FOR AGE ORBIT INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) Y ears ended January 31, 2007 and 2006 11. ADDITIONAL INFORMA TION RELA TING TO THE ST A TEMENT OF C ASH FLOWS Changes in non-cash operating working capital items 2007 2006 $$ A ccounts receivable ...................................................... (1,757,494) (1,064,546) Inventories ............................................................ (3,773,959) (168,293) P repaid expenses ........................................................ (3,637) — A ccounts payable and accrued liabilities .......................................... 1,937,818 649,837 Income taxes ........................................................... (139,696) 296,182 Client deposits .......................................................... 373,574 (62,355) (3,363,394) (349,175) Cash and cash equivalents Cash ................................................................ 191,938 71,909 Bank overdraft .......................................................... (190,361) (120,977) 1,577 (49,068) Other information Interest paid ........................................................... 298,591 182,719 Income taxes paid ........................................................ 3,185,319 203,115 L oss on sale of investment in a company subject to significant influence included in gain on sale of long-term investment .................................................... 89,261 — See notes 9 and 13 for other non-cash investing and financing activities. 12. COMMITMENTS Under the terms of operating leases of business premises expiring 2007 and 2012, the company is committed to make minimum payments totalling $308,100 as at January 31, 2007 detailed as follows: $ 2008 ........................................................................... 92,100 2009 ........................................................................... 90,000 2010 ........................................................................... 42,000 2011 ........................................................................... 42,000 2012 ........................................................................... 42,000 13. RELA TED P A R TY TR ANSACTIONS The company is related to F orage Eenou Inc., due to the significant influence exercised by one of the shareholders of the compa ny. During the year, the company made the following transactions with its related companies, its parent company and companies subje ct to significant influence: 2007 2006 $$ Sales ................................................................... — 359,143 Purchases ................................................................ 814,975 585,352 R ent and administrative services revenues ............................................ 34,400 34,400 The above transactions were made within normal course of operating and have been recorded at the exchange amount, which is the amount of consideration established and agreed to by related parties. F-40