Generally, where the amounts to be paid for purchases completed in US-dollars versus
\n
the functional currency the financing of the purchase is short term; therefore, a decision is made to
\n
either finance the equipment or to pay in cash depending on the current value of the US-dollar
\n
compared to the functional currency.
\n
US-dollar currency denominated financial assets and liabilities in entities whose functional
\n
currency is not US-dollar are as follows:
\n
\n\n
\n\n
\n\n
\n\n
\n\n
US-dollar amounts
\n
2022 2021
\n
Nominal amounts Country
\n
Financial assets
\n
Nicaragua
\n
1,358 1,072$
\n
Peru
\n
2,234 608
\n
Financial liabilities
\n
Nicaragua
\n
(1,236) (1,143)
\n
Peru
\n
- (131)
\n
Short term exposure
\n
2,356$ 406$
\n
Financial liabilities
\n
Nicaragua
\n
(293) (389)
\n
Peru
\n
- (4,419)
\n
Long term exposure
\n
(293)$ (4,808)$
\n
\n
The following table illustrates the sensitivity of the net income (loss) for the year and equity in
\n
regards to the Group\u2019s financial assets and financial liabilities and the US-dollar exchange rates.
\n
It assumes a percentage change of the US-dollar against the other currencies for the year ended at
\n
December 31, 2022 and 2021. These percentages have been determined based on the average
\n
market volatility in exchange rates in the previous 12 months. If the US-dollar had weakened
\n
against the functional currencies according to the percentages below then this would have had the
\n
following impact on net income and equity:
\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% 6$ 152$ 2.36% (3)$ 51$
\n
Nicaragua
\n
0.04% 0 1 0.01% - 1
\n
Peru
\n
132.45% (16,102) (71,114) 8.40% (40) 1,253
\n
Total
\n
(16,096)$ (70,960)$ (43)$ 1,305$
\n
\n
\n
If the US-dollar had strengthened against the functional currencies according to the percentages
\n
below then this would have had the following impact on net income and equity:
\n
\n\n
\n\n
\n\n
\n\n
\n\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% (6)$ (135)$ 2.36% 3$ (49)$
\n
Nicaragua
\n
0.04% (1) (1) 0.01% - -
\n
Peru
\n
132.45% (2,248) (9,928) 8.40% 34 (1,060)
\n
Total
\n
(2,255)$ (10,063)$ 37$ (1,109)$
\n
\n\n
\n
Interest rate sensitivity
\n
The Group\u2019s policy is to minimize interest rate cash flow risk exposures on long-term financing.
\n
Longer-term are therefore usually at fixed rates. At December 31, 2022, the Group is exposed to
\n
changes in borrowings market interest rates through some of its bank borrowings of approximately
\n
$364,925 as of December 31, 2022 (2021 - $453,781), which are subject to variable interest rates.
\n
As in the previous year, all other financial assets and liabilities have fixed rates. The impact on
\n
profit or loss of a reasonably possible change in interest rates of +/- .23% as of December 31, 2022
\n
(2021 - +/- .76%) with effect from the beginning of the year, would be an increase of $853 (2021 -
\n
$3,471) or a decrease of $853 (2021 - $3,471). These changes in interest rates are considered to be
\n
reasonably possible based on observation of current market conditions.
\n
The calculations are based on the Group\u2019s financial instruments held at each statement of financial
\n
position date. All other variables are held constant.
\n
\n\n
\n\n
\n
\n
26. FINANCIAL INSTRUMENTS
\n\n
Credit risk analysis:
\n
The Group continuously monitors defaults of customers and other counter parties, identified either
\n
individually or by group, and incorporates this information into its credit risk controls. Where
\n
available at reasonable cost, external credit rating and/or reports on customers and other
\n
counterparties are obtained and used. The Group\u2019s policy is to deal only with creditworthy
\n
counterparties.
\n
The Group\u2019s Management considers that all financial assets that are not impaired for each of the
\n
reporting dates under review are of good credit quality, including those that are past due.
\n
In respect of trade and other receivables, the Group is not exposed to any significant credit risk
\n
exposure to any single counterparty or any group of counterparties having similar characteristics.
