<SEC-DOCUMENT>0000929638-19-000501.txt : 20190430
<SEC-HEADER>0000929638-19-000501.hdr.sgml : 20190430
<ACCEPTANCE-DATETIME>20190430160303
ACCESSION NUMBER:		0000929638-19-000501
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190430
FILED AS OF DATE:		20190430
DATE AS OF CHANGE:		20190430

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DESCARTES SYSTEMS GROUP INC
		CENTRAL INDEX KEY:			0001050140
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29970
		FILM NUMBER:		19781578

	BUSINESS ADDRESS:	
		STREET 1:		120 RANDALL ST
		CITY:			WATERLOO
		STATE:			A6
		ZIP:			N2V 1C6
		BUSINESS PHONE:		519-746-8110

	MAIL ADDRESS:	
		STREET 1:		120 RANDALL DRIVE
		CITY:			WATERLOO, ONTARIO, CANADA
		STATE:			XX
		ZIP:			N2V 1C6
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Washington, D.C. 20549</div>
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              <div style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">PURSUANT TO RULE 13a-16 OR 15d-16 UNDER</div>
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              <div style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">THE SECURITIES EXCHANGE ACT OF 1934</div>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">For the month of April 2019</div>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Commission File Number:&#160;&#160;000-29970</div>
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            <td style="font-size: 10pt; font-family: times new roman; width: 100%;" valign="top">&#160; </td>
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              <div style="FONT-SIZE: 18pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">THE DESCARTES SYSTEMS GROUP INC.</div>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">(Translation of registrant&#8217;s name into English)</div>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Canada N2V 1C6</div>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">(Address of principal executive office)</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: justify; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Indicate by check mark whether the registrant files or will file annual reports under cover of Form
      20-F or Form 40-F.</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: justify; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
      Regulation S-T Rule 101(b)(1): [ ]</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: justify; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: justify; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"><font style="FONT-WEIGHT: bold; DISPLAY: inline">Note: </font>Regulation S-T Rule 101(b)(7) only
      permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated,
      domiciled or legally organized (the registrant&#8217;s &#8220;home country&#8221;), or under the rules of the home country exchange on which the registrant&#8217;s securities are traded, as long as the report or other document is not a press release, is not required to be
      and has not been distributed to the registrant&#8217;s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; DISPLAY: block">The attached Business Acquisition Report is furnished herewith as Exhibit 99.1.</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: justify; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
      this report to be signed on its behalf by the undersigned, thereunto duly authorized.</div>
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            <td style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; WIDTH: 47%" colspan="2" valign="top">&#160; </td>
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              <div style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">(Registrant)</div>
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              <div style="TEXT-DECORATION: underline; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">/s/ Michael Verhoeve&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </div>
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              <div style="TEXT-ALIGN: left; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: -47.05pt; TEXT-INDENT: 0pt">General Counsel</div>
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    <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">Date:&#160; April 30, 2019<br>
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            <td style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; WIDTH: 15%" valign="top">&#160; </td>
            <td style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; WIDTH: 85%" valign="top">&#160; </td>
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            <td style="font-size: 10pt; font-family: times new roman; width: 15%; color: rgb(0, 0, 0);" align="left" valign="top"><a href="exhibit99-1.htm">99.1</a></td>
            <td style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; WIDTH: 85%" align="left" valign="top"><font style="color: rgb(0, 0, 0);"><a href="exhibit99-1.htm">Business Acquisition Report</a><br>
              </font> </td>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>BUSINESS ACQUISITION REPORT
<TEXT>
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    <!-- Licensed to: morganlewis
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  <div style="text-align: right;">Exhibit 99.1<br>
  </div>
  <div> <br>
  </div>
  <br>
  <div style="text-align: center; font-family: Arial; font-size: 9pt; font-weight: bold;">THE DESCARTES SYSTEMS GROUP INC.</div>
  <div style="text-align: center;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">FORM 51-102F4</font></div>
  <div style="text-align: center;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">BUSINESS ACQUISITION REPORT</font></div>
  <div><br>
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            <div style="text-align: justify; font-family: Arial; font-size: 9pt; font-weight: bold;">Item 1</div>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Identity of Company</font></div>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">1.1</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Name and Address of Company</font></div>
          </td>
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          <td style="vertical-align: top;">&#160;</td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Descartes Systems Group Inc. (&#8220;Descartes&#8221; or the &#8220;Company&#8221;)</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">120 Randall Drive</font></div>
          </td>
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        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Waterloo, Ontario N2V 1C6</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Canada</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">1.2</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Executive Officer</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The name and business telephone number of an executive officer of Descartes who is knowledgeable about the significant acquisitions and this Report is:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Allan Brett</font></div>
          </td>
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        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Chief Financial Officer</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Phone: (519) 746-8110</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Item 2</font></div>
          </td>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">&#160;Details of the Acquisition</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.1</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Nature of Business Acquired</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">On February 12, 2019, Descartes acquired the businesses run by the Management Systems Resources Inc. group of companies (the &#8220;Acquisition&#8221;) operating under the
                names &#8220;Visual Compliance,&#8221; &#8220;eCustoms&#8221; and &#8220;MSR&#8221; (collectively, &#8220;Visual Compliance&#8221; or the &#8220;MSR Group&#8221;) pursuant to a Purchase and Sale Agreement dated January 27, 2019 with MSR Customs &amp; Commodity Tax Group, Management Systems Resources
                Inc., MSR International Inc. and MSR Customs Corporation (collectively, the &#8220;Sellers&#8221;).</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Visual Compliance provides software solutions and services to automate customs, trade and fiscal compliance processes, with a focus on denied and restricted
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          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Denied and restricted party screening is the review of people, goods, services and/or commodities against comprehensive lists published by governments and
                international organizations identifying people, organizations and countries with whom it is illegal or restricted to transact business.</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.2</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Acquisition Date</font></div>
          </td>
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          <td style="vertical-align: top;">&#160;</td>
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            <div style="text-align: justify;"><br>
            </div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Acquisition was completed on February 12, 2019.</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.3</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Consideration</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Unless otherwise indicated all dollar amounts included herein are expressed in United States (&#8220;US&#8221;) dollars.</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The purchase price for the Acquisition was approximately CAD $330 million (approximately US $250 million) (the &#8220;Purchase Price&#8221;). The Purchase Price was
                satisfied by way of approximately CAD $12 million (approximately US $9 million)&#160;in common shares of the Company issued from treasury, representing 0.3 million shares,&#160;and the balance (approximately CAD $318 million or approximately US $241
                million) was satisfied in cash. Prior to the completion of the Acquisition,</font></div>
          </td>
        </tr>

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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify; font-family: Arial; font-size: 9pt;">the Company borrowed CAD $320 million (approximately US $242 million) under its existing credit facility (the &#8220;Financing Transaction&#8221;), which together with cash on hand, was
              used to fund the cash portion of the Purchase Price and related fees and expenses of the Financing Transaction and the Acquisition.</div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.4</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Effect on Financial Position</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Descartes has no plans or proposals for material changes in its business affairs or the affairs of Visual Compliance, which may have a significant effect on the
                results of operations and financial position of Descartes.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.5</font></div>
          </td>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Prior Valuations</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">To the knowledge of Descartes, there has been no valuation opinion obtained within the last twelve months by either Descartes or Visual Compliance required by
                securities legislation or a Canadian exchange or market to support the consideration paid by Descartes in connection with the Acquisition.</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.6</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Parties to Transaction</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Sellers were not an informed person (as such term is defined in section 1.1 of National Instrument 51-102 Continuous Disclosure Obligations), associate or
                affiliate of Descartes prior to the Acquisition.</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2.7</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Date of Report</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">April 29, 2019</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Item 3</font></div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">&#160;Financial Statements and Other Information</font></div>
          </td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The following financial statements form a part of this business acquisition report:</font></div>
          </td>
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          <td style="vertical-align: top;">&#160;</td>
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          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">1) Audited Combined Financial Statements of MSR Group</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Attached as Schedule &#8220;A&#8221; to this business acquisition report are the audited combined balance sheets of MSR Group as of April 30, 2018 and 2017, the related
                combined statements of income and comprehensive income, changes in shareholder&#8217;s equity, and cash flows for each of the years ended April 30, 2018 and 2017, and the related notes thereto.</font></div>
          </td>
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          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2) Unaudited Interim Combined Financial Statements of MSR Group</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Attached as Schedule &#8220;B&#8221; to this business acquisition report are the unaudited interim combined balance sheets of MSR Group as of January 31, 2019 and 2018, the
                related combined statements of income and comprehensive income for each of the three and nine-months ended January 31, 2019 and 2018, changes in shareholder&#8217;s equity and cash flows for each of the nine-months ended January 31, 2019 and
                2018, and the related notes thereto.</font></div>
          </td>
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          <td style="vertical-align: top;">&#160;</td>
        </tr>
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            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">3) Unaudited Pro Forma Condensed Consolidated Financial Statements of Descartes</font></div>
          </td>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Attached as Schedule &#8220;C&#8221; to this business acquisition report are the unaudited pro forma condensed consolidated balance sheet of Descartes as at January 31,
                2019 and the related pro forma condensed consolidated statement of operations for the year ended January 31, 2019, including pro forma earnings per share calculations.</font></div>
          </td>
        </tr>

