ORBIT GAR ANT DRILLING INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) (Amounts as at March 31, 2008 and for the nine and three months ended March 31, 2008 and for the six and three months ended March 31, 2007 are unaudited) 3. BUSINES S ACQUISITIONS (Continued) Acquisition of the shares of Drift Exploration Drilling Inc. (US) and Drift de Mexico S.A . De C.V . and assets of Phyl-Don Holdi ngs and Management Ltd. On April 16, 2007, the company acquired all issued and outstanding shares of Drift Exploration Drilling Inc. (a US company) and Drift de Mexico S.A. De C.V . for a total cash consideration of $140,713 (excluding acquisition costs) and all operating inventories a nd capital assets of Phyl-Don Holdings and Management Ltd. for a cash consideration of $1,460,000. The results of operations of the respec tive entities are included in the consolidated financial statements from the effective date of acquisitions. Acquisition of 9116-9300 Qu ? ebec Inc. (Soudure R oyale Concept) On May 31, 2007, the company acquired 25% of the outstanding common shares of 9116-9300 Qu ? ebec Inc. for a consideration of $165,000 (excluding acquisition costs) payable through the issuance of 109,870 common shares of the company. W ith this transaction, the company holds 100% of the issued and outstanding shares of 9116-9300 Qu ? ebec Inc. The purchase price of the above transactions was allocated to the net assets acquired on the basis of their estimated fair valu es as follows: $ A ccounts receivable ............................................................... 9,094,988 Inventories .................................................................... 8,781,160 P repaid expenses ................................................................. 53,225 Capital assets ................................................................... 18,086,530 Investment in a company subject to significant influence ........................................ 128,788 L ong-term investments ............................................................. 310,000 Intangible assets Customer relationship ............................................................ 12,600,000 Non-compete agreement .......................................................... 2,110,000 Goodwill ...................................................................... 15,466,324 Bank overdraft .................................................................. (156,634) A ccounts payable and accrued liabilities .................................................. (6,570,050) Client deposits .................................................................. (570,845) Income taxes payable .............................................................. (702,403) L ong-term debt ................................................................. (5,396,230) F uture income taxes ............................................................... (7,612,105) Purchase price .................................................................. 45,622,748 Consideration Cash (including acquisition costs of $2,295,069) ............................................. 31,419,748 Issuance of common shares .......................................................... 14,203,000 T otal consideration ............................................................... 45,622,748 Contingent consideration The purchase price of F orages Garant & F r ` eres Inc. was subject to an adjustment of an amount of up to $2,000,000 calculated on the achievement of specified earnings targets during the nine-month period ended June 30, 2007. The specified earnings have been achieved and a payable amount of $2,000,000 has been accounted for as an increase of goodwill and was paid on September 30, 200 7. The purchase price of Orbit is subject to an adjustment of an amount up to $2,250,000 calculated on the achievement of specifie d earnings levels over the periods ended January 31, 2008, 2009 and 2010. When the specified earnings are achieved, a payable amo unt will be accounted for as an increase of goodwill. The specified earnings have been achieved for the period ended January 31, 20 08 and a payable amount of $1,125,000 has been accounted for during the nine-month period ended March 31, 2008 as an increase of goodwil l (see Note 18 b)). During the nine-month period ended March 31, 2008, an amount of $25,921 was accounted for as an increase in goodwill representi ng additional acquisition costs related to these acquisitions. F-11