\n
The credit risk for liquid funds and other short-term financial assets is considered negligible, since
\n
the counterparties are reputable banks with high quality external credit ratings.
\n
\n\n\n
Liquidity risk analysis:
\n
The Group measures its liquidity needs by:
\n
\u2022 Monitoring short-term obligations on a country-by-country and global, consolidated basis, with
\n
short-term inflows and outflows forecasted for the financial year, updated weekly.
\n
\u2022 Monitoring long-term, scheduled debt servicing payments.
\n
\u2022 Rolling forward 5-year cash flow models each month based on the financial results year-to-date
\n
through the previous month.
\n
The Group has the capacity to manage liquidity with a number of different tools at its disposal,
\n
including:
\n
\u2022 Raising of debt or equity capital at both the operations and Group levels.
\n
\u2022 Selling of non-strategic assets.
\n
\u2022 Restructuring or deferral of unsecured lenders.
\n
\u2022 Restructuring of salaries of key personnel.
\n
\u2022 Deferral or aging of accounts payables.
\n
\u2022 Cost management programs at both the operations and Group levels.
\n
Based on the information available today and the liquidity tools at its disposal, Management
\n
anticipates that the Group can meet its liquidity needs over the next 12 months primarily from
\n
operational cash flows as set out in Note 2.
\n
\n\n
\n\n
\n
\n\n
As at December 31, 2022, the table set below shows the Group\u2019s liabilities maturities per year:
\n
2023
\n
2024
\n
2025
\n
2026
\n
2027
\n
Thereafter
\n
Total
\n
Long-term bank loans 113$ 316$ -$ -$ -$ -$ 429$
\n
Finance lease obligations 1,353 1,124 988 800 655 867 5,787
\n
Loans with non-financial entities
\n
9,579 - - - - - 9,579
\n
Trade and other payables 4,286 - - - - - 4,286
\n
Due to related parties
\n
\n
\n
1,661
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,661
\n
Total 16,992$ 1,440$ 988$ 800$ 655$ 867$ 21,742$
\n
\n
This compares to the maturity of the Group\u2019s financial liabilities in the previous reporting period
\n
as stated below:
\n
2022
\n
2023
\n
2024
\n
2025
\n
2026
\n
Thereafter
\n
Total
\n
Long-term bank loans 4,469$ 688$ 914$ 821$ 768$ 3,516$ 11,176$
\n
Finance lease obligations 1,223 1,302 1,138 1,008 820 1,503 6,994
\n
Convertible debt notes 5,617 - - - - - 5,617
\n
Trade and other payables 3,506 - - - - - 3,506
\n
Due to related parties
\n
\n
\n
1,986
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,986
\n
Total 16,801$ 1,990$ 2,052$ 1,829$ 1,588$ 5,019$ 29,279$
\n
\n\n
\n\n
\n\n
\n
Fair value measurement methods:
\n
The methods and valuation techniques used for the purposes of measuring fair value are unchanged
\n
from the previous reporting period. Measurement methods for financial assets and liabilities
\n
accounted for at amortized cost are described below.
\n
The carrying amount of trade and other receivables, cash and cash equivalents, and trade and other
\n
payables is considered a reasonable approximation of fair value. The fair value of borrowings has
\n
been estimated at amortized cost.
\n\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n\n
\n\n
\n\n
\n\n
\n\n
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
\n
The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as
\n
a going concern in order to provide returns for shareholders and benefits for other stakeholders and
\n
to maintain an optimal capital structure to reduce the cost of capital.
\n
In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to
\n
reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of its
\n
leverage ratio. This ratio is calculated as net debt divided by EBITDA.
