20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 20-F

¨	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended September 30, 2013
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _____________ to _____________.
OR
¨	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	Date of event requiring this shell company report _________________
Commission file number 001-34760

THE CASH STORE FINANCIAL SERVICES INC.

(Exact name of Registrant as specified in its charter)

ONTARIO, CANADA

(Jurisdiction of incorporation or organization)

15511-123 Avenue

Edmonton, Alberta Canada T5V 0C3

(Address of principal executive offices)

Contact: Craig Warnock

15511-123 Avenue

Edmonton, Alberta Canada T5V 0C3

(780) 408-5110

Craig.Warnock@csfinancial.ca

(Name, telephone, e-mail and/or facsimile number and address of Company contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of Each Class	Name of each exchange on which registered
Common shares, no par value	New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None

Number of outstanding shares of The Cash Store Financial Services Inc.’s only class of issued capital stock as at September 30, 2013: 17,571,813 Common Shares Without Par Value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ¨     No þ

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ¨     No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ     No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Yes þ      No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

Large Accelerated Filer ¨ Accelerated Filer ¨ Non-Accelerated Filer þ

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP	þ
International Financial Reporting Standards as issued by the International Accounting Standards Board	¨
Other	¨

If other has been checked in response to the previous question, indicate by check mark which financial statement item Registrant has elected to follow:

Item 17      ¨                         Item 18 ¨

If this report is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨No þ

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

NOT APPLICABLE

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

In order to help our investors understand our current results and future prospects, The Cash Store Financial Services Inc.’s (“Cash Store Financial” or “the Company”) Form 20-F for the fiscal year 2013 includes “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States federal securities legislation. Management refers to these types of statements collectively, as “forward-looking information.” Forward-looking information includes, but is not limited to, information with respect to our objectives, strategies, operations and financial results, competition as well initiatives to grow revenue or reduce retention payments.

Forward-looking information can generally be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases. They may also be identified by statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied. These risks and uncertainties may include (but are not limited to) changes in economic and political conditions, legislative or regulatory developments, technological developments, third party arrangements, competition, litigation, market conditions, the availability of alternative transactions, shareholder, legal, regulatory and court approvals and third party consents and other factors described under the heading "Risk Factors".

Management has attempted to identify the important factors that could cause actual results to differ materially from those contained in forward-looking information, but other factors unknown to us at the time of writing could cause results to vary. There can be no assurance that forward-looking information will prove to be accurate. Actual results could differ materially. Management cautions readers not to place undue reliance on forward-looking information. Unless required by law, the Company does not undertake to update any forward-looking information.

NOTE

Cash Store Financial is a Canadian corporation and is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. operates in the United States under the name “Cash Store”. Cash Store Financial does not conduct business under the name “Cash Store” in the United States and does not own or provide any consumer lending services in the United States.

TABLE OF CONTENTS  

ITEM 1.	IDENTITY OF BOARD OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS	1
ITEM 2.	OFFER STATISTICS AND EXPECTED TIMETABLE	1
ITEM 3.	KEY INFORMATION	1
A.	Selected Financial Data	1
B.	Capitalization and Indebtedness	3
C.	Reasons for the Offer and Use of Proceeds	3
D.	Risk Factors	3
ITEM 4.	INFORMATION ON THE COMPANY	14
A.	History and Development of the Company	14
B.	Business Overview	14
C.	Organizational Structure	19
D.	Property, Plant and Equipment	19
ITEM 4A.	UNRESOLVED STAFF COMMENTS	19
ITEM 5.	OPERATING AND FINANCIAL REVIEW AND PROSPECTS	19
A.	Operating Results	20
B.	Liquidity and Capital Resources	24
C.	Research and Development, Patents and Licenses	28
D.	Trend information	28
E.	Off-balance sheet arrangements	29
F.	Tabular disclosure of contractual obligations	30
G.	Safe Harbor	30
ITEM 6.	BOARD OF DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES	30
A.	Board of Directors and Senior Management	30
B.	Compensation	33
C.	Board of Director Practices	40
D.	Employees	44
E.	Share Ownership	44
ITEM 7.	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS	47
A.	Major Shareholders	47
B.	Related Party Transactions	48
C.	Interests of Experts and Counsel	48
ITEM 8.	FINANCIAL INFORMATION	48
A.	Consolidated Statements and Other Financial Information	48
B.	Significant Changes	48
ITEM 9.	LISTING	49
A.	Offer and listing details.	49
B.	Plan of distribution.	50
C.	Markets	50
D.	Selling Shareholder	50
E.	Dilution	50
F.	Expenses of the Issue	50

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ITEM 10.	ADDITIONAL INFORMATION	50
A.	Share Capital	50
B.	Memorandum and Articles of Association	50
C.	Material Contracts	55
D.	Exchange Controls	55
E.	Taxation	55
F.	Dividends and Paying Agents	60
G.	Statement by Experts	60
H.	Documents on Display	60
I.	Subsidiary Information	60
ITEM 11.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	60
ITEM 12.	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES	60
ITEM 13.	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	60
ITEM 14.	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	60
ITEM 15.	CONTROLS AND PROCEDURES	61
ITEM 16A.	AUDIT COMMITTEE FINANCIAL EXPERT	62
ITEM 16B.	CODE OF ETHICS	62
ITEM 16C.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	62
ITEM 16D.	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	63
ITEM 16E.	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS	63
ITEM 16F.	CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT	63
ITEM 16G.	CORPORATE GOVERNANCE	63
ITEM 17.	FINANCIAL STATEMENTS	63
ITEM 18.	FINANCIAL STATEMENTS	63
ITEM 19.	EXHIBITS	64

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PART 1

ITEM 1. IDENTITY OF BOARD OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

(a) Board of Directors and Senior Management

This Form 20-F is being filed as an annual report under the Securities Exchange Act of 1934, as amended, and as such, there is no requirement to provide any information under this item.

(b) Advisors

This Form 20-F is being filed as an annual report under the Securities Exchange Act of 1934, as amended, and as such, there is no requirement to provide any information under this item.

(c) Auditor

This Form 20-F is being filed as an annual report under the Securities Exchange Act of 1934, as amended, and as such, there is no requirement to provide any information under this item.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. Selected Financial Data

	Years Ended
(In thousands of Canadian Dollars, except share and per share data)	June 30 2009		Sept 30 2010 (1)		Sept 30 2011		Sept 30 2012			Sept 30 2013
REVENUE
Loan fees	$	122,572	$	170,659	$	136,623	$	137,994		$	152,430
Other income	27,933		49,859		53,276		49,418			38,335
	150,505		220,518		189,899		187,412			190,765
OPERATING EXPENSES
Salaries and benefits	46,721		72,049		67,017		65,944			58,653
Provision for loan losses	49		788		2,559		31,004			36,607
Retention payments	17,988		28,167		26,786		9,968			11,659
Selling, general and administrative	19,414		25,020		24,109		23,595			20,449
Rent	11,372		18,026		18,427		18,940			18,581
Advertising and promotion	3,894		5,607		5,941		5,180			6,307
Depreciation of property and equipment	4,679		7,006		6,803		6,843			6,366
	104,117		156,663		151,642		161,474			158,622
OPERATING MARGIN	46,388		63,855		38,257		25,938			32,143
CORPORATE AND OTHER EXPENSES
Corporate expenses	16,625		21,124		18,641		22,684			38,142
Interest expense	—		—		616		12,339			18,583
Depreciation of property and equipment	1,149		1,132		1,146		835			1,794
Amortization of intangible assets	185		923		965		5,138			7,517
Branch closure costs	—		—		—		1,574			123
Impairment of property and equipment	—		—		—		3,425			1,236
Premium paid to acquire the loan portfolio	—		—		—		36,820			—
Class action settlements	6,910		11,685							—
INCOME (LOSS) BEFORE INCOME TAXES	21,519		28,991		16,889		(56,877		)	(35,252		)

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	Years Ended
(In thousands of Canadian Dollars, except share and per share data)	June 30 2009		Sept 30 2010 (1)			Sept 30 2011			Sept 30 2012			Sept 30 2013
PROVISION FOR INCOME TAXES
Current (recovery)	4,407		11,196			6,157			(3,571		)	(12,429		)
Deferred (recovery)	2,465		(2,068		)	153			(9,784		)	12,709
	6,872		9,128			6,310			(13,355		)	280
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)	$	14,647	$	19,863		$	10,579		$	(43,522	)	$	(35,532	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	17,957,710		16,913,213			17,259			17,432			17,564
Diluted	18,039,976		17,522,246			17,663			17,432			17,564
BASIC EARNINGS (LOSS) PER SHARE
Net income (loss) and comprehensive income (loss)	$	0.82	$	1.17		$	0.61		$	(2.50	)	$	(2.02	)
DILUTED EARNINGS (LOSS) PER SHARE
Net income (loss) and comprehensive income (loss)	$	0.81	$	1.13		$	0.60		$	(2.50	)	$	(2.02	)
CONSOLIDATED BALANCE SHEET INFORMATION (as of end of period)
Working Capital	$	9,667	$	8,379		$	11		$	58,720		$	35,564
Total Assets	83,796		116,414			123,291			202,444			164,585
Total Debt	1,029		994			(3,258		)	129,641			130,623
Total Shareholders’ Equity	2,959		9,882			9,082			137,375			137,161

(1) In 2010, the Company changed its fiscal year end from June 30 to September 30. The fiscal year end change resulted in a 15-month reporting period from July 1, 2009 to September 30, 2010.

Exchange rate information

The following table sets forth, for the periods and dates indicated, certain information concerning U.S. dollar/Canadian dollar exchange rates expressed in $1.00. On November 30, 2013, the interbank rate between US dollars and Canadian dollars as reported by the Bank of Canada was US$1.0599/CAD$1.00.

Year ended December 31:	High	Low	Year end	Average (1)
2008 (2)	0.7711	1.0289	0.8166	0.9381
2009 (2)	0.7692	0.9716	0.9555	0.8757
2010 (2)	0.9278	1.0054	1.0054	0.9710
2011 (2)	0.9430	1.0583	0.9833	1.0110
2012 (2)	0.9599	1.0299	1.0051	1.0004
2013 (3)	0.9839	1.0599	1.0599	1.0270

(1) The average rate of exchange on the last business day of each month during the year. Expressed in USD/CAD.

(2) Based on the noon buying rate in New York City for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York.

(3) Through to November 30, 2013.

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Exchange rate information for the months of (1)	High	Low
June 2013	1.0518	0.9508
July 2013	1.0432	1.0375
August 2013	1.0432	1.0385
September 2013	1.0363	1.0322
October 2013	1.0384	1.0345
November 2013	1.0415	1.0599

(1) The average rate of exchange on the last business day of each month during the year.  Expressed in USD/CAD.

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

The following is a brief discussion of those distinctive or special characteristics of Cash Store Financial’s operations and industry which may have a material impact on Cash Store Financial’s financial performance.

Readers should carefully consider the risks and uncertainties described below before deciding whether to invest in shares of the Company’s common stock.

Regulatory Environment

Consumer Lending Regulations

The Company’s business is subject to federal, provincial and foreign laws and regulations in Canada and the UK. These regulations may change at any time and may impose significant limitations on the way the Company conducts or expands its business. These regulations govern lending and collection practices and, in some cases, allowable interest rates and rate caps.

As the Company introduces new products and services, it may become subject to additional laws and regulations. Future legislation or regulations may restrict the Company’s ability to operate the way it does today or its ability to expand operations and may have a negative effect on the Company’s business, results of operations and financial condition. Governments at the national and local levels may seek to impose new licensing requirements or interpret or enforce existing requirements in new ways. The Company is currently, and may in the future be, subject to litigation and regulatory proceedings which could generate adverse publicity or cause the Company to incur substantial expenditures or modify the way the Company conducts its business. Changes in laws or regulations, or a failure to comply with applicable laws and regulations, may have a material adverse effect on the business, prospects, results of operations, and financial condition of the Company.

In May 2007, the Canadian federal government enacted a bill clarifying that the providers of certain payday loans were not governed by the criminal interest rate provisions of the Criminal Code of Canada (the “Criminal Code”), granting lenders (other than most federally-regulated financial institutions) an exemption from the criminal interest rate provisions of the Criminal Code if their loans fell within certain dollar amount and time frame maximums. In order for payday loan companies to rely on the exemption, provincial governments are required to enact legislation, subject to approval by the federal government that includes a licensing regime for payday lenders, measures to protect consumers and maximum allowable limits on the total cost of borrowing.

In Canada, the provinces that have enacted specific payday loans legislation pursuant to this federal exemption are British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Nova Scotia.

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Ontario

In keeping with the Company's product growth strategic objective, on February 1, 2013 the Company launched its suite of line of credit products in Ontario, and payday loans are no longer being offered in that province. Effective July 4, 2013, the Company allowed its payday loan licenses to expire in Ontario.

With respect to the new line of credit offerings, on April 29, 2013 the Company filed an application in Ontario courts seeking a declaration that the Basic line of credit was not subject to the Payday Loans Act.

On February 4, 2013, the Registrar for payday loans in Ontario issued a proposal to revoke the payday lending licenses of the Cash Store Inc. and Instaloans Inc. Sections 13(2) and 14(1) of the Payday Loans Act provide that licensees are entitled to a hearing before the License Appeal Tribunal in respect of the Registrar’s proposal. The Company filed an Appeal with the License Appeal Tribunal on February 19, 2013, however, as the Company allowed its payday licenses to expire in Ontario effective July 4, 2013, this appeal was withdrawn effective August 15, 2013.

Previous to the February 4, 2013 proposal of the Registrar for payday loans, the Company submitted an application for judicial review in the Ontario Courts, seeking a declaration that certain provisions of the regulations made under the Ontario Payday Loans Act are void and unenforceable. This application was heard on October 2, 2013. On November 5, 2013, the Court dismissed the application. On November 22, 2013 the Company filed a Notice of Motion for leave to Appeal.

