According to the agreements signed

According to the agreements signed with the local farmers in June 2011, the sales price will be collected over five years, with a minimum payment of 20% of thesales price to be paid each year. The related receivable is recorded at its present value at a discount rate of 12%, which is commensurate with interest rates for noteswith similar risk. The Company also entered into agreements with these local farmers for a 30% commission of their monthly milk sales generated by the cowssold in exchange for the Company’s assistance in arranging for the sale of the milk.Pursuant to the agreements signed in August 2011, September 2011, November 2014, and December 2014, the sales price will be collected in monthly installmentsplus interest at 7% on the outstanding balance, over the remaining useful lives of the cows, which range from one to eight years. Local farmers are required to pay30% of monthly milk sales generated from the cows purchased by the farmers. The 30% monthly payments are to be applied first to the monthly installment ofprincipal for the cows sold and the balance as commission income for the Company’s assistance in arranging for the sale of the milk. The 30% monthly paymentswill continue over the entire remaining life of the cows sold. While the 30% rate and the amount applied to monthly installments for the purchase price of the cowsremain the same, the amount of sales commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchaseprice.