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## 11. CAAP LOAN (CONTINUED) 

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). 

The balance of repayable contribution is derived as follows: 

<img src='content_image/243781.jpg'>

Principal repayment required for amount received from inception to December 31, 2012 is $59,197 annually from 2014 through 2021. 

## 12. SALES 

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. 

## 13. RELATED PARTY TRANSACTIONS 

Related party transactions during the years not otherwise disclosed in these consolidated financial statements are as follows: 

<img src='content_image/243783.jpg'>

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. 