On June 7, 2013, the Ontario Ministry of Consumer Services filed an application in Ontario courts seeking a declaration that the Basic Line of Credit is subject to the Payday Loans Act and that the Company must obtain a broker license to offer this product. This application was heard on November 29, 2013 and a decision has not yet been rendered. Concurrently, the Ontario Ministry of Consumer Services has proposed amended regulations which may capture the lines of credit under the existing Payday Loans Act and may require the Company to re-apply for licenses to continue to offer the products. The new regulations do not propose a rate cap for the lines of credit. The regulator is currently considering industry feedback on the proposed amendments and the content and timing of such amended regulations is not yet known.

The Company remains committed to maintaining ongoing dialogue with the Ontario Ministry of Consumer Services with respect to its concerns. The Company maintains that its operations in Ontario are in compliance with all applicable laws.

British Columbia

On March 23, 2012, the Company was issued a compliance order (the “Order”) and administrative penalty from Consumer Protection BC. The Order directs the Company to refund to all borrowers with loan agreements negotiated with the Company or its subsidiaries between November 1, 2009 and the date of the order, the amount of any issuance fee charged, required or accepted for or in relation to the issuance of a cash card. The Order also directed the Company to pay an administrative penalty of $25in addition to costs. On November 30, 2012, Consumer Protection BC issued a supplementary compliance order directing that unclaimed refund amounts, to a maximum of $1.1 million be deposited into a consumer protection fund. On December 14, 2012, the Company filed a Petition for Judicial Review in the British Columbia Supreme Court seeking an order quashing or setting aside the Order and Supplemental Order, and seeking declarations that it had not contravened sections 112.04(1)(f) of the Business Practices and Consumer Protection Act, or section 17 and 19 of the Payday Loan Regulation. The Petition was heard by the Court on June 26, 27, and 28, 2013. A decision has not yet been released. The estimated exposure with respect to this order is between $248,000and $1.1 millionincluding penalties, legal costs and additional costs. The balance of the accrued liability related to this order as at September 30, 2013 is $187 (2012 - $248).

United Kingdom

In April of 2014 the Financial Conduct Authority ("FCA") will assume responsibility for regulating the payday loans sector. The FCA has proposed new payday lender measures that will include limiting to two the number of loan rollovers and the number of times that lenders can access a borrower’s bank account for payment, both of which have an implementation date of July 1, 2014. The FCA will also require a borrower affordability assessment before payday lenders can extend a loan and will require that lenders include clear risk warnings on advertisements. In addition, the FCA plans to put in place dedicated supervision and enforcement teams. The FCA opened its proposed rules for comment and is expected to publish final guidance in February 2014.

On November 25, 2013, legislators in the UK announced that a rate cap setting power for payday loans will be included through amendments to the Banking Reform Bill which is currently before the House of Lords. It has been reported that the

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rate cap will be set by the FCA and address the total cost of borrowing. The Banking Reform Bill is expected to receive final reading on December 9, 2013 and rate caps are expected to come into force during 2015. 

NYSE Listing Standards

On April 2, 2013, the Company received notice from the New York Stock Exchange (“NYSE”) that it is not in compliance with certain NYSE standards for continued listing of its common shares. Specifically, the Company is below the NYSE’s continued listing criteria because its average total market capitalization over a recent 30 consecutive trading day period was less than $50 million at the same time that reported shareholders’ equity was less than $50 million. Under the NYSE’s continued listing criteria, a NYSE listed company must maintain average market capitalization of not less than $50 million over a 30 consecutive trading day period or reported shareholders’ equity of not less than $50 million.

The Company submitted a plan to the NYSE demonstrating its ability to achieve compliance with the listing standards within 18 months of receiving the notice. On August 29, 2013, the Company was notified that the NYSE accepted the Company's plan to achieve compliance within 18 months of receipt of the April 2, 2013 letter.

During such 18-month period, the Company’s common shares will continue to be listed and traded on the NYSE, subject to quarterly progress reviews by the NYSE and compliance with other NYSE continued listing standards.

The NYSE plan of compliance does not impact the Company’s listing on the Toronto Stock Exchange (“TSX”) and the Company’s common shares will continue to be listed and traded on the TSX, subject to compliance with TSX listing standards.

Legal Proceedings

The Company is subject to various asserted and unasserted claims during the course of business of which the outcome of many of these matters is currently not determinable. Due to the uncertainty surrounding the litigation process, unless otherwise stated below, the Company is unable to reasonably estimate the range of loss, if any, in connection with the asserted and unasserted legal actions against it. The Company believes that it has conducted business in accordance with applicable laws and is defending each claim vigorously. In addition to the litigation and claims discussed below, the Company is involved in routine litigation and administrative proceedings arising in the normal course of business.

The resolution of any current or future legal proceeding could cause the Company to have to refund fees and/or interest collected, refund the principal amount of advances, pay damages or other monetary penalties and/or modify or terminate operations in particular jurisdictions. The Company may also be subject to adverse publicity. Defense of any legal proceedings, even if successful, requires substantial time and attention of senior officers and other management personnel that would otherwise be spent on other aspects of the business and requires the expenditure of significant amounts for legal fees and other related costs. Settlement of lawsuits may also result in significant payments and modifications to operations. Any of these events could have a material adverse effect on business, prospects, results of operations and financial condition of the Company.

Class proceedings related to consumer lending activities

British Columbia - March 5, 2004 Claim

On March 5, 2004, an action under the Class Proceedings Act was commenced in the Supreme Court of British Columbia by Andrew Bodnar and others proposing that a class action be certified on his own behalf and on behalf of all persons who have borrowed money from the defendants, The Cash Store Financial and All Trans Credit Union Ltd. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code of Canada (the “Code”). On May 25, 2006, the claim in British Columbia was affirmed as a certified class proceeding of Canada by the British Columbia Court of Appeal. In fiscal 2007, the plaintiffs in the British Columbia action brought forward an application to have certain of the Company’s customers’ third-party lenders added to the claim. On March 18, 2008, another action commenced in the Supreme Court of British Columbia by David Wournell and others against The Cash Store Financial, Instaloans Inc., and others in respect of the business carried out under the name Instaloans since April 2005. Collectively, the above actions are referred to as the “British Columbia Related Actions”.

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On May 12, 2009, the Company settled the British Columbia Related Actions in principle and on February 28, 2010 the settlement was approved by the Court. Under the terms of the court approved settlement, the Company was to pay to the eligible class members who were advanced funds under a loan agreement and who repaid the payday loan plus brokerage fees and interest in full, or who met certain other eligibility criteria, a maximum estimated amount including legal expenses of$18.8 million, consisting of $9.4 millionin cash and$9.4 millionin credit vouchers. The credit vouchers can be used to pay existing outstanding brokerage fees and interest, to pay a portion of brokerage fees and interest which may arise in the future through new loans advanced, or can be redeemed for cash from January 1, 2014 to June 30, 2014. The credit vouchers are not transferable and have no expiry date. After approved legal expenses of $6.4 millionwere paid in March 2010, the balance of the settlement amount remaining to be disbursed was $12.4 million, consisting of $6.2 millionof cash and $6.2 million of vouchers.

By September 30, 2010, the Company received approximately 6,300individual claims representing total valid claims in excess of the settlement fund. As the valid claims exceed the balance of the remaining settlement fund, under the terms of the settlement agreement, the entire settlement fund of$12.4 millionwas mailed to claimants in November 2012 in the form of cash and vouchers on a pro-rata basis. As at September 30, 2013, $5.1 million of the $6.1 million cheques issued had been cashed and $0.6 million of vouchers had been redeemed.

In arriving at the liability recorded at the balance sheet date, the voucher portion of the settlement fund of$6.2 millionhas been discounted using a discount rate of 16.2%. During the year endedSeptember 30, 2013, the Company recorded accretion expense of$0.9 million ($0.7 million in the year ended September 30, 2012 and $0.6 million in the year ended September 30, 2011) in interest expense. The total liability related to the settlement atSeptember 30, 2013 is $6.2 million (September 30, 2012- $11.3 million).

British Columbia - September 11, 2012 Claim

On September 11, 2012, an action under the British Columbia Class Proceedings Act was commenced in the Supreme Court of British Columbia by Roberta Stewart against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. claiming on behalf of the plaintiff and class members who, on or after November 1, 2009 borrowed a loan from the Company in British Columbia, and that the Company charged, required or accepted an amount that is in excess of 23% of the amount loaned of the principal which is contrary to s. 17(1) of the Payday Loans Regulation and s. 112.02(2) of the Business Practices Consumer Protection Act (“BPCPA”) and charged, required or accepted an amount in relation to each cash card issued to a class member which is contrary to s. 112.04(1)(f) of the BPCPA; made the provision of each payday loan contingent on class members purchasing a cash card and services related thereto, contrary to s. 19(1) of the Payday Loans Regulation and s. 112.08(1)(m) of the BPCPA; and discounted the amount in the payday loan agreement to be the loan amount borrowed, by deducting and withholding from the loan advance an amount representing a portion of the total costs of credit, contrary to s.112.08(1)(e) of the BPCPA.

The Class members seek an order, pursuant to s.112.10(2) and s. 172(3)(a) of the BPCPA, requiring that the Company refund all monies paid in excess of the Loan principal of each payday loan, including the Cash Card Fee Amounts, the Loan Fees, and any other fees or charges collected by the Company in relation to the payday loan, damages for conspiracy, and interest pursuant to the Court Order Interest Act at the rate of 30% compounded annually, as set out in the payday loan agreements or such other rate as the Court considers appropriate.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Alberta - January 19, 2010 Claim

A statement of claim was served in Alberta by Shaynee Tschritter and Lynn Armstrong alleging that the Company was in breach of s. 347 of the Code (the interest rate provision) and certain provincial consumer protection statutes.

On January 19, 2010, the plaintiffs in the Alberta action brought forward an application to have a related subsidiary, as well as certain of the Company's customers’ third-party lenders, directors and officers added to the claim.

The Company agreed to a motion to certify the class proceeding if the third party lenders, officers and directors were removed as defendants. Class counsel agreed to the Company’s proposal. Consequently, the certification motion was granted in November of 2011.

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The Company believes that it conducted its business in accordance with applicable laws and is defending the action vigorously. The likelihood of loss, if any, is not determinable at this time.

Alberta - September 18, 2012 Claim

On September 18, 2012, an action under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Kostas Efthimiou against The Cash Store Inc., Instaloans Inc., and The Cash Store Financial Services Inc. on behalf of all persons who, on or after March 1, 2010, borrowed a loan from the Cash Store or Instaloans that met the definition of a "payday loan" proposing that the Company has violated s. 11 and 12 of the Payday Loan Regulations in that all amounts charged to and collected from the Plaintiff and Class members by the Company in relation to the payday loans advanced to the Plaintiff and Class members in excess of the loan principal are Unlawful Charges under the Payday Loan Regulation and therefore seek restitution of or damages for the Unlawful Charges paid by the Plaintiff and Class members, repayment of the Unlawful Charges paid by the Plaintiff and Class members, damages for conspiracy, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Saskatchewan

On October 9, 2012, an action under the Saskatchewan Class Actions Act was commenced in the Saskatchewan Court of Queen’s Bench by John Ironbow against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. on behalf of all persons who, on or after January 1, 2012, borrowed a loan from the Company that met the definition of a “payday loan” proposing that the Company has made payday loans contingent on the supply of other goods or services contrary to s. 29 of the Payday Loans Act, charged or received amounts which are not provided for in the Payday Loans Act or Payday Loans Regulation, contrary to s. 23(5) of the Act, deducting or withholding from the initial advance an amount representing a portion of the cost of borrowing or other charges, contrary to s. 25 of the Payday Loans Act and charging or receiving an amount in excess of 23% of the loan principal, contrary to s. 23(1) and (4) of the Act and s. 14(1) of the Regulation. The plaintiff seeks restitution of damages for unlawful charges paid by the plaintiff and class members, repayment of unlawful charges paid by the plaintiff and class members, damages, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Manitoba - April 23, 2010 Claim

On April 23, 2010, an action under the Manitoba Class Proceedings Act was commenced in the Manitoba Court of Queen’s Bench ("Manitoba Court") by Scott Meeking against The Cash Store Financial Services Inc., The Cash Store Inc. and 1152919 Alberta Ltd o/a Instaloans, proposing that a class action be certified on his own behalf and on behalf of all persons in Manitoba and others outside the province who obtained a payday loan from Cash Store or Instaloans. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code.

A class proceeding in Ontario in McCutcheon v. The Cash Store Inc. et al. was certified in 2006 and settled in 2008. That decision affected Manitoba residents, and presumptively resolved claims with respect to loans borrowed by Mr. Meeking, and other Manitoba residents, on or before December 2, 2008.

The Company asked the Manitoba court to enforce the Ontario settlement against Mr. Meeking. On September 9, 2013, the Manitoba Court of Appeal agreed that the Ontario Superior Court of Justice had properly exercised jurisdiction over Manitoba residents, including Mr. Meeking and his prospective class members, and enforced the Ontario settlement relating to borrowers of payday loans from the Company. However, it concluded that the Ontario judgment is not enforceable in Manitoba against Instaloans customers and for signature and title loans (as opposed to payday loans), as the Manitoba court determine Ontario had not given proper notice to Manitoba residents.

On September 12, 2013, the Manitoba Court certified Mr. Meeking’s claim as a class proceeding. On October 11, 2013, the Company applied for leave to appeal the certification decision.

