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compared to $0.31 million for the same prior year period, as the MEDIchair royalty was sold in June 2011. See “Private Company Partner Update” for more information on the individual Partners’ performance. 

Interest expense of $356,581 in the period was 32.9% lower compared to $531,079 in the prior year period because of lower senior debt levels. 

In the three months ending December 31, 2011, the Corporation recorded non-cash stock based compensation expenses totaling $387,377 (2010 – $450,638) that included: $159,035 to amortize the fair value of the Corporation’s restricted share unit plan (the “RSU Plan”) (2010 –373,633); $186,942 to recognize the fair value of outstanding stock options (2010 – $41,255); and $41,400 to recognize the fair value of shares issued to management in lieu of dividends under the RSU Plan (2010 - $35,750). Also in the quarter, the Corporation made cash payments based on current dividend rates of $65,754 to employees and directors in lieu of dividends under the RSU Plan (2010 - $61,136). Salaries and benefits were $214,099 in the quarter, down 50% compared to the prior year period due to a management bonus paid in the fourth quarter of 2010 and starting in 2011, that management bonus was paid in the second quarter. There were no salary adjustments in this period. 

Corporate and office expenses were $267,396 compared to $159,764 in the prior year and include office rent, travel and corporate administrative expenses. The 67.4% increase was due mostly to TSX fees and other regulatory administrative expenses increasing along with the market capitalization of the Corporation compared to the prior year period. 

Legal and accounting expenses were $178,945 for the three months ended December 31, 2011 compared to $122,045 for the prior year period. The 46.6% increase is due to increased accounting fees due to IFRS and increased legal fees due to international structuring around the Quetico transaction. 

The Corporation recorded depreciation and amortization of $26,901 in the three months ended December 31, 2011, down 43% from the prior year due to the sale of the MEDIchair royalty in June 2011. 

The Corporation recorded earnings of $6.4 million and EBITDA of $4.6 million for the three months ended December 31, 2011 compared to earnings of $1.6 million and EBITDA of $3.2 million for the three months ended December 31, 2010. The increase in earnings and EBITDA can be attributed to the new transactions with Solowave, Killick and Quetico that would have no revenues associated with them in the same period in 2010. The expenses of the Corporation did not change materially from the prior year period. 

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For the three months ending December 31, 2011, dividends were declared in October and November at $0.085 per common share (voting and non-voting) and in December were increased to $0.095 per common share totalling $5,074,216 for the quarter. In the prior year period, dividends were declared in October and November at $0.08 per common share and in December were increased to $0.085 per common share totalling $3,620,808 for the quarter. 

