RE: RE: RE: Financials out??? The Company is involved from time to time in litigation, as plaintiff and defendant, which arises in the normal course of business.
During the previous fiscal year, a former investor commenced a legal proceeding against the Company, claiming damages of $4
million exclusive of costs and expenses for breach of contract and misrepresentation. In accordance with IAS 37, management
has evaluated the potential outcomes of this matter and based on the information available as at the release date of these
interim consolidated financial statements has recorded a provision of $2.1 million. The Company is continuing the process of
defending the claim and intends to vigorously defend its position that no damages are owed.
As at March 31, 2012, the Company is not aware of any other such claims being filed or contemplated against the Company
which would have a significant effect on these consolidated financial statements.
The Company has various sponsorship and partnership agreements with annual payments totalling approximately $1,000,000
annually over the next three years. There are agreements for continued sponsorship beyond three years at a similar annual
payment with some of these sponsors which can be cancelled at either the option of the sponsor or the Company without liability