Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of [Paul Sante] – [Paul de Sante Partners].
[Paul Sante] – [Paul de Sante Partners]
My first question is could you explain a little bit more about what is going on in the Philippines in terms of you said an amicable resolution is possible. I am not clear on what the disagreement is and is this a problem that could become a more generalized problem?
Clarence Chung
We believe this is more like an isolated instance. We are still negotiating with the venue owner in terms of more like the cash payments on our net winning.
[Paul Sante] – [Paul de Sante Partners]
Could you explain what the disagreement actually is?
Clarence Chung
This is relating to just one venue. In effect this one venue there is some sort of arrangement between the owner and the authority influences not relating to our agreement with the owners. However, that impacts the cash flows to the owners and then to us. In that case the owner is actively trying to negotiate and trying to resolve the issues of them with the relevant authorities, etc. so they can get the cash flows and then pay us. In fact, we have been in active discussions on a weekly basis with them and in fact they have shown cash flows flowing to us. In fact, we did receive about $30,000 in April from them. We understand they are sincerely trying to resolve that situation with the relevant authorities. From our perspective we are being active. We are aware they are paying on the conservative funds and that is why we are trying to use these counting [equipment] and the deferred income that we booked as income for the period.
[Paul Sante] – [Paul de Sante Partners]
So the disagreement is between the operator and the Philippine government authorities and you just happen to be sort of stuck in the middle?
Clarence Chung
Yes you are right. In fact, they are very frank and open to us in this respect and we are working as a team to try to resolve that situation.
Operator
We have a follow-up question from [Paul Sante] – [Paul de Sante Partners].
[Paul Sante] – [Paul de Sante Partners]
As long as other people are not asking questions I wonder if you could give us some kind of thoughts on any chance that you would change the agreement with Elixir International in terms of the debt payments where they might be put off because I see that we have enough cash for this year based on projected openings but if agreements such as you have with NagaWorld were to come along in other venues it seems like the current payment structure you have with Elixir International might become a drag on growth. Is there any potential that agreement could be restructured or stretched out?
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