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    <div style="text-align: center;">Schedule &#8220;A&#8221;</div>
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            <div>&#160;</div>
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            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 18pt; font-weight: bold;">MSR Group</font></div>
            <div><font style="font-family: Georgia,serif;"><br>
              </font> </div>
            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 11pt;">Combined Financial Statements</font></div>
            <div style="text-align: left; font-family: Georgia,serif; font-weight: bold;"><font style="font-size: 11pt;">April&#160;30, 2018</font></div>
            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 11pt;">(expressed in Canadian dollars)</font></div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">November 12, 2018</div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Independent Auditor&#8217;s Report</font></div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">To the Shareholder of</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Management Systems Resources Inc., EDI Customs Broker Inc., MSR Customs Corp.,<br>
      MSR International Inc. and MSR Customs and Commodity Tax Group</font></div>
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    </font> </div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">We have audited the accompanying combined financial statements of MSR Group, which comprise the combined balance sheet as at April 30, 2018 and the
    combined statements of income and comprehensive income, changes in shareholder&#8217;s equity and cash flows<font style="font-weight: bold;">&#160;</font>for the year then ended, and the related <font style="color: rgb(0, 0, 0);">notes, which comprise a summary
      of significant accounting policies and other explanatory information. As explained in note 1 to the financial statements, MSR Group comprises Management Systems Resources Inc., EDI Customs Broker Inc., MSR Customs Corp., MSR International Inc. and
      MSR Customs and Commodity Tax Group.</font></div>
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  <div style="text-align: left; margin-left: 0.15pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"><font style="color: rgb(0, 0, 0);">Management&#8217;s responsibility for the </font>combined financial
      statements</font></div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles
    generally accepted in the United States of America, and for such internal control as management determines is necessary to enable the preparation of combined financial statements that are free from material misstatement, whether due to fraud or error.</div>
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    </font> </div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Auditor&#8217;s responsibility</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with
    Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material
    misstatement.</div>
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  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures
    selected depend on the auditor&#8217;s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
    relevant to the entity&#8217;s preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
    entity&#8217;s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the combined financial
    statements.</div>
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  <div style="text-align: left; text-indent: 0.15pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="color: rgb(0, 0, 0);">We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
      basis for our audit opinion.</font></div>
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            <div>&#160;</div>
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          <td style="border-top: 1px dotted #FFCC00; font-family: 'Times New Roman', Times, serif;">
            <div style="text-align: left; font-size: 9pt; font-style: italic;">PricewaterhouseCoopers LLP</div>
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            <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif;"><font style="font-size: 9pt; font-style: italic;">PwC Center, 354 Davis Road, Suite 600, Oakville Ontario, Canada L6J OC5</font></div>
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif;"><font style="font-size: 9pt; font-style: italic;">T: +1 905 815 6300, F: +1 905 815 6499</font></div>
            <div style="font-family: &quot;Times New Roman&quot;,Times,serif;"><br>
            </div>
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 7pt;">&#8220;PwC&#8221; refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership</div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Opinion</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">In our opinion, the combined financial statements present fairly, in all material respects, the financial position of MSR Group as at April 30, 2018 and
    the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.</div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Emphasis of matter</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Without modifying our opinion, we draw attention to the fact that, as described in note 1 to the combined financial statements, the businesses included
    in the combined financial statements have not operated as a single entity. The businesses operate under the same management and are owned by the same shareholder. These combined financial statements are, therefore, not necessarily indicative of results
    that would have occurred if the businesses had operated as a single business during the year presented or of future results of the combined businesses.</div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">/s/ PricewaterhouseCoopers LLP</div>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Chartered Professional Accountants, Licensed Public Accountants</font></div>
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    <div style="text-align: left; font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Combined Balance Sheet</font></div>
    <div style="font-family: Georgia,serif;">
      <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">As at April 30, 2018</font>
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    <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Assets</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
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        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Current assets</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Cash and cash equivalents</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">22,046,229</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">27,663,093</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Accounts receivable (note 3)</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">16,628,282</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">6,667,541</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Prepaid expenses</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">18,880</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">89,984</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">38,703,391</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">34,420,618</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Due from related parties (note 9)</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">21,911</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The accompanying notes are an integral part of these combined financial statements.</div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The accompanying notes are an integral part of these combined financial statements.</div>
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  </div>
  <div><br>
  </div>
  <div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">18,592,804</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">18,592,804</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Balance - April 30, 2017</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div><font style="font-size: 9pt; font-family: Arial;">15,337,314</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 52%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">26,168,500</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">26,168,500</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div><font style="font-size: 9pt; font-family: Arial;">(34,578,697)</font></div>
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Balance - April 30, 2018</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The accompanying notes are an integral part of these combined financial statements.</div>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
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  <div><br>
  </div>
  <br>
  <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
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  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-7</font></div>
      <div id="DSPFPageBreak" style="page-break-after: always;">
        <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
    <div style="font-family: Georgia,serif;">
      <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
        <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
    </div>
    <div style="font-family: Georgia,serif;"><br>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
  </div>
  <div><br>
  </div>
  <div>
    <div style="text-align: left; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Organization and basis of presentation</div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">MSR Group (MSR or the companies) represents a business comprising of the following businesses as listed below (together the companies).</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Management Systems Resources Inc. (MSR) and EDI Customs Brokers Inc. are engaged in the development and sale of software solutions, as well as
        customs brokerage for the import and export industry.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">MSR International Inc. (MSRII) is engaged in the development of Global Trade Management software under the provision of the International
        Business Act.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">MSR Customs Corporation (MSRCC) provides cloud-based software for Global Trade Management.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">MSR Customs and Commodity Tax Group (MSRCCTG) provides consulting services aimed at the recovery of customs duty fees paid by customers.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Port Stanley Corp. holds real estate assets.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">These companies are wholly owned by a controlling shareholder through various holding companies and trusts.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">These combined financial statements have been prepared as if the current business was wholly owned by a single entity throughout the year. As a
        result, the combined financial statements comprise the combined balance sheets as at April&#160;30, 2018 and April 30, 2017 and the combined statements of income and comprehensive income and cash flows for the years ended April&#160;30, 2018 and April 30,
        2017, reflecting all of the activities, including income, expenses, assets and liabilities of each of the aforementioned individual companies in their entirety.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
      </font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Intercompany transactions, balances and unrealized gains and losses on transactions between the companies comprising the single entity are
        eliminated on combination.</font></div>
  </div>
  <div><br>
  </div>
  <div>
    <table style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z868a1c8cf0eb4c2fa972a95fbc9d5044" border="0" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top;">
            <div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">1</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font>&#160;</div>
          </td>
          <td style="vertical-align: top;">
            <div style="text-align: left; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Summary of significant accounting policies</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Basis of presentation</font></div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">These combined financial statements have been prepared in accordance with United States generally accepted accounting principles (US
                GAAP).</font></div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Cash and cash equivalents</font></div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 36pt; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Cash and cash equivalents are defined as cash on hand, cash on deposit, and short-term deposits with maturity dates of less than 90
                days, net of cheques issued and outstanding as at the reporting date.</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div><br>
  </div>
  <br>
  <div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-8</font></div>
      <div id="DSPFPageBreak" style="page-break-after: always;">
        <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
    <div style="font-family: Georgia,serif;">
      <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
        <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
    </div>
    <div style="font-family: Georgia,serif;"><br>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z4759ffc06f3843f89cc29ebfea0281a2" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Cash</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">22,001,610</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">27,614,568</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Cash equivalents</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">44,619</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">48,525</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">22,046,229</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">27,663,093</font></div>
        </td>
      </tr>

  </table>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Use of estimates</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The preparation of combined financial statements in conformity with US GAAP requires management to make estimates and assumptions
    that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the year. Significant items
    subject to such estimates and assumptions include the estimated useful lives of property and equipment and the valuation allowances for accounts receivable. Actual results could differ from those estimates.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Property and equipment</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Property and equipment are stated at cost, less accumulated amortization. Amortization is provided over the estimated useful lives
    of the assets using the straight-line method.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Repairs and maintenance costs are expensed as incurred. Expenditures for major renewals or improvements are capitalized.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Impairment of long-lived assets</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The carrying value of long-lived assets including property and equipment is periodically reviewed for impairment. The companies
    review for impairment long-lived assets (or asset groups) to be held and used whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If the sum of the undiscounted future cash flows expected to
    result from the use and eventual disposition of an asset is less than its carrying amount, it is considered to be impaired. An impairment loss is measured at the amount by which the carrying amount of the asset exceeds its fair value. When quoted
    market prices are not available, the companies use the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset as an estimate of fair value.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Leases</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">All current leases that do not meet the criteria for a capital lease are accounted for as operating leases wherein lease rental
    expense is recognized on a straight-line basis over the lease term.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div><font style="font-weight: bold;"> <br>
    </font><br>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-9</font></div>
      <div id="DSPFPageBreak" style="page-break-after: always;">
        <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
    <div style="font-family: Georgia,serif;">
      <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
        <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
    </div>
    <div style="font-family: Georgia,serif;"><br>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
    <div><br>
    </div>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Revenue recognition</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">MSR derives revenue from software subscriptions, perpetual application software licence sales and the related maintenance of the
    software, brokerage services, duty recovery services and other related services. MSR evaluates all elements in an arrangement to determine what are considered deliverables for accounting purposes. Revenue is allocated to multiple element deliverables
    using the relative fair value method. MSR determines the fair value of each element in the arrangement based on vendor specific objective evidence of fair value, which is based on the price charged when the elements are sold separately.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><br>
    Revenues from the sale of software subscriptions, which can range from one month to three years, are recognized equally over the term of the subscription.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><br>
    Revenues from the sale of perpetual licences are recognized on delivery. Revenues from maintenance services are recognized over the term of maintenance contracts which typically span one year. Maintenance services provide upgrades, system fixes and
    other support services to customers.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Revenues earned from brokerage services are recognized on a net basis as the service is provided.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Revenues earned from services related to the recovery of customs duties on behalf of a customer are recognized when the recovery
    service contract has been completed, which is when the duty fees have been adjusted.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Other related revenue, including revenue from implementation services, is recognized on delivery.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Amounts received for future services and subscriptions are deferred until the service is provided and revenue is recognized.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Income taxes</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Income taxes are accounted for under the liability method whereby deferred income tax assets and liabilities are recognized for the
    expected future tax consequences of temporary differences between the accounting and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
    in which the temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in the combined statement of income and comprehensive income in the
    period in which the change is enacted.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The companies assess realization of deferred income tax assets and, based on all available evidence, conclude whether it is more
    likely than not that the net deferred income tax assets will be realized. A valuation allowance is provided for the amount of deferred income tax assets not considered to be realizable.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div><font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><br>
    </font> </div>
  <br>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-10</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: left; font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</div>
  <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
  <div style="font-family: Georgia,serif;">
    <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
      <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
  </div>
  <div style="font-family: Georgia,serif;"><br>
  </div>
  <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><br>
  </font><font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The companies are subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the
    companies may incur additional tax expense based on the outcomes of such matters. In addition, when applicable, the companies adjust tax expense to reflect the companies&#8217; ongoing assessments of such matters which require judgment and can materially
    increase or decrease their effective rate as well as impact operating results. MSR provides for such exposures in accordance with the Income Taxes Topic of the Financial Accounting Standards Board (FASB) ASC.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Foreign currency</font></div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">The functional currency of MSR is Canadian dollars. Financial statements of foreign operations are translated according to ASC&#160;830,
    Foreign Currency Matters. Assets and liabilities are translated into Canadian dollars at the exchange rate in effect at the combined balance sheet date, and revenues and expenses are translated at the average exchange rate in effect during the period.
    The exchange gains or losses resulting from the translation of the financial statements of these foreign operations are presented as a cumulative translation adjustment under equity in the combined balance sheet. Equity accounts are accumulated at the
    historical rates in effect when the transactions occurred or income was earned.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">Monetary assets and liabilities denominated in foreign currencies are translated at year-end exchange rates. Foreign currency
    revenue and expenses are translated at the rate of exchange prevailing at the transaction date. Gains and losses on translation are included in income.</div>
  <font style="font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;">Financial instruments</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <div>
    <div>
      <div>
        <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z5a1e7844ecfb46b78b19f35d577c5ed3" cellpadding="0" cellspacing="0">

            <tr>
              <td style="width: 43.2pt; vertical-align: top; align: right;">
                <div style="text-align: left; margin-left: 21.6pt; font-family: Symbol, serif; font-size: 10pt;">&#8226;</div>
              </td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Measurement of financial instruments</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The companies initially measure their financial assets and financial liabilities at fair value except for certain
          non-arm&#8217;s length transactions as disclosed in note 8.</font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The companies subsequently measure all their financial assets and financial liabilities at cost or amortized cost, except
          for investments in equity instruments that are quoted in an active market, which are measured at fair value. Changes in fair value are recognized in net income.</font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Financial assets measured at cost or amortized cost include cash and accounts receivable.</font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Financial liabilities measured at cost or amortized cost include accounts payable and accrued liabilities.</font></div>
      <div style="text-align: left; margin-left: 43.2pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div>
        <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zcd925600d92a486f9888d62a0a72d5d8" cellpadding="0" cellspacing="0">

            <tr>
              <td style="width: 43.2pt; vertical-align: top; align: right;">
                <div style="text-align: left; margin-left: 21.6pt;">&#8226;</div>
              </td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Impairment</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="margin: 0px 0px 0px 43.2pt; text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Financial assets measured at cost or amortized cost are tested for impairment when there are indicators of
          impairment. The amount of the writedown is recognized in net income. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the
          amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net income</font></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-11</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <!--PROfilePageNumberReset%Num%12%A-%%-->
  <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
    <div style="font-family: Georgia,serif;">
      <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
        <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
    </div>
    <div style="font-family: Georgia,serif;"><br>
    </div>
    <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;"> <br>
      </font></div>
    <div style="text-align: left; font-family: Georgia,serif;">
      <div>
        <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z0cc43452a5a04e4dbce5ba215ff0dbf0" cellpadding="0" cellspacing="0">

            <tr>
              <td style="width: 45pt; vertical-align: top; text-align: center;">&#8226;</td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Transaction costs</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="text-align: left; margin-left: 45pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 45pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;">Transaction costs related to financial instruments that will be subsequently measured at fair value are recognized in net
          income in the period incurred. Transaction costs related to financial instruments subsequently measured at amortized cost are included in the original cost of the asset or liability and are recognized in net income over the life of the instrument
          using the straight-line method.</font></div>
      <div style="text-align: left; margin-left: 45pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-weight: bold;">Related party transactions</font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-weight: bold;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;">Monetary related party transactions and non-monetary related party transactions that have commercial substance are measured
          at the exchange amount when they are in the normal course of operations, except when the transaction is an exchange of a product or property held-for-sale in the normal course of operations. Where the transaction is not in the normal course of
          operations, it is measured at the exchange amount when there is a substantive change in the ownership of the item transferred and there is independent evidence of the exchange amount.</font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;">All other related party transactions are measured at the carrying amount.</font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div>
        <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z5b96642d400b4da9a3c855949fbda291" cellpadding="0" cellspacing="0">

