As at June 30 2007 27415621 of the Companys available credit facilities under its Existing Credit Agreement was being utilized compared with 3070136 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 Companys 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 Companys 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 Companys working capital current assets minus current liabilities was 9002379 Current liabilities consisted of accounts payable and accrued liabilities bank overdraft bank loan earnout payable client deposits advances to shareholders income taxes payable current portion of longterm debt and current portion of obligations under capital leases The Companys working capital requirements are primarily used to fund labour costs and inventory acquisition The Companys principal capital expenditures are used to acquire drills and vehicles to transport its drills The Companys capital expenditures in fiscal 2007 were approximately 24 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 23 years 45 years L ongterm debt 24617282 3630982 7194951 13791349 Capital lease obligations Operating leases 287500 114000 114000 59500 Client deposits 469355 469355 Purchase obligations Other longterm obligations T otal 25374137 4214337 7308951 13850849 OffBalance Sheet Items As at June 30 2007 the Company had one significant offbalance sheet liability This liability is for up to 225 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 50000 per month for up to four months for services provided in connection with the Offering and a further 300000 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 250000 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