MANAGEMENT S DISCUSSION & ANALYSIS (MD&A) Q1, 2013

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1 2013 Q1 REPORT

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3 MANAGEMENT S DISCUSSION & ANALYSIS (MD&A) Q1, 2013 The following discussion of Gemini Corporation s financial and operating results is based upon information available to May 16, 2013 and should be read in conjunction with the Corporation s unaudited consolidated financial statements and related notes for the three months ended These quarterly financial statements have been prepared by Management in Canadian dollars and have not been reviewed or audited by the Corporation s independent external auditor. These discussions include various forward-looking statements and information regarding the markets in which the Corporation operates, demand for the Corporation s products and services and the Corporation s projected results. All statements other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates, and beliefs contained in such forwardlooking statements are based on management's assumptions relating to Gemini s performance, competition within the sectors in which it operates, the continuation of the current regulatory and tax regimes in the jurisdictions in which Gemini does business, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to client service demand, field service costs, labour rates, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Consequently, all of the forward-looking statements made in this report are qualified by these cautionary statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary from those expected. These forward-looking statements have been made as of the date of this MD&A, and the Corporation assumes no obligation to update or revise them except as required by applicable securities laws. The financial statements of the Corporation have been prepared by management in accordance with International Financial Reporting Standards (IFRS). The preparation of financial statements that conform to IFRS requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, with actual results potentially differing from those estimates. The financial statements have, in management's opinion, been properly prepared using careful judgement with reasonable limits of materiality and within the framework of the significant accounting policies summarized in the notes to the consolidated financial statements. OVERVIEW Gemini Corporation is a professional services firm that designs, builds and maintains energy and industrial facilities. Founded in 1982, Gemini provides engineering and field services targeted at increasing project efficiency and providing a single point of accountability. The Corporation s principal target markets are conventional and unconventional oil and gas, in-situ heavy oil, and heavy industrial facilities. Its services and products are delivered through two business segments focused on project solutions that are both technically innovative and financially sound. The Field Solutions segment provides flexible, cost-efficient fabrication, installation and facility maintenance services. The Engineered Solutions segment specializes in providing clients customized, cost-effective engineering, procurement, regulatory, and construction management services from concept through to completion. Shares of Gemini trade on the TSX Venture Exchange under the symbol GKX. GEMINI CORPORATION 2013 Q1 REPORT /3

4 COMPARISON OF YEARS ENDED MARCH 31, 2013 AND 2012 Consolidated Financial Highlights ($ 000 except per share data) 3 months ended Revenue $ 17,350 $ 20,184 Gross profit 2,443 3,396 Income (loss) from operating activities (437) 313 Net income (loss) (370) 185 per share - basic and diluted (0.007) Total assets 30,228 28,358 Total non-current liabilities Shareholders' Equity 17,342 13,279 Summary of Quarterly Consolidated Results ($ 000 except per share data) ($000's except per share data) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Revenue $ 17,350 $ 19,895 $ 22,635 $ 24,473 $ 20,184 $ 18,673 $ 18,845 $ 15,208 Gross profit 2,443 2,958 3,843 4,025 3,396 2,904 3,295 3,239 Income (loss) from operating activities (437) (154) (419) (99) (174) Net income (loss) (370) (224) (430) (122) (174) per share - basic and diluted (0.007) (0.005) (0.012) (0.003) (0.005) Gemini s financial results for the first quarter of 2013 were below expectations and lower than the results achieved in the first quarter of Revenue for the first quarter decreased 14% to $17.4 million from $20.2 million in the same period last year. This reduction in revenue is principally attributable to reduced activity in the Field Solutions segment of the business. Client decisions to slow the release of field work began in the fourth quarter of 2012 and continued throughout the first quarter of The softening of economic conditions in the energy sector of western Canada driven by increased commodity price differentials and product transportation challenges has contributed to these decisions. There have also been delays related to engineering deliverables and certain material shortages. The flow of work out of backlog into execution is expected to improve in the second quarter and revenue is projected to regain strength for the remainder of The Corporation s backlog of work is solid and it is the timing of project commencement that has negatively impacted results for the past two quarters. Gross profit as a percent of revenue was below expectations at just over 14% due to margin compression caused by management s decision to maintain the core staffing levels required to respond once clients released their planned projects. This decision had a negative short term impact on profitability, but based upon the workload scheduled from the backlog for the remainder of 2013 it is important to retain these trained, skilled workers. The time involved to recruit and train the personnel required to service the upcoming projects would impair the Corporation s ability to respond and was determined to be more costly than the decisions taken. Second quarter profitability is anticipated to offset the loss in the first quarter and results for the full year are expected to be in excess of the results achieved in Administrative costs for the first quarter were reduced 7% compared to the same period last year. The majority of these cost savings are the result of process and structural changes implemented in the last half of It is expected that the existing infrastructure will satisfy the needs of the organization until such time as material increases in business activity are achieved. GEMINI CORPORATION 2013 Q1 REPORT /4

