content_image/243502.jpg content_image/243503.jpg
amount of $709,000 and decrease of $41,000; additional accrued employee future benefit obligation of $30,000, and a discounted CAAP loan recognized in the amount of $163,000. 

Equity of $14,000 at December 31, 2012 decreased by $504,000 from equity of $518,000 at December 31, 2011 due to net loss for the year ended December 31, 2012 of $538,000 offset by recognition of share-based compensation in contributed surplus of $34,000. 

## NET DEBT 

<img src='content_image/243502.jpg'>

* Current and non-current financial liabilities include accounts payable and accrued liabilities, current and non-current portion of long-term debt, royalty interest payable, current and non-current portion of repayable research funding, current and non-current portion of royalty financial liability, and a CAAP loan. 

The Company’s net debt increased by $131,000 due to cash and cash equivalent decrease of $319,000 and CAAP loan discounted amount recognized of $163,000 offset by long-term debt repayment in the amount of $154,000, repayable research funding repayment of $85,000, royalty financial liability decreased by $58,000 and a royalty interest payable decreased by $8,000, accounts payable and accrued liabilities decrease of $46,000. 

## SOURCES AND USES OF CASH 

The following table outlines our sources and uses of funds during 2012 and 2011. 

<img src='content_image/243503.jpg'>