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On November 8, 2013, the Company filed an application for leave to appeal to the Supreme Court of Canada, seeking to appeal the Manitoba Court of Appeal decision that declined to enforce the Ontario settlement against Instaloans customers. The plaintiffs have also filed an application for leave to appeal to the Supreme Court of Canada, seeking to set aside the portion of the Manitoba Court of Appeal decision that enforced the Ontario settlement.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Manitoba - November 1, 2012 Claim

On November 1, 2012, an action was commenced in Manitoba under The Class Proceedings Act by Sheri Rehill against The Cash Store Financial Services Inc., The Cash Store Inc., Instaloans Inc. and other defendants, on behalf of all persons who, on or after October 18, 2010, borrowed a loan from the Company in Manitoba where that loan met the definition of a “payday loan” as defined by the Payday Loans Act, S.S. 2007, c. P-4.3. The action alleges that the Company made loans contingent on the purchase of another product or service, contrary to s. 154.2 of the Consumer Protection Act, R.S.M. 1987, c. C-200, as am. (CPA), discounted the principal amount of loans by deducting or withholding an amount representing a portion of the cost of credit from the initial advance, contrary to s. 154.1 of the CPA and charging, requiring and accepting amounts in excess of the 17% total cost of credit limit contrary to s. 147(1) of the CPA and s. 13.1 of the Payday Loan Regulation, Man. Reg. 99/2007, as am. The plaintiff pleads for restitution and repayment of all amounts paid by borrowers as a cost of credit for their payday loans, damages for an alleged conspiracy, and interest on all amounts alleged to be owing.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Ontario - August 1, 2012 Claim

On August 1, 2012, an action under the Ontario Class Proceedings Act was commenced in the Ontario Supreme Court of Justice by Timothy Yeoman against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. and other defendants, claiming on behalf of the plaintiff and class members who entered into payday loan transactions with the Company in Ontario between September 1, 2011 and the date of judgment, that the Company operated an unlawful business model as the Company did not provide borrowers with the option to take their payday loan in an immediate liquid form and thereby misrepresenting the total cost of borrowing as the cost of additional services and devices should have been included.

The class members plead entitlement to damages and costs of investigation and prosecution pursuant to s. 36 of the Competition Act inclusive of the fees, interest and other amounts that the Company charged to the class members.

By Court order dated August 27, 2013, the plaintiff was permitted to amend the claim to add additional defendants. This amendment further claims that the Company’s lines of credit, offered since February 1, 2013, are payday loans subject to the Payday Loans Act, and are being offered without a payday loans license. The amendment claims that the Company acted in an unlawful conspiracy with the additional defendants.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Ontario - July 5, 2012 Claim

On July 5, 2012, The Cash Store Inc. and Instaloans Inc. were charged with the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Guelph (The Cash Store Inc.), Brantford, and Sarnia, Ontario (Instaloans Inc.). The charges were laid in each of the three jurisdictions on July 5, 2012 as a result of investigations made by the Ministry of Consumer Services relating to consumer complaints made by three consumers.

On November 18, 2013, Instaloans Inc. and The Cash Store Inc. pleaded guilty and were convicted of the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Brantford, Sarnia, and Guelph, Ontario, respectively.  As a result of this plea, The Cash Store and Instaloans Inc. agreed to pay $50per conviction, in addition to a victim fee surcharge of 25%, for a total fine of$188. 

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Investor class proceedings

Canada

On June 3, 2013, a statement of claim brought under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Darren Hughes against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action

On June 4, 2013, a statement of claim brought under the Ontario Class Proceedings Act was commenced in the Ontario Superior Court of Justice by David Fortier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action.

On July 11, 2013, a statement of claim brought under the Quebec Class Proceedings Act was commenced in the Quebec Superior Court of Justice by Marianne Dessis and Jean-Jacques Fournier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action.

As at September 30, 2013, the Company has reached an agreement with the plaintiffs' counsel whereby the plaintiffs will proceed with the Ontario June 4, 2013 claim and seek a stay of the Alberta and Quebec claims.

Following the stay of the related Alberta claim, an amended statement of claim was issued on October 17, 2013, which, among other things, adds a statutory claim under the Alberta Securities Act. The plaintiffs’ motion seeking leave to pursue a secondary market liability claim under Part XXIII.1 of the Ontario Securities Act and to certify the claim as a class action under the Ontario Class Proceedings Act is currently scheduled to be heard by the Ontario Superior Court of Justice on May 20 and 21, 2014.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

United States

On May 20, 2013, Globis Capital Partners, L.P. filed a civil claim against the Company and Gordon J. Reykdal, Chief Executive Officer, in the United States District Court of the Southern District of New York for alleged violations of Sections 10(a) and 20(a) of the Securities Exchange Act of 1934 claiming unspecified damages.

On June 27, 2013, proposed class action proceedings for violation of U.S. federal securities laws were commenced by lead plaintiff Charles Nutsch in the United States District Court of the Southern District of New York against the The Cash Store Financial Services Inc. and certain of its present and former officers on behalf of purchasers of the common stock of The Cash Store Financial Services Inc. during the period between November 24, 2010 and May 13, 2013, inclusive. The proposed class actions concern alleged misrepresentations made in the Company's quarterly and annual financial statements between November 24, 2010 and May 13, 2013. In particular, the complaints allege that the Company overvalued the consumer loan portfolio acquired from third-party lenders, overstated its net income, understated losses on its internal consumer loans portfolio, and understated its liabilities associated with the settlement of the British Columbia class action.

By order dated July 9, 2013, the court consolidated the May 20, 2013 and June 27, 2013 actions for pretrial purposes. On September 17, 2013, the Court issued an order appointing Globis Capital Partners L.P. and Globis Overseas Funds Ltd. as lead plaintiffs in the class action. The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

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Other claims

Ontario - October 1, 2010 Claim

The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an action in the Superior Court of Ontario against National Money Mart Company (“Money Mart”) on October 1, 2010 for trade-mark infringement under sections 7, 19, 20 and 22 of the Trade-Marks Act, misrepresentation in the form of false and misleading advertising contrary to sections 52 and 74.01 of the Competition Act and the common law tort of passing off. The action relates to a national negative advertising campaign launched by Money Mart featuring the use of the Company’s registered trade-marks alongside negative statements comparing the Company's payday loan products to Money Mart’s loan products. Statements made in the Money Mart advertising campaign include, among other things, that the Company’s loan products are more expensive and less convenient than Money Mart’s and involve more forms and hassle. The Company seeks injunctive relief as well as $60,000in damages in its Statement of Claim. Money Mart filed its statement of defense on May 2, 2011. The parties have settled a discovery plan and the next step in the action is to proceed to discoveries.

The likelihood and amount of gain (or loss), if any, is not determinable at this time.

Ontario - August 31, 2011 Application

On August 31, 2011, in response to regulatory amendments to come into force on September 1, 2011, The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an Application for Judicial Review in the Ontario Superior Court of Justice. The Application sought an order declaring that certain of the new amended regulations are outside the scope of the regulation-making authority under the Payday Loans Act, 2008, and were made without due process. The hearing was held on October 2, 2013. On November 5, 2013 the Court dismissed the Company’s application. The Company filed a notice of motion for leave to appeal to the Court of Appeal on November 22, 2013.

Ontario - June 7, 2013 Application

On June 7, 2013, an application was commenced in the Ontario Superior Court of Justice pursuant to section 54(1) of the Payday Loans Act, 2008, by the Director designated under the Ministry of Consumer and Business Services Act, naming The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. as respondents. The application seeks a declaration that the basic line of credit product offered constitutes a ‘payday loan’ under subsection 1(1) of the Payday Loans Act, and seeks orders requiring the Company to obtain a payday loan broker license and restraining the Company from acting as a loan broker of the basic line of credit without a broker’s license. The Application was heard by the Ontario Superior Court of Justice on November 29, 2013. It is unknown when a decision on this matter will be been rendered.

The Company has vigorously defended this application and the likelihood and amount of liability, if any, is not determinable at this time.

Alberta - September 18, 2013 Claim

On September 18, 2013, an action in the Court of Queen’s Bench of Alberta was commenced against the Company, certain of its officers and affiliates, including The Cash Store Inc., certain of its associated companies, including The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc., and other corporate defendants, seeking repayment of certain funds advanced to the Company, its affiliates and the associated companies by Assistive Financial Corp.("Assistive"), a former related party third-party lender. An application for interim relief, including the appointment of an inspector, was brought by the plaintiffs and is currently scheduled to be heard by the Court of Queen’s Bench of Alberta on December 12, 2013. The action by Assistive also seeks damages equivalent to $110.0 million together with interest thereon at the rate of17.5% per year.

The Company believes the action is wholly without merit and intends to vigorously defend itself. The likelihood and amount of liability, if any, is not determinable at this time.

Special Investigation

The Company’s Audit Committee was made aware of written communications that contained questions about the acquisition of the consumer loan portfolio from third-party lenders in late January 2012 (the “Transaction”) and included allegations regarding the existence of undisclosed related party transactions in connection with the Transaction. In response to this allegation, legal counsel to a special committee of independent directors of the Company (the “Special Committee”) retained an independent

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accounting firm to conduct a special investigation.  The investigation followed a review conducted by the Company’s internal auditor under thedirection of the Audit Committee of the Board, and the restatement by the Company in December 2012 of its unaudited interim quarterly financial statements and MD&A for periods ended March 31, 2012 and June 30, 2012.

The investigation covered the period from December 1, 2010 to January 15, 2013 and was carried out over four months.  It involved interviews of current and former officers, directors, employees and advisors of the Company and a review of relevant documents and agreements as well as electronically stored information obtained from Company computers and those of employees, former employees and directors most likely to have information relevant to the investigation.

The Special Committee has reported its findings on the allegations to the Board of Directors and, consistent with the recommendation made to the Board of Directors by the Special Committee, the Board of Directors has determined that no further corrections or restatements of previously reported financial statements and other public disclosures are required in relation to the Transaction.

Reliance on Third-Party Lenders

The Company’s business depends on the willingness of third-party lenders to make significant funds available for lending to the Company’s customers and to purchase loans that the Company has made. There are no assurances that existing or new third-party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a material adverse impact on the Company’s results of operations and financial condition.

Refer to Item 5.E. Off-Balance Sheet Arrangements for a description of arrangements with third-party lenders.

Liquidity & Capital Resources

The Company requires continued access to capital. A significant reduction in cash flows from operations or access to funding to support the Company’s consumer lending products could materially and adversely affect the Company’s ability to achieve the Company’s planned growth and operating results.

As ofSeptember 30, 2013, the Company had approximately $127 million in senior secured notes debt and on November 29, 2013 the Company entered into a credit agreement that provided an additonal $12.0 million in debt financing. If cash flows and capital resources are insufficient to fund the debt service obligations and to satisfy working capital and other liquidity needs, the Company may be forced to reduce or delay capital expenditures, seek additional capital or seek to restructure or refinance indebtedness. These alternative measures may not be successful or may not permit the Company to meet its scheduled debt service obligations. In the absence of such operating results and resources, the Company could face substantial liquidity problems and might be required to sell material assets or operations to attempt to meet its debt service and other obligations. If the Company is unable to make the required payments on its debt obligations, the Company would be in default under the terms of its indebtedness which could result in an acceleration of the repayment obligations. Any such default, or any attempt to alter the business plans and operations to satisfy the obligations under the Company’s indebtedness, could materially adversely affect the Company’s business, prospects, results of operations and financial condition.

Competition

The payday loans industry is highly fragmented and very competitive. Competition may increase as the industry consolidates. In addition to other unsecured consumer lending and cheque cashing stores and online lenders, the Company competes with banks and other financial services entities and retail businesses that offer consumer loans, cash cheques, sell money orders, provide money transfer services or offer other products and services offered by the Company. Some competitors have larger and more established customer bases in other provinces and substantially greater financial and other resources than the Company has. As a result, the Company could lose market share and revenues could decline, thereby affecting the Company’s ability to generate sufficient cash flow to service indebtedness and fund operations.

Foreign Currency

UK operations have been funded to date by loans from the Canadian company. These loans are currently not hedged, thus they are vulnerable to currency exchange rate fluctuations between the British Pound and the Canadian Dollar. Upon consolidation,

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as exchange rates vary, net sales and other operating results may differ materially from expectations, and the Company may record significant gains or losses on the remeasurement of intercompany balances. A542basis point increase/decrease in the exchange rate would increase/decrease net loss by approximately $1.3 million.

Growth Management

The Company’s expansion strategy, which in part contemplates the addition of new branches, and developing new products and distribution channels for the Company’s products in Canada and the UK is subject to significant risks. Continued growth in this manner is dependent upon a number of factors, including the ability to hire, train and retain an adequate number of experienced management employees, the availability of adequate financing for expansion activities, the ability to obtain any government permits and licenses that may be required, the ability to identify and overcome cultural and linguistic differences which may impact market practices within a given geographic region, and other factors, some of which are beyond the Company’s control.

There can be no assurance that the Company will be able to successfully grow its business or that the current business, results of operations and financial condition will not suffer if the Company is unable to do so. Expansion beyond the geographic areas where the Company’s branches are presently located will increase demands on management and divert their attention. In addition, expansion into new products and services will present new challenges to the business and will require additional management time.

Ability to Attract and Retain Qualified Employees

The Company’s future success depends to a significant degree on the members of its executive management team and their ability to execute on the growth strategies and provide expertise in developing international operations. The loss of the services of one or more members of the executive management team could harm the Company’s business and future development. Continued growth also depends on the Company’s ability to attract and retain additional skilled management personnel. If the Company is unable to attract and retain the requisite personnel as needed in the future, operating results and growth could suffer.

Changes to UK Business, Regulatory or Political climate

The Company’s growth plans include significant expansion in the UK. Changes in the business, regulatory or political environment, shareholder proposals, or significant fluctuations in currency exchange rates could affect the Company’s ability to expand or continue operations there, which could have a material adverse impact on the Company’s prospects, results of operations and cash flows.

Negative Public Perception

The media often portrays payday loan companies as predatory or abusive, which could negatively affect the Company’s business. Consumer advocacy groups, certain media reports, and some regulators and elected officials in the provinces in which the Company conducts business have from time to time advocated governmental action to prohibit or severely restrict certain types of payday lending. These efforts have often focused on lenders that charge consumers imputed interest rates and fees that are higher than those charged by credit card issuers to more creditworthy consumers and otherwise characterize the Company’s products and services as being predatory or abusive toward consumers. If consumers accept this negative characterization, demand for the Company’s loans could significantly decrease. In addition, media coverage and public statements that assert some form of corporate wrongdoing can lower morale, make it more difficult to attract and retain qualified employees, management and directors, divert management attention and increase expenses. These trends could adversely affect the business, prospects, results of operations and financial condition of the Company.