            <tr>
              <td style="width: 21.6pt; vertical-align: top; font-family: &quot;Times New Roman&quot;;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-weight: bold;">2</font></div>
              </td>
              <td style="width: auto; vertical-align: top; font-family: &quot;Times New Roman&quot;;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-weight: bold;">Impact of recently issued accounting standards</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU clarifies the principles for
          recognizing revenue and develops a common revenue standard for US GAAP and is effective for private companies with year-ends beginning after May 1, 2019. The companies are still evaluating but do not expect the adoption to have a material impact
          on overall revenue recognition practices and policies.</font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU affects all aspects of lease accounting and has a
          significant impact to lessees as it requires the recognition of a right-of-use asset and a lease liability for virtually all leases including operating leases. In addition to balance sheet recognition, additional quantitative and qualitative
          disclosures will be required. The standard will be effective on May 1, 2019, at which time it must be adopted using a modified retrospective transition. The companies are currently assessing the impact of this ASU on their financial position and
          results of operations.</font></div>
      <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;"> <br>
        </font></div>
      <div>
        <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zeedbbd8d82be43fd932c1f47a5f0675b" cellpadding="0" cellspacing="0">

            <tr>
              <td style="width: 21.6pt; vertical-align: top; font-family: &quot;Times New Roman&quot;;">
                <div style="text-align: left;">3</div>
              </td>
              <td style="width: auto; vertical-align: top; font-family: &quot;Times New Roman&quot;;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-weight: bold;">Accounts receivable</font></div>
              </td>
            </tr>

        </table>
      </div>
      <font style="font-size: 9pt;"> </font></div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;"> <br>
      </font></div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;"></font>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" border="0" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 76%; vertical-align: bottom;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">
              <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
              <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">
              <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017</font></div>
              <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 76%; vertical-align: bottom;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 76%; vertical-align: bottom;">
              <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Accounts receivable</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">16,814,172</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">6,851,646</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 76%; vertical-align: bottom;">
              <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Allowance for doubtful accounts</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">(175,890)</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">(184,105)</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 76%; vertical-align: bottom;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 76%; vertical-align: bottom;">&#160;</td>
            <td style="width: 2%; vertical-align: bottom;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">16,638,282</font></div>
            </td>
            <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
            <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
              <div><font style="font-size: 9pt; font-family: Arial;">6,667,541</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;"> </font><br>
      <div style="margin: 0px 0px 0px 21.6pt; font-family: Georgia, serif; text-align: left;"><font style="font-size: 10pt;"><font style="font-family: &quot;Times&quot;,serif;">During the years ended </font><font style="font-family:
            &quot;Times&quot;,serif;">April&#160;30, 2018</font><font style="font-family: &quot;Times&quot;,serif;"> and </font><font style="font-family: &quot;Times&quot;,serif;"><font style="mso-no-proof:yes">2017</font></font><font style="font-family:
            &quot;Times&quot;,serif;">, the companies recorded impairments of $nil and $nil, respectively.</font></font></div>
    </div>
    <div style="margin: 0px 0px 0px 21.6pt; font-family: Georgia, serif; text-align: left;"><font style="font-size: 10pt;"><font style="font-family: &quot;Times&quot;,serif;"> <br>
        </font></font></div>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-12</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
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  <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
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      <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Cost</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Accumulated</font></div>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Land</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Furniture and fixtures</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">753,248</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">91,624</font></div>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Leasehold improvements</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">985,202</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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      </tr>
      <tr>
        <td style="width: 64%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Vehicles</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">298,173</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">232,742</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">65,431</font></div>
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      </tr>
      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">4,738,871</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="ze2455b642cc640559745d3bf869a91af" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0);">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Cost</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Net</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Computer equipment</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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      <tr>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Furniture and fixtures</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">759,617</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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      <tr>
        <td style="width: 64%; vertical-align: bottom;">
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          <div><font style="font-size: 9pt; font-family: Arial;">992,399</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">277,089</font></div>
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      <tr>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">298,173</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">204,699</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">93,474</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
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  </table>
  <div>
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        </tr>

    </table>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR has future minimum lease payments for equipment and premises as follows:</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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          <div><font style="font-size: 9pt; font-family: Arial;">152,297</font></div>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">2021</font></div>
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        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">2023</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">32,100</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Thereafter</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
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  </table>
  <div><br>
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  <div><br>
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  <div>
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      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-13</font></div>
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    <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
      <div>
        <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
        <div style="font-family: Georgia,serif;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
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        <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
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  <div><br>
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  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zfee6f03bec504507930dd132bcac5dab" cellpadding="0" cellspacing="0">

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            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">6</font></div>
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            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Income taxes</font></div>
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    </table>
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  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;,Times,serif;">The income tax expense comprises the following:</font><br>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Current income taxes</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 86.4pt;"><font style="font-size: 9pt; font-family: Arial;">Canada</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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      <tr>
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        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">558,957</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">510,941</font></div>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The reconciliation of income tax expense computed at the combined statutory rate to income tax expense is as follows:</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
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      <tr>
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          <div style="text-align: right; margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-bottom: #000000 1px solid;">&#160;</td>
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          <div style="text-align: right; margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0);">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">%</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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      <tr>
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        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 86.4pt;"><font style="font-size: 9pt; font-family: Arial;">Investment tax credit (ITC plus ORDTC)</font></div>
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        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 2.1%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2.1%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The companies&#8217; effective tax rate for the year ended April&#160;30, 2018 was 2.09%. The rate is affected by recurring items, such as tax rates in
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  <div><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <div><br>
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  <div><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(457,086)</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The companies and their Canadian subsidiaries file federal and provincial income tax returns in Canada. The companies and their US subsidiaries
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  <div><br>
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  <div>
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      <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
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          <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
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            <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
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          <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
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  <div><font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
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  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Authorized</div>
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    Issued and outstanding</div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: top;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
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  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
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          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Redeemable special shares</font></div>
          </td>
        </tr>

    </table>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Authorized</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">10,000 Class A special shares</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Unlimited Class B special shares</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Unlimited Class C special shares</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Issued and outstanding</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
    MSR has the following shares issued and outstanding as at April&#160;30, 2018 and 2017:<br>
    <br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z3cc30279d2804856b7514c41f2224185" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 48%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Number</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">of shares</font></div>
          <div>&#160;</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Carrying</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Liquidation</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">per share</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Liquidation</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class&#160;B special shares</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial;">1.00</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class C special shares</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">400,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">3,064,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial;">7.66</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">3,064,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">4,264,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">4,264,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 48%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11.19%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
      </tr>

  </table>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR&#8217;s special shares all relate to MSR Inc. and are ultimately owned by the controlling shareholder. MSR&#8217;s Class&#160;B special shares are voting,
    non-participating, redeemable by the companies or retractable by the shareholder for $1 each and entitled to a non-cumulative quarterly dividend of $0.02 per quarter. MSR&#8217;s Class&#160;C special shares are voting, non-participating, redeemable by the
    companies and retractable by the shareholder for $7.66 each and entitled to a non-cumulative dividend of between nil% and 2% per quarter at the discretion of the directors.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
  </div>
  <div>
    <div><br>
    </div>
    <div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-16</font></div>
        <div id="DSPFPageBreak" style="page-break-after: always;">
          <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
      </div>
      <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font></div>
  <div>
    <div>
      <div>
        <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
        <div style="font-family: Georgia,serif;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
            <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
        </div>
        <div style="font-family: Georgia,serif;"><br>
        </div>
        <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
      </div>
    </div>
  </div>
  <div><font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
    </font> </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z5497c0ffd6894b8dbbd759ae9aaa5beb" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">9</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Related party transactions</font></div>
          </td>
        </tr>

    </table>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
    Advances to parties related by virtue of Management System Relations (MSR) are non-interest bearing, unsecured and without fixed terms of repayment. Management has agreed not to demand repayment within the next fiscal year and, accordingly, amounts
    have been classified as long term.<br>
    <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The controlling shareholder has provided certain management and support services to the companies during the fiscal year at a cost of $12,000
    (2017 - $12,000). No interest is due on balances owing from shareholders.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSRCCTG, MSR Inc. and EDI were charged rental fees for use of premises in the amount of $857,283 (2017&#160;- $801,024) by Radha Properties Inc.
    Radha Properties Inc. is 100% owned by the controlling shareholder.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Dividends in the amount of $34,578,697 (2017 - $13,095,490) were declared to related parties during the fiscal year. These related parties are
    all 100% owned by the controlling shareholder. There was $11,000,000 in dividends payable as at April 30, 2018 and $nil as at April 30, 2017.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">These transactions are in the normal course of business and are measured at the exchange amount which is the amount of consideration
    established and agreed to by the related parties.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zeff54fe93a264bc4a69f566d63d2e1e8" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">10</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Financial risks and concentration of risks</font></div>
          </td>
        </tr>

    </table>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
    The main risks arising from the financial instruments are credit, liquidity and foreign currency risk. The approach to managing these risks is summarized below.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Credit risk</font></div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Credit risk refers to the risk a counterparty may default on its contractual obligations, resulting in a financial loss. In the normal course
    of business, the companies are exposed to credit risk from accounts receivable from customers. The carrying values of accounts receivable are net of applicable revenue provisions and allowances for doubtful accounts. Allowances for doubtful accounts
    are estimated based on past experience, specific risks associated with the customer and other relevant information. Sales are made to many customers and accordingly management believes the concentration of credit risk is minimal. The companies place
    their cash and cash equivalents with major Canadian financial institutions of high creditworthiness.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Liquidity risk</font></div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Liquidity risk is the risk the companies will not be able to meet their financial obligations as they fall due. The companies are exposed to
    liquidity risk mainly in respect of the collection of accounts receivable and payments toward accounts payable. Cash flow from operations provides a substantial portion of the cash requirements. Management is of the opinion that liquidity risk is not a
    significant risk and there has been no change to the risk exposures from 2016.</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div>
    <div><br>
    </div>
    <div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">A-17</font></div>
        <div id="DSPFPageBreak" style="page-break-after: always;">
          <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
      </div>
      <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
        <div>
          <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">Notes to Combined Financial Statements</font></div>
          <div style="font-family: Georgia,serif;">
            <div style="text-align: left;"><font style="font-size: 9pt; font-weight: bold;">April 30, 2018</font>
              <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
          </div>
          <div style="font-family: Georgia,serif;"><br>
          </div>
          <div style="text-align: left; font-family: Georgia,serif; font-size: 8pt;">(expressed in Canadian dollars)</div>
        </div>
      </div>
    </div>
    <div><br>
    </div>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The companies manage their liquidity risk by monitoring operating and capital requirements. Management prepares budgets and a detailed revenue
    and expense forecast to monitor this risk. Substantially all of the companies&#8217; revenues are contracted for periods of one year or longer.</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Foreign currency risk</font></div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Foreign currency exchange rate risk arises from financial instruments, primarily cash, accounts receivable and accounts payable and accrued
    liabilities, denominated in a currency other than the Canadian dollar. The amounts receivable or payable are of a short duration, generally expressed in US dollars, which minimizes the exposure to foreign currency fluctuations. The risk in this area is
    assessed by management to be insignificant.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
    <br>
    <br>
    <br>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <br>
  </div>
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            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 18pt; font-weight: bold;">MSR Group</font></div>
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            <font style="font-family: Georgia,serif;"> </font>
            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 11pt;">Combined Interim Financial Statements</font></div>
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            <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 11pt;">(Unaudited)</font></div>
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      <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font>
        <div>
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          <div style="text-align: left; font-family: Georgia,serif;">(Unaudited)<font style="font-size: 9pt;"><br>
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          <div style="text-align: left; font-family: Georgia,serif;">
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    <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
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        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 63.64%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Property and equipment</font></div>
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        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 4.2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 4.2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Liabilities</font></div>
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        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Current liabilities</font></div>
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        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Income taxes payable (note 4)</font></div>
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        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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        <td style="width: 63.64%; vertical-align: bottom;">&#160;</td>
        <td style="width: 4.2%; vertical-align: bottom;">&#160;</td>
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  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <div style="text-align: left;">
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 11%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div><br>
  </div>
  <div><br>
  </div>
  <div>
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      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-3</font></div>
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        <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
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    <div>
      <div>
        <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
          <div>
            <div style="text-align: left; font-family: Georgia,serif;">
              <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">Combined Interim Statement of Changes in Shareholder&#8217;s Equity</div>
              <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
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            <div style="text-align: left; font-family: Georgia,serif;">
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            <div style="text-align: left; font-family: Georgia,serif;"></div>
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        </div>
      </div>
      <div><br>
      </div>
    </div>
    <div style="font-size: 8pt;">
      <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
    </div>
  </div>
  <div><br>
  </div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">stock</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Retained</font></div>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Total</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Balance &#8211; April 30, 2017</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">15,337,314</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">1,411,031</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">16,748,606</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Net income for the period</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">26,168,500</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">26,168,500</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Dividends</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(34,578,697)</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(34,578,697)</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Other comprehensive loss</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(597,970)</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(597,970)</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Balance &#8211; April 30, 2018</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">6,927,117</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">813,061</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">7,740,439</font></div>
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      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Net income for the period</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">18,851,508</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">18,851,508</font></div>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Dividends</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(5,621,970)</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(5,621,970)</font></div>
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        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Other comprehensive loss</font></div>
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">-</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(1,662,637)</font></div>
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1,662,637)</font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Balance &#8211; January 31, 2019</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
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        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">20,156,655</font></div>
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
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  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The accompanying notes are an integral part of these combined financial statements.</div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;"> <br>
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  <font style="font-size: 9pt; font-family: Arial;"></font> <br>
  <div>
    <div style="text-align: left;"><font style="font-size: 11pt; font-family: Arial;"><br>
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      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-4</font></div>
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        <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
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              <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
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    </div>
    <div style="font-size: 8pt;">
      <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
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  <font style="font-size: 9pt; font-family: Arial;"></font> <font style="font-size: 9pt; font-family: Arial;"> </font> <font style="font-size: 9pt; font-family: Arial;"><br>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">18,904,686</font></div>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Net changes in non-cash working capital</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Accounts receivable</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">5,670,110</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(10,839,158)</font></div>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Income taxes recoverable</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div><font style="font-size: 9pt; font-family: Arial;">(134,422)</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(721,434)</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">(2,701,250)</font></div>
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        <td style="width: 10%; vertical-align: bottom; text-align: right;">
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 43.2pt;"><font style="font-size: 9pt; font-family: Arial;">Deferred revenue</font></div>
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          <div><font style="font-size: 9pt; font-family: Arial;">542,887</font></div>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">2,609,957</font></div>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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          <div><font style="font-size: 9pt; font-family: Arial;">21,514,643</font></div>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Investing activities</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Sale of property and equipment</font></div>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
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        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Cash and cash equivalents &#8211; End of period</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">40,913,158</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">17,665,283</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>

