The Company entered into the following two separate transactions in fiscal year 2015, which will impact its results as presented in the statement of cash flows, which Formula Corp. prepares under the indirect method.

1. To meet its need for additional EAs in fiscal years 2015 to 2019, on April 2, 2015 Formula Corp. spent $3 million to purchase EAs with a vintage year of 2017 from Earth Friendly Products (a green products manufacturer).
2. InanefforttooffsetthecostsoftheApril2,2015purchaseof2017EAs,theCompany sold EAs with a vintage year of 2021 to Clorox Corp. for $2 million.