The workout asks us to calculate operating profit, EBIT and EBITDA in all periods It also says assume "foreign exchange (loss) or gain net" in this case is non operational So we'll have to make a mental note of that, come back to it later If you want to pause the recording and have a go at this yourself, please do now and then come back for the debrief So we start by going to the income statement, looking for operating profit. And we can see an operating loss line of 1643, so that's our starting point Our process then says look above this line for any non-recurring items I can see cost of sales, that's fine. Sales and marketing, fine, general and admin, research and development Acquisition related items? So that's my first question mark Acquisition related items, these sound like one offs, acquisitions of subsidiaries for instance Amortization? That sounds fine. Goodwill impairment? If we're impairing goodwill then that's a one-off extraordinary loss of value So I think the two items that we need to add back here are the acquisition related items and the goodwill impairments to the operating loss So if we scroll down We can see I've already started my answer, operating loss as reported and I add on those two items If I take the operating loss and add them back, what I've got you is EBIT And next to that I can now see that I have summed up. So operating loss, add back the acquisition related items gets me to EBIT Now the next item that I just wanted to check while we're here Is I need to look below the operating profit or loss line to see if there are any items that I think should be operating, they should be above, they should have been included. And I see an other expense income line Let's investigate I can see it includes, interest expense It's probably ok, EBIT is always before interest Foreign exchange loss or gain? Well the question did tell us that that's non operational, so that's okay But I also see change in fair value of warrant liabilities and other income. I want to investigate these, so let's go down to the footnote and see if we can find out any other information So here's our footnote for other expense income and it tells me that other expense income consists of "change in fair value of the warrants issued in connection with the securities purchase agreements entered into by the company" Security purchase agreements? Unless that is what the company does, its core businesses buying securities I don't think that is part of its operations. So we're safe to exclude that from operating profit What about the other items? Well if we look a bit further down, other expense was 0.8 million in fiscal 2015 compared to 2014 The decrease in other expense of 0.5 is primarily due to the change in the fair value of the warrant liabilities So the other expense again seems to be due to these warrants Probably to do with a security purchase agreements So if we go back up to the income statement and if we have a look at the other expense income, Interest expense? Didn't need to worry about Foreign exchange? We do not need to worry about Change in fair value of warrant liabilities? We've looked at the footnotes and we don't to worry and other income? Again, don't need to worry So I am happy with that EBIT figure that we've got to down here I now need to go from EBIT to EBITDA It's very small but we do have a cash flow statement extract given to us here and depreciation and amortization is there in 2015, that's 2050 We're going to add that on to the EBIT and that will get us our EBITDA So final EBITDA, if we look at the 2015 figure, is now 407