5 SEGMENTED RESULTS Field Solutions ($ 000) 3 months ended Revenue $ 11,242 $ 13,838 Gross profit 780 1,530 Income (loss) from operating activities (623) 391 First quarter 2013 revenue for the Field Solutions segment decreased 19% compared to the same period last year. This revenue reduction is directly related to clients choosing to release scheduled projects at a slower than anticipated pace and delayed engineering deliverables. These delays have negatively impacted the fabrication, installation and maintenance operating units to varying degrees. The most significant challenge has been experienced within fabrication where volumes are down almost 21% from the same period last year as the backlog of work shifted further out into The Corporation s opportunities and backlog are continuing to increase as a result of strong project performance and business development initiatives successfully nurturing relationships with key clients. However, the uncertainty surrounding the commencement of this work is creating some issues in accurately forecasting the timing of revenue and ultimately the manpower requirements. Revenue is projected to increase for the second quarter and beyond, which is expected to return this segment to profitability as the year unfolds. Gross profit in the first quarter of 2013 declined as a percent of revenue to 7% from 11% due to the cost of retaining personnel in anticipation of predicted project commencements. Every effort was made by management to shift resources between projects to maintain productivity, but inevitably staff reductions were implemented until the project backlog is released. The general slowdown across the energy sector has resulted in a moderation of the previously experienced labour shortages, but this issue is expected to rapidly resurface once activity picks up in the latter half of During this period of reduced workload, the Corporation has been investing in supervisory training in preparation for what is expected to be a period of active development projects across the energy sector. In addition, Gemini increased capital spending in the first quarter on projects that will enhance capacity and improve efficiency and profitability in future periods. Engineered Solutions ($ 000) 3 months ended Revenue $ 6,108 $ 6,346 Gross profit 1,660 1,861 Income from operating activities Revenue for the Engineered Solutions segment declined modestly in the first quarter of 2013 compared to the same period last year. This reduction relates to delays clients are experiencing in approving and initiating projects with their service providers. Many of these issues are being driven by the current energy market economic uncertainties, and it is anticipated that these constraints will abate as the year progresses. Ongoing business development efforts are increasing and extending the backlog of engineering work into late 2013, although specific execution timing remains somewhat tentative. Longer term service agreements with specific key clients are establishing stronger relationships and creating additional opportunities to collaborate on client project requirements. The Corporation s strategy of narrowing its focus to core competencies and directing its business development efforts toward targeted key clients is having the desired effect of stabilizing the engineering operations and positioning this segment for increasing profitability. Gross profit as a percent of revenue for the first quarter of 2013 was below expectations at 27%, which fell short of the 29% achieved in the first quarter of This reduction is principally related to staff utilization rates tracking below plan for the first quarter. The weekly trend for utilization has been steadily improving and thus margins are expected to be back on track in the second quarter. Therefore, the Engineered Solutions segment is forecasting strengthening results for the remaining quarters of GEMINI CORPORATION 2013 Q1 REPORT /5