  </table>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>
    <div>
      <div style="text-align: left;"><font style="font-size: 11pt; font-family: Arial;"><br>
        </font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-5</font></div>
        <div id="DSPFPageBreak" style="page-break-after: always;">
          <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
      </div>
      <div>
        <div>
          <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
            <div>
              <div style="text-align: left; font-family: Georgia,serif;">
                <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                  <div style="font-family: Georgia,serif; font-size: 9pt;">
                    <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                  </div>
                  <div style="font-family: Georgia,serif; font-size: 9pt;">
                    <div style="text-align: left;">
                      <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                      <div style="font-size: 8pt; font-family: Georgia,serif;">
                        <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
              <div style="text-align: left; font-family: Georgia,serif;">
                <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
              <div style="text-align: left; font-family: Georgia,serif;"></div>
            </div>
          </div>
        </div>
        <div><br>
        </div>
      </div>
      <div style="font-size: 8pt;">
        <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
      </div>
    </div>
  </div>
  <div><br>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z9d4d94efd6e9401f97bd58f104956d45" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">1</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Organization and basis of interim presentation</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR Group (MSR or the Companies) represents a business comprising the following businesses as listed below (together the Companies).<br>
    <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Management Systems Resources Inc. (MSR) and EDI Customs Brokers Inc. are engaged in the development and sale of software solutions, as well as
    customs brokerage for the import and export industry.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR International Inc. (MSRII) is engaged in the development of Global Trade Management software under the provisions of the International
    Business Act.<br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;">
    <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><br>
    </div>
    <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"></font></div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR Customs Corporation (MSRCC) provides cloud-based software for Global Trade Management.<br>
    <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">MSR Customs and Commodity Tax Group (MSRCCTG) provides consulting services aimed at the recovery of customs duty fees paid by customers.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Port Stanley Corp. holds real estate assets.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">These Companies are wholly owned by a controlling shareholder through various holding companies and trusts.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">These combined interim financial statements have been prepared as if the current business was wholly owned by a single entity throughout the
    period. As a result, the combined interim financial statements comprise the combined balance sheets as at January 31, 2019 and April 30, 2018 and the combined interim statements of income and comprehensive income for the nine month and three month
    periods ended January 31, 2019 and January 31, 2018 and cash flows for the nine month periods ended January 31, 2019 and January 31, 2018, reflecting all of the activities, including income, expenses, assets and liabilities of each of the
    aforementioned individual companies in their entirety.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Intercompany transactions, balances and unrealized gains and losses on transactions between the Companies comprising the single entity are
    eliminated on combination.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Basis of interim presentation</font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;"> <br>
    </font></div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">These combined interim financial statements have been prepared in accordance with United States generally accepted accounting principles (US
    GAAP). These combined interim financial statements should be read in conjunction with the Company&#8217;s combined financial statements for the year ended April 30, 2018. In management&#8217;s opinion, these interim combined financial statements include all
    adjustments, which consist only of normal recurring adjustments, necessary for a fair presentation of the results of operations for the interim periods presented.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The interim combined financial statements have been prepared using the same accounting policies and methods of computation as the annual
    combined financial statements of MSR for the year ended April 30, 2018.</div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>
    <div><br>
    </div>
    <div>
      <div>
        <div style="text-align: left;"><font style="font-size: 11pt; font-family: Arial;"><br>
          </font></div>
        <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
          <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-6</font></div>
          <div id="DSPFPageBreak" style="page-break-after: always;">
            <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
        </div>
        <div>
          <div>
            <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
              <div>
                <div style="text-align: left; font-family: Georgia,serif;">
                  <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                    <div style="font-family: Georgia,serif; font-size: 9pt;">
                      <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                    </div>
                    <div style="font-family: Georgia,serif; font-size: 9pt;">
                      <div style="text-align: left;">
                        <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                        <div style="font-size: 8pt; font-family: Georgia,serif;">
                          <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
                <div style="text-align: left; font-family: Georgia,serif;">
                  <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
                <div style="text-align: left; font-family: Georgia,serif;"></div>
              </div>
            </div>
          </div>
          <div><br>
          </div>
        </div>
        <div style="font-size: 8pt;">
          <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
        </div>
      </div>
    </div>
  </div>
  <div><br>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z767bf88519174ec79247ea2e4d1598fc" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Impact of recently issued accounting standards</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU clarifies the principles for recognizing revenue
    and develops a common revenue standard for US GAAP and is effective for private companies with year-ends beginning after May 1, 2019. The Companies are still evaluating this ASU but do not expect the adoption to have a material impact on overall
    revenue recognition practices and policies.</div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
  </div>
  <font style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU affects all aspects of lease accounting and has a significant impact to
    lessees as it requires the recognition of a right-of-use asset and a lease liability for virtually all leases including operating leases. In addition to balance sheet recognition, additional quantitative and qualitative disclosures will be required.
    The standard will be effective on May 1, 2019, at which time it must be adopted using a modified retrospective transition. The Companies are currently assessing the impact of this ASU on their financial positions and results of operations.</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z7daac0f9020b452db90e7d434d072bf9" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">3</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Commitments</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;;">MSR has future minimum lease payments for equipment and premises as follows:</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z29eeb911f7314bcf89c9b939745bb998" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 76%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">February 1, 2019 to January 31, 2020</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">300,493</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">February 1, 2020 to January 31, 2021</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">32,712</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">February 1, 2021 to January 31, 2022</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">32,712</div>
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        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">February 1, 2022 to January 31, 2023</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">32,712</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">February 1, 2023 to January 31, 2024</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">32,712</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Thereafter</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">57,247</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">488,588</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 76%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
      </tr>

  </table>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z5b3bc3ba0e7e46289be0a6aa5fb1943f" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">4</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Income taxes</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"><font style="font-family: &quot;Times New Roman&quot;;">The income tax expense comprises the following:</font><br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"></font></div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="zf9cfbc27682d4c6a91d8aa2d0a15a89d" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 50%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">May 1,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2019</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">$</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2019</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">$</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">May 1,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2017 to</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2018</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">$</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2017 to</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">2018</font></div>
          <div style="margin-right: 7.2pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">$</div>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Current income taxes</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 86.4pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Canada</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">-</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">-</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">-</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">-</div>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 86.4pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">United States</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">148,762</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">53,217</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">(10,396)</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">(5,122)</div>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 86.4pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">International</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">166,790</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">59,666</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">164,104</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">80,852</div>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">315,552</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">112,883</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">153,708</div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">75,730</div>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: right;">&#160;</td>
      </tr>

  </table>
  <div><br>
  </div>
  <div>
    <div>
      <div>
        <div style="text-align: left;"><font style="font-size: 11pt; font-family: Arial;"><br>
          </font></div>
        <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
          <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-7</font></div>
          <div id="DSPFPageBreak" style="page-break-after: always;">
            <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
        </div>
        <div>
          <div>
            <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
              <div>
                <div style="text-align: left; font-family: Georgia,serif;">
                  <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                    <div style="font-family: Georgia,serif; font-size: 9pt;">
                      <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                    </div>
                    <div style="font-family: Georgia,serif; font-size: 9pt;">
                      <div style="text-align: left;">
                        <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                        <div style="font-size: 8pt; font-family: Georgia,serif;">
                          <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
                <div style="text-align: left; font-family: Georgia,serif;">
                  <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
                <div style="text-align: left; font-family: Georgia,serif;"></div>
              </div>
            </div>
          </div>
          <div><br>
          </div>
        </div>
        <div style="font-size: 8pt;">
          <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
        </div>
      </div>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">The reconciliation of income tax expense computed at the combined statutory rate to income tax expense is as follows:</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z3442da794d494ca58ff6ffddd8c4c9fb" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">May 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2019</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2019</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">May 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">%</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">%</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Income before income taxes</font></div>
        </td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">19,167,060</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">6,856,660</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">22,275,897</font></div>
        </td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">10,975,124</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Combined statutory rate of</font></div>
        </td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">26.50</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">5,079,271</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,817,015</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">26.50</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">5,903,113</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">2,908,408</font></div>
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      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Difference due to foreign taxes</font></div>
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        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(22.81)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(4,372,343)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1,564,125)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(22.01)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(5,055,984)</font></div>
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        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(2,415,305)</font></div>
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      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Change in valuation allowance</font></div>
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        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1.62)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(310,918)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(111,225)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1.98)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(440,184)</font></div>
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        <td style="width: 1%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(216,874)</font></div>
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      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Other</font></div>
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        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(0.42)</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(80,458)</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(28,782)</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1.83)</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(406,945)</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(200,498)</font></div>
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      <tr>
        <td style="width: 45%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 45%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">Provision for income taxes</font></div>
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        <td style="width: 2.09%; vertical-align: bottom;">&#160;</td>
        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1.65</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">315,552</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">112,883</font></div>
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        <td style="width: 6%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">0.69</font></div>
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        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">153,708</font></div>
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        <td style="width: 1%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 9%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">75,730</font></div>
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  </table>
  <div><br>
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  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">On


