and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period A ctual results could differ from these estimates Significant areas requiring the use of management estimates relate to the useful lives of capital assets for amortization purposes inventory valuation determination of bad debt allowance purchase price allocation related to business acquisitions income and other taxes stockbased compensation and amounts recorded as accrued liabilities F uture Accounting Changes Inventories In June 2007 the Canadian Institute of Chartered A ccountants CICA issued Section 3031 Inventories replacing Section 3030 Inventories The new Section will be applicable to financial statements relating to fiscal years beginning on or after January 1 2008 A ccordingly the Company will adopt the new standards for its fiscal year beginning July 1 2009 It provides more guidance on the measurement and disclosure requirements for inventories F or example it requires that fixed and variable production overheads be systematically allocated to the carrying amount of inventory The Company does not expect that the adoption of this new Section will have a material impact on its consolidated financial statements F inancial instruments In December 2006 the CICA issued Section 3862 Financial Instruments Disclosures Section 3863 Financial Instruments P resentation and Section 1535 Capital Disclosures All three Sections will be applicable to financial statements relating to fiscal years beginning on or after October 1 2007 A ccordingly the Company will adopt the new standards for its fiscal year beginning July 1 2008 Section 3862 on financial instruments disclosures requires the disclosure of information about a the significance of financial instruments for the entitys financial position and performance and b the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the balance sheet date and how the entity manages those risks Section 3863 on the presentation of financial instruments is unchanged from the presentation requirements included in Section 3861 Section 1535 on capital disclosures requires the disclosure of information about an entitys objectives policies and processes for managing capital The Company does not expect that the adoption of these new Sections will have a material impact on its consolidated financial statements Goodwill and intangible assets In F ebruary 2008 the Canadian Institute of Chartered A ccountants CICA issued Section 3064 Goodwill and intangible assets replacing Section 3062 Goodwill and other intangible assets and Section 3450 R esearch and development costs V arious changes have been made to other sections of the CICA Handbook for consistency purposes The new Section will be applicable to financial statements relating to fiscal years beginning on or after October 1 2008 A ccordingly the Company will adopt the new standards for its fiscal year beginning July 1 2009 It establishes standards for the recognition measurement presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets by profitoriented enterprises Standards concerning goodwill are unchanged from the standards included in the previous Section 3062 The Company does not expect that the adoption of this new Section will have a material impact on its consolidated financial statements Outstanding Securities As of April 30 2008 Orbit Garant had 24776536 Common Shares and options exercisable for 1055500 Common Shares issued and outstanding Subsequent Events On May 12 2008 Orbit Garant entered into commitment letter to replace its Existing Credit Agreement with the New Credit Agreement upon Closing of this Offering 50