\n
2022 2021
\n
The leverage ratios at December 31, 2022 and 2021 were as follows:
\n
Total borrowings and finance lease obligations (Note 17 and 22)
\n
13,176$ 18,180$
\n
Less: Cash and cash equivalents and Restricted cash
\n
(6,780) (3,595)
\n
Less: Accrued interest
\n
(529) (504)
\n
Less: unamortized debt issuance cost
\n
- (8)
\n
Net Debt
\n
5,867$ 14,073$
\n
Operating loss from continuing operations before other gain and loss items
\n
2,431 2,129
\n
Add: Depreciation and amortization
\n
1,192 1,620
\n
EBITDA
\n
3,623$ 3,749$
\n
Leverage ratio
\n
1.62 3.75
\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag224": { "value": "\n
\n\n
Foreign currency sensitivity
\n
Most of the Group\u2019s transactions are carried out in the functional currency where the operations
\n
reside. Exposures to currency exchange rates arise from the Group\u2019s loans payable, intercompany
\n
payables and cash balances, which are primarily denominated in US-dollars.
\n
To mitigate the Group\u2019s exposure to foreign currency risk, non-functional currency cash flows are
\n
monitored. Generally, where the amounts to be paid for purchases completed in US-dollars versus
\n
the functional currency the financing of the purchase is short term; therefore, a decision is made to
\n
either finance the equipment or to pay in cash depending on the current value of the US-dollar
\n
compared to the functional currency.
\n
US-dollar currency denominated financial assets and liabilities in entities whose functional
\n
currency is not US-dollar are as follows:
\n
\n\n
\n\n
\n\n
US-dollar amounts
\n
2022 2021
\n
Nominal amounts Country
\n
Financial assets
\n
Nicaragua
\n
1,358 1,072$
\n
Peru
\n
2,234 608
\n
Financial liabilities
\n
Nicaragua
\n
(1,236) (1,143)
\n
Peru
\n
- (131)
\n
Short term exposure
\n
2,356$ 406$
\n
Financial liabilities
\n
Nicaragua
\n
(293) (389)
\n
Peru
\n
- (4,419)
\n
Long term exposure
\n
(293)$ (4,808)$
\n
\n
The following table illustrates the sensitivity of the net income (loss) for the year and equity in
\n
regards to the Group\u2019s financial assets and financial liabilities and the US-dollar exchange rates.
\n
It assumes a percentage change of the US-dollar against the other currencies for the year ended at
\n
December 31, 2022 and 2021. These percentages have been determined based on the average
\n
market volatility in exchange rates in the previous 12 months. If the US-dollar had weakened
\n
against the functional currencies according to the percentages below then this would have had the
\n
following impact on net income and equity:
\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% 6$ 152$ 2.36% (3)$ 51$
\n
Nicaragua
\n
0.04% 0 1 0.01% - 1
\n
Peru
\n
132.45% (16,102) (71,114) 8.40% (40) 1,253
\n
Total
\n
(16,096)$ (70,960)$ (43)$ 1,305$
\n
\n
\n
If the US-dollar had strengthened against the functional currencies according to the percentages
\n
below then this would have had the following impact on net income and equity:
\n
\n\n
\n\n
\n\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% (6)$ (135)$ 2.36% 3$ (49)$
\n
Nicaragua
\n
0.04% (1) (1) 0.01% - -
\n
Peru
\n
132.45% (2,248) (9,928) 8.40% 34 (1,060)
\n
Total
\n
(2,255)$ (10,063)$ 37$ (1,109)$
\n
\n\n
\n
Interest rate sensitivity
\n
The Group\u2019s policy is to minimize interest rate cash flow risk exposures on long-term financing.
\n
Longer-term are therefore usually at fixed rates. At December 31, 2022, the Group is exposed to
\n
changes in borrowings market interest rates through some of its bank borrowings of approximately
\n
$364,925 as of December 31, 2022 (2021 - $453,781), which are subject to variable interest rates.
\n
As in the previous year, all other financial assets and liabilities have fixed rates. The impact on
\n
profit or loss of a reasonably possible change in interest rates of +/- .23% as of December 31, 2022
\n
(2021 - +/- .76%) with effect from the beginning of the year, would be an increase of $853 (2021 -
\n
$3,471) or a decrease of $853 (2021 - $3,471). These changes in interest rates are considered to be
\n
reasonably possible based on observation of current market conditions.
\n
The calculations are based on the Group\u2019s financial instruments held at each statement of financial
\n
position date. All other variables are held constant.