Valuation of Consumer Loans and Advances

The Company maintains an allowance for credit losses for anticipated losses on consumer loans and advances and loans and advances in default. To estimate the appropriate level of credit loss reserves, the Company considers known and relevant internal and external factors that affect loan collectability, including the amount of outstanding loans owed, historical loss trends, current collection patterns and current economic trends. These reserves are estimates, and if actual credit losses are

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materially greater than loan loss reserves, the Company’s results of operations and financial condition could be adversely affected.

Share Price Volatility

The price of common shares has been subject to significant fluctuations and may continue to fluctuate or decline. Over the course of the twelve months ended September 30, 2013, the market price of the Company’s common shares on the TSX has been as high as $5.73, and as low as $1.50.

The market price of the Company’s common shares has been, and is likely to continue to be, subject to significant fluctuations due to a variety of factors, including quarterly variations in operating results, operating results which vary from the expectations of securities analysts and investors, changes in financial estimates, changes in market valuations of competitors, announcements by the Company or its competitors of a material nature, additions or departures of key personnel, changes in applicable laws and regulations governing consumer protection and lending practices, the effects of litigation, future sales of common shares, and general stock market price and volume fluctuations. In addition, general political and economic conditions such as a recession, or interest rate or currency rate fluctuations may adversely affect the market price of the common shares of many companies, including that of the Company. A significant decline in the Company’s share price could result in substantial losses for individual shareholders and could lead to costly and disruptive securities litigation.

Unauthorized Disclosure of Confidential Data

In the normal course of business, the Company is required to manage, use, and store large amounts of personally identifiable information, consisting primarily of confidential personal and financial data regarding customers. The Company also depends on its IT networks and systems, and those of third parties, to process, store, and transmit this information. As a result, the Company is subject to numerous laws and regulations designed to protect this information, such as Canadian federal and provincial laws governing the protection of financial or other individually identifiable information. Security breaches involving files and infrastructure could lead to unauthorized disclosure of confidential information, as well as shutdowns or disruptions of the Company’s systems.

If any person, including the Company’s employees or those of third-party vendors, negligently disregards or intentionally breaches the Company’s established controls with respect to such data or otherwise mismanages or misappropriates that data, the Company could be subject to costly litigation, monetary damages, fines, and/or criminal prosecution. Unauthorized disclosure of sensitive or confidential customer data by any person, whether through systems failure, unauthorized access to IT systems, fraud, misappropriation, or negligence, could result in negative publicity, damage to the Company’s reputation, and a loss of customers. Any unauthorized disclosure of personally identifiable information could subject the Company to liability under data privacy laws and adversely affect the business prospects, results of operations, and financial condition of the Company.

Dividends

The Company ceased paying dividends in the fourth quarter of FY2012 and may not pay dividends on its common shares within the next fiscal year. Therefore, any return on an investment in common shares of the Company may come only from an increase in the market value of the common shares of the Company. The Board of Directors reviews the Company’s dividend distribution policy on a quarterly basis. This review includes evaluating the financial position, profitability, cash flow and other factors that the Board of Directors considers relevant. The ability to declare and pay dividends is subject to compliance with a restricted payment covenant stipulated in the Indenture.

Internal Control Over Financial Reporting

As of September 30, 2013, an evaluation was carried out under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of disclosure controls and procedures as defined in Rule 13a- 15(e) and Rule 15d - 15(e) under the 1934 Act, as amended, and in NI 52-109. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were not effective due to material weaknesses in the Company’s internal control over financial reporting.

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Unless and until these issues are corrected, the Company's ability to report financial results or other information required to be disclosed on a timely and accurate basis may be adversely affected. In addition, remedying this matter will require additional management time and resources and cause the Company to incur additional costs. Further, the Company cannot provide any assurance that it will not identify additional control deficiencies that may constitute significant deficiencies or material weaknesses in its internal controls in the future.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

The legal name of the Company is The Cash Store Financial Services Inc. The commercial names of the Company are “Cash Store Financial” and “Instaloans.”

The Company was incorporated on February 23, 2001, under the Business Corporations Act (Ontario) (the “OBCA”), as B&B Capital Corporation. On August 1, 2001, B&B Capital Corporation changed its name to “Rentcash Inc.” and subsequently amalgamated with Larkfield Capital Corp. (“Larkfield”), under the OBCA, effective January 17, 2002 (the “Amalgamation”), with the amalgamated company continuing as Rentcash Inc. Larkfield was incorporated under the Company Act (British Columbia) on May 15, 2000, under the name Willow Creek Capital Corp. (“Willow Creek”). The name of Willow Creek was changed to “Larkfield Capital Corp.” on August 24, 2000, and Larkfield was subsequently continued into Ontario under the OBCA, effective January 15, 2002.

Pursuant to the Amalgamation, each common share of Rentcash was exchanged for one common share of the Company, and each three common shares of Larkfield were exchanged for one common share of the Company.

 On April 22, 2005, the Company acquired the business assets and assumed certain liabilities of the Instaloans Group of Companies (“Instaloans”) for total cash consideration of $39.8 million. At the time of acquisition Instaloans operated 99 Canadian storefronts in the payday and short-term loan industry.

The Company changed its name on March 31, 2008, from Rentcash Inc. to “The Cash Store Financial Services Inc.” in connection with the spin-off of its rental division. Cash Store Financial’s common shares (the “Common Shares”) are traded on the Toronto Stock Exchange (“TSX”) under the symbol “CSF”. On June 8, 2010, the Company began trading its shares on the New York Stock Exchange (“NYSE”) under the symbol “CSFS”.

On March 31, 2008, pursuant to a plan of arrangement, the Company separated its rental business and certain of its assets and liabilities into an independent, publicly-traded company. Each existing shareholder of Cash Store Financial received one common share of Insta-Rent for each Common Share held on March 31, 2008.

On April 28, 2010, the Company’s board of directors (the "Board") approved a change in its fiscal year end from June 30 to September 30.

The registered office of the Company is located at Scotia Plaza, Suite 2100, 40 King Street West, Toronto, Ontario M5H 3C2. The head office of the Company is located at 15511 - 123 Avenue, Edmonton, Alberta T5V 0C3.

 The Company’s agent in the United States is National Corporate Research, Ltd. 10 East 40th Street, 10th Floor New York, New York 10016 (212) 947-7200.

B. Business Overview

Nature of Company

The Company, under its “Cash Store Financial”, “Instaloans” and "The Title Store" banners, provides consumers with alternative financial products and services, serving everyday people for whom traditional banking may be inconvenient or unavailable. The Company acts as both a broker and lender of short term advances and offers a range of other products and services to help customers meet their day to day financial service needs. The Company employs a combination of payday loans and lines of credit as its primary consumer lending product offerings and earns fees and interest income on these consumer lending products. The Company also offers a wide range of financial products and services including bank accounts, prepaid MasterCard and private label credit and debit cards, cheque cashing, money transfers, payment insurance and prepaid phone cards. The Company has agency arrangements with a variety of companies to provide these products.

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The table below illustrates the Company’s primary consumer lending offerings summarized by jurisdiction since October 1, 2011:

Jurisdiction	Branches	Oct 1, 2011 to Jan 31, 2012	Feb 1, 2012 to Sep 30, 2012	Oct 1, 2012 to Jan 31, 2013	Feb 1, 2013 to Present
British Columbia, Alberta Saskatchewan Nova Scotia	278	Payday Loans (Brokered)	Payday Loans (Direct Lending)
Manitoba	25	Payday Loans (Brokered)	Payday Loans (Direct Lending)	Lines of Credit (Brokered)
Ontario	174	Payday Loans (Brokered)	Payday Loans (Direct Lending)		Lines of Credit (Brokered)
New Brunswick Newfoundland Prince Edward Isl. Yukon / NWT	33	Payday Loans (Brokered)
United Kingdom	27	Payday Loans (Direct Lending)

Products and Services

Consumer Loans & Line of Credit
Payday	- Bridge loans to help our clients span temporary cash shortfalls or meet emergency or unexpected expenses - Short-term non-collateralized loans - Range from $100 to $1500.
Signature	- Short-term loan against a government source of income (Child Tax, Disability, Pension, Employment Insurance)
Lines of Credit	- Up to $5000 unsecured - Helps customers to rebuild their credit - Customers borrow as needed and repay at any time - Minimum payments are due at regular intervals - Introduced early in FY2012
Injury Claims	- Immediate cash for personal injury claims awaiting payout - Provided by Rhino Legal Finance Inc.
Diversified Financial Products
Bank Accounts: Standard & Premium	- Provided by DC Bank - Gives customers access to a variety of services - CDIC insured
Cheque Cashing	- Fast turn around - Funds transferred electronically; branches do not hold cash
Prepaid Credit Card	- Supplied by DC Bank and MasterCard - Provides the convenience of a credit card without interest - Can be used online
Prepaid Debit Card	- Supplied by DC Bank - Preloaded with funds for daily transactional needs and access to cash at ATMs
Money Transfer	- Provided by RIA Financial Services - Provides an easy and reliable way to pay bills or send and receive funds worldwide
Payment Insurance	- Covers outstanding loan balances in the event of unexpected events such as: involuntary unemployment, accidental injury, critical illness, death, dismemberment

Payday loans – direct lending

The Company typically arranges for advances to customers that range from $100 to $1,500. In order to receive an advance, a customer is required to provide proof of income, copies of recent bank statements, current proof of residence and current telephone and utility bills. The customer must then either write a cheque or execute a pre-authorized debit agreement for the amount of the advance plus loan fees. Deposit of the cheque is deferred until the due date of the loan, which is the customer’s next payday (normally 7 to 14 days but no later than 31 days).

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Payday loans – brokering

For loans that the Company brokers on behalf of customers, the application process and documentation requirements are similar to those for direct lending. After an application is completed and other relevant information is obtained from a customer, the Company brokers the customer’s loan request to third-party lenders. Based on approval criteria established by the third-party lenders, the customers’ eligibility for an advance is assessed. If the customer is approved, the Company provides the lender’s loan documentation to the customer. Upon fulfillment of the loan documentation requirements, the Company is authorized by the lender to forward the cash advance to the customer on behalf of the lender. When an advance becomes due and payable, the customer must make repayment of the principal and interest owing to the lender through the Company, which, in turn, remits the funds to the third-party lender. If there is difficulty with the collection process, the customer’s account may be turned over to an independent collection agency.

Principal Markets

The Company conducts business in Canada and the United Kingdom. As atSeptember 30, 2013, the Company operated 537 (September 30, 2012 - 536) short-term advance branches across Canada (510branches) and the United Kingdom (27 branches). The Company operates branches in all Canadian provinces and territories except Quebec and Nunavut. The following chart presents the geographic distribution of the Company’s branches:

	Branches
British Columbia	97
Alberta	122
Saskatchewan	34
Manitoba	25
Ontario	174
New Brunswick	14
Nova Scotia	25
Prince Edward Island	3
Newfoundland and Labrador	13
Northwest Territories	2
Yukon	1
United Kingdom	27
Total	537

Revenue Breakdown

	September 30, 2011	September 30, 2012	September 30, 2013
Canada	187,356	177,186	180,412
United Kingdom	2,543	10,226	10,353
	189,899	187,412	190,765

The Company also has investments in the following foreign operations:

• 18.3% of the outstanding common shares of The Cash Store Australia Holdings Inc., which operated payday loan branches in Australia under the name “The Cash Store Pty.” ("Pty"). The Cash Store Australia Holdings Inc. is publicly listed on the TSX Venture exchange under the symbol “AUC”. In December of 2012 the Alberta, Ontario and British Columbia Securities Commissions issued cease trade orders in respect of the shares of AUC for failure to file financial statements. On September 13, 2013 Pty appointed a voluntary administrator pursuant to Section 436A of the Australian Corporations Act 2001. In the opinion of the directors of Pty, Pty is insolvent. The Administrator has taken control of the operations and assets of Pty and the application to have the cease trade orders revoked have been withdrawn by AUC.

• 15.7% of the outstanding common shares of RTF Financial Holdings Inc., a private company in the business of short-term lending by utilizing highly automated mobile technology (SMS text message lending). RTF Financial Holdings Inc. currently operates in the UK.

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Seasonality

The Company’s business is not significantly affected by seasonality. Typically the Company’s strongest revenues are in its third and fourth fiscal quarters (which correspond with tax season and the summer months) followed by the Company’s first fiscal quarter (Christmas/holiday season). The Company’s second fiscal quarter is typically the weakest. In addition to seasonal demand, quarterly results are impacted by the number and timing of new branch openings.

Raw Materials

Not Applicable.

Marketing Channels

The Company sells consumer lending products and services directly to consumers through its network of physical branches. Products and services where the Company acts as agent on behalf of other providers are also sold directly to consumers through the Company’s branch network and the Company earns fee and commission revenue. The Company does not employ special sales methods for its products and services.

The Company markets its products and services directly to consumers through a variety of channels, including newspaper, billboards, radio, television, mail drops, search engine marketing, search engine optimization, social media, community involvement and sponsorships.

Dependence

The Company’s business depends on the willingness of third-party lenders to make significant funds available for lending to the Company’s customers and to purchase loans that the Company has made. There are no assurances that existing or new third-party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a material adverse impact on the Company’s results of operations and financial condition.

Refer to Off-Balance Sheet Arrangements for a description of arrangements with third-party lenders.

Competitive Position

The Company has a market share of approximately one third of all payday loan branches in Canada. The Company estimates there are approximately 1,500 short-term advance branches across Canada. The Company’s biggest competitor is DFC Global Corp. (“Dollar Financial”), a U.S.-based public company. Dollar Financial operates approximately 489 branches in Canada under the banner “Money Mart”. “Cash Money” is the next largest operator in Canada with approximately 120 branches. The remainder of the payday loans market consists of small, single store operations and regional operations that may have a number of payday loan advance centres in a given region. Competition also comes from companies, such as cheque cashers, pawnshops, rental stores and others, that offer the payday loan service as an ancillary service. Several companies also provide payday loans via the Internet.

In addition to other unsecured consumer lending and cheque cashing stores and online lenders, the Company competes with banks and other financial services entities and retail businesses that offer consumer loans and lines of credit, cash cheques, sell money orders, provide money transfer services or offer other products and services offered by the Company.

