5. IMPAIRMENT LOSSES
On October 31, 2013, the Company assessed its investment in New World and the related loan receivable it had with New World. As the Company could not project any future cash flows from New World, it determined the investment and loan receivable were impaired. Therefore, the Company recorded an impairment loss on the investment of $4,959,833 and an impairment loss on the loan receivable of $60,000.