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag225": { "value": "\n
Foreign currency sensitivity
\n
Most of the Group\u2019s transactions are carried out in the functional currency where the operations
\n
reside. Exposures to currency exchange rates arise from the Group\u2019s loans payable, intercompany
\n
payables and cash balances, which are primarily denominated in US-dollars.
\n
To mitigate the Group\u2019s exposure to foreign currency risk, non-functional currency cash flows are
\n
monitored. Generally, where the amounts to be paid for purchases completed in US-dollars versus
\n
the functional currency the financing of the purchase is short term; therefore, a decision is made to
\n
either finance the equipment or to pay in cash depending on the current value of the US-dollar
\n
compared to the functional currency.
\n
US-dollar currency denominated financial assets and liabilities in entities whose functional
\n
currency is not US-dollar are as follows:
\n
\n\n
US-dollar amounts
\n
2022 2021
\n
Nominal amounts Country
\n
Financial assets
\n
Nicaragua
\n
1,358 1,072$
\n
Peru
\n
2,234 608
\n
Financial liabilities
\n
Nicaragua
\n
(1,236) (1,143)
\n
Peru
\n
- (131)
\n
Short term exposure
\n
2,356$ 406$
\n
Financial liabilities
\n
Nicaragua
\n
(293) (389)
\n
Peru
\n
- (4,419)
\n
Long term exposure
\n
(293)$ (4,808)$
\n
\n
The following table illustrates the sensitivity of the net income (loss) for the year and equity in
\n
regards to the Group\u2019s financial assets and financial liabilities and the US-dollar exchange rates.
\n
It assumes a percentage change of the US-dollar against the other currencies for the year ended at
\n
December 31, 2022 and 2021. These percentages have been determined based on the average
\n
market volatility in exchange rates in the previous 12 months. If the US-dollar had weakened
\n
against the functional currencies according to the percentages below then this would have had the
\n
following impact on net income and equity:
\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% 6$ 152$ 2.36% (3)$ 51$
\n
Nicaragua
\n
0.04% 0 1 0.01% - 1
\n
Peru
\n
132.45% (16,102) (71,114) 8.40% (40) 1,253
\n
Total
\n
(16,096)$ (70,960)$ (43)$ 1,305$
\n
\n
\n
If the US-dollar had strengthened against the functional currencies according to the percentages
\n
below then this would have had the following impact on net income and equity:
\n
\n\n
2022
\n
2021
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Percentage
\n
change
\n
Net effect on
\n
income
\n
Net effect on
\n
equity
\n
Country
\n
Costa Rica
\n
6.04% (6)$ (135)$ 2.36% 3$ (49)$
\n
Nicaragua
\n
0.04% (1) (1) 0.01% - -
\n
Peru
\n
132.45% (2,248) (9,928) 8.40% 34 (1,060)
\n
Total
\n
(2,255)$ (10,063)$ 37$ (1,109)$
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag230": { "value": "\n
Credit risk analysis:
\n
The Group continuously monitors defaults of customers and other counter parties, identified either
\n
individually or by group, and incorporates this information into its credit risk controls. Where
\n
available at reasonable cost, external credit rating and/or reports on customers and other
\n
counterparties are obtained and used. The Group\u2019s policy is to deal only with creditworthy
\n
counterparties.
\n
The Group\u2019s Management considers that all financial assets that are not impaired for each of the
\n
reporting dates under review are of good credit quality, including those that are past due.
\n
In respect of trade and other receivables, the Group is not exposed to any significant credit risk
\n
exposure to any single counterparty or any group of counterparties having similar characteristics.
\n
The credit risk for liquid funds and other short-term financial assets is considered negligible, since
\n
the counterparties are reputable banks with high quality external credit ratings.
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag228": { "value": "\n
Liquidity risk analysis:
\n
The Group measures its liquidity needs by:
\n
\u2022 Monitoring short-term obligations on a country-by-country and global, consolidated basis, with
\n
short-term inflows and outflows forecasted for the financial year, updated weekly.
\n
\u2022 Monitoring long-term, scheduled debt servicing payments.
