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<br />. <br /> <br />. <br /> <br />. <br /> <br />CUBELLIS BUSINESS TRUST <br /> <br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <br /> <br />Note 12 - Profit Sharing Plan <br /> <br />Th~ Company sponsors a Profit Sharing -+Ol(k) Retirement Plan (the "Plan"). \\hich covers <br />eligible cmployees alter threl.: months of service. Employees may contribute up to 15(% of their <br />salary to the Plan. The Company makes a matching contribution equal to 35% of employee <br />contributions: howl'vi:r. the Company's match is only applicabk to the lirst 5% of each <br />participant's salary that is contributed to the Plan. Profit sharing expcnse was approximately <br />$1 R3.000 and $9-+.000 for the years ended December 3 1,2006 and 2005. respectively. <br /> <br />Note 13 - Concentration of Credit Risk <br /> <br />rhe Company maintains its cash in bank deposit accounts which. at times. may exceed li.:derally <br />insured limits. The Company has not experienced any losses in sUl.:h accounts and docs not <br />believe it is exposed to any significant credit risk related to cash. <br /> <br />Note 14 - Contingencies <br /> <br />At December 31.2006, various claims and suits arc pending against the Company in the ordinary <br />course of business. In th~ opinion of management. the Company's liability insurance is sunicient <br />to cover any liability resulting from such claims. <br /> <br />Note 15 - Supplementary Cash Flow Disclosures <br /> <br />Interest and Income Taxes <br />Cash paid for the tl)lIowing items is as follnws: <br /> <br />2006 <br /> <br />2005 <br /> <br />Income taxes <br />In terest <br /> <br />s <br /> <br />5,308 <br />438,924 <br /> <br />$ <br /> <br />62.-+00 <br />179. US <br /> <br />Non-cash Investing and Financing Activities <br /> <br />In 2006, eLjuipment ano software purchases totaling $S-+1.503 \vere financed through capital <br />kases. In 2005. equipmcnt and sort\\are pun:hasl.:s totaling S I. I 93.357 were financed through <br />cari tal leases. <br /> <br />Investment in Ecoplan, P.A. <br />Assets ano liabilities assumeo in connection with the asset purchase agreement with Ecoplan. <br />P.A. on July I. 2005 consisteo of the following: <br /> <br />Accounts receivabk. net <br />Equipment and improvements. net <br />Obligations unuer capital leases <br />Accounts payabk <br /> <br />S 538.382 <br />] 60.007 <br />( 135,0(7) <br />(520.0-+5 ) <br /> <br />The excess of the consideration paid and transaction costs incurn:u o\'t~r the fair value of the net <br />assets acquirco rcsulteo in the recognition of goodwill in the amount of S713.130. <br /> <br />1-+ <br />