Management Discussion & Analysis Revenues from Partners for the three months ended December 31, 2013 totaled $15.4 million compared to $9.2 million in the three  months ended December 31, 2012. The increase of 68.1% compared to the prior period is a result of new Partners added in 2013 as  well as year over year performance metric adjustments from each of the Partners as described below. See “Private Company Partner  Update” for more information on the individual Partners’ performance.  Interest expense of $433,478 in the period was 29.3% higher compared to $335,172 in the prior year period. In the fourth quarter of  2013, the Corporation started with nil debt then drew $14.5 million for follow on contributions to Agility and Killick and $30 million for  the contribution to SMi. Salaries and benefits were $350,348 in the quarter, up 29.1% compared to the prior year period due to modest increases in base  salaries effective August 1 st  and two new management positions added in October.  In the three months ending December 31, 2013, the Corporation recorded non-cash stock based compensation expenses totaling  $983,153 (2012 – $753,620) which included: $442,205 to amortize the fair value of the Corporation’s restricted share unit plan (the  “RSU Plan”) (2012 –$298,919); and $540,947 to recognize the fair value of outstanding stock options (2012 – $454,701). The increases  are due to additional options and RSUs issued in July 2013 in accordance with the compensation plan. Also in the quarter, the  Corporation made cash payments based on current dividend rates of $83,958 to employees and directors in lieu of dividends under  the RSU Plan (2011 - $62,786). Corporate and office expenses were $302,243 compared to $202,506 in the prior year and include office rent, travel and corporate  administrative expenses. The 49.3% increase was due to an increases in TSX fees as well as higher travel costs relating to increased  deal flow. Legal and accounting expenses were $90,065 for the three months ended December 31, 2013 compared to $282,244 for the prior  year period. The significant decrease relates to an increase in legal fees in late 2012 around some one-time projects relating to the  Corporation’s international structure. Depreciation and amortization was comparable to the prior year period.  The Corporation recorded a loss of ($2.86) million, EBITDA of $(1.07) million and Normalized EBITDA of $13.66 million for the three  months ended December 31, 2013 compared to earnings of $4.93 million, EBITDA of $7.86 million and Normalized EBITDA of $7.54  million for the three months ended December 31, 2012. The decrease in earnings and EBITDA can be attributed to the loss on SHS  of $15.5 million which was partially offset by the addition of new Partners in 2013: SCR (May 2013), Sequel (July 2013) and SMi (Nov  14  Annual Report  2013  Partner  Revenue  (000’s)  3 months  ending  Dec 31,  2013  3 months  ending  Dec 31,  2012  %  Change  Comment  KMH  $2,067 $1,517 +36.3% Further contributions into KMH of $27 million in the last half of 2012  Labstat  1,545  1,593  -3.0%  No reset until Jan 1, 2014; interest income on prom note included in 2012  Killick  1,502 1,131 +32.8% +4% gross revenue July 1/13, further contribution in Dec 2012, Dec 2013 Sequel  2,598  -  N/A  Contribution closed July 1, 2013  LifeMark  989 1,755 -43.6% +4% fixed increase July 1/12, reduced financial interest by another $30 million in Q2/13  Quetico  1,227  1,062  +15.5%  Max +10% increase on gross profit Jan 1/13, currency difference  Solowave  1,166 1,240 -6.0% -6% same customer sales decline Jan 1/13 due to softness in US market  SCR  1,600  -  N/A  Contribution closed in May 2013  LMS  624 508 +22.8% +22.8% increase in gross profit Jan 1/13 due to increased volumes  Agility Health  743  66  +1030.5%  Contribution closed in Dec 2012, further contributions late 2013  End of the Roll  270 277 -2.5% -2.6% same store sales decrease May 1/13  SMi  710  -  N/A  Contribution closed in November 2013  Subtotal  $15,040 $9,148 +64.4% Interest  368  20  N/A  Interest on promissory notes  Total  $15,408 9,168 +68.1%