    December 22, 2017, President Trump signed the final version of the Tax Cuts and Jobs Act of 2017 (referred to as the &#8220;TCJA&#8221;) into law. The TCJA implemented the most significant overhaul of the US tax code in more than 30 years. Based on our
    understanding of the MSR business and organizational structure, changes included in the TCJA should not materially impact the MSR Group.</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z2969991cd51941d5ba7fa3c029081a42" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">5</div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Share
              capital</div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Authorized</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Unlimited


    common shares</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Issued


    and outstanding</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><br>
    MSR has the following shares issued and outstanding as at January 31, 2019 and April 30, 2018:</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="zaf9a3d40161d45ffab8b585815fd8f72" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td colspan="3" style="width: 30.77%; vertical-align: bottom; border-bottom: #000000 1px solid;">
          <div style="text-align: right; margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">As at January 31, 2019</font></div>
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        <td style="width: 2.8%; vertical-align: top;">&#160;</td>
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          <div style="text-align: right; margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">As at April 30, 2018</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 2.8%; vertical-align: top;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: #000000 1px solid;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Number</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">of shares</font></div>
          <div>&#160;</div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Number</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">of shares</font></div>
          <div>&#160;</div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Amount</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Common shares</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">261</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class B special shares</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">60</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">60</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class C special shares</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">400,000</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">40</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">400,000</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">40</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.87%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">361</font></div>
        </td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2.8%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 13.99%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">361</font></div>
        </td>
      </tr>

  </table>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div><font style="font-size: 9pt; font-family: Arial;"><br>
    </font></div>
  <div>
    <div>
      <div>
        <div>
          <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
            <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-8</font></div>
            <div id="DSPFPageBreak" style="page-break-after: always;">
              <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
          </div>
          <div>
            <div>
              <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
                <div>
                  <div style="text-align: left; font-family: Georgia,serif;">
                    <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                      <div style="font-family: Georgia,serif; font-size: 9pt;">
                        <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                      </div>
                      <div style="font-family: Georgia,serif; font-size: 9pt;">
                        <div style="text-align: left;">
                          <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                          <div style="font-size: 8pt; font-family: Georgia,serif;">
                            <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                          </div>
                        </div>
                      </div>
                    </div>
                  </div>
                  <div style="text-align: left; font-family: Georgia,serif;">
                    <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
                  <div style="text-align: left; font-family: Georgia,serif;"></div>
                </div>
              </div>
            </div>
            <div><br>
            </div>
          </div>
          <div style="font-size: 8pt;">
            <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
          </div>
        </div>
      </div>
    </div>
  </div>
  <div><font style="font-size: 9pt; font-family: Arial;"><br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Of


    MSR&#8217;s common shares, 1,000 relate to MSR Inc., 100 relate to MSRII and 100 relate to MSRCC. All common shares are ultimately owned by the controlling shareholder.</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zbc56f3e5c2604b8b9dcc26931df421f6" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">6</div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Redeemable
              special shares</div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Authorized</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">10,000


    Class A special shares</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Unlimited


    Class B special shares</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 43.2pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Unlimited


    Class C special shares</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><br>
    Issued and outstanding</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><br>
    MSR has the following shares issued and outstanding as at January 31, 2019 and April 30, 2018:</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z2d30277f86574a4584f6088667516f19" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Number</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">of shares</font></div>
          <div>&#160;</div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Carrying</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Liquidation</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">per share</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Liquidation</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">value</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">$</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class&#160;B special shares</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial;">1.00</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,200,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Class C special shares</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">400,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">3,064,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial;">7.66</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">3,064,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">4,264,000</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">4,264,000</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
      </tr>

  </table>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">MSR&#8217;s


    special shares all relate to MSR Inc. and are ultimately owned by the controlling shareholder. MSR&#8217;s Class&#160;B special shares are voting, non-participating, redeemable by the Companies or retractable by the shareholder for $1 each and are entitled to a
    non-cumulative quarterly dividend of $0.02 per quarter. MSR&#8217;s Class&#160;C special shares are voting, non-participating, redeemable by the Companies and retractable by the shareholder for $7.66 each and are entitled to a non-cumulative dividend of between
    nil% and 2% per quarter at the discretion of the directors.</div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zf3ba057362cf47a2b88d0e4e16b3ed41" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">7</div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Related
              party transactions</div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Advances


    to related parties are non-interest bearing, unsecured and without fixed terms of repayment.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">The


    controlling shareholder has provided certain management and support services to the Companies during the nine months period ended January 31, 2019 at a cost of $9,000 (nine months ended January 31, 2018 &#8211; $9,000). Management and support services to the
    Companies during the three months period ended January 31, 2019 at a cost of $3,000 (three months ended January 31, 2018 &#8211; $3,000). No interest is due on balances owing from shareholders.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">MSRCCTG,


    MSR Inc. and EDI were charged rental fees for use of premises for the nine months ended January 31, 2019 in the amount of $681,490 (nine months ended January 31, 2018 &#8211; $691,209) by Radha Properties Inc. MSRCCTG, MSR Inc. and EDI were charged rental
    fees for use of premises for the three months ended January 31, 2019 in the amount of $227,163 (three months ended January 31, 2018 &#8211; $230,403) by Radha Properties Inc. Radha Properties Inc. is 100% owned by the controlling shareholder.</div>
  <div><font style="font-size: 9pt; font-family: Arial;"> </font><br>
    <div><font style="font-size: 9pt; font-family: Arial;"><br>
      </font></div>
    <div>
      <div>
        <div>
          <div>
            <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
              <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-9</font></div>
              <div id="DSPFPageBreak" style="page-break-after: always;">
                <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
            </div>
            <div>
              <div>
                <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
                  <div>
                    <div style="text-align: left; font-family: Georgia,serif;">
                      <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                        <div style="font-family: Georgia,serif; font-size: 9pt;">
                          <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                        </div>
                        <div style="font-family: Georgia,serif; font-size: 9pt;">
                          <div style="text-align: left;">
                            <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                            <div style="font-size: 8pt; font-family: Georgia,serif;">
                              <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                            </div>
                          </div>
                        </div>
                      </div>
                    </div>
                    <div style="text-align: left; font-family: Georgia,serif;">
                      <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
                    <div style="text-align: left; font-family: Georgia,serif;"></div>
                  </div>
                </div>
              </div>
              <div><br>
              </div>
            </div>
            <div style="font-size: 8pt;">
              <div style="text-align: left; font-family: Georgia,serif;">(expressed in Canadian dollars)</div>
            </div>
          </div>
        </div>
      </div>
    </div>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Dividends


    in the amount of $5,621,970 were declared to related parties during the nine months period ended January 31, 2019 (for the year ended April 30, 2018 - $34,578,697). These related parties are all 100% owned by the controlling shareholder. There was
    $11,798,624 in dividends payable as at January 31, 2019 and $11,000,000 as at April 30, 2018, each respectively included in the amount due to related parties disclosed on the balance sheet.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">These


    transactions are in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.<br>
    <br>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z07525fee8a1943cd9c269621b5b1154a" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">8</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><font style="font-weight: bold;">Financial risks and concentration of risks</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><br>
    The main risks arising from the financial instruments are credit, liquidity and foreign currency risks. The approach to managing these risks is summarized below.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Credit


    risk</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Credit risk refers to the risk a
      counterparty may default on its contractual obligations, resulting in a financial loss. In the normal course of business, the Companies are exposed to credit risk from accounts receivable from customers. The carrying values of accounts receivable are
      net of applicable revenue provisions and allowances for doubtful accounts. Allowances for doubtful accounts are estimated based on past experience, specific risks associated with the customer and other relevant information. Sales are made to many
      customers and accordingly management believes the concentration of credit risk is minimal. The Companies place their cash and cash equivalents with major Canadian financial institutions of high creditworthiness.</font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"><br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <font style="font-weight: bold;">Liquidity risk </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Liquidity


    risk is the risk the Companies will not be able to meet their financial obligations as they fall due. The Companies are exposed to liquidity risk mainly in respect of the collection of accounts receivable and payments toward accounts payable. Cash flow
    from operations provides a substantial portion of the cash requirements. Management is of the opinion that liquidity risk is not a significant risk and there has been no change to the risk exposures from 2018.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">The


    Companies manage their liquidity risk by monitoring operating and capital requirements. Management prepares budgets and a detailed revenue and expense forecast to monitor this risk. Substantially all of the Companies&#8217; revenues are contracted for
    periods of one year or longer.</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Foreign


    currency risk</div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">
    <br>
  </div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Foreign


    currency exchange rate risk arises from financial instruments, primarily cash, accounts receivable and accounts payable and accrued liabilities, denominated in a currency other than the Canadian dollar. The amounts receivable or payable are of a short
    duration, generally expressed in US dollars, which minimizes the exposure to foreign currency fluctuations. The risk in this area is assessed by management to be insignificant.</div>
  <font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;"> </font>
  <div><br>
  </div>
  <div>
    <div>
      <div><font style="font-size: 9pt; font-family: Arial;"><br>
        </font></div>
      <div>
        <div>
          <div>
            <div>
              <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
                <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-10</font></div>
                <div id="DSPFPageBreak" style="page-break-after: always;">
                  <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
              </div>
              <div>
                <div>
                  <div><font style="font-family: Georgia,serif; font-size: 11pt; font-weight: bold;">MSR Group</font><font style="font-family: Georgia,serif; font-size: 9pt;"> </font>
                    <div>
                      <div style="text-align: left; font-family: Georgia,serif;">
                        <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">
                          <div style="font-family: Georgia,serif; font-size: 9pt;">
                            <div style="text-align: left;">Notes to Combined Internal Financial Statements</div>
                          </div>
                          <div style="font-family: Georgia,serif; font-size: 9pt;">
                            <div style="text-align: left;">
                              <div style="text-align: left; font-family: Georgia,serif; font-size: 9pt;">(Unaudited)</div>
                              <div style="font-size: 8pt; font-family: Georgia,serif;">
                                <div style="text-align: left;"><font style="font-weight: bold;">January 31, 2019</font></div>
                              </div>
                            </div>
                          </div>
                        </div>
                      </div>
                      <div style="text-align: left; font-family: Georgia,serif;">
                        <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font style="font-size: 9pt;"></font></div>
                      <div style="text-align: left; font-family: Georgia,serif;"></div>
                    </div>
                  </div>
                </div>
                <div><br>
                </div>
              </div>
              <div>
                <div style="text-align: left; font-family: Georgia,serif;"><font style="font-size: 9pt;">(expressed in Canadian dollars)</font></div>
              </div>
            </div>
          </div>
        </div>
      </div>
    </div>
    <br>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z2cec59ce356c4470b8ce4594c9084b69" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; font-weight: bold; background-color: rgb(255, 255, 255); color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">9</div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; font-weight: bold; background-color: rgb(255, 255, 255); color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Revenue</div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"><font style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt;
        font-style: normal; font-variant: normal; text-transform: none;">The Companies&#8217; revenue by category is as follows:<br>
        <br>
      </font></font></div>
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      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">May 1,</font></div>
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          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2019</font></div>
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        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2019</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">May 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Period from</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">November 1,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2017 to</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">January 31,</font></div>
          <div style="margin-right: 7.2pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">2018</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Software</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">22,713,403</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">7,863,666</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">20,290,136</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">6,949,178</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Duty recovery</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">6,426,972</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">1,985,657</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">12,461,157</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">9,647,872</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">
          <div style="text-align: left; text-indent: -21.6pt; margin-left: 64.8pt;"><font style="font-size: 9pt; font-family: Arial;">Brokerage</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">1,903,115</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">534,115</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">1,950,695</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">619,867</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1.76%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 1.76%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">31,043,490</font></div>
        </td>
        <td style="width: 2%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">10,383,438</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="text-indent: -21.6pt; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;">34,701,988</font></div>
        </td>
        <td style="width: 1.76%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">17,216,917</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 52%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2%; vertical-align: bottom;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2%; vertical-align: top; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 10%; vertical-align: top; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 1.76%; vertical-align: top; border-top: #000000 1px double;">&#160;</td>
        <td style="width: 10%; vertical-align: top; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
        <td style="width: 1.76%; vertical-align: bottom; border-top: #000000 1px double;">&#160;</td>
        <td style="width: 10%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0);">&#160;</td>
      </tr>

  </table>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z1cba3a09cb314748a6c3e71aa1024ee2" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 21.6pt; vertical-align: top; align: right;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">10</div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: bold; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">Subsequent
              events</div>
          </td>
        </tr>

    </table>
  </div>
  <div style="text-align: left; margin-left: 21.6pt;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left; margin-left: 21.6pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-style: normal; font-variant: normal; text-transform: none;">On


