The Company today is filing an 8-K that will include additional information onits business and operations. Prior to that, she was vice president, services and support forMezzia, Inc., a company that provides software and services to managecapital planning and spending for healthcare providers. In consideration for this right, Columbia has agreed to escrow anyproceeds from the sale of assets outside the ordinary course of business inexcess of $15.0 million for the remaining term of the royalty agreement, and togrant PharmaBio a warrant, exercisable for five years, to purchase 900,000shares of Columbia`s common stock at $1.15 per share. The balance of the minimum royalty payment, due November30, 2010, is estimated to be approximately $16.4 million. This importanttrial has the potential, if the results are positive, to deliver significantreturns for Columbia and its shareholders. GAAP.(4) Management uses ROIC as a measure to assess the effectiveness of theinvested capital it uses to build products or provide services to itscustomers. A ROIC metric encompasses operating margin, workingcapital management and asset utilization.
ROIC is calculated bydividing EBIAT by average net invested capital. Net invested capitalconsists of total assets less cash, accounts payable, accruedliabilities and income taxes payable. The term ROIC does not have anystandardized meaning prescribed by Canadian or U.S. GAAP and istherefore unlikely to be comparable to similar measures presented byother companies ROIC is not a measure of performance under Canadianor U.S. GAAP and should not be considered in isolation or as asubstitute for any standardized measure.(5) Management uses free cash flow as a measure to assess cash flowperformance.
Free cash flow is calculated as cash generated fromoperations less capital expenditures (net of proceeds from the saleof surplus property and equipment). The term free cash flow does nothave any standardized meaning prescribed by Canadian or U.S. GAAP andis therefore unlikely to be comparable to similar measures presentedby other companies. Free cash flow is not a measure of performanceunder Canadian or U.S.