\n
\u2022 Rolling forward 5-year cash flow models each month based on the financial results year-to-date
\n
through the previous month.
\n
The Group has the capacity to manage liquidity with a number of different tools at its disposal,
\n
including:
\n
\u2022 Raising of debt or equity capital at both the operations and Group levels.
\n
\u2022 Selling of non-strategic assets.
\n
\u2022 Restructuring or deferral of unsecured lenders.
\n
\u2022 Restructuring of salaries of key personnel.
\n
\u2022 Deferral or aging of accounts payables.
\n
\u2022 Cost management programs at both the operations and Group levels.
\n
Based on the information available today and the liquidity tools at its disposal, Management
\n
anticipates that the Group can meet its liquidity needs over the next 12 months primarily from
\n
operational cash flows as set out in Note 2.
\n
\n\n
As at December 31, 2022, the table set below shows the Group\u2019s liabilities maturities per year:
\n
2023
\n
2024
\n
2025
\n
2026
\n
2027
\n
Thereafter
\n
Total
\n
Long-term bank loans 113$ 316$ -$ -$ -$ -$ 429$
\n
Finance lease obligations 1,353 1,124 988 800 655 867 5,787
\n
Loans with non-financial entities
\n
9,579 - - - - - 9,579
\n
Trade and other payables 4,286 - - - - - 4,286
\n
Due to related parties
\n
\n
\n
1,661
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,661
\n
Total 16,992$ 1,440$ 988$ 800$ 655$ 867$ 21,742$
\n
\n
This compares to the maturity of the Group\u2019s financial liabilities in the previous reporting period
\n
as stated below:
\n
2022
\n
2023
\n
2024
\n
2025
\n
2026
\n
Thereafter
\n
Total
\n
Long-term bank loans 4,469$ 688$ 914$ 821$ 768$ 3,516$ 11,176$
\n
Finance lease obligations 1,223 1,302 1,138 1,008 820 1,503 6,994
\n
Convertible debt notes 5,617 - - - - - 5,617
\n
Trade and other payables 3,506 - - - - - 3,506
\n
Due to related parties
\n
\n
\n
1,986
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
-
\n
\n
\n
1,986
\n
Total 16,801$ 1,990$ 2,052$ 1,829$ 1,588$ 5,019$ 29,279$
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag234": { "value": "\n
\n\n
\n
Fair value measurement methods:
\n
The methods and valuation techniques used for the purposes of measuring fair value are unchanged
\n
from the previous reporting period. Measurement methods for financial assets and liabilities
\n
accounted for at amortized cost are described below.
\n
The carrying amount of trade and other receivables, cash and cash equivalents, and trade and other
\n
payables is considered a reasonable approximation of fair value. The fair value of borrowings has
\n
been estimated at amortized cost.
\n\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag235": { "value": "\n
\n
Fair value measurement methods:
\n
The methods and valuation techniques used for the purposes of measuring fair value are unchanged
\n
from the previous reporting period. Measurement methods for financial assets and liabilities
\n
accounted for at amortized cost are described below.
\n
The carrying amount of trade and other receivables, cash and cash equivalents, and trade and other
\n
payables is considered a reasonable approximation of fair value. The fair value of borrowings has
\n
been estimated at amortized cost.
\n\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag232": { "value": "\n
Financial assets at FVTPL:
\n
Financial assets at FVTPL include holding in a diversified investment fund with most of the
\n
positions in gold and listed equity securities. The Group accounts for the investment at FVTPL and
\n
did not make the irrevocable election to account for it at FVOCI. The fair value was $112,000 as
\n
of December 31, 2022 (2021 - $118,000).
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag231": { "value": "\n
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
\n
The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as
\n
a going concern in order to provide returns for shareholders and benefits for other stakeholders and
\n
to maintain an optimal capital structure to reduce the cost of capital.
\n
In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to
\n
reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of its
\n
leverage ratio. This ratio is calculated as net debt divided by EBITDA.
