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For the year ended December 31, 2012, Commander’s net income was $924,471 (2011 – net loss of $3,974,813). The increase in income was mainly due to the gain of $3,186,676 on the disposal of subsidiary and the reduction in expenses post deconsolidation. 

## Summary of Quarterly Results 

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## Liquidity and Capital Resources 

At December 31, 2012, Commander had $523,110 in cash and cash equivalents. 

Commander has relied on equity financings to meet its cash requirements however there were no equity financings during the year ended December 31, 2012. 

On February 15, 2012, Commander sold 4.5 million common shares of Maritime through a private transaction at a price of $0.23 per share for gross cash proceeds of $1,035,000. 

Although Commander has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that Commander will be able to obtain adequate financing in the future or that the terms of such financings will be favourable. 

There is no significant commitment for capital expenditure. 

## Off-Balance Sheet Arrangements 

Commander has not entered into any off-balance sheet arrangements. 

## Related Party Transactions 

The Company’s related parties consist of companies controlled by executive officers and directors. The Company incurred the following fees and expenses in the normal course of operations in connection with those companies for the years ended December 31, 2012 and 2011 as follows: 

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During the year ended December 31, 2012, the Company charged Maritime $78,707 (2011 - $56,653), in respect of office administration, accounting, rent, insurance and investor relation expense shared by the companies. 

At December 31, 2012, included in receivables were $3,060 (2011 - $254) for administrative and office expenses from companies related by common directors. 

At December 31, 2012 included in accounts payable were amounts due to related parties of $765 (2011 - $17,706) for legal fees to a law firm related by a director in common. 