6 LIQUIDITY AND CAPITAL RESOURCES Financial Condition Highlights ($ 000) 2013 December 31, 2012 Working capital $ 11,238 $ 12,089 Total assets Shareholders equity Working capital ratio 30,228 17, : 1 26,088 17, : 1 Total liabilities to equity ratio 0.7 : : 1 The Corporation s working capital position at 2013 is sufficient to support the current operating requirements of the business. A demand overdraft credit facility of $10 million is in place with the Corporation s lender to finance working capital. As at 2013, this facility had $5.3 million drawn and the Corporation was in compliance with the terms of its banking agreement. Property, plant and equipment purchases in the first quarter amounted to $436,000. These capital purchases relate primarily to equipment for field and shop requirements. Specific process reconfiguration and automation initiatives have been identified and commenced in early 2013 to enhance fabrication capacity and improve margin performance. These additions and alterations are expected to be completed before year end, but are not expected to positively impact results until late 2013 and beyond. At 2013, the Corporation s outstanding share capital was comprised of 54,780,274 common shares, 19,500,000 share purchase warrants, and 2,763,333 share purchase options. FINANCIAL INSTRUMENTS AND BUSINESS RISKS The Corporation s financial instruments are comprised of accounts receivable, work in progress, trade and other payables, and bank overdraft. The Corporation s business risks and critical success factors have not changed materially from those reported in the annual MD&A at December 31, 2012 and it is recommended that readers refer to that document for further information. ACCOUNTING POLICY CHANGES The new standards that have been issued and adopted January 1, 2013 are: IFRS 7 Financial Instrument Disclosures, requiring entities to provide disclosure regarding the significance and risks associated with financial instruments; IFRS 10 Consolidated Financial Statements, establishing principles for the presentation and preparation of consolidated financial statements; IFRS 11 Joint Arrangements, which sets out principles for the financial reporting of joint arrangements; IFRS 12 Disclosure of Interests in Other Entities, to address an interest in a subsidiary, a joint arrangement, as associate or an unconsolidated structured entity; and finally, IFRS 13 Fair Value Measurement, which establishes the principles to define, measure and disclose fair values. IFRS 9 Financial Instruments, which is expected to impact the classification and measurement of financial assets will be adopted January 1, CRITICAL ACCOUNTING ESTIMATES The preparation of these statements requires the use of estimates and judgments that affect the reported revenue, expenses, assets, liabilities, and shareholders equity. These estimates and judgements have not changed materially from those reported in the Corporation s annual MD&A at December 31, 2012 and it is recommended that readers refer to that document for further information. GEMINI CORPORATION 2013 Q1 REPORT /6

7 OUTLOOK Commodity price differentials remain unsettled, and combined with decreased drilling and completions activity, has translated into project uncertainty within the markets that the Corporation services. The western Canadian oil and gas transportation challenges are dampening enthusiasm and capital spending across this region. Alternate methods of transport and the prospect of supplying more than just the United States with Canadian oil and gas output is, however, providing sufficient incentive for producers to continue investing in their operations. This ongoing capital and operating spending is the primary driver for the Corporation and client indications are that spending is expected to start increasing in the latter part of 2013 and continue this growth trajectory for years to follow. Gemini has changed its market approach, and our client relationship-based business development has resulted in longer term service agreements, which has established a base of workload that is sustaining our operations through this period of slowdown. Cautious optimism at Gemini is generating the confidence to selectively invest in capacity enhancements and to augment our team with qualified personnel capable of servicing the growing number of key client opportunities. The Corporation will be prepared to successfully execute growth revenue opportunities as the market demand builds beginning later this year. Management will continue to assess market conditions and seek additional strategic investments to expand capacity and build capability as opportunities arise. Clients are seeking cost certainty and schedule compression to improve the effectiveness of their investments and these principles fit well with Gemini s design-build capabilities. The network of supply chain partners that the Corporation is establishing both in western Canada and outside of this region are helping to solidify the key client alliances that have been successfully secured. These business development efforts are establishing a foundation upon which the Corporation can continue to grow its business and increase profitability. Management is optimistic that the oil and gas industry activity will begin to build in the latter half of 2013, and the industry will continue to leverage a well-developed infrastructure to grow significantly for years to come. GEMINI CORPORATION 2013 Q1 REPORT /7

