IVIEIHCIFEIKE Pnarmaceuucal Ltu. Mandrake Pharmaceutical Ltd. {MPL} is a biotech company that is involved in research and commercialization of products to treat a variety of human diseases and to boost human health. The company issued an IPO in the current year, and is traded on the Toronto Stock Exchange under the ticker MPL. The company also has bonds issued in the public market, which are currently yielding 8%. Given the recent market volatility and global economic conditions. the share price of MPL has been under signi- cant pressure. During its rst year on the TSX, MPL's stock price has performed as follows: The stock price peaked at around $6.50 per share but has steadily declined since the company announced second- quarter earnings that missed analysts' expectations. Third-quarter earnings met analysts' expectations; however. this did not prove to be a catalyst for share price appreciation. Shareholders were upset with the weak IPO issuing and are again becoming restless with the slumping share price. Shareholders are looking for management to generate shareholder wealth and there have been rumblings that a shareholder activist group is looking to change top management at the upcoming annual meeting. The low share price has also led to speculation that MPL will be taken over by a larger biotech company through a hostile bid. The CFO is now preparing the annual nancial statements 'for the year ended December 31, 2020, and considering the following transactions during the most recent quarter: 0 MPL recently attracted two new researchers to the company. The researchers were paid an upfront signing bonus of $350,000 each. The researchers come from a larger company and have a proven track record of developing protable products. For example. the researchers recently developed (in their previous employment) a highly protable testing procedure that detects early stages of prostate cancer. The procedure is estimated to generate in excess of $5 million in discounted cash ows. The researchers must work for MPL for a minimum of three years, or else the bonus must be repaid. 0 MPL purchased a patented pharmaceutical drug for $3.4 million from a smaller company that does not have the resources to commercialize the product. The product treats kidney disease and is named Blocsz. Generally, drug patents last for 20 years. However, the patent was applied for three years ago when clinical trials began. The product has been recently approved by both Health Canada and the U.S. Food and Drug Administration (FDA), and will be available to the market next year. Blocsz is expected to earn the following net cash ows: Fiscal 2021$1.250,000 Fiscal 2020$750.000 Fiscal 2023$750.000 Fiscal 2023$750,000 0 Fiscal 2025$750.000 0 Fiscal 2026$750,000 ' Fiscal 2027$750,000 ' Fiscal 2028$750,000 During the most recent quarter, MPL had a breakthrough in its research and development of a new protein supplement called Protein}. Protein2successfully merges the benets of whey and casein proteins in an ultra absorptive formula. The following costs were incurred on the project during the past quarter