NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS 11. CAAP LOAN (CONTINUED) 12. SALES 13. RELATED PARTY TRANSACTIONS CEAPRO Annual Report 2012 47 These transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by the related parties. Related party transactions during the years not otherwise disclosed in these consolidated financial statements are as follows: During the year ended December 31, 2012, the Company had export sales to two customers of the Company’s products in the amount of $4,806,152 (2011 – to five customers in the amount of $5,753,038). The Company is therefore dependent on those customers to maintain and expand the volume of product sales to existing and new customers. Principal repayment required for amount received from inception to December 31, 2012 is $59,197 annually from 2014 through 2021. As the start date of principal repayment was changed to 2014, during the year ended December 31, 2012, the present value of the remaining cash flow was revised. The Company applied extinguishment accounting and derecognized the old loan and set up a new loan with the difference presented in the consolidated statements of net (loss) income under research and product development expenditures (consistent with the current treatment). Year Ended Year Ended December 31 December 31 2012 2011 $ $ Opening balance 57,432 – Funding received or receivable 350,492 123,081 Grant revenue recognized (188,312) (69,990) Extinguishment of the original liabilities (119,772) – Recognition new liabilities 102,972 – Accretion of CAAP loan 18,166 4,341 220,978 57,432 The balance of repayable contribution is derived as follows: Year Ended December 31 2012 2011 $ $ Royalties earned by employees and directors 19,482 22,109 Amounts payable to employees and directors included in royalties payable 4,632 6,318 Interest earned in convertible debentures by officers and directors – 5,600 Key management salaries, short-term benefits, consulting fees, and director fees 656,555 484,861 Key management personnel share based payments 33,817 48,595 Director fees converted by directors to common shares – 175,000 Conversion of principal amount of convertible debentures to common shares by officers and directors – 70,000 Amount payable to directors 28,750 175,000