EFTA01367287.pdf

Amendment #4 Page 858 of 868 . As d December 31 2013 6to12 hbretnan Maths months 1 year Total Notes ard loans payable S 130,000 S — S 3,414,600 S 3,544,600 Account payable 335,939 — — 305,509 Accounts paya tie and accrued expenses — 229,976 — 229,976 S 435,939 5 229.976 $ 3414 600 5 4003,515 23. Capital management The Company s man objective an caplet management is to ensure that it mairtans a sold credd ratio and healthyfauna& capital rates to support its business and maximize parrs The Company manages its capital structure and timely requests shareholders for any adjustment to this capital consdering the eoorcmic erivirorvnert whch it operates. To marten or adjust its capital structure. t nay recpeM shareholders for vanations to dvidends and capital returns previously ageed on. as well as for rcreases in capital ccntritzt ors it necessary. These parties had no signficaM changes in 2)14 and 2013 24. Fair value of financial instruments As ndcated in Note 22, the Contrary's main fnancel instruments are comprised Cl cash, atcounts receivable. rotes and loans raeryable. accounts payable and accrued expenses Management believes that me carrying a rrOunfs of cash a coourts receivable, and accounts payable approach their fair market value due to they short-term nature In considerirg the fair vaue of loans payable with vonatie interest rates the Company has considered that LIBOR based borrowings resent periodically and the LIBOR spread on Pose outstanding approximate those obtained by aleletes in recent fronting' In evaluating the far vakie of tans payable at fixed rates the Company has considered tie cositry risks market conditions existing both at the date of the loans and than et the statement of finance' position data. and that there are rat a agnificant ranter of caveat* !twangs in its market Therefore. the Company believes that the carrying value of loans payable at toed rates reasonably approximates carrying yaks as of both Decent*. 31. 2014 and 2013. Denvatwe financial instruments have been measured at fah value as explained below Fair value hierarchy The Company uses Me following hierarchy for determining and *seaming the lair value of its financial ratrumerts by valuaton technique • Level 1. Quoted (unadjusted) prices in ache markets for dented assets or lobbies • Level 2 Techniques that use inputs (efferent from grated picas that are observable for the asset or lability. whether directly or irdirectty • Level a Tecrnides trot use inputs that have a signboard effect on the recorded fair value that are not based an observable market data Dona 2014, dessdicalion in levels of onstrurnerts measured at fait value s as follows 2014 Level 1 Level 2 Level 3 Interest rate cap-asset $426.296 — $4262DIS 5 — F-535, http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058815 CONFIDENTIAL SDNY GM_00204999 EFTA01367287