8 GEMINI CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited - Canadian Dollars) As at 2013 As at December 31, 2012 Notes ASSETS Current Assets Trade and other receivables 4 $ 22,733,248 $ 19,111,731 Income taxes receivable - 2,538 Inventory 361, ,903 Prepaid expenses 806, ,203 23,901,292 20,143,375 Property, plant and equipment 4,276,724 4,042,408 Deposits 123, ,358 Deferred tax assets 81,353 - Intangible assets 573, ,693 Goodwill 1,170,808 1,170,808 Investments 100,000-6,326,418 5,944,267 TOTAL ASSETS $ 30,227,710 $ 26,087,642 LIABILITIES Current Liabilities Bank overdraft 5 $ 5,345,246 $ 354,810 Trade and other payables 6,728,224 7,554,143 Unearned revenue 395,939 4,000 Current portion of finance lease liability 120, ,423 Income taxes payable 73,065-12,663,004 8,054,376 Deferred tax liability - 90,114 Finance lease liability 222, ,840 SHAREHOLDERS' EQUITY 12,885,265 8,398,330 Share capital 6 7,535,297 7,535,297 Warrants 1,390,097 1,390,097 Contributed surplus 2,399,275 2,376,299 Retained earnings 6,017,776 6,387,619 17,342,445 17,689,312 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 30,227,710 $ 26,087,642 See accompanying notes to the consolidated financial statements GEMINI CORPORATION 2013 Q1 REPORT /8

9 GEMINI CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME For the three months ended (Unaudited - Canadian Dollars) Three months ended Revenue $ 17,349,899 $ 20,183,970 Project Costs 14,906,472 16,787,948 Gross Profit 2,443,427 3,396,022 Administrative expenses 2,880,792 3,083,398 Income (loss) from operating activities (437,365) 312,624 Finance costs 28,341 62,895 Income (loss) before income taxes (465,706) 249,729 Tax expense (recovery) (95,863) 64,988 Net income (loss) and other comprehensive income $ (369,843) $ 184,741 Earnings per share Basic $ (0.007) $ Diluted $ (0.007) $ See accompanying notes to the consolidated financial statements GEMINI CORPORATION 2013 Q1 REPORT /9

10 GEMINI CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited - Canadian Dollars) Share Capital Warrants Contributed Surplus Retained Earnings Total Equity Balance, December 31, 2011 $5,230,345 $ - $2,236,465 $5,602,364 $13,069,174 Income for the period , ,741 Share based payments ,497-25,497 Balance, 2012 $5,230,345 $ - $2,261,962 $5,787,105 $13,279,412 Balance, December 31, 2012 $7,535,297 $1,390,097 $2,376,299 $6,387,619 $17,689,312 Income for the period (369,843) (369,843) Share based payments ,976-22,976 Balance, 2013 $7,535,297 $1,390,097 $2,399,275 $6,017,776 $17,342,445 GEMINI CORPORATION 2013 Q1 REPORT /10

11 GEMINI CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS For the three months ended (Unaudited - Canadian Dollars) Cash flows from operating activities: Three months ended Net income (loss) for the period $ (369,843) $184,741 Adjustments For: Depreciation and amortization 207, ,675 Share-based payments 22,976 25,497 Gain on sale of property, plant and equipment (12,593) - Finance costs 28,341 62,895 Tax expense (recovery) (95,863) 64,988 Changes in: (219,205) 538,796 Trade and other receivables (3,621,517) 388,211 Inventories - 50,076 Prepayments (138,938) (304,583) Trade and other payables (825,918) 1,016,269 Unearned revenue 391,939 (973,052) (4,194,434) 176,921 (4,413,639) 715,717 Interest paid (28,341) (62,895) Income taxes refunded - - Total Cash flows from operating activities (4,441,980) 652,822 Cash flows from financing activities: Increase (decrease) in bank overdraft 4,990,436 (453,160) Payment of finance lease liabilities (30,068) (28,104) Total Cash flows from financing activities 4,960,368 (481,264) Cash flows from investing activities Acquisition of property, plant and equipment (435,864) (207,789) Proceeds from disposal of property, plant and equipment 22,000 36,236 Investment in convertible debenture (100,000) - Other (4,524) - Total Cash flows from investing activities (518,388) (171,553) Total changes in cash flow - - Opening cash - - Net cash flow $ - $ - GEMINI CORPORATION 2013 Q1 REPORT /11