The Company estimates that the UK market for small, unsecured short-term consumer loans is served by approximately 1,200 store locations as well as numerous online lenders.

Some of the Company's competitors have larger and more established customer bases in other provinces and substantially greater financial and other resources than the Company.

Competitive Strengths

Management believes that the Company has a number of competitive strengths that provide a solid base for continued growth.

The Company’s branch environment is unique in the market. Because Cash Store Financial branches do not disburse cash, the Company is able to offer a comfortable, upscale, open concept floor plan where customers can sit down with a customer service advisor to discuss their needs, much like they would in a traditional bank.

This differentiated environment complements the Company’s expanded product offering, which is designed for long term customer retention.

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Customers choose to do business with the Company for a number of reasons, including:

• the range of products offered;

• the provision of access to flexible credit products through a graduated line of credit suite that rewards good payment behavior;

• the provision of opportunities for consumers to rebuild credit;

• the comfortable, friendly, open concept branch environment that is more bank-like than other consumer lending stores;

• the specialized support and committed customer service that they receive from well-trained associates; and

• the convenience of branch locations and hours.

Material Effect of Government Regulation

Management views regulations affecting its primary product offerings of payday loans and lines of credit as the most critical factor affecting the Company's ability to successfully operate and execute its business strategy.

In Canada, certain provinces have developed regulations specific to payday loans. The key components of payday loan regulations are caps on the loan size, length and fees that can be charged. Typically regulations limit payday loans to a maximum of $1,500 and 62 days in duration, as well as providing a rate cap. The following table shows the rate caps in the provinces where the Company currently offers payday loans:

Province	Rate Cap (per $100)
British Columbia	$	23
Alberta	$	23
Nova Scotia	$	25
Saskatchewan	$	23

The Company is subject to class action proceedings initiated in the Canadian provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, alleging non-compliance with rate caps in those provinces. The Company believes that it has complied with all applicable provincial regulations and is defending these actions vigorously.

The Company's newly introduced primary product offering of lines of credit in Ontario, where approximately one third of the Company's branch network is located, has been subject to examination by the Ontario Minister of Consumer Services and the Registrar of payday loans (the "Ontario Regulator"), who is responsible for regulating the payday loans sector in that province. The Ontario Regulator has proposed amended regulations which may capture the lines of credit under the existing Payday Loans Act and may require the Company to re-apply for licenses to continue to offer its products and comply with payday loans regulations. The new regulations do not propose a rate cap for the lines of credit. The Ontario Regulator is currently considering industry feedback on the proposed amendments and the content and timing of such amended regulations is not yet known..

The UK does not currently have specific regulations for payday loans, however in April 2014 the Financial Conduct Authority ("FCA") will assume responsibility for regulating the sector. The FCA has proposed new payday lender measures that will include limiting to two the number of loan rollovers and the number of times that lenders can access a borrower’s bank account for payment, both of which have an implementation date of July 1, 2014. The FCA will also require a borrower affordability assessment before payday lenders can extend a loan and will require that lenders include clear risk warnings on advertisements. In addition, the FCA plans to put in place dedicated supervision and enforcement teams. The FCA opened its proposed rules for comment and is expected to publish final guidance in February 2014. The Company has obtained interim licenses to operate as a payday lender in the UK in advance of the regulations. On November 25, 2013, legislators in the UK announced that a rate cap setting power for payday loans will be included through amendments to the Banking Reform Bill which is currently before the House of Lords. It has been reported that the rate cap will be set by the FCA and address the total cost of borrowing. The Banking Reform Bill is expected to receive final reading on December 9, 2013 and rate caps are expected to come into force during 2015. 

Loan rollovers (extensions of existing loans for a fee and/or provision of new loans to pay out previous loans) are prohibited in certain Canadian provinces. Cash Store Financial does not engage the practice of rollovers in any Canadian province and limits the number of rollovers to four for consumers in the UK. Although the proposed regulations in the UK would represent a

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change from current practice, the Company does not expect a material negative impact given that only approximately 5% of its branch network is located in the UK.

C. Organizational Structure

The Company’s principal direct and indirect subsidiaries are as set forth in the following chart. The Company owns 100% of the issued and outstanding shares of each principal subsidiary. The Cash Store Inc., in turn, owns 100% of the issued and outstanding shares of Instaloans Inc.; and The Cash Store Financial Limited owns 100% of the issued and outstanding shares of The Cash Store Limited and CSF Insurance Services Limited. Included in parenthesis within the corporate organization chart is the respective jurisdiction of incorporation of each entity:

D. Property, Plant and Equipment

The Company’s corporate head office is located at 15511 – 123 Avenue, Edmonton, Alberta and comprises approximately 47,000 square feet of office space. On March 4, 2011 the Company entered into a build to suit lease agreement for the construction and occupancy of its corporate head office. Construction was completed and the lease term commenced in September 2012 at an annual base rent of approximately $1.2 million per year. The term of the agreement is fifteen years and provides for renewal for two additional five year renewals at the Company’s option.

The Company leases substantially all of its branch locations. Lease terms range from 1 to 5 years.

The Company owns the following branch locations:

Location	Size of Site
76 Main Street, Flin Flon, Manitoba	2,256 sq. ft.
330 Fisher Ave, The Pas, Manitoba	650 sq. ft.

A description of the Company’s property and equipment is included in Note 8 to the Company’s financial statements, which are included as Exhibit 99.1 to this Annual Report incorporated by reference herein

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5. Operating and financial review and prospects

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report on Form 20-F. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors,

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including those set forth under "Item 3. Key Information—D. Risk Factors" or in other parts of this annual report on Form 20-F.

A. Operating Results

FY2013 consolidated revenue of $190.8 million increased by 1.8% compared to $187.4 million in FY2012despite a 2.0% decline in loan volume. Loan fee revenue increased by $14.4 million, offsetting a reduction in other income of $11.1 million. FY2013 revenue from Canadian operations increased by $3.2 million while revenue from UK operations was flat compared to FY2012.

Branch sales expenses of $110.4 million for the year ended Sept 30, 2013 decreased by 8% compared to $120.5 millionin the same period last year as a result of the 63 branch consolidations that occurred during FY2012 and an increased focus on cost control.

On an adjusted basis, the FY2013 provision for credit losses as a percentage of direct loan volume was stable at 5.2%compared to 5.1%in FY2012. As of September 30, 2013, the Company recorded an additional provision for credit losses of $5.2 million resulting from a change in estimation methodology to charge-off advances at 90 days past due.

Retention payments increased to 4.8% of brokered loan volume in FY2013 compared to 3.6% in FY2012 as a result of the Company's efforts to manage its overall credit loss exposure to third-party lenders.

EBITDA for FY2013 was negative$1.0 million, up fromnegative $31.7 millionin FY2012. Significant items that impacted FY2013 reported EBITDA were as follows:

• A reduction in other income;

• Increased provision for credit losses resulting from the estimation methodology change to charge-off advances at 90 days past due;

• Impairments on acquired advances and certain long-lived assets;

• Increased corporate salaries and legal costs;

• Costs associated with restatements of previously issued financial statements and the special investigation; and

• Allowances for significantly aged receivables from a vendor.

In FY2012, the Company recorded $44.8 million of charges, primarily comprised of a $36.8 million expense for the settlement of pre-existing relationships with third-party lenders and $5.0 million related to asset impairments and branch consolidations.

Diluted EPS for FY2013 was a $2.02 loss compared to a loss of $2.50 in FY2012.

Cash at September 30, 2013 decreased by $7.7 million to $11.5 million from $19.1 million at September 30, 2012. Cash used in operating activities during FY2013 was negative$0.7 million, down from $15.0 million provided by operating activities in FY2012. The Company has secured credit facilities subsequent to September 30, 2013 to assist in meeting ongoing working capital requirements and fund strategic growth initiatives.

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Branches

Total branch count of 537 reflects the FY2013 addition of 2 new branches in the United Kingdom as well as 10 new Title Store branches and a new Cash Store Financial branch offset by the closure of 12 branches in Canada. During FY2012, the Company consolidated 63 branches in Canada and transferred customers from affected branches to nearby branches.

Revenue

Loan Volume

Total loan volume of $781.8 million for the year ended September 30, 2013decreased by 2%compared to $797.7 million for the year ended September 30, 2012. The decrease in loan volume reflects tightening certain underwriting criteria on the Basic line of credit product in an effort to manage credit risk and improve operating profitability as well as the impact of the revolving portion of the lines of credit.

The Company measures loan volume based on the total principal advanced to consumers.

Loan Fees

Loan fees include payday loan fees and fees charged for the credit assessment and brokering of advances and lines of credit on behalf of consumers.

(in thousands)	Year Ended September 30, 2012	Year Ended September 30, 2013	% Change
Payday loan fees	133,134	112,171	(16	)%
Broker and credit assessment fees on lines of credit	4,860	40,259	728	%
Total Loan Fees	137,994	152,430	10	%

The year over year changes in the type of loan fees earned are reflective of the Company's cessation of payday loans and introduction of lines of credit in Manitoba and Ontario in FY2013. Despite the decrease in loan volume, the overall increase in loan fees of 10%is due to different revenue recognition policies between brokered and direct lending consumer advances. The Company earns its broker and credit assessment fees for lines of credit at the time the line of credit is brokered while fees on directly originated short-term advances are deferred and recognized over the term of the advance.

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Same Branch Revenue

FY2013 same branch revenue, calculated on the branches in Canada that were open for both the FY2013 and FY2012 was $348. This represents an increase of 4.8% compared to average revenues of $332for those branches in FY2012 and is comprised of higher loan fees earned offset by a reduction in other income.

Other Income

Other income includes late interest and fees earned on consumer lending products as well as fees earned on other financial products and services such as bank accounts, debit cards and prepaid credit cards, cheque cashing, insurance, money transfers and prepaid phone cards.

(in thousands)	Year Ended September 30, 2012	Year Ended September 30, 2013	% Change
Fees earned on other financial products and services	43,613	28,611	(34	)%
Interest	4,072	7,963	96	%
Default and other fees	1,733	1,761	2	%
Total other income	49,418	38,335	(22	)%

The decrease in fees earned on other financial products and services is related to the following:

• Price reductions on prepaid debit and credit card products and bank accounts designed to increase customer benefits and promote long term customer retention to ultimately increase profitability in the long-term;

• An increase in consumer take up of cheques and electronic funds transfer as a form of disbursing proceeds as compared to prepaid debit and credit card products; and

• The cessation of a customer payment protection insurance offering on lines of credit in Ontario.

The increases in interest and other recoveries earned is a result of the accounting treatment of acquired advances. In FY2012, the majority of interest and other recoveries were related to acquired advances and were recorded as a reduction to the acquired portion of consumer advances receivable, net. In the current period the majority of interest and default and other fees are related to direct advances and are recognized as income when received.

Sales Expenses

Sales expenses of $110.4 million for the year ended September 30, 2013 decreased by 8%compared to $120.5 million in the same period last year. The Company attributes these savings to an increased focus on cost control and to the 63 branch consolidations that occurred during FY2012.

Credit Losses and Recoveries

The Company’s provision for credit losses recorded on the consolidated statement of operations includes all estimated uncollectible contractual principal and loan fees and impairment on acquired portfolios. The provision for credit losses is reduced by any recoveries realized after advances are charged off. Collections of late interest and fees on advances that have not been charged off are recorded in other income on the consolidated statement of operations. When evaluating the Company’s overall credit loss rate, management considers the provision for credit losses net of default and other fees recorded in other income, as follows:

(in thousands)	Year Ended September 30, 2012		% of loan vol.		Year Ended September 30, 2013		% of loan vol.
Provision for credit losses	31,004		6.0	%	36,607		6.8	%
Default and other fees recorded in other income	(1,733	)	(0.3	)%	(1,761	)	(0.3	)%
Net	29,271		5.7	%	34,846		6.4	%

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Due primarily to the change in estimation methodology used to calculate the provision, credit losses net of default and other fees for the year ended September 30, 2013increased by $5.6 million, or 0.7% of direct loan volume in comparison to the prior year.

On an adjusted basis, the provision for credit losses for FY2013 was stable at 5.2% of direct loan volume compared to 5.1% for FY2012.

For the year ended September 30, 2013, the change in estimation methodology to charge-off advances at 90 days past due was approximately $5.2 million. In addition, for FY2013 the provision for credit losses expense includes $1.5 million of impairments related to subsequent changes to the valuation of acquired advances. In FY2012, the provision for credit losses reflected a $3.0 million expense related to the UK which offsets the total increases for year over year comparative purposes.

Retention Payments

This section should be read in conjunction with "Off-Balance Sheet Arrangements".

The nature of the Company’s funding and credit loss expenses under the direct lending model differ from those under the broker model. Under the broker model, the Company makes voluntary retention payments to third-party lenders in order to offset the impact of the credit losses third-party lenders experience.

(in thousands)	Year Ended September 30, 2012	Year Ended September 30, 2013
Losses on acquisition of line of credit advances	—	7,110
Payments to offset the impact of credit losses	9,968	4,549
Total retention payments expense	9,968	11,659

As a percentage of brokered loan volume, retention payments increased to 4.8% for FY2013 from 3.6% in FY2012. The increase was a result of the Company's continuing assessment of credit losses in brokered advances and the strategy to mitigate it exposures to third-party lenders with respect to this risk. IN FY2013 the Company made retention payments to third-party lenders and has repurchased line of credit advances such that its estimated maximum exposure has not increased in proportion to the level of brokering activity on a year over year basis.

Corporate Expenses

(in thousands)	Year Ended September 30, 2012	Year Ended September 30, 2013	% Change
Salaries and benefits	11,195	13,553	21	%
Legal expenses	2,217	4,980	125	%
Audit , accounting and special investigation	918	4,011	337	%
Other	8,354	15,598	87	%
Total Corporate Expenses	22,684	38,142	68	%

The increase in corporate salaries and benefits is a result of investments in staffing for new lines of business and other one-time expenses.

Legal expenses increased for FY2013 as a result of additional legal activity related to new regulatory and securities class action claims as well as reserves taken for existing litigation and claims.

