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## Liquidity Risk 

The Company is exposed to liquidity risk through its working capital balance. At December 31, 2013 and December 31, 2012, this risk was limited by having substantial cash balances, strong cash flows from operations and a banking facility sufficient to meet all current liabilities. All working capital amounts at December 31 are due within one year. 

## Significant Customers 

During 2013, four customers (2012 – two customers) each provided more than 10% of the Company’s revenue. While the loss of one or more of these customers may have a material adverse affect on the financial results of the Company, in management’s assessment, the future viability of the Company is not dependent upon these major customers. 

7. Restricted Cash 

<img src='content_image/272160.jpg'>

During 2011, the Company guaranteed bank loans made to joint venture partners totaling $2,700,000 for a period of four years. The Company has provided an assignment of monies on deposit totaling $3,000,000 with respect to these loans. 

During the third quarter of 2013, the Company guaranteed additional bank loans made to joint venture partners totaling $2,812,000 for a period of four years. The Company has provided an assignment of monies on deposit totaling $2,950,000 with respect to these loans. 

The Company’s security from its partners for these guarantees includes interests in specific rig assets. The Company has recorded the loan guarantee benefit at its fair value. 

8. Investments in Joint Ventures 

## Joint Venture Interests 

The Company conducts certain rig operations via joint ventures with aboriginal partners whereby rig assets are jointly owned. Currently, there are 22 different aboriginal groups with equity investments in ten of AKITA’s rigs. These equity investments are facilitated through joint venture agreements. Each joint venture operates the rig with the joint venture partners owning a share of each rig directly. The equity ownership for each aboriginal partner varies between rigs and groups and ranges from 5% to 50% per group per rig. 

While joint venture interests are at least 50% owned by the Company, in each case the joint venture is governed on a joint basis. The Company accounts for the joint venture interests using the equity method of accounting. The following table lists the Company’s active joint ventures. 

