2007 annual report aveiro investment corp. - First West Properties

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NOTES TO THE FINANCIAL STATEMENTS June 30, 2007 and 2006 13. FUTURE INCOME TAXES The following table reconciles income taxes calculated at the Canadian statutory rate with actual income taxes: 44 | Aveiro Investment Corp. | 2007 Annual Report 2007 2006 Loss before taxes $ (872,750 ) $ (6,863 ) Canadian statutory rate 32.12 % 32.12 % Expected income taxes $ (280,327 ) $ (2,204 ) Effect on taxes resulting from: Non-deductible stock based compensation 80,045 – Change in tax rates 22,330 – Valuation allowance 171,065 2,204 Other 6,887 – Provision for Income taxes $ – $ – The net future income tax liability is comprised of: 2007 2006 Future income tax liabilities Income producing properties and equipment in excess of tax values $ 25,615 $ – Future income tax assets Unused non-capital tax losses (263,313 ) (7,024 ) Share issuance costs (241,608 ) – Valuation allowance 479,306 7,024 Net future income taxes $ – $ – As at June 30, 2007 the Company has non-capital losses available to carry forward to future years of approximately $923,907 (2006 - $21,868). These losses will begin to expire in 2026. The non-capital loss carry-forwards refl ected above expire as follows: 2026 $ 5,234 2027 918,673 $ 923,907
NOTES TO THE FINANCIAL STATEMENTS June 30, 2007 and 2006 14. LOSS PER SHARE Basic and diluted net loss per share is calculated using the weighted average number of shares outstanding during the period. There were no dilutive options or warrants outstanding at June 30, 2007. Basic and diluted net loss per share is calculated as follows: 2007 2006 Weighted Basic and Weighted Basic and average diluted average diluted common net loss common net loss Net loss shares per share Net loss shares per share $ (872,750 ) $ 5,685,371 $ (0.1535 ) $ (6,863 ) 2,050,000 $ (0.0033 ) 15. RELATED PARTY TRANSACTIONS During the year the Company entered into an agreement with True North Strategy Corp. to provide the Company with strategic management services. Pursuant to the terms of the strategic management agreement, the Manager is entitled to a fee equal to 1.5% of the defi ned net assets of the Company payable as to 0.125% plus tax calculated at the end of each calendar month. In the event that the Company purchases any assets (other than the Airdrie industrial land), whether by direct acquisition, corporate acquisition, amalgamation, majority or minority investment or otherwise, the Manager will be entitled to a fee equal to 1.5% of the acquisition price or transaction value, as the case may be. Certain offi cers and directors of the Company are shareholders of True North Strategy Corp. There was a total of $159,318 of management fees and acquisition fees which were included in corporate expenses that were incurred during the year to True North Strategy Corp. of which $15,422 are included in accounts payable and accrued liabilities. In April of 2007, the Company entered into an agreement with a company which shares certain common offi cers and directors, pursuant to which the Company provides shared offi ce costs, including rent and overhead, at the fi xed amount of $6,000 per month. During the year, $18,000 related to this agreement has been recorded in revenue. Also included in general and administrative expenses for the year ended June 30, 2007 is $17,312 in offi ce costs paid to a company with common management. In addition, general and administrative expenses in the amount of $4,651 were paid on that company’s behalf and were subsequently reimbursed during the period. Related party transactions are in the normal course of operations and are recorded at the exchange amount which management believes to be at market rates under normal terms and conditions. Aveiro Investment Corp. | 2007 Annual Report | 45
Page 1 and 2: AVEIRO INVESTMENT CORP. 2007 ANNUAL
Page 3 and 4: CHAIRMAN’S LETTER DEAR FELLOW SHA
Page 5 and 6: ASSETS SASKATOON TOTAL OF APPROXIMA
Page 7 and 8: ASSETS AIRDRIE 77 ACRES OF UNDEVELO
Page 9 and 10: Harold Kunik, Chief Financial Offic
Page 11 and 12: JULY 2007 Private Placement In July
Page 13 and 14: WHY SASKATCHEWAN? Once solely an ag
Page 15 and 16: OVERVIEW About Aveiro Aveiro is an
Page 17 and 18: OVERALL PERFORMANCE Financial Posit
Page 19 and 20: The Warehouse Mortgage is a fi rst
Page 21 and 22: a company with common management. I
Page 23 and 24: During the 2008 fi scal year, the C
Page 25 and 26: properties. The ability of Aveiro t
Page 27 and 28: OUTSTANDING SHARE DATA Common Share
Page 29 and 30: The rates are determined based on m
Page 31 and 32: AUDITOR’S REPORT To the sharehold
Page 33 and 34: STATEMENTS OF LOSS AND DEFICIT Year
Page 35 and 36: NOTES TO THE FINANCIAL STATEMENTS J
Page 43: NOTES TO THE FINANCIAL STATEMENTS J
Page 47 and 48: AUDITORS Grant Thornton LLP 1000, 1

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