(a)

Included within machinery and equipment were assets under capital leases with costs of and associated accumulated depreciation of and as of and respectively. The related depreciation expense for the months ended and was and respectively.

 

 

 

(b)

 

 

 

Included within computer hardware and software are assets under capital leases with costs of as at and and associated accumulated depreciation of and as at and respectively. The related depreciation expense for the months ended and was and respectively.

(c)

 

 

 

In accordance with ASC - the Company is required to evaluate for impairment when events or changes in circumstances indicate that the carrying value of such assets not be recoverable.  Upon the occurrence of a triggering event, the Company assesses whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. In the quarter of the Company identified a triggering event related to its U.S. segment asset group, which has a carrying amount of   The Company estimated undiscounted cash flows and determined a recoverable amount of in excess of the carrying value, therefore impairment loss has been recorded in the quarter of The key assumptions included in these cash flows are projected revenue based on management’s most recently approved forecast and corresponding margins. The estimate of undiscounted cash flows are sensitive to these key assumptions, for instance, if our revenue projections are lower by the recoverable amount would be reduced to As such, the Company will continue to review for impairment triggers which result in a need to write down the assets to fair value in the future.