Q2 Financial Report - 2014

Ag Growth International Inc.
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
[in thousands of Canadian dollars, except where otherwise noted and per share data]
June 30, 2014
The tax effects of temporary differences that give rise to significant portions of the deferred tax
assets and deferred tax liabilities are presented below:
As at
June 30,
2014
$ $
As at
December 31,
2013
Inventories (88) (88)
Property, plant and equipment and other assets (13,420) (12,730)
Intangible assets (13,258) (13,202)
Deferred financing costs (19) (168)
Accruals and long-term provisions 1,803 1,730
Tax loss carryforwards expiring between 2020 to 2029 5,290 9,897
Investment tax credits (1,125) (1,123)
Canadian exploration expenses 29,220 29,176
Capitalized development expenditures (832) (779)
Convertible debentures (1,084) (1,431)
SAIP liability 462 307
Equity impact LTIP — 312
Other comprehensive income 805 1,193
Net deferred tax assets 7,754 13,094
Reflected in the unaudited interim condensed consolidated
statements of financial position as follows
Deferred tax assets 17,975 23,327
Deferred tax liabilities (10,221) (10,233)
Deferred tax assets, net 7,754 13,094
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable
income during the periods in which these temporary differences, loss carryforwards and
investment tax credits become deductible. Based on the analysis of taxable temporary differences
and future taxable income, the management of the Company is of the opinion that there is
convincing evidence available for the probable realization of all deductible temporary differences
of the Company's tax entities incurred in its Finnish operations other than losses [2,232 Euros].
Accordingly, the Company has recorded a deferred tax asset for all deductible temporary
differences as of the reporting date and as at December 31, 2013.
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