12 GEMINI CORPORATION NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS MARCH 31, 2013 (Unaudited) 1. REPORTING ENTITY Gemini Corporation ( the Corporation ) is a company domiciled in Canada and incorporated in Alberta with no controlling entity and conducts business through two limited partnerships, namely Gemini Field Solutions Limited Partnership and Gemini Engineered Solutions Limited Partnership. The Corporation is publicly listed on the TSX Venture Exchange under the symbol GKX. These unaudited condensed consolidated interim financial statements ( the Statements ) include the accounts of the Corporation and those of its wholly-owned subsidiaries presented in Canadian dollars. The Statements should be read in conjunction with the Corporation s consolidated financial statements for the year ended December 31, BASIS OF PREPARATION a) Statement of compliance The Statements have been prepared in accordance with IAS 34, Interim Financial Reporting, using the same accounting policies and methods as those used in the Corporation s December 31, 2012 financial statements. The Statements do not include all of the information required for full annual financial statements. The Statements were authorized for release by the Board of Directors on May 16, b) Basis of measurement The Statements have been prepared on the historical cost basis. c) Functional and presentation currency The Statements are presented in Canadian dollars, which is the functional currency for the Corporation and its related entities. d) Use of estimates and judgements The preparation of consolidated financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. The Corporation s practices regarding estimates and judgments remain unchanged from those set out in the consolidated financial statements for the year ended December 31, 2012 and they should be referred to in reviewing these Statements. e) Determination of fair values Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair value is disclosed in the notes specific to that asset or liability. The Statement of Financial Position carrying amounts for accounts receivable, bank indebtedness, accounts payable, and accrued liabilities approximate fair value due to their short-term nature. Due to the use of subjective judgements and uncertainties in the determination of fair values, these values should not be interpreted as being realizable in an immediate settlement of the financial instruments. Fair Value Hierarchy Financial instruments that are measured subsequent to initial recognition at fair value are grouped in Levels 1 to 3 based on the degree to which the fair value is observable: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 Inputs that are not based on observable market data. The Corporation did not have any financial instruments in Level 2 or 3. GEMINI CORPORATION 2013 Q1 REPORT /12

13 GEMINI CORPORATION NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS MARCH 31, 2013 (Unaudited) 3. SIGNIFICANT ACCOUNTING POLICIES a) Basis of presentation The accounting policies set out in the Corporation s consolidated financial statements for the year ended December 31, 2012 remain unchanged and should be referred to in reviewing these Statements. b) Basis of consolidation Subsidiaries are entities controlled by the Corporation. The financial statements of subsidiaries are included in these Statements from the date that control commences to the date that control ceases. The accounting policies of subsidiaries are the same as those of the Corporation. Intercompany balances and transactions, and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the Statements. c) New standards, amendments and interpretations Effective January 1, 2013, the Corporation adopted the following accounting standards or revisions thereto: IFRS 7: Financial Instruments Disclosures IFRS 10: Consolidated Financial Statements IFRS 11: Joint Arrangements IFRS 12: Disclosure of Interests in Other Entities IFRS 13: Fair Value Measurement On adoption, these standards had no impact on the recognition or measurement of the balances recorded in the Corporation s financial statements. 4. TRADE AND OTHER RECEIVABLES 2013 December 31, 2012 Trade receivables $ 21,092,773 $ 17,029,161 Other receivables 446, ,322 21,539,742 17,926,483 Construction in progress 1,193,506 1,185,248 $ 22,733,248 $ 19,111,731 At 2013 aggregate costs incurred under construction contracts in progress plus recognized profits, net of recognized losses, amounted to $19,020,178 (December 31, $22,145,965). In addition, trade receivables included retainage of $1,681,206 ( $1,140,411) related to construction contracts in progress. GEMINI CORPORATION 2013 Q1 REPORT /13

