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## 19. Financial risk management(continued): 

(h) Capital management: 

The Company’s objective is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to develop the business. 

Management defines capital as the Company’s total shareholders’ equity and long-term bank loan. The Board of Directors does not establish quantitative return on capital criteria for management. The Board of Directors reviews the capital structure on a quarte rly basis. 

In order to maintain or adjust the capital structure, the Company may purchase shares for cancellation pursuant to normal course issuer bids, issue new shares or warrants, issue new debt, and draw on its operating line of credit . 

The Company’s approach to capital management changed during the periodpursuant to the closing of the Franworks Acquisition. The Company used up the majority of its cash balances on the Franworks Acquisition. However, subsequent to the Franworks transaction in the fourt h quarter, the Company completed a bought deal equity offering, raising $32,937,932 net of costs and taxes, leaving the Company with a substantial cash balance as at December  31, 2014 of $34,510,514. 

## 20. Related parties: 

Transactions with key management personnel: 

Key management personnel of the Company includes all individuals who occupied the following positions during the reporting periods: 

- Membersof the Board of Directors . 

- President and Chief Executive Officer  (“CEO”). 

- Chief Financial Officer(“CFO”). 

The table below provides a breakdown of the compensation of key management personnel benefits included in net income: 

<img src='content_image/164689.jpg'>