Included in audit, accounting and special investigation costs for FY2013 are $1.6 million related to the restatements of previously issued financial statements, as well as $2.0 million related to the special investigation.

Included in other corporate expenses is a $4.4 million provision related to receivables from a vendor. Also included in other expenses are increases in professional fees and other public company expenses such as board fees and additional corporate rent as a result of the move to a new corporate office in Q4 of FY2012.

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Refer to the section entitled “Risks and Uncertainties” for additional information on the special investigation, regulatory developments and legal proceedings and "Other Receivables" for additional information on amounts due from vendors.

Depreciation of Property and Equipment and Amortization of Intangible Assets

Total depreciation of property and equipment of $8.2 million for the year ended September 30, 2013increasedcompared to $7.7 million in the same periods last year. The increase results primarily from a correction of depreciation of corporate property and equipment.

Amortization of intangible assets of $7.5 million for the year ended September 30, 2013increased from $5.1 million in the same period last year. The Company acquired proprietary knowledge, non-compete agreements and favorable supplier relationships when advances were acquired from third-party lenders in the second quarter of FY2012.

Net Loss and Comprehensive Loss

The Company reported net loss of $35.5 million for the year ended September 30, 2013 compared to net loss $43.5 millionin the same period last year. The prior year included an expense of $36.8 million for the settlement of pre-existing relationships with third-party lenders. Other significant factors contributing to the reported loss in comparison to the same period last year include increased provision for credit losses resulting from a change in estimation methodology to charge-off advances at 90 days past due, impairments on acquired advances, increased corporate salaries and legal costs, costs associated with restatements of previously issued financial statements and the special investigation, allowances for significantly aged receivables from a vendor and an increase to the valuation allowance recorded against deferred tax assets.

B. Liquidity and Capital Resources

Cash balances decreased to $11.5 million as at September 30, 2013, compared to $19.1 millionat the end of FY2012.

For FY2013 the Company utilized a combination of third-party lender funds and cash generated from operating activities to manage its working capital requirements. The Company is able to both purchase and sell consumer advances with third-party lenders in order to manage its working capital requirements.

In addition to cash flows from operations, to fund working capital and growth in consumer advances receivable for FY2014, the Company secured additional funding through its available credit facilities. Refer to the section entitled "Credit Facilities."

The Company expects to continue to fund working capital requirements to the end FY2014 through cash generated from operations and credit facilities.

Cash Flows

Cash provided by (used in):	Year ended September 30, 2012		Year ended September 30, 2013
(in thousands)
Operating activities	15,039		(698	)
Investing activities	(99,836	)	(4,505	)
Financing activities	90,926		(4,644	)

Cash used in operating activities was negative$0.7 millionfor FY2013, downfrom $15.0 millionprovided by operating activities in FY2012. Thedecrease was driven primarily by increases in corporate expenses.

Cash used in investing activities for FY2013 reflects the purchase of property and equipment and intangible assets. FY2012 cash used in investing activities reflects a significant acquisition of a portfolio of advances, intangible assets and an expense to settle pre-existing relationships with third-party lenders.

Cash used in financing activities for FY2013 primarily reflects the repayment of capital lease obligations and fluctuations in in funding made available by the third-party lenders for lending to consumers, whereas in FY2012 reflects the issuance of the Notes (defined herein).

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Funds advanced from third-party lenders are restricted and can only be used for consumer lending. In FY2013the Company used funds advanced from third-party lenders to broker advances to customers. The Company also transfers advances to third-party lenders to manage excess float and day-to-day working capital requirements. During FY2013 as part of the normal course of operations the Company transferred $14.3 million(2012 - $17.6 million) of net consumer advances receivable to third-party lenders in exchange for cash.

Consumer Advances Receivable, Net

As at September 30, 2013, the consumer advances receivable, net balance was $25.6 million, down from $32.4 million at September 30, 2012.

The Company’s consumer advances receivable balance at September 30, 2013 is comprised of $19.3 million (September 30, 2012: $25.9 million) of net advances that the Company has made directly to consumers and $6.2 million (September 30, 2012 - $6.6 million) in advances that the Company has purchased from third-party lenders.

Direct Loans

The September 30, 2013 direct advances balance of $19.3 million is comprised of gross advances of $29.2 million net of a provision for credit losses of $9.8 million (September 30, 2012: $52.3 milliongross advances and a provision of $26.4 million).

The year over year decrease is due to a change in the estimation methodology used to calculate the provision. As of September 30, 2013 the Company began to charge-off all advances at 90 days past due. This change resulted in an additional expense associated with the charge-off of value previously ascribed to advances greater than 90 days past due. As a result of the change in estimation methodology, all recoveries related to advances greater than 90 days past due will be recognized as a reduction to the provision for credit losses expense when received.

The change in estimation methodology has been made by the Company as a result of the continuing process of obtaining additional information and experience as a direct lender and on the basis that it is preferable. This change has helped management to address the identified material weakness in internal controls (see "Controls and Procedures") by providing better clarity and peer consistency with respect to the Company's accounting policy for credit losses and charge-offs.

Acquired Loans

During FY2013, based on current collection trends, the Company revised its forecast of future cash flows related to the January 31, 2012, fiscal Q2, 2013 and fiscal Q3, 2013 acquired advances. As a result, included in the provision for credit losses expense for FY2013 are impairment charges of $1.5 million related to these acquired portfolios.

Commencing in February, 2013, in order to better facilitate the collections of past due advances on its brokered lines of credit in Ontario and Manitoba, the Company has purchased line of credit advances from third-party lenders. The line of credit advances are not governed by applicable payday loans regulations and the Company needs to be licensed to collect overdue brokered line of credit advances. In the absence of such licenses the Company has chosen to collect the overdue line of credit advances on behalf of the lenders either by purchasing the line of credit advances or by engaging a third party agency for collection. For the purposes of collecting the line of credit advances, the Company elected to purchase the line of credit advances in FY2013 and incurred losses on the difference between the purchase price and fair value of the line of credit advances and recognized the difference as retention payments. The Company expects to continue the practice of repurchasing past due advances on brokered lines of credit for the foreseeable future.

The Company's valuation assumptions reflect the recovery of approximately 82%of the contractual value of the repurchased advances on brokered lines of credit within 12 months.

All advances acquired have been reported on a pooled basis based on the fiscal quarter of acquisition. As the total consideration paid to acquire the line of credit advances exceeded the fair value, for the year ended September 30, 2013 the Company recorded losses of $7.1 million (2012 - $nil) in retention payments expense.

The Company pools acquired advances for reporting purposes, as follows:

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(in thousands)	Contractual Value at Acquisition Date		Fair Value at Acquisition Date		Remaining Carrying Value September 30, 2013
January 31, 2012 loan acquisition	$	319,900	$	50,014	$	1,715
Fiscal Q2, 2013 acquired line of credit advances	$	7,138	$	6,382	$	47
Fiscal Q3, 2013 acquired line of credit advances	$	11,650	$	9,479	$	1,173
Fiscal Q4, 2013 acquired line of credit advances	$	21,031	$	16,848	$	3,313

Other Receivables

The September 30, 2013 net other receivables balance of $8.9 million (2012 - $19.9 million) is comprised mainly of short term receivables from vendors, with which the Company has agency arrangements to provide bank accounts, debit and prepaid MasterCard and insurance products to consumers.

Included in this amount are gross receivables of $9.8 million (September 30, 2012 - $11.3 million) due from a vendor. The Company has recorded an allowance of $4.4 million (2012 - $nil) against certain of these receivables which are greater than three months past due and collection is considered doubtful. These balances represent a concentration of credit risk to the Company. The Company is actively engaged in the pursuit of the overdue amounts and performs an ongoing review of the credit status of its key vendors.

Credit Facilities

On November 29, 2013 the Company entered into a credit agreement (the “Credit Agreement”) with Coliseum Capital Management, LLC (“Coliseum”), 8028702 Canada Inc. and 424187 Alberta Ltd. (“Alberta Ltd.”) (collectively, the “Lenders”), pursuant to which the Lenders have provided $12,000 of loans.

Pursuant to the Credit Agreement, 424187 Alberta Ltd. (the “Agent”) acts as agent for the Lenders. The loans made under the credit facility bear interest at 12.5% per annum, payable monthly in arrears, on the 29th day of each month. If an event of default occurs under the Credit Agreement, the interest rate is increased by 2% for so long as the event of default remains. The Credit Agreement provides that an additional $20,500 may be advanced for a total maximum loan amount of $32,500. The Lenders have a right of first refusal in respect of any additional advances. If the Lenders do not exercise their right of first refusal, the Company is free to obtain loan advances from other lenders who agree to become party to the Credit Agreement. The loans outstanding at any time are subject to the requirement that the maximum amount outstanding cannot exceed 75% of the unrestricted cash of the Company plus 75% of the net consumer advances receivable of the Company not more than 90 days in arrears (the “Borrowing Base”). If the total amount outstanding under the loan at any time exceeds the Borrowing Base, the Company must repay to the Initial Lenders, on a pro rata basis, an amount which will result in the loans not being in excess of the Borrowing Base. Such payment must be made within 20 days of the month end in which the Borrowing Base was exceeded.

Loans made under the Credit Facility mature on November 29, 2016 (the “Maturity Date”) or on such earlier date as the principal amount of all loans owing from time to time plus accrued and unpaid interest and all other amounts due under the Credit Agreement may become payable under the Credit Agreement. The Company may repay the loans at any time subject to payment of a prepayment fee as follows:

(a) If the prepayment is on or before November 29, 2014, the greater of (A) the interest that would accrue if the amount were to remain outstanding until November 29, 2014 and (B) 4% of the amount;

(b) If the prepayment is after November 29, 2014 but on or prior to November 29, 2015, 3% of the amount; and

(c) If the prepayment is after November 29, 2015, no fee.

The Company has agreed to designate the loans made under the Credit Agreement as priority lien debt and obtain the benefit of the security granted by the Company pursuant to the Collateral Trust and Intercreditor Agreement entered into in connection with the Company’s 11.5% senior secured notes.

The Company believes this Credit Agreement to be important in achieving the Company’s long-term strategic plans and will fund operations and growth in key business areas.

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In addition to certain covenants relating to the payment of the loans and the authority of the Company to enter into the Credit Agreement, the Company has covenanted in favour of the Lenders:

(a) to comply with the covenants granted to the holders of the 11.5% senior secured notes;

(b) not to designate any additional debt under the Collateral Trust Agreement; and

(c) to meet the following Adjusted EBITDA targets on a quarterly basis over the term of the Credit Agreement:

i) $4,000 for the first 3 months of the 2014 fiscal year

ii) $10,000 for the first 6 months of the 2014 fiscal year

iii) $17,000 for the for the first 9 months of the 2014 fiscal year

iv) $25,000 for the 2014 fiscal year

v) $23,625 on a rolling four quarter basis at the end of the first quarter of fiscal year 2015

vi) $26,250 on a rolling four quarter basis at the end of the second quarter of fiscal year 2015

vii) $26,875 on a rolling four quarter basis at the end of the third quarter of fiscal year 2015

viii) $27,500 for the 2015 fiscal year

ix) $28,125 on a rolling four quarter basis at the end of the first quarter of fiscal year 2016

x) $28,750 on a rolling four quarter basis at the end of the second quarter of fiscal year 2016

xi) $29,375 on a rolling four quarter basis at the end of the third quarter of fiscal year 2016

xii) $30,000 for the 2016 fiscal year

Under the credit agreement, Adjusted EBITDA means the net income (or loss) of the Company, on a consolidated basis, before interest expense, income tax expense, depreciation of property and equipment, and amortization of intangible assets and before the deduction or addition of extraordinary and/or non-recurring expenses as reported in the Borrower’s quarterly and annual Management’s Discussion and Analysis in the section entitled “EBITDA and Adjusted EBITDA reconciliation”.

In addition to the rights of the Lenders to demand payment and instruct the Agent to begin the process to realize on the security under the Collateral Trust and Intercreditor Agreement, upon the occurrence and during the continuance of an event of default, the Lenders have the right, but not the obligation, to appoint a financial advisor to review the affairs of the Company and to appoint a director to the Board.

424187 Alberta Ltd., which has committed to loan $2,000 of the initial $12,000 drawn, is controlled by the Company’s CEO and a director, Gordon Reykdal. Coliseum, which has committed to loan $5,000 of the initial $12,000 drawn, owns 17.8% of the common shares of the Company.

Senior Secured Notes

On January 31, 2012, the Company completed a private placement offering in Canada and the US for $132.5 million of 11.5% senior secured notes (the “Notes”). The Notes mature on January 31, 2017 and bear interest semi-annually on January 31 and July 31 each year. The Notes were issued at a price of 94.608% resulting in an effective interest rate of 13.4%.

The indenture governing the Notes (the "Indenture") contains certain covenants that limit the Company’s ability to:

• incur or guarantee additional indebtedness;

• make capital expenditures;

• make certain investments and acquisitions;

• amend the Company’s dividend policy, pay dividends, or make distributions on capital stock or make certain other restricted payments;

• sell assets, including capital stock of the Company’s restricted subsidiaries;

• enter into transactions with affiliates;

• create or incur liens;

• agree to payment restrictions affecting restricted subsidiaries;

• amend underwriting standards;

• form subsidiaries or fund foreign subsidiaries; and

• consolidate, merge, sell or otherwise dispose of assets, except those in the ordinary course of operations.

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The ability to declare and pay dividends is subject to compliance with a restricted payment covenant stipulated in the Indenture.

Compliance with the covenants are not impacted solely through the ordinary course of operations or the results of operations. The Company remains in compliance with all of the covenants under the Indenture.

In the event of specified change of control events, holders of Notes will have the right to require the Company to purchase all or a portion of the Notes at a purchase price in cash equal to 101% of the principal amount purchased, plus accrued interest to the date of purchase. In addition, upon certain asset sales, the Company may be required to use the net proceeds of such sales to offer to repurchase a portion of the Notes at a price in cash equal to 100% of the principal amount purchased, plus accrued and unpaid interest to the date of purchase.