    February 12, 2019, Descartes Systems Group acquired the business operated by MSR Group for a total consideration of CAD$330 million, including working capital acquired. The purchase was structured as a combination of asset and share purchases.</div>
  <div style="text-align: center;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;"> <br>
    </font></div>
  <div><font style="font-size: 9pt; font-family: Arial; font-weight: bold;"> <br>
    </font></div>
  <font style="font-size: 9pt; font-family: Arial; font-weight: bold;"></font>
</body>
<body style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;" bgcolor="#ffffff" text="#000000">
  <font style="font-size: 9pt; font-family: Arial; font-weight: bold;"> <br>
  </font> <font style="font-size: 9pt; font-family: Arial; font-weight: bold;"></font> <font style="font-size: 9pt; font-family: Arial; font-weight: bold;"> <br>
  </font>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">B-11</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <!--PROfilePageNumberReset%Num%1%C-%%-->
  <div style="text-align: center;">
    <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Schedule &#8220;C&#8221;</div>
    <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"> <br>
    </div>
    <font style="font-size: 9pt; font-family: Arial; font-weight: bold;">THE DESCARTES SYSTEMS GROUP INC.</font></div>
  <div style="text-align: center;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Unless otherwise indicated all dollar amounts included herein are expressed in United States (&#8220;US&#8221;) dollars.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">On February 12, 2019, Descartes (&#8220;Company&#8221;) acquired the businesses run by the Management Systems Resources Inc. group of companies (the &#8220;Acquisition&#8221;) operating under
      the names &#8220;Visual Compliance,&#8221; &#8220;eCustoms&#8221; and &#8220;MSR&#8221; (collectively, &#8220;Visual Compliance&#8221; or the &#8220;MSR Group&#8221;) pursuant to a Purchase and Sale Agreement dated January 27, 2019 with MSR Customs &amp; Commodity Tax Group, Management Systems Resources Inc.,
      MSR International Inc. and MSR Customs Corporation (collectively, the &#8220;Sellers&#8221;).</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The purchase price for the Acquisition was approximately CAD $330 million (approximately US $250 million) (the &#8220;Purchase Price&#8221;). The Purchase Price was satisfied by way
      of approximately CAD $12 million (approximately US $9 million) in common shares of the Company issued from treasury, representing 0.3 million shares, and the balance (approximately CAD $318 million or approximately US $241 million) was satisfied in
      cash. Prior to the completion of the Acquisition, the Company borrowed CAD $320 million (approximately US $242 million) under its existing credit facility (the &#8220;Financing Transaction&#8221;), which together with cash on hand, was used to fund the cash
      portion of the Purchase Price and related fees and expenses of the Financing Transaction and the Acquisition.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated balance sheet as of January 31, 2019 is presented as if both the Acquisition and the Financing Transaction occurred on
      January 31, 2019. The unaudited pro forma condensed consolidated statement of operations for the year ended January 31, 2019 is presented as if both the Acquisition and the Financing Transaction occurred on February 1, 2018.</font></div>
  <div><br>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Details and Assumptions about the Transaction</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Significant assumptions and estimates were made in determining the preliminary allocation of the purchase price in the unaudited pro forma condensed consolidated
      financial statements. These preliminary estimates and assumptions are subject to change during the measurement period (up to one year from the actual acquisition date) as the Company finalizes the valuations of the net tangible assets, intangible
      assets, tax-related assets and liabilities and the resultant goodwill. In particular, the final valuations of identifiable intangible and net tangible assets may change significantly from preliminary estimates. These changes could result in material
      variances between the Company's future financial results and the amounts presented in the unaudited pro forma condensed consolidated financial statements, including variances in fair values recorded, as well as expenses and cash flows associated with
      them.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Presentation</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements were prepared using the most recently made available financial statements of Descartes and Visual
      Compliance at the time of closing of the Acquisition. For Descartes, the most recently available financial statements at the time of closing of the Acquisition included:</font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z5afd7c7e21b7438c84300e7514c1be5f" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A consolidated balance sheet as of January 31, 2019; and</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z4d15ca447c644a36a9db2b01c272cf4d" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A consolidated statement of operations for the twelve-months ended January 31, 2019.</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">For Visual Compliance, the most recently available financial statements at the time of closing of the Acquisition included:</font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zebc692160d4a40a296e944d8f345f20b" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A combined balance sheet as of January 31, 2019; and</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z1fcb48552ac1404893b02e862cf330c1" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A combined statement of income for the three and nine-months ended January 31, 2019.</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Our fiscal year commences on February 1st of each year and ends on January 31st of the following year. Visual compliance&#8217;s fiscal year commences on May 1st of each year
      and ends on April 30th of the following</font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-1</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">year. To comply with the rules and regulations of the Securities and Exchange Commission (the &#8220;SEC&#8221;) and Canadian securities regulatory authorities for companies with
      different fiscal year ends, the unaudited pro forma condensed consolidated financial statements have been prepared utilizing periods that differ by less than 93 days.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma consolidated statement of operations for the year ended January 31, 2019 was prepared by combining the historical statement of operations of
      Descartes for the twelve-months ended January 31, 2019 and the historical statement of income of Visual Compliance for the twelve-months ended January 31, 2019, which was constructed by taking the audited statement of income of Visual Compliance for
      the twelve-months ended April 30, 2018, subtracting the unaudited statement of income for the nine-months ended January 31, 2018, and adding the unaudited statement of income for the nine-months ended January 31, 2019 (see Note 4). The unaudited pro
      forma condensed consolidated balance sheet as of January 31, 2019 was prepared by combining the historical balance sheet of Descartes as of January 31, 2019 and the historical balance sheet of Visual Compliance as of January 31, 2019.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements are provided for illustrative purposes only and to comply with rules established by applicable
      securities regulatory authorities, and are not intended to represent or be indicative of the consolidated results of operations or financial position of Descartes that would have been recorded had the acquisition of Visual Compliance been completed
      as of the dates presented, and should not be taken as representative of future results of operations or financial position of the combined company. The unaudited pro forma condensed consolidated financial statements do not reflect the impacts of any
      potential operational efficiencies, cost savings or economies of scale that the Company may achieve with respect to the combined operations of Descartes and Visual Compliance (although no assurance can be given that any can be achieved) and do not
      include all costs that are expected to be directly attributed to the Acquisition, such as, but not limited to, costs necessary to integrate the operations of Visual Compliance with Descartes and restructuring costs that may be necessary to achieve
      cost savings and operating synergies. Additionally, the unaudited pro forma condensed consolidated financial statements do not include any non-recurring charges or credits directly attributable to the Acquisition.</font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;"> <br>
    </font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;"> <br>
    </font></div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-2</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">The Descartes Systems Group Inc.</font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">Unaudited Pro Forma Condensed Consolidated Balance Sheet</font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">As of January 31, 2019</font></div>
  <div style="text-align: left; font-family: Arial,Helvetica,&quot;sans-serif&quot;; font-size: 8pt;"><font style="font-variant: small-caps;">(US dollars in thousands; US GAAP)</font></div>
  <div>
    <div>
      <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"> </div>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z7a9ec5f0ed224b46a9b63327b6bf2838" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Descartes</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Visual Compliance</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Reclassifications</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Pro Forma Adjustments</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal;
          font-variant: normal; text-transform: none; text-align: center;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Reclassifications and Pro Forma
              Adjustments Combined</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">ASSETS</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: center;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: center;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Note 3(S)</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: center;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: center;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: center;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: center;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">CURRENT ASSETS</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Cash</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">27,298</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">31,145</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(31,156)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">A</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">27,287</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Accounts


              receivable (net)</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 27pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Trade</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">31,493</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">8,557</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(3,298)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">B</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">36,752</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 27pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Other</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">4,331</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">222</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(222)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">C</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">4,331</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Prepaid


              expenses and other</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">9,027</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">49</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,324</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">A</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">10,400</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Inventory</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">95</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">95</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">72,244</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">39,973</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(33,352)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">78,865</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">OTHER LONG-TERM
              ASSETS</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">10,510</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">10,510</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">PROPERTY AND
              EQUIPMENT, NET</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">12,612</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">596</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(565)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">D</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">12,643</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">DEFERRED INCOME TAXES</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,598</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">24,442</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">E</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">28,040</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">INTANGIBLE ASSETS,
              NET</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">176,192</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">106,680</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">F</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">282,872</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">GOODWILL</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">378,178</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">126,387</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">F</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">504,565</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">653,334</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">40,569</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">223,592</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">917,495</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">LIABILITIES AND
              SHAREHOLDERS&#8217; EQUITY</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">CURRENT LIABILITIES</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 3%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 35%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Accounts payable</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,147</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,147</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 3%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 35%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Accrued liabilities</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">29,392</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">11,154</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(10,255)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">G</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">30,291</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 3%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 35%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Income taxes payable</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,592</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,592</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 3%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 35%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Deferred revenue</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">34,236</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">10,390</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(1,172)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">H</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">43,994</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">70,367</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">22,084</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(11,427)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">81,024</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">LONG-TERM DEBT</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">25,464</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">243,597</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">I</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">269,061</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">LONG-TERM DEFERRED
              REVENUE</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">855</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">542</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(56)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">H</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,341</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">LONG-TERM INCOME
              TAXES PAYABLE</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">7,634</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">7,634</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">DEFERRED INCOME TAXES</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">15,507</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">286</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">E</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">15,793</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">119,827</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">22,626</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">232,400</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">374,853</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">SHAREHOLDERS&#8217; EQUITY</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: bottom;">
          <div style="text-align: left; text-indent: -4.5pt; margin-left: 4.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Common shares</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">276,753</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">9,135</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">J</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">285,888</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Redeemable special
              shares</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,246</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(3,246)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">K</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Additional paid-in
              capital</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">454,722</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">454,722</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Accumulated other
              comprehensive loss</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(25,201)</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(647)</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">647</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">K</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(25,201)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Accumulated deficit</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(172,767)</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">15,344</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(15,344)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">K</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(172,767)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">533,507</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">17,943</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(8,808)</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">542,642</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="2" style="vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">653,334</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">40,569</font></div>
        </td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 12.4%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">223,592</font></div>
        </td>
        <td style="width: 1.77%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">917,495</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-style: italic;">See accompanying notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements</font></div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-3</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">The Descartes Systems Group Inc.</font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">Unaudited Pro Forma Condensed Consolidated Statements of Operations</font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">For the Twelve Months Ended January 31, 2019</font></div>
  <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-variant: small-caps;">(US dollars in thousands, except per share and weighted average share amounts; US GAAP)</font></div>
  <div>
    <div>
      <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"> </div>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z6bbe46371ae74baca79cbf78874fd777" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 32.74%; vertical-align: top; font-size: 8pt;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Descartes</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Visual Compliance</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Reclassifications</font></div>
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        <td style="width: 1.84%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Pro Forma Adjustments</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 13.95%; vertical-align: top; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Reclassifications and Pro Forma Adjustments Combined</font></div>
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      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top; font-size: 8pt;">&#160;</td>
        <td style="width: 11.5%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 11.5%; vertical-align: top; border-top: #000000 1px solid;">
          <div style="text-align: center; font-size: 8pt;"><font style="font-family: Arial;">Note 3(S)</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 1.84%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 12.46%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 1.84%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
        <td style="width: 13.95%; vertical-align: top; border-top: 1px solid rgb(0, 0, 0); font-size: 8pt;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">REVENUES</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">275,171</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">29,225</font></div>
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        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">304,396</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">COST OF REVENUES</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">74,994</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">3,579</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">L</font></div>
        </td>
        <td style="width: 12.46%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">78,573</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">GROSS MARGIN</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">200,177</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">29,225</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(3,579)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">225,823</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">EXPENSES</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Sales and marketing</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">36,873</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">4,493</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">L</font></div>
        </td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">41,366</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Research and development</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">47,872</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">1,804</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">L</font></div>
        </td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">49,676</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">General and administrative</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">30,012</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">1,638</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">L</font></div>
        </td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(50)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">M</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">31,600</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Other charges</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">3,798</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(356)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">N</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">3,442</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Amortization of intangible assets</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">40,179</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">13,296</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">O</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">53,475</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Unallocated expenses</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">11,514</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(11,514)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">L</font></div>
        </td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top; font-size: 8pt;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">158,734</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">11,514</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(3,579)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">12,890</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">179,559</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">INCOME FROM OPERATIONS</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">41,443</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">17,711</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(12,890)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">46,264</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">INTEREST EXPENSE</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(2,128)</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(8,148)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">P</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(10,276)</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">INVESTMENT INCOME</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">195</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">229</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(229)</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">Q</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">195</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">INCOME BEFORE INCOME TAXES</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">39,510</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">17,940</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(21,267)</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">36,183</font></div>
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      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">INCOME TAX EXPENSE</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
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      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Current</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">6,042</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">549</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(2,909)</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">R</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">3,682</font></div>
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      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
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        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">2,191</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">1,741</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">R</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">3,932</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top; font-size: 8pt;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">8,233</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">549</font></div>
        </td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(1,168)</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">7,614</font></div>
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      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
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        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">31,277</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">17,391</font></div>
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        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">-</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">(20,099)</font></div>
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        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">28,569</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">EARNINGS PER SHARE</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Basic</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">0.41</font></div>
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        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">0.37</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Diluted</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">0.40</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">0.37</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-weight: bold;">WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 13.95%; vertical-align: bottom; border-top: 1px double rgb(0, 0, 0); font-size: 8pt; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Basic</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">76,832</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">296</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">J</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">77,128</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 32.74%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; font-size: 8pt;"><font style="font-family: Arial;">Diluted</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">77,791</font></div>
        </td>
        <td style="width: 11.5%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 14.16%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 1.84%; vertical-align: bottom; font-size: 8pt; text-align: right;">&#160;</td>
        <td style="width: 12.46%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">296</font></div>
        </td>
        <td style="width: 1.84%; vertical-align: bottom; text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">J</font></div>
        </td>
        <td style="width: 13.95%; vertical-align: bottom; border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="font-size: 8pt;"><font style="font-family: Arial;">78,087</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-style: italic;">See accompanying notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements</font></div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-4</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify; margin-right: 216pt;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">The Descartes Systems Group Inc.</font></div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-variant: small-caps;">Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements</font></div>
  <div>
    <div style="text-align: left; font-size: 8pt;"><font style="font-family: Arial; font-variant: small-caps;">(Tabular amounts in thousands of US dollars, except per share amounts or as otherwise indicated; US GAAP)</font>
      <hr style="height: 1px; width: 100%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
  </div>
  <div><br>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Note 1 &#8211; Basis of Pro Forma Presentation</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements were prepared using the most recently made available financial statements of Descartes and Visual
      Compliance at the time of closing of the Acquisition. For Descartes, the most recently available financial statements at the time of closing of the Acquisition included:</font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z146d63b0a4304f02ad201c407a45d8f1" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A consolidated balance sheet as of January 31, 2019; and</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z7d670ead5d564772bc32f4fa2477d128" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A consolidated statement of operations for the twelve-months ended January 31, 2019.</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">For Visual Compliance, the most recently available financial statements at the time of closing of the Acquisition included:</font></div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zc9ff62238b3e4c3d922dc3f8633456cb" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A combined balance sheet as of January 31, 2019; and</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div>
    <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z3af32bfa891441918b61a24466e67365" cellpadding="0" cellspacing="0">

