CONSOLIDATED STATEMENT OF CASH FLOWS  For the year ended December 31  Annual Report  2013  Consolidated Financial Statements  45  Note  2013  2012  Cash flows from operating activities  Earnings from the year  $29,823,497  $18,035,603  Adjustments for:  Finance costs  1,677,102  1,033,392  Deferred income tax expense  6  8,257,300  5,978,701  Depreciation and amortization  7  106,282  107,633  Bad debts expense  5  575,000  -  Gain on reduction of interest in LifeMark  (13,052,160)  -  Impairment loss on SHS  15,512,013  -  Unrealized loss on foreign exchange forward contract  651,915  3,750  Unrealized foreign exchange (gain)/loss  (1,909,530)  241,794  Non-cash stock-based compensation  10  3,808,518  1,901,683  45,449,937  27,302,556  Change in:  -trade and other receivables  (631,302)  26,037  -prepayments  57,268  (63,303)  -trade and other payables  547,143  231,851  Cash generated from operating activities  45,423,046  27,497,141  Finance costs (1,677,102)  (1,033,392)  Net cash from operating activities  $43,745,944  $26,463,749  Cash flows from investing activities  Acquisition of equipment  7  (15,290)  (9,835)  Acquisition of Preferred LP Units  5  (173,282,648)  (91,141,585)  Proceeds from reduction of LifeMark interest  30,000,000  -  Net cash used in investing activities  $(143,297,938)  $(91,151,420)  Cash flows from financing activities  New share capital, net of share issue costs  8  155,685,585  46,286,377  Proceeds from exercise of options  8  2,332,603  607,500  Repayment of debt  9  (168,000,000)  (49,000,000)  Proceeds from debt  9  162,500,000  92,500,000  Promissory notes issued  5  (11,665,000)  (1,250,000)  Dividends paid  8  (35,648,317)  (24,464,678)  Payments in lieu of dividends on RSUs  (292,790)  (241,738)  Net cash used in financing activities  $104,912,081  $64,437,461  Net increase/(decrease) in cash and cash equivalents  5,360,087   (250,210)  Cash and cash equivalents, Beginning of year 3,638,255  3,888,465  Cash and cash equivalents, End of year  $8,998,342  $3,638,255 