Under the terms of the Notes, the Company may redeem up to 35% of the Notes with the net proceeds of certain equity offerings at a redemption price equal to 111.5% of the principal amount redeemed, plus accrued and unpaid interest to the redemption date any time before July 31, 2014. The Notes are redeemable in whole or in part, at any time on or after July 31, 2014 at the redemption prices (expressed as percentages of principal amounts) in the table below, plus accrued and unpaid interest:

For the period	Percentage
On or after July 31, 2014	103.084	%
On or after January 31, 2015	102.091	%
On or after July 31, 2015	101.127	%
On or after January 31, 2016	101.194	%
On or after July 31, 2016	100.000	%

The indenture contains a first lien carve out that allows us to obtain credit facilities of up to $32.5 million.

Proceeds from the issuance of the Notes were $125.2 million. The Company used $116.3 million of the proceeds to acquire a portfolio of loans from third-party lenders. $8.2 million of the proceeds were used to pay fees and expenses related to the issuance and remainder was used for general corporate purposes.

Dividends

The Company paid dividends to shareholders from 2008 to 2012. Starting in the fourth fiscal quarter of 2012 the Board of Directors suspended quarterly dividends. The dividend distribution policy is reviewed on a quarterly basis. This review includes evaluating the Company’s financial position, profitability, cash flow and other factors that the Board of Directors considers relevant.

The ability to declare and pay dividends is subject to compliance with a restricted payment covenant stipulated in the Indenture. This restricted payment covenant is based on achieving a ratio of consolidated cash flows to interest expense of at least 2.5 on a trailing four quarter basis. In order to re-establish quarterly dividends, the Company would need to earn EBITDA of approximately $10.8 million per quarter for four consecutive quarters.

Outstanding Share Data

As at December 11, 2013, the Company had 17,571,813 common shares outstanding. There were also1,131,402 options to purchase common shares outstanding, which if exercised, would provide the Company with proceeds of approximately $10.5 million. Each option is exchangeable for one common share of the Company.

C. Research and Development, Patents and Licenses

Not applicable.

D. Trend information

See 5.A “Operating Results’’ and ‘Item 4, Information on the Company—4.B Business Overview’ for trend information.

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E. Off-balance sheet arrangements

In FY2013short term advances of $241.4 million, representing30.9% (FY2012: $280.6 million, 35.2%) of the Company’s total loan volume of $781.8 million (FY2012: $797.7 million), was provided directly to consumers by independent third-party lenders.

Description of Arrangements

The Company has entered into written business agreements with a number of third-party lenders who are prepared to consider lending to the Company’s customers or to purchase advances originated by the Company. Pursuant to these agreements, services related to the collection of documents and information, as well as collection services are provided to the third-party lenders.

The agreements also provide that the third-party lenders are responsible for losses suffered due to uncollectible advances provided the Company has fulfilled the duties required under the terms of the agreements. If the Company does not properly perform its duties and the lenders make a claim under the agreements, the Company may be liable to the lenders for losses they have incurred. A liability is recorded when it is determined that the Company has a liability under the agreements.

The contracts between the Company and the third-party lenders do not contemplate continued retention payments. The contracts also do not guarantee repayment or a specified rate of return on the pool of funds committed by the third-party lenders' advanced to the Company's consumers. However, if the third-party lenders were to no longer participate in the brokering of advances to the Company's customers, the Company would lose the anticipated future revenue related to the brokering of advances. Under the broker model, the Company makes voluntary retention payments to the third-party lenders to encourage them to continue making funds available to the Company. The retention payments compensate the third-party lenders for some of the credit losses suffered. The Board of Directors regularly approves a resolution authorizing the Company to pay up to a certain amount of retention payments per quarter to third-party lenders. Retention payments are recorded in the period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.

It is the Company's practice to credit third-party lenders with retention payments such that when combined with portfolio returns, the return on the total funds made available by the third-party lenders for lending to consumers approaches a target of 17.5% (2012: 17.5%) per annum. This total return is determined by the Company based on the nature of product offerings, credit and regulatory risk profile, and the willingness of third-party lenders to make funds available to customers as well as the stability and flexibility of the third-party lenders. In consideration of these factors, the Company continually seeks to further improve and optimize the return to third-party lenders.

Summary of Exposure

At September 30, 2013, the total funds made available by third-party lenders for consumer lending was $44.1 million (September 30, 2012: $33.1 million). If the Company were to reimburse the third-party lenders for all historical loans lossess suffered (provide a "make whole payment"), as of September 30, 2013 the estimated loss would be in the amount of $14.1 million(September 30, 2012 - $13.1 million). This estimated loss represents the Company’s maximum exposure to third-party lenders and is comprised of the following components:

(in thousands)	September 30, 2012	September 30, 2013
1. Estimated credit losses on the portfolio of loans and advances of third-party lenders	11,235	2,684
2. Cumulative charge-offs in excess of portfolio returns and retention payments	1,822	11,388
Total Exposure	13,057	14,072

Based on the same methodology that the Company uses to determine the point where advances are charged off, the following summarizes the aging of the advances of the third-party lenders as well as the estimated allowance for credit losses inherent in their portfolios:

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(in thousands)	September 30, 2012		September 30, 2013
Current	13,319		25,346
1 to 30 days past due	4,914		2,067
31 to 60 days past due	2,041		303
61 to 90 days past due	1,918		253
Greater than 90 days past due	3,235		160
Gross Portfolio Value	25,428		28,129
Estimated credit losses	(11,235	)	(2,684	)
Net Value	14,193		25,445

The following summarizes the status of the funds of third-party lenders made available for consumer lending:

(in thousands)	September 30, 2012		September 30, 2013
Funds made available by third-party lenders for consumer lending	33,078		44,092
Less: funds deployed in consumer loans and advances	(25,428	)	(28,129	)
Less: Cumulative charge-offs in excess of portfolio returns and retention payments	(1,822	)	(11,388	)
Net funds available for consumer lending	5,827		4,575

Risk Management and Mitigation Strategy

The Company manages its potential exposure to third-party lenders through retention payments as well as the repurchase of past due line of credit advances.

During FY 2013, the Company voluntarily purchased past due line of credit advances in Ontario and Manitoba from the third-party lenders at the advances contractual value. This resulted in the Company immediately compensating the third-party lenders for any current or future losses inherent in the portfolios acquired. The difference between the purchase price and the fair value of the acquired advances is recorded as a retention payment.

As part of the Company’s strategic plan to mitigate its risks and exposures, the Company expects to continue to make retention payments to third-party lenders such that its maximum exposure does not increase in proportion to the volume of brokering activity during the period.

F. Tabular disclosure of contractual obligations

 The following table summarizes contractual obligations and other commercial commitments at September 30, 2013 and the effect such obligations and commitments are expected to have on liquidity and cash flow in future periods:

	Payments due by Period
(in thousands)	Total		Less than 1 year		1-3 years		4-5 years		After 5 years
Senior Secured Notes	$	185,832	$	15,238	$	30,475	$	140,119	0
Capital Lease Obligations	6,946		1,612		1,828		807		2,699
Operating Leases	83,089		20,419		24,167		13,222		25,281
Total contractual obligations	275,867		37,269		56,470		154,148		27,980

G. Safe Harbor

See above – “Cautionary Statement Regarding Forward-Looking Information.”

ITEM 6. Board of Directors, senior management and employees

A. Board of Directors and Senior Management

As at December 11, 2013, the Company’s directors and senior executive officers together beneficially owned 4,665,700 (26.5%) of the outstanding Common Shares.

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The names and province or state, and country of residence of the directors and senior executive officers of the Company, the date when the individual first became a director, their principal occupations, the positions in the Company held by them and the number and percentage of voting securities of the Company as atDecember 11, 2013, are set out in the following table:

Name, Province or State, and Country of Residence	Position with the Company and Date First Became a Director	Principal Occupation, Business or Employment (5 preceding years unless otherwise indicated)	Number and percentage of Common Shares beneficially owned, directly or indirectly, or over which control or direction is exercised
Eugene I. Davis (2)(3) Livingston, New Jersey, USA	Chairman of the Board June 26, 2013	Chairman of the Board of Atlas Air Worldwide Holdings Inc. (Nasdaq: AAWW), and U.S. Concrete, Inc (Nasdaq:USCR). Director of Global Power Equipment Group Inc (Nasdaq:GLPW)., Spectrum Brands Holdings Inc.(NYSE:SPB) and WMI Holdings Corp.	Nil
Gordon Reykdal (2) Edmonton, Alberta, Canada	Director and Chief Executive Officer February 23, 2001	Founder and Chief Executive Officer of the Company.	3,640,300(4) 20.7%
William C. (Mickey) Dunn (3) Calgary, Alberta, Canada	Director May 14, 2002	Chairman of Bellatrix Exploration (NYSE:BXE), an oil and gas exploration company. A director of Precision Drilling Inc. prior to the 2009 Arrangement of True Energy.	750,000 4.3%
Edward C. McClelland (2) Burlington, Ontario, Canada	Director November 8, 2005	Chairman of TEC (The Executive Committee) Group 223 & 323, an organization of international CEO’s. Director of The Cash Store Australia Holdings Inc. since 2009.	29,500 0.2%
Donald C. Campion (1) Commerce Twp, Michigan, USA	Director August 14, 2013	Director of Haynes International, Inc. (NASDAQ: HAYN) and is an independent director and Chair of the Audit Committee for three privately held companies.	Nil
Thomas L. Fairfield (1)(3) Landenberg, Pennsylvania, USA	Director August 14, 2013	Executive Vice President, Chief Operating Officer, Counsel and a Director of Capmark Financial Group Inc, a financial services company focused on the commercial real estate industry.	Nil
Ron Chicoyne (1)(2) Calgary, Alberta, Canada	Director October 29, 2008	Founder & Managing Director of Links Capital Partners Ltd., an independent corporate finance firm.	8,450 0.0%
Timothy J. Bernlohr (2)(3) Newtown, Pennsylvania, USA	Director August 14, 2013	Managing Director of TJB Management Consulting, LLC, a firm specializing in project-specific consulting services to businesses in transformation. Chairman of the Board of Directors of Champion Home Builders, Inc. and The Manischewitz Co. and is a director of Atlas Air Worldwide Holdings (Nasdaq:AAWW), Chemtura Corp. (NYSE:CHMT) and Rock-Tenn Company (NYSE:RKT).	Nil
Kevin Paetz Edmonton, Alberta, Canada	President and Chief Operating Officer, Canadian Operations	Chief Operating Officer, Canadian Operations since March 1, 2012. Prior to this, he spent seven years with DFC Global Corp. (Dollar Financial) in several leadership positions including: Vice President Acquisitions, Vice President of Operations, United Kingdom, and Vice President, Field Operations Canada.	15,100 0.1%
Barret Reykdal Bowdon, United Kingdom	President and Chief Operating Officer, UK Operations	Chief Operating Officer of the Company’s UK operations since March 1, 2012. Prior to that he was the Chief Operating Officer of the Company since April 2005.	170,367 1.0%
Craig Warnock Edmonton, Alberta, Canada	Chief Financial Officer	Chief Financial Officer of the Company since July 3, 2012. From August 2010 to July 2012 he was Executive Vice President and Chief Financial Officer of a private foreign exchange company. From May 2008 to May 2010 he served as Chief Financial Officer and Treasurer of the City of Edmonton.	4,000 0.0%

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Name, Province or State, and Country of Residence	Position with the Company and Date First Became a Director	Principal Occupation, Business or Employment (5 preceding years unless otherwise indicated)	Number and percentage of Common Shares beneficially owned, directly or indirectly, or over which control or direction is exercised
S. William (Bill) Johnson Edmonton, Alberta, Canada	Senior Executive Vice President	Senior Executive Vice President since November 2008. Chief Financial Officer and Director of affiliated companies The Cash Store Australia Holdings Ltd. and RTF Financial Holdings Inc.	35,600 0.2%
Halldor Kristjansson Edmonton, Alberta, Canada	Senior Executive Vice President Banking and Credit	Senior Executive Vice President of the Company since November 2010. Prior to joining the Company, he served as Group Co-Chief Executive Officer and Group Managing Director of a private Icelandic bank.	Nil
Michael Thompson Edmonton, Alberta, Canada	Senior Vice President Corporate Affairs	Senior Vice President Corporate Affairs since February 2012, prior to which he was the Senior Vice President and Corporate Secretary since February 2008.	7,383 0.0%
Michael Baker Edmonton, Alberta, Canada	Senior Vice President, Canadian Operations	Senior Vice President, Canadian Operations since September 2013. From 2010 to 2013 was Senior Vice President Investment Operations with the Alberta Investment Management Corp. Previously spent 11 years with ATB Financial in a variety of executive leadership roles.	5,000 0.0%
Dean Ozanne Edmonton, Alberta, Canada	Senior Vice President Virtual Operations and Innovation	Senior Vice President Virtual Operations and Innovation since September, 2013. Previously spent 13 years with ATB Financial in a variety of executive leadership roles.	27,950 0.2%

Notes

(1) Member of Audit Committee.

(2) Member of Corporate Governance and Nominating Committee.

(3) Member of Compensation Committee.

(4) 3,222,635 of these shares are directly owned by 424187 Alberta Ltd., a company controlled by Mr. Gordon Reykdal; 272,968 are held by Mr. Gordon Reykdal directly and 144,697 are held by Mr. Gordon Reykdal’s spouse.

To the best of the knowledge of the directors and executive officers of the Company, the following are existing or potential material conflicts of interest between directors or executive officers and the Company, its subsidiaries and entities that the Company holds significant influence:

• 424187 Alberta Ltd., a company controlled by the Company’s CEO, Gordon Reykdal, provided a loan to the Company as set forth under Item 5.B. "Credit Facilities."

• Mr. Gordon Reykdal, Mr. S. William Johnson and Mr. Edward C. McClelland are currently on the board of directors of The Cash Store Australia Holdings Inc., a company in which the Company has an investment as described above in "Principal Markets and Foreign Operations";

• Mr. Gordon Reykdal and Mr. S. William Johnson are currently on the board of directors of RTF Financial Holdings Inc., a company in which the Company has an investment as described above in "Principal Markets and Foreign Operations";

• Mr. S. William Johnson is the Chief Financial Officer of The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc.;

• Mr. Barret J. Reykdal is the son of Mr. Gordon Reykdal.

