2007 annual report aveiro investment corp. - First West Properties

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