        <tr>
          <td style="width: 36pt; vertical-align: top; align: right;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 9pt; font-family: Arial;">&#8226;</font></div>
          </td>
          <td style="width: auto; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">A combined statement of income for the three and nine-months ended January 31, 2019.</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Our fiscal year commences on February 1st of each year and ends on January 31st of the following year. Visual compliance&#8217;s fiscal year commences on May 1st of each year
      and ends on April 30th of the following year. To comply with the rules and regulations of the Securities and Exchange Commission (the &#8220;SEC&#8221;) and Canadian securities regulatory authorities for companies with different fiscal year ends, the unaudited
      pro forma condensed consolidated financial statements have been prepared utilizing periods that differ by less than 93 days.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma consolidated statement of operations for the year ended January 31, 2019 was prepared by combining the historical statement of operations of
      Descartes for the twelve-months ended January 31, 2019 and the historical statement of income of Visual Compliance for the twelve-months ended January 31, 2019, which was constructed by taking the audited statement of income of Visual Compliance for
      the twelve-months ended April 30, 2018, subtracting the unaudited statement of income for the nine-months ended January 31, 2018, and adding the unaudited statement of income for the nine-months ended January 31, 2019 (see Note 4). The unaudited pro
      forma condensed consolidated balance sheet as of January 31, 2019 was prepared by combining the historical balance sheet of Descartes as of January 31, 2019 and the historical balance sheet of Visual Compliance as of January 31, 2019.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements are based upon the historical financial statements of Descartes and Visual Compliance after giving
      effect to the Acquisition and the Financing Transaction. The Acquisition is accounted for as a business combination pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805 "Business Combinations"
      (Topic 805). In accordance with Topic 805, the Company recognizes separately from goodwill, the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value as
      defined by ASC Topic 820 "Fair Value Measurements and Disclosures". Goodwill, as of the acquisition date is measured as the excess of consideration transferred, which is also measured at fair value, and the net of the acquisition date fair value of
      the identifiable assets acquired and the liabilities assumed.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated balance sheet as of January 31, 2019 is presented as if both the Acquisition and the Financing Transaction occurred on
      January 31, 2019. The unaudited pro forma condensed consolidated statement of operations for the year ended January 31, 2019 is presented as if both the Acquisition and the Financing Transaction occurred on February 1, 2018.</font></div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-5</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated statements of operations exclude any non-recurring charges or credits directly attributable to the Acquisition.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-style: italic;">Details and assumptions about the Transaction</font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Significant assumptions and estimates were made in determining the preliminary allocation of the purchase price in the unaudited pro forma condensed consolidated
      financial statements. These preliminary estimates and assumptions are subject to change during the measurement period (up to one year from the actual acquisition date) as the Company finalizes the valuations of the net tangible assets, intangible
      assets, tax-related assets and liabilities and the resultant goodwill. In particular, the final valuations of identifiable intangible and net tangible assets may change significantly from preliminary estimates. These changes could result in material
      variances between the Company's future financial results and the amounts presented in the unaudited pro forma condensed consolidated financial statements, including variances in fair values recorded, as well as expenses and cash flows associated with
      them.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Company continues to review, in detail, the Visual Compliance accounting policies. As a result of the review it may identify differences in accounting policies
      between the two companies, that when conformed, could have a material impact on the financial results of the combined company. Based on information available at the time of the filing of this Business Acquisition Report, the Company is not aware of
      any differences in accounting policies that would have a material impact on the financial results of the combined company other than those reflected in the unaudited pro forma condensed consolidated financial statements described in Note 3.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements are provided for illustrative purposes only and to comply with rules established by applicable
      securities regulatory authorities, and are not intended to represent or be indicative of the consolidated results of operations or financial position of Descartes that would have been recorded had the acquisition of Visual Compliance been completed
      as of the dates presented, and should not be taken as representative of future results of operations or financial position of the combined company. The unaudited pro forma condensed consolidated financial statements do not reflect the impacts of any
      potential operational efficiencies, cost savings or economies of scale that the Company may achieve with respect to the combined operations of Descartes and Visual Compliance (although no assurance can be given that any can be achieved) and do not
      include all costs that are expected to be directly attributed to the Acquisition, such as, but not limited to, costs necessary to integrate the operations of Visual Compliance with Descartes and restructuring costs that may be necessary to achieve
      cost savings and operating synergies. Additionally, the unaudited pro forma condensed consolidated financial statements do not include any non-recurring charges or credits directly attributable to the Acquisition.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of Descartes and
      accompanying notes contained in Descartes&#8217; audited financial statements and Descartes&#8217; Annual Report on Form 40-F for its fiscal year ended January 31, 2019, and the historical audited combined financial statements for the years ended April 30, 2018
      and 2017 of Visual Compliance and the unaudited combined financial statements for the nine-months ended January 31, 2019 and 2018 of Visual Compliance and accompanying notes.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Unless otherwise indicated all dollar amounts included herein are expressed in United States (&#8220;US&#8221;) dollars.</font></div>
  <div><br>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Note 2 &#8211; Preliminary Purchase Price Allocation</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold; font-style: italic;">Description of the Acquisition of Visual Compliance</font></div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">On February 12, 2019, Descartes acquired the businesses run by the Management Systems Resources Inc. group of companies (the &#8220;Acquisition&#8221;) operating under the names
      &#8220;Visual Compliance,&#8221; &#8220;eCustoms&#8221; and &#8220;MSR&#8221; (collectively, &#8220;Visual Compliance&#8221; or the &#8220;MSR Group&#8221;) pursuant to a Purchase and Sale Agreement dated January 27, 2019 with MSR Customs &amp; Commodity Tax Group, Management Systems Resources Inc., MSR
      International Inc. and MSR Customs Corporation (collectively, the &#8220;Sellers&#8221;) and under which we agreed to acquire&#160; substantially all of the assets and assume certain liabilities of Visual Compliance.</font></div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-6</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The purchase price for the Acquisition was approximately CAD $330 million (approximately US $250 million). The Purchase Price was satisfied by way of approximately CAD
      $12 million (approximately US $9 million) in common shares of the Company issued from treasury, representing 0.3 million shares, and the balance (approximately CAD $318 million or approximately US $241 million) was satisfied in cash. Prior to the
      completion of the Acquisition, the Company borrowed CAD $320 million (approximately US $242 million) under its existing credit facility, which together with cash on hand, was used to fund the cash portion of the Purchase Price and related fees and
      expenses of the Financing Transaction and the Acquisition.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">For the purpose of the unaudited pro forma condensed consolidated financial statements, the purchase</font><font style="font-size: 9pt; font-family: Arial;"> price of
      Visual Compliance has been allocated to tangible and identifiable intangible assets acquired and liabilities assumed, based on their estimated fair values as though the Acquisition occurred on January 31, 2019. For certain assets and liabilities, the
      book values as of the balance sheet date have been determined to reflect fair values. The excess of the purchase price over the net tangible and identifiable intangible assets will be recorded as goodwill. The preliminary allocation of the purchase
      price was based upon a preliminary valuation undertaken by the Company and the Company's estimates and assumptions are subject to change during the measurement period (up to one year from the actual acquisition date). The Company expects to continue
      to obtain information to assist it in determining the fair value of the net assets acquired at the acquisition date and during the measurement period.</font> </div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Company's preliminary purchase price allocation for Visual Compliance based on the estimated fair values as though the Acquisition occurred on January 31, 2019 is as
      follows:</font></div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z719332bdb5b2421194b9cc0207a3c7b0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Current assets, excluding cash acquired</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">5,309</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Non-current assets</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">24,473</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Intangible assets</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">106,680</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Goodwill</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">126,387</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Total assets acquired</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top; border-top: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">262,849</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Current liabilities assumed</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(11,143)</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Non-current liabilities assumed</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(286)</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 86.36%; vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Net assets acquired</font></div>
        </td>
        <td style="width: 13.64%; vertical-align: top; border-top: #000000 1px solid; border-bottom: #000000 1px double;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">251,420</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Currently, the Company has not recorded any pre-acquisition contingencies relating to Visual Compliance as of the acquisition date; however, the Company continues to
      gather information and to evaluate whether any pre-acquisition contingencies have been assumed. If identified, such amounts will be included in the purchase price allocation at their fair value and will result in additional goodwill.</font></div>
  <div><br>
  </div>
  <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Note 3 &#8211; Reclassifications and Pro Forma Adjustments Notes</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The following adjustments have been reflected in the unaudited pro forma condensed consolidated financial statements:</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zbdf1229b48f64a6498f50634f7a2dc75" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">A.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">Represents, as of January 31, 2019, the impact on Descartes&#8217; cash as of the closing of the Acquisition as set forth below:</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z00bc7f73b58e44a7a0368b24666a21ca" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Gross proceeds from the Financing Transaction</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">243,597</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Less:</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">&#160;</td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Total cash consideration paid for the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(242,360)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Debt issuance costs paid relating to the Financing Transaction</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(1,324)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Cash not acquired as part of the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(31,069)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Net adjustment to cash</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top; border-top: #000000 1px solid; border-bottom: #000000 1px double;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(31,156)</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-7</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zb1729bb9e94c4d12b3a4dc922caf31a8" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">B.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To eliminate a portion of the accounts receivable of the Visual Compliance business not acquired as part of the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z13974c8147c549d39127e6f34a637aba" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">C.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To exclude income taxes receivable of Visual Compliance that are not acquired as part of the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z12178b06f3cf4a63a45e0f7754a7b648" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">D.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the following adjustments related to property and equipment:</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z6f58b6464c224b05aee346c1488938a6" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Property and equipment not acquired as part of the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(417)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Preliminary fair value adjustment to property and equipment acquired</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(148)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Total preliminary adjustment to property and equipment</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top; border-top: #000000 1px solid; border-bottom: #000000 1px double;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">(565)</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z25e62f906ffe4ed6aa9694e0661cb04c" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">E.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the preliminary deferred tax assets and liabilities associated with the preliminary valuation of intangible assets.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z68621c67a55c4685a5772ee3c124aa82" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">F.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the preliminary valuation of goodwill and intangible assets related to the Acquisition:</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z2c5d82edb306405da78d585d4e158455" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Preliminary valuation of customer intangible assets acquired from the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">32,733</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Preliminary valuation of technology intangible assets acquired from the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">70,202</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Preliminary valuation of trade names acquired from the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">540</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Preliminary valuation of non-compete intangible assets acquired from the Acquisition</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: bottom; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">3,205</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Net preliminary adjustment to intangible assets</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top; border-top: #000000 1px solid; border-bottom: #000000 1px double;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">106,680</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">&#160;</td>
        <td style="width: 14.69%; vertical-align: top; border-top: #000000 1px double;">&#160;</td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Net preliminary adjustment to goodwill</font></div>
        </td>
        <td style="width: 14.69%; vertical-align: top; border-bottom: #000000 1px double;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">126,387</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zad487da2eace41ba9360f58866c12065" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">G.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To eliminate accrued liabilities and related party balances of Visual Compliance that are not acquired as part of the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zad8e08fc34bf45b5aa32475e98bb7871" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">H.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the preliminary fair value adjustment to deferred revenues acquired. The fair value represents an amount equivalent to estimated cost plus an appropriate profit margin to
                  perform the services related to open contracts based on deferred revenue balances of Visual Compliance as of January 31, 2019. The preliminary deferred revenue fair value adjustment is not reflected on the unaudited pro forma condensed
                  consolidated statement of operations as it primarily relates to the current portion and is a non-recurring charge.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="ze0db6ba4bbc94348a08204f2f1596ac9" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">&#160;</td>
        <td style="width: 14.64%; vertical-align: top; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Current Deferred Revenue</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: top; border-bottom: #000000 1px solid;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Long-term Deferred Revenue</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Elimination of the Visual Compliance historical deferred revenue</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(10,930)</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(542)</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">Preliminary fair value of deferred revenue acquired</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">9,758</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">486</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Net preliminary adjustment to deferred revenue</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(1,172)</font></div>
        </td>
        <td style="width: 14.64%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div><font style="font-size: 9pt; font-family: Arial;">(56)</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zeca1b1ad0e884ae89e3d43a98416c696" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">I.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record borrowings from the Financing Transaction.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z1b199d4d300c4024acc19f3390ff9e45" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">J.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the issuance of Descartes common shares in connection with the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z66b28bbdedcd41419b12f14cfea1384b" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">K.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To eliminate the Visual Compliance historical equity not acquired as part of the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z1ac10a46a3e240c18ef9105dc21ed591" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">L.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To reclassify the Visual Compliance presentation of operating expenses to conform to Descartes&#8217; presentation.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-8</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zc736e4ddb5b54cee911cfbb60f025cb4" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">M.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To adjust depreciation expense on account of the adjustment to the fair value of property and equipment and to eliminate the Visual Compliance historical depreciation.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z6043383b02fe470091b5d79dd69a2523" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">N.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To eliminate acquisition-related transaction costs incurred by Descartes in connection with the Acquisition as these costs are directly attributable to the Acquisition and do not have a
                  continuing impact on the combined company&#8217;s financial results.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z9e0adbf44d66478782e6e4c1ffa317d2" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">O.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record amortization relating to the estimated identifiable intangible assets acquired from Visual Compliance. The acquired intangible assets are being amortized on a straight-line
                  basis over their weighted-average estimated useful lives as follows:</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z95caf6f9354a47bdb6b23255dbb5ef3e" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">&#160;&#160;Customer agreements and relationships</font></div>
        </td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 15%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">13 years</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">&#160;&#160;Existing technology</font></div>
        </td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 15%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">7 years</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">&#160;&#160;Trade names</font></div>
        </td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 15%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">5 years</font></div>
        </td>
      </tr>
      <tr>
        <td colspan="1" style="width: 36pt; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;">
          <div style="text-align: left;"><font style="font-size: 9pt; font-family: Arial;">&#160;&#160;Non-compete covenants</font></div>
        </td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 1%; vertical-align: top;">&#160;</td>
        <td style="width: 15%; vertical-align: top;">
          <div style="text-align: right;"><font style="font-size: 9pt; font-family: Arial;">5 years</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z778140a280424ce7a11b2918a19aab12" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">P.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the interest expense and the amortization of debt issuance costs resulting from the Financing Transaction. Debt issuance costs are amortized over the term of the credit
                  facility.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="zb28f0f6eda8d4aa1bdb887386598ee80" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">Q.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To eliminate non-recurring Visual Compliance investment income related to cash not acquired as part of the Acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z97bfe974ad4d4d2da7a3d13a77dc48d3" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">R.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">To record the pro forma tax impact incurred by the legal entities in which the pro forma adjustments are expected to be recorded, at the applicable enacted tax rates.</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">
    <div>
      <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z67c63cedafbb43328648c1799f77e092" cellpadding="0" cellspacing="0">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 9pt; font-family: Arial;">S.</font></td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div><font style="font-size: 9pt; font-family: Arial;">The assets and liabilities of Visual Compliance, which has a Canadian dollar reporting and functional currency, are translated at the exchange rate in effect as at the unaudited pro forma
                  consolidated balance sheet date of January 31, 2019. Revenues and expenses of Visual Compliance&#8217;s operations are translated at the average exchange rate in effect during the reporting period. The following exchange rates were utilized for
                  the unaudited pro forma consolidated financial statements:</font></div>
            </td>
          </tr>