14 GEMINI CORPORATION NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS MARCH 31, 2013 (Unaudited) The aging of trade and other receivables at the reporting date that were not impaired was as follows: 2013 December 31, 2012 Current $ 14,222,941 $ 13,251, days 4,805,389 3,021, days 88,467 83,543 Greater than 90 days 1,975, ,597 21,092,773 17,029,161 Construction in progress and other receivables 1,640,475 2,082,570 $ 22,733,248 $ 19,111,731 The Corporation assesses each account on an individual basis to determine whether any allowance for impairment is required. All accounts have been assessed as collectible and therefore no allowance for doubtful accounts has been recognized. 5. LOANS and BORROWINGS The Corporation has a revolving overdraft credit facility for up to a maximum of $10,000,000. This facility is subject to certain financial covenants and bears interest at bank prime plus 1.5% per annum. This credit facility is secured by a general security agreement over all present and future acquired assets, a general assignment of accounts receivable and book debts, cross guarantees between the Corporation and each of its subsidiaries, and a collateral mortgage on its Ponoka property. At 2013, an amount of $9,703,000 under this facility was accessible, of which $5,345,246 was drawn (December 31, $10,000,000 accessible and $354,810 drawn). 6. SHARE CAPITAL (a) Authorized: Unlimited number of voting common shares. Unlimited number of non-voting preferred shares, issuable in one or more series. The Board of Directors is authorized to fix the number of shares in each series and to determine the designation, rights, privileges and conditions attached to the shares. (b) Issued and outstanding: 2013 December 31, 2012 Quantity Amount Quantity Amount Common Shares Balance, beginning of the period 54,780,274 $ 7,535,297 35,000,274 $ 5,230,345 Common shares issued ,780,000 2,560,303 Share issue costs (net of tax) (255,351) Total share capital, end of the period 54,780,274 $ 7,535,297 54,780,274 $ 7,535, OPERATING SEGMENTS The Corporation has two reportable segments based upon the markets they supply: Field Solutions and Engineered Solutions. Field Solutions services a variety of clients in various industry sectors through the delivery of fabrication, installation, and maintenance services. Engineered Solutions provides engineering, procurement and construction management services to a similar client base. Selected information regarding the results of each reportable segment is included below. GEMINI CORPORATION 2013 Q1 REPORT /14

15 GEMINI CORPORATION NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS MARCH 31, 2013 (Unaudited) For the Three Months Ended Engineered Field ($'000) Solutions Solutions Corporate Total Revenue $ 6,108 $ 6,346 $ 11,242 $ 13,838 $ - $ - $ 17,350 $ 20,184 Gross profit 1,660 1, , ,443 3,396 Administrative expenses 1,660 1,742 1,403 1,139 (182) 202 2,881 3,083 Finance costs (60) (10) Income (loss) before income taxes (16) 86 (695) (187) (466) 250 Net income (loss) $ (12) $ 65 $ (521) $ 263 $ 163 $ (143) $ (370) $ 185 Assets excluding goodwill $ 6,037 $ 7,454 $ 17,461 $ 14,279 $ 5,559 $ 5,454 $ 29,057 $ 27,187 Goodwill $ 320 $ 320 $ 851 $ 851 $ - $ - $ 1,171 $ 1,171 Approximately 92% of the Corporation s year to date revenue was earned through services provided to eight clients (December 31, % from eight clients). There were three clients that each accounted for more than 10% of revenue. GEMINI CORPORATION 2013 Q1 REPORT /15

16 400, Avenue SW Calgary, Alberta T2P 3C8 T: F: