Driving Innovation Through Research Excellence - AUTO21

7. CONTINGENCY
AUTO21 is contingently liable under the terms of the Host Agreement with the University to reimburse the University for
reconverting all space facilities presently occupied by AUTO21 in the event of relocation before March 23, 2008. It is
not the intention of AUTO21 to vacate the premises before that date. Commencing April 1, 2004, the amount of the
contingent liability will be reduced by 25% per annum.
8. PROJECT EXPENSES
Funds were returned to AUTO21 from several participating institutions (universities). These refunds were the result of
excess carryovers and one researcher leaving a project. The project expenses reflect the net payments less refunds.
9. FINANCIAL INSTRUMENTS
The organization’s financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities
and deferred revenue. Due to the short term period to maturity of the instruments, the carrying values, as presented in
the balance sheet, are reasonable estimates of fair value. It is management’s opinion that the entity is not exposed to
significant interest rate, foreign currency or credit risks arising from these financial instruments.
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AUTO21 Annual Report 2005-2006