      </table>
    </div>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 0pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Balance Sheet (Canadian dollars to US dollars)</font></div>
  <div style="text-align: justify; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Closing rate &#8211; January 31, 2019: 0.76</font></div>
  <div><br>
  </div>
  <div style="text-align: justify; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Income Statement (Canadian dollars to US dollars)</font></div>
  <div style="text-align: justify; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;">Average rate &#8211; February 1, 2018 to January 31, 2019: 0.76</font></div>
  <div style="text-align: justify; text-indent: -36pt; margin-left: 36pt;"><font style="font-size: 9pt; font-family: Arial;"> </font><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Note 4 &#8211; Basis of the Visual Compliance Financial Statement Presentation within the Unaudited Pro Forma Condensed Consolidated Financial Statements</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">For the purposes of the unaudited pro forma condensed consolidated financial statements, information for Visual Compliance has been obtained from the audited combined
      financial statements of Visual Compliance for the years ended April 30, 2018 and 2017 and the unaudited combined financial statements for the three and nine-months ended January 31, 2019 and 2018, respectively.</font></div>
  <div><br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-9</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">The Visual Compliance unaudited consolidated statement of operations for the twelve-months ended January 31, 2019 has been constructed as follows:</font></div>
  <div><br>
  </div>
  <table style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z59e6f57d40fe4a65b7a0c9a674d5fa70" border="0" cellpadding="0" cellspacing="0">

      <tr>
        <td style="width: 29.82%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Twelve-months ended
              April 30, 2018</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Nine-months ended
              January 31, 2018</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Three-months ended
              April 30, 2018</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Nine-months ended
              January 31, 2019</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: top; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Twelve-months ended
              January 31, 2019</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(a)</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(b)</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(c) = (a) &#8211; (b)</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(d)</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: top; border-top: #000000 1px solid;">
          <div style="text-align: center; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">(e) = (c) + (d)</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;
          text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">REVENUES</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">32,010</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">26,417</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,593</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">23,632</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">29,225</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">COST OF REVENUES</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,181</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">4,879</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">302</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,277</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,579</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">GROSS MARGIN</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">26,829</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">21,538</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,291</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">20,355</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">25,646</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">EXPENSES</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Sales


              and marketing</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,455</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">2,338</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,117</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,376</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">4,493</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Research


              and development</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,754</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,387</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">367</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,437</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,804</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">General


              and administrative</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,426</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">949</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">477</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,161</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,638</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">6,635</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">4,674</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">1,961</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">5,974</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">7,935</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">INCOME FROM
              OPERATIONS</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">20,194</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">16,864</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,330</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">14,381</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">17,711</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">INVESTMENT INCOME</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">153</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">114</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">39</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">190</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">229</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">INCOME BEFORE INCOME
              TAXES</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">20,347</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">16,978</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,369</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">14,571</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">17,940</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">INCOME TAX EXPENSE</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none; text-align: right;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Current</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">426</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">117</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">309</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">240</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">549</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; margin-left: 13.5pt; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">Deferred</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">-</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;">&#160;</td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">426</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">117</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">309</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">240</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">549</font></div>
        </td>
      </tr>
      <tr>
        <td style="width: 29.82%; vertical-align: top;">
          <div style="text-align: left; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">NET INCOME</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">19,921</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">16,861</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">3,060</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">14,331</font></div>
        </td>
        <td style="width: 14.04%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px double rgb(0, 0, 0); text-align: right;">
          <div style="background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(0, 0, 0); font-size: 8pt; font-style: normal; font-variant: normal; text-transform: none;"><font style="font-family: Arial;">17,391</font></div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">Revenues and expenses of Visual Compliance&#8217;s operations are translated at the average exchange rate in effect during the reporting period. The average exchange rate from
      February 1, 2018 to January 31, 2019 was 0.76 Canadian dollars to US dollars.</font></div>
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    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: Arial; font-size: 8pt; font-weight: normal; font-style: normal;">C-10</font></div>
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  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial; font-weight: bold;">Forward-Looking Statements</font></div>
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  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">This document contains forward-looking statements concerning the future performance of Descartes&#8217; business, its operations and its financial results and condition,
      including with respect to the anticipated integration of Visual Compliance.</font></div>
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  <div style="text-align: justify;"><font style="font-size: 9pt; font-family: Arial;">When used in this document, the words &#8220;believe,&#8221; &#8220;plan,&#8221; &#8220;expect,&#8221; &#8220;anticipate,&#8221; &#8220;intend,&#8221; &#8220;continue,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should&#8221; or the negative of such terms and similar
      expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on assumptions that may cause future results to differ materially from those expected. The material
      assumptions made in making these forward-looking statements include the following: the ability of Descartes and Visual Compliance to integrate effectively; global shipment volumes continuing to increase at levels consistent with the average growth
      rates of the global economy; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and
      enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; our continued operation of a secure and reliable business network; the
      continued availability of the data and content that is utilized in the delivery of services made available over our network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets
      continuing to provide us with access to capital; our continued ability to identify and source attractive and executable business combination opportunities; our ability to develop solutions that keep pace with the continuing changes in technology, and
      our continued compliance with third party intellectual property rights. While management believes these assumptions to be reasonable under the circumstances, they may prove to be inaccurate. Such forward-looking statements also involve known and
      unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements of, or developments in our business or industry, to differ materially from the anticipated results, performance or achievements or
      developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors discussed under the heading &#8220;Certain Factors That May Affect Future Results&#8221; in Descartes&#8217; Annual Report on Form 40-F for
      the fiscal year ended January 31, 2019 and in other documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada from time to time. If any of such risks actually occur,
      they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such
      forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management&#8217;s current expectations and plans relating to the future. Readers are cautioned that
      such information may not be appropriate for other purposes. Except as required by applicable law, we do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect
      any change in our expectations or any change in events, conditions, assumptions or circumstances on which any such statements are based.</font></div>
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