\n
2022 2021
\n
The leverage ratios at December 31, 2022 and 2021 were as follows:
\n
Total borrowings and finance lease obligations (Note 17 and 22)
\n
13,176$ 18,180$
\n
Less: Cash and cash equivalents and Restricted cash
\n
(6,780) (3,595)
\n
Less: Accrued interest
\n
(529) (504)
\n
Less: unamortized debt issuance cost
\n
- (8)
\n
Net Debt
\n
5,867$ 14,073$
\n
Operating loss from continuing operations before other gain and loss items
\n
2,431 2,129
\n
Add: Depreciation and amortization
\n
1,192 1,620
\n
EBITDA
\n
3,623$ 3,749$
\n
Leverage ratio
\n
1.62 3.75
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag229": { "value": "\n
\n

\n\n
28. INVESTMENT IN JOINT VENTURE
\n
The Group has a material joint venture in a Costa Rican company, King Lion Network, S.A.
\n
(\u201cKLN\u201d).
\n
Name of the joint venture
\n
Country of
\n
incorporation and
\n
principal place of
\n
business
\n
Principal activity
\n
Proportion of ownership
\n
held by the Group
\n
2022 2021
\n
King Lion Network, S.A.
\n
Costa Rica Land Company 50% 50%
\n
\n\n

\n\n
\n\n
The investments in the Costa Rica joint venture is accounted for using the equity method in
\n
accordance with IAS 28.
\n
A reconciliation of the financial information above to the carrying amount of the investment in the
\n
Group\u2019s Costa Rica joint venture is set out below:
\n
2022 2021
\n
Current assets 8,520$ 7,948$
\n
Total assets
\n
8,520 7,948
\n
Current liabilities (4,155) (4,060)
\n
Total liabilities
\n
(4,155) (4,060)
\n
Total net assets 4,365 3,888
\n
Proportion of ownership interest held by Group 50% 50%
\n
Carrying amount of investment in joint venture
\n
2,183 1,944
\n
\n
Financial statements for the Group\u2019s Costa Rica joint venture is as follows:
\n
2022 2021
\n
Profit / (loss) for the period
\n
186 (268)
\n
Proportion of ownership interest held by Group 50% 50%
\n
Group's share of loss for the period $ 93 $ (134)
\n
\n\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag233": { "value": "\n
28. INVESTMENT IN JOINT VENTURE
\n
The Group has a material joint venture in a Costa Rican company, King Lion Network, S.A.
\n
(\u201cKLN\u201d).
\n
Name of the joint venture
\n
Country of
\n
incorporation and
\n
principal place of
\n
business
\n
Principal activity
\n
Proportion of ownership
\n
held by the Group
\n
2022 2021
\n
King Lion Network, S.A.
\n
Costa Rica Land Company 50% 50%
\n
\n\n
The investments in the Costa Rica joint venture is accounted for using the equity method in
\n
accordance with IAS 28.
\n
A reconciliation of the financial information above to the carrying amount of the investment in the
\n
Group\u2019s Costa Rica joint venture is set out below:
\n
2022 2021
\n
Current assets 8,520$ 7,948$
\n
Total assets
\n
8,520 7,948
\n
Current liabilities (4,155) (4,060)
\n
Total liabilities
\n
(4,155) (4,060)
\n
Total net assets 4,365 3,888
\n
Proportion of ownership interest held by Group 50% 50%
\n
Carrying amount of investment in joint venture
\n
2,183 1,944
\n
\n
Financial statements for the Group\u2019s Costa Rica joint venture is as follows:
\n
2022 2021
\n
Profit / (loss) for the period
\n
186 (268)
\n
Proportion of ownership interest held by Group 50% 50%
\n
Group's share of loss for the period $ 93 $ (134)
\n
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag227": { "value": "\n

\n
29. PRINCIPAL SUBSIDIARIES
\n
The Group owns directly or indirectly the following companies. The principal operations are
\n
carried out in the country of registration; all subsidiaries have a December 31 year-end. The Group
\n
comprises a large number of companies and it is not practical to list all of them below. This list
\n
therefore includes those companies which the Directors consider principally affect the results or
\n
financial position of the Group.
