NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS 22. CAPITAL DISCLOSURES (CONTINUED) 23. GOVERNMENT ASSISTANCE 54 CEAPRO Annual Report 2012 The Company has funded its activities through public offerings and private placements of common shares, royalty offerings, loans, convertible debentures, and grant contributions. The Company is not subject to externally imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2011. a) During the year ended December 31, 2010, the Company was approved for non-repayable funding in the amount of $124,000 from Alberta Innovates Technology Futures (AITF). During the year ended December 31, 2012, the Company received $32,083 (2011 – $62,000) which was recorded as a reduction of research and product development expenses. The Company anticipates receiving an additional amount of $9,166 in early 2013 under this agreement. b) During the year ended December 31, 2012, the Company was approved for a second agreement for non-repayable funding in the amount of $124,000 from AITF. During the year, the Company received $20,750 which was recorded as a reduction of research and project development expenses. The Company anticipates receiving additional funding of $62,000 in 2013 and $41,250 in 2014 under this agreement. c) The Company was approved for non-repayable funding for up to 50% of eligible costs to a maximum of $99,900 under the Growing Forward Product Development program. The Company recognized $nil during the year ended December 31, 2012 (2011 – $60,076) as a reduction of research and product development expenses. This program has now been completed. d) The Company was approved for non-repayable funding in the amount of $50,000 for eligible costs from the Atlantic Canada Opportunities Agency. The Company recognized $nil during the year ended December 31, 2012 (2011 – $10,879) as a reduction of research and product development expenses. This program has now been completed. e) The Company was approved for non-repayable funding to a maximum of $21,250 of eligible expenditures under the Novel Crops Initiative program from the Prince Edward Island Department of Agriculture. The Company recorded the amount of $5,000 as a reduction of research and product development expenditures under this program in the period ended December 31, 2012 (2011 – $5,000). The Company anticipates receiving an additional amount of $5,000 in 2013 under this program. f) The Company received a repayable non-interest bearing contribution for research and development expenditures totaling $100,000 by 2011 (2010 – $50,000 of the $100,000 was received) from Innovation PEI which was recorded as a repayable research funding liability on the consolidated balance sheet. The amount of $15,367 was repaid during 2011. The contribution was repayable quarterly at a rate of one percent of sales revenue subject to a minimum payment of $12,500 per quarter. The Company repaid the full liability during the year ended December 31, 2012. g) The Company was approved for non-repayable grant funding from Innovation PEI for a maximum of $100,000. During the year ended December 31, 2011, the Company received $30,000 and recognized $19,500 against eligible expenses and $10,500 as deferred revenue. During the year ended December 31, 2012, the balance of $70,000 potentially receivable was decommitted and the Company recognized $10,500 as deferred revenue. No further amount is expected. h) The Company entered into Canadian Agricultural Adaptation Program (‘‘CAAP’’) repayable contribution agreements for total possible funding of $1,339,625 receivable over the period from October 7, 2010 through September 30, 2012. During the year ended December 31, 2012, the Company voluntarily amended the maximum possible funding under the agreement to $671,068 as a result of lower anticipated project expenditures. The end date for project expenditures was also extended one year to September 30, 2013. All amounts claimed under the program are repayable interest free