reassessments is estimated to be approximately $12.5 million, with the remaining amount not payable until the dispute with the CRA  is resolved and only if the result is not in Alaris’ favor. Alaris has adequate capital available to it to pay the maximum amount of all tax  liabilities it could incur if it was reassessed on all of its tax filings to date and if these reassessments were ultimately upheld through  the tax adjudication process.  Tax Year  Losses Applied  Estimated tax and  interest  July 2009  $10,532  $3,600  December 2009  5,118  1,700  December 2010  12,828  3,900  December 2011  40,197  11,500  December 2012  16,774  4,300  Total  $85,449  $25,000  Alaris anticipates that legal proceedings through the CRA and tax courts would take considerable time to resolve. The Corporation  firmly believes it will be successful in defending its position and therefore, any deposits paid to the CRA would be refunded, plus  interest. SUBSEQUENT EVENTS  Subsequent to December 31, 2013, the Corporation contributed $6 million to Labstat for 600,000 additional Labstat Units. Distributions  on those units are on similar terms as the other Labstat Units with a fixed distribution of $435,000 (7.25%) in the first twelve months  along with a variable portion that will depend on the performance of the business up to a maximum $857,143.  OUTLOOK  Alaris’ agreements with its Partners provide for estimated revenue to the Corporation of approximately $63.2 million in 2014. For the  first quarter of 2014, those same agreements with its Partners provides for estimated revenue to the Corporation of approximately  $15.6 million. On a per share basis, even with the reduction of the SHS distribution to nil in December 2013, as well as the temporary  restructuring of the distribution from Labstat International, ULC (“Labstat”) to a reduced fixed amount and the addition of a variable  portion, revenues in the first quarter of 2014 are expected to be the same as the fourth quarter in 2013 at $0.54 per share and 22.7%  higher than the revenue per share numbers reported for the first quarter of 2013 ($0.44 per share). Annual general and administrative  expenses are currently estimated at $5.3 million annually and include all public company costs. The senior debt facility was drawn to  $44.5 million at December 31, 2013 and $50.5 million at March 10, 2014, leaving the Corporation with approximately $27 million of net  debt available. The annual interest rate on that debt was approximately 6.0% at December 31, 2013 and remains at that level today.  Cash requirements after net income are expected to be minimal, as current capital expenditures consist of office furniture and computer  equipment. Alaris’ unique capital structure continues to fill a niche in the private capital markets. Therefore, Alaris continues to attract interest in  its capital from private businesses across North America and is confident it will contribute capital to new, and existing Partners in 2014. As a conservative measure, Alaris does not use any estimates for future revenue earned from the contribution of capital into new or  existing Partners in its guidance or budgeting process  Certain information contained herein may be considered to be future oriented financial information or financial outlook under applicable  securities laws, the purpose of providing such information in this MD&A is to demonstrate the visibility the Corporation has with respect  to its revenue streams, and such statements are subject to the risks and assumptions identified for the business in this MD&A, and  readers are cautioned that the information may not be appropriate for other purposes. See also “Forward Looking Information” below.  25  Annual Report  2013  Management Discussion & Analysis 