\n
The following is a table of our organizational structure of material subsidiaries, including our
\n
effective record ownership structure as of December 31, 2022:
\n
Name of subsidiary
\n
Jurisdiction
\n
of formation
\n
Effective
\n
ownership interest
\n
Thunderbird Entertainment, S.A, Panama 100%
\n
Thunderbird Greeley, Inc. California 100%
\n
Total Gaming, Inc. California 100%
\n
Thunderbird Hoteles Las Americas S.A. Peru 100%
\n
Buena Esperanza Limitada S.A. Nicaragua 55.9 % (indirect)
\n
Camino Real (BVI) Investments Ltd. British Virgin Islands 100%
\n
International Thunderbird (BVI) Ltd. British Virgin Islands 100%
\n
International Thunderbird Brazil (BVI) Ltd. British Virgin Islands 100%
\n
\n
The Group includes a subsidiary, Buena Esperanza Limitada, S.A. (\u201cBELSA\u201d), with material non-
\n
controlling interest (\u201cNCI\u201d):
\n
Name
\n
Country of
\n
incorporation and
\n
principal place of
\n
business
\n
Principal
\n
activity
\n
Proportion of ownership
\n
held by the NCI
\n
2022 2021
\n
Buena Ezperanza Limitada, S.A. (\"BELSA\")
\n
Nicaragua Gaming 44.10% 44.10%
\n
\n
Dividends of $962,000 were paid to the NCI of BELSA during the year 2022 and $845,000 in 2021.
\n

\n\n
Summarized financial information for BELSA, before intragroup eliminations, is set out below:
\n
(in thousands)
\n
BELSA
\n
2022 2021
\n
Non-current assets
\n
7,143$ 7,725$
\n
Current assets
\n
2,635 2,449
\n
Total assets
\n
9,778 10,174
\n
Non-current liabilities
\n
(3,928) (4,831)
\n
Current liabilities
\n
(3,426) (2,684)
\n
Total liabilities
\n
(7,354) (7,515)
\n
Equity attributable to the owners of the parent
\n
677 431
\n
Non-controlling interest
\n
1,747 2,228
\n
\n
(in thousands)
\n
BELSA
\n
2022 2021
\n
Revenue
\n
13,461$ 12,222$
\n
Profit / (Loss) for the year attributable to the owners of the
\n
parent
\n
609 449
\n
Profit / (Loss) for the year attributable to NCI
\n
481 355
\n
Profit / (Loss) for the year
\n
1,090
\n
804
\n
Other comprehensive income for the year attributable to the
\n
owners of the parent
\n
50 72
\n
Other comprehensive income for the year for the year
\n
attributable to NCI
\n
0 4
\n
Other comprehensive income for the year
\n
50
\n
76
\n
\n
BELSA
\n
2022 2021
\n
Net cash from operating activities
\n
$ 3,057
\n
$ 3,803
\n
Net cash used in investing activities
\n
(527)
\n
(180)
\n
Net cash (used in) from financing activities
\n
(2,419)
\n
(3,092)
\n
Effect of foreign exchange adjustment
\n
(42)
\n
(236)
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag236": { "value": "\n
30. SUBSEQUENT EVENTS
\n
These are the material events to disclose from December 31, 2022 through the release of this
\n
2022 Annual Report.
\n
\n
Over the course of 2023 year-to-date, the Group has negotiated new loan conditions with a number
\n
of its unsecured lenders. In total thus far, unsecured debt negotiations have led to a reduction on
\n
unsecured debt balances in excess of $1.3 million and a reduction of forecasted future interest
\n
payments in excess of $500K from either debt payoff or the elimination of interest payments on
\n
continuing balances. During recent years, employees have accumulated net loan balances to the
\n
Group of approximately $1 million, which the Group has also now paid off.
\n

\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "Tag237": { "value": "Icaza, Gonzalez-Ruiz & Aleman (BVI) Trust LimitedTortola Pier Park, Building 1, Second FloorWickhams Cay 1, Road Town, TortolaBritish Virgin Islands", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:984500C784DD41E4AC47", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } } } }