As at June 30, 2007, $27,415,621 of the Company’s available credit facilities under its Existing Credit Agreement was being utilized, compared with $3,070,136 as at June 30, 2006. These funds were used to finance acquisitions, repay previously existing credit facilities and to finance a dividend distribution to shareholders. The New Credit Agreement is expected to contain negative covenants that will limit the Company’s ability to undertake certain actions, including covenants: limiting mergers, liquidations, dissolutions and changes of ownership; limiting the incurrence of additional indebtedness; restricting encumbrances on the Company’s assets; limiting guarantees, loans, investments and acquisitions that may be made by the Company; limiting derivative instruments, dividends and other capital distributions to related parties; restricting capital expenditures; and restricting certain asset sales. As at March 31, 2008, the Company’s working capital (current assets minus current liabilities) was $9,002,379. Current liabilities consisted of accounts payable and accrued liabilities, bank overdraft, bank loan, earn-out payable, client deposits, advances to shareholders, income taxes payable, current portion of long-term debt and current portion of obligations under capital leases. The Company’s working capital requirements are primarily used to fund labour costs and inventory acquisition. The Company’s principal capital expenditures are used to acquire drills and vehicles to transport its drills. The Company’s capital expenditures in fiscal 2007 were approximately $2.4 million, which it expects to increase in the near future to service its expanded operations. As at June 30, 2007, the Company had future contractual obligations as follows: T otal Less than 1 year 2-3 years 4-5 years L ong-term debt .......................... $24,617,282 $3,630,982 $7,194,951 $13,791,349 Capital lease obligations .................... — — — — Operating leases .......................... 287,500 114,000 114,000 59,500 Client deposits ........................... 469,355 469,355 — — Purchase obligations ....................... — — — — Other long-term obligations .................. — — — — T otal .................................. $25,374,137 $4,214,337 $7,308,951 $13,850,849 Off-Balance Sheet Items As at June 30, 2007, the Company had one significant off-balance sheet liability. This liability is for up to $2.25 million and is owed to the Orbit V endors as instalment payments related to the achievement of certain targets in connection with the acquisition of Orbit on January 31, 2007, which will be paid with a portion of the proceeds of this Offering. R elated P arties Orbit Garant has contracts with certain related parties. A contract with P rivate Equity Investors provides for a quarterly fee to be paid to 1684181 Management, which will terminate when this Offering is completed. A second contract with P rivate Equity Investors compensates 1684181 Management with an amount up to $50,000 per month for up to four months for services provided in connection with the Offering and a further $300,000 upon the closing of the Offering. This contract will also terminate upon completion of the Offering. See ‘‘Existing Shareholder Arrangements — Arrangements R especting the Offering’’. In addition, Soudure R oyale leases the building where its manufacturing is undertaken from P ierre Alexandre pursuant to a five year lease expiring 2012. The Company also leases its head office from P ierre Alexandre. Management believes these leases are consistent with current market rates. P ierre Alexandre also leases two tractors to the Company from time to time as needed. The payment for such lease represents a discount to fair market value, although the Company believes it could directly acquire such vehicles directly at a cost of $250,000. Critical Accounting Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets 49