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B.Compensation

Executive Compensation Elements

Using the Company’s compensation philosophy, executive compensation is split-out into four separate components:

	Base Salary	Bonus Program	Benefit Program(s)	Stock Option Based Awards
Company Philosophy Being Met	• Competitive with other companies	• Align individual interests with Company interests • Fosters teamwork and fairness • Encourage, motivate and reward performance	• Competitive with other companies	• Competitive with other companies • Align individual interests with Shareholder interests • Encourage, motivate and reward performance
Company Objectives Being Met	• Attract and retain talented executives	• Reward contribution to achievement of financial and non-financial goals	• Attract and retain talented executives	• Encourage, motivate, retain and reward executives for achieve long term results and overall company health
Determination of Amounts	• Reflect skill and level of responsibility • Take into account market conditions and competitors	• Reflect skill and level of responsibility • Company performance based	• Reflect skill and level of responsibility • Take into account market conditions and competitors	• Reflect skill and level of responsibility • Company performance based

The Compensation Committee does not formally assess the risks associated with the Company’s compensation policies and practices.

Base Salary

Base salaries are established with reference to position and responsibilities, the individual’s contribution, experience and seniority and competitive market data. Base salaries are reviewed annually and adjusted if appropriate.

Bonus Program

The purpose of this component of compensation is to reward the executives and the associates for their contribution to the success of the business. Bonuses are paid out monthly and from time to time special bonuses may be paid for performance in connection with specific projects or objectives. Cash Store Financial’s operations and financial results form the basis for the bonuses paid on a monthly basis. In addition, each senior executive’s contribution to the success of the business is considered, including achievement of objectives such as cost controls, strategic imperatives, risk management and enhancement of corporate reputation. Financial metrics in the objectives are largely set based on targets that meet or exceed the annual budget approved by the Board. Partially meeting objectives would result in a reduced award.

The specific performance metrics used by the Company to determine bonus payouts are not publicly disclosed. The Company believes that disclosure of these performance metrics, including various supporting indices and benchmarking and standards, would prejudice the Company’s interests in the market in which the Company operates. By disclosing these metrics the Company’s competitors would be aware of how employees are compensated and at what thresholds branches are considered profitable.

The Compensation Committee approves executive bonuses plus the bonus plan for all associates. The bonus program has not changed since the 2009 fiscal year.

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Benefits Program

The benefits programs include a mixture of group retirement savings plan contributions, basic life insurance, basic disability income replacement, core life insurance, core disability income replacements, executive healthcare spending accounts and automobile allowances. The benefits programs available to each executive are established with reference to position and responsibilities, the individual’s contribution, experience and seniority and competitive market data.

Cash Store Financial provides executives with enhanced financial protection through a portfolio of individual life insurance, disability insurance, and an executive health care spending account. The insurance products and services are listed in the summary below as an overview.

i) Basic Life Insurance - Under the group life insurance policy with Great West Life, executives are covered for 5 times their annual earnings up to a maximum of $500,000 without medical evidence.  This benefit is reduced by 50% when the executive becomes 65 and terminates at age 70.  The life insurance is term insurance, with no cash value, and rates are adjusted annually by the insurer.  Upon termination from Cash Store Financial, within 30 days, the executive has ability to convert up to $200,000 of his or her group life insurance to an individual policy without providing medical evidence.  This policy would be priced based on the executive’s age, smoking and health status and the premium would be paid by the executive.

ii) Standard Great West Life Group Benefit Plan provides coverage, such as, Accidental Death and Dismemberment ("AD&D"), an amount equal to your Basic Life Insurance policy.  The insurance company will pay up to two times the Principal Sum for accidents incurred while insured.  AD&D reduces by 50% at the age of 65 and terminates at age 70.  Dependent Life Insurance, coverage of a dependent spouse is $25,000 and coverage for a dependent child is $12,500.  Dependent Life terminates at age 70.  For additional life coverage, optional employee and spousal life is offered.  This benefit requires medical evidence for insurability and will need to be approved for coverage between $10,000 to $200,000.  The extended health plan provides 100% coverage for eligible medical expenses up to plan maximums.  100% reimbursement level for Prescription Drugs, $500 per year for eligible Paramedical Services.  Also included in the Health Coverage is the out of country Global Medical Insurance.  Dental Care provides 100% basic dental coverage, 50% major with a combined maximum of $2,000 per calendar year.  50% Orthodontic coverage with a lifetime maximum of $3,000 and unlimited accidental dental injury treatment.

iii) Under the Executive Benefit program the executive has an online health care spending account funded by Cash Store Financial. The core life benefits within this program are a $250,000 guaranteed issue life policy with guaranteed premiums to age 65 and guaranteed issue disability insurance of up to $1500/month with guaranteed discounts and pricing to age 65. The executive is able to utilize any additional health spending account room to buy additional insurance and/or fund medical expenses that are not covered under the group benefit program.

iv) Core Disability Income Replacement is a professional plan which provides monthly income benefits upon suffering a disability that impairs the insured from performing the duties of his or her regular occupation. Premium rates and discounts are guaranteed to age 65. Coverage includes significant upgrades not included in group long-term disability plans such as the addition of partial/residual disability benefits, return-to-work assistance, recovery benefits and optional renewal of the policy should they choose to work full-time past age 65.

v) Executive Health Care Spending Account is a sophisticated healthcare spending account that can be used to fund eligible non-insured healthcare costs. Cash Store Financial has provided a contribution to cover the insurance premium of this program. Whatever cash is left over can be used at the executive’s discretion within specific restrictions. For example, they may purchase additional insurance products to meet their personal needs, or keep the additional cash to fund uninsured medical expenses such as orthodontia.

Stock Option Based Awards

The Company has longer term incentive plans in the form of stock options (“Options”), which are designed to reward executives and key employees for their contribution to the financial success of Cash Store Financial, and to encourage and motivate them to create Shareholder value. Participation in these incentive plans is limited to executive and other associates whose roles and responsibilities directly influence the success of the Company and those associates who management has identified as having long-term succession potential. The Company has adopted a stock option plan which is set forth in item 6.E. Share Ownership.

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Summary Compensation Table

The following table contains information for the three most recently completed annual fiscal periods (years ended September 30, 2013, 2012 and 2011) regarding the compensation paid to or earned by the Company’s CEO, CFO and three highest compensated executive officers ("Named Executive Officers" or "NEOs"):

Name and Principal Position	Fiscal Period	Salary ($)	Share Based Awards ($)	Option Based Awards (8) ($)	Non-equity incentive plan compensation		Pension Value ($)	Other Compensation(1) ($)	Total Compensation ($)
					Annual Incentive Plans ($)	Long-term Incentive Plans ($)
Gordon Reykdal Chief Executive Officer (2) (3)	2013 2012 2011	450,000 200,000 200,000	Nil Nil Nil	Nil Nil Nil	Nil 228,023 929,247	Nil Nil Nil	Nil Nil Nil	11,138 16,111 55,523	461,138 444,134 1,184,770
Craig Warnock(4) Chief Financial Officer	2013 2012	325,000 75,000	Nil Nil	18,491 3,420	95,750 12,962	Nil Nil	Nil Nil	41,889 11,587	481,130 102,969
Kevin Paetz(5) President and Chief Operating Officer Canadian Operations	2013 2012	200,000 113,707	Nil Nil	31,140 13,148	303,814 125,145	Nil Nil	Nil Nil	39,490 14,742	574,444 266,742
Barret Reykdal (6) President and Chief Operating Officer UK Operations	2013 2012 2011	285,357 207,560 175,000	Nil Nil Nil	6,795 28,102 29,767	Nil 71,241 311,443	Nil Nil Nil	Nil Nil Nil	125,434 10,674 34,937	417,586 317,577 551,147
Cameron Schiffner (7) Senior Vice President	2013 2012 2011	150,000 155,000 158,846	Nil Nil Nil	2,512 9,367 11,030	158,742 110,472 77,290	Nil Nil Nil	Nil Nil Nil	44,796 21,377 15,039	356,050 296,216 262,205

Notes:

(1) The amounts shown as other compensation are for RRSP contributions, car allowance, vehicle lease payments, housing allowances and/or executive health care benefits.

(2) Mr. Gordon Reykdal is a director of the Company and does not receive compensation for his role as a director.

(3) All amounts shown reflect annual service fees paid by the Company to 424187 Alberta Ltd., a company controlled by Mr. Gordon Reykdal, in connection with executive services provided by Mr. Reykdal.

(4) Mr. Craig Warnock joined the Company in July of 2012.

(5) Mr. Kevin Paetz joined the Company in March of 2012.

(6) Mr. Barret J. Reykdal is the son of Mr. Gordon Reykdal.

(7) Mr. Cameron Schiffner's employment with the Company was terminated effective September 11, 2013. Mr. Cameron Schiffner was the son-in-law of Mr. Gordon Reykdal.

(8) The Company used the Black-Scholes pricing model as the methodology to calculate the grant date fair value, and relied on the following key assumptions and estimates for each calculation: under the following assumptions: (i) risk free interest rate of 1.7% (1.4% - 2012, 1.6% - 2011); (ii) expected dividend yield of nil% (6.4% - 2012, 3.7% - 2011); (iii) expected volatility of 47.5% (50.3% - 2012, 39.0% - 2011); and (iv) an expected term of five years (four years - 2012, three years - 2011). The Black-Scholes pricing model was used to estimate the fair value as it is the most accepted methodology.

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Incentive Plan Awards

The following table contains information for outstanding share-based awards and option-based awards of the Company’s NEO’s at September 30, 2013:

	Option-based Awards				Share-based Awards
Name	Number of securities underlying unexercised options (#)	Option exercise price ($)	Option Expiration date	Value of unexercised in-the-money options ($)	Number of shares or units of shares that have not vested (#)	Market or payout value of share-based awards that have not vested ($)	Market or payout value of vested share-based awards not paid out or distributed ($)
Craig Warnock	50,000	6	July 3, 2017	Nil	Nil	Nil	Nil
Kevin Paetz	100,000	5.85	March 1, 2019	Nil	Nil	Nil	Nil
Barret Reykdal	75,000	2.56	July 23, 2018	Nil	Nil	Nil	Nil
Barret Reykdal	30,000	10.3	November 17, 2014	Nil	Nil	Nil	Nil
Cameron Schiffner	10,000	10.3	December 12, 2013(1)	Nil	Nil	Nil	Nil

Note:

(1) The option expiration date for Cameron Schiffner is 90 days after his employment was terminated.

The following table contains information for incentive plan award value vested or earned during the year ended September 30, 2013 for the Company’s NEO’s:

Name	Option-based awards – Value vested during the year ($)	Share-based awards – Value vested during the year ($)	Non-equity incentive plan compensation – Value earned during the year ($)
Gordon Reykdal	Nil	Nil	Nil
Craig Warnock	17,710	Nil	95,750
Kevin Paetz	28,137	Nil	303,814
Barret Reykdal	28,092	Nil	Nil
Cameron Schiffner	9,363	Nil	158,742

Termination and Change of Control Benefits

The Company has contracts with its NEO’s containing the following termination and change of control benefits:

Gordon Reykdal

The Company and 424187 Alberta Ltd. (“424187”), a company controlled by Mr. Gordon Reykdal, executed a Services Agreement in January of 2002 in connection with executive services to be provided to the Company by Mr. Gordon Reykdal. Under this agreement, 424187’s services may be terminated: (i) by the Company for cause; or by 424187 upon not less than three months written notice to the Company; (ii) or by the Company at any time upon written notice to 424187; (iii) or by the Company, if Mr. Reykdal has failed to provide services due to disability for 90 days in any 365 day period, subject to applicable human rights legislation. If the services of 424187 are terminated by the Company, other than for cause, the Company shall pay to 424187 a terminate payment, on or before the last day that services are provided (the “Termination Date”), a lump sum cash amount equal to the total of: (i) thirty-six (36) months fixed service fees at the Termination Date; and (ii) three times the average amount payable to 424187 by the Company as performance bonus (whether or not deferred) in respect of the three fiscal years ended prior to the Termination Date (provided that, prior to the completion of three fiscal years such amount shall be the average of performance bonus amounts paid to that date).

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Kevin Paetz

The termination clause in Mr. Kevin Paetz’s employment agreement is as follows: “The employer may terminate the employee at any time without cause, by prior written notice given to the employee. In the event of the termination of the employee’s employment pursuant to this subsection, the employer shall provide the employee with one month of notice for each year of service with the employer, with the minimum notice being twelve months. In lieu of notice of termination of employment, the employer shall pay to the employee: an amount equal to one times the employee’s average monthly compensation, the cash equivalent of all employee benefits to which the employee would have received or which would have been available to the employee for twelve months, an aggregate amount equal to the employee’s salary, if unpaid, up to and including effective time of termination, and vacation pay for any accrued but unused vacation, any outstanding amounts previously earned which remain unpaid in any incentive plan in which the employee participates, and any stock options which would vest in favour of the employee on the next anniversary dates but for the termination shall be vested”.

Barret Reykdal

The termination clause in Mr. Barret Reykdal’s employment agreement is as follows: “The employer may terminate the employment of the employee hereunder at any time without cause, by prior written notice given to the employee. In the event of the termination of the employee’s employment pursuant to this subsection, the employer shall pay to the employee: an aggregate amount equal to his salary, if unpaid, up to and including the effective time of termination; an amount equal to one times the employee’s average monthly compensation based on the previous three months’ compensation, with an overall minimum of twelve times the employee’s average monthly compensation based on the previous three months’ compensation; and the present worth of all employee benefits as herein referred to which the employee would have received, or which would have been available to the employee, for a period of twelve months if termination occurs within six months of the commencement of the term, otherwise twelve months to an overall maximum of twelve months from the effective date of termination.”

Craig Warnock

The termination clause in Mr. Craig Warnock’s employment agreement is as follows: “The employer may terminate the employment of the employee hereunder at any time without cause, by prior written notice given to the employee. In the event of the termination of the employee’s employment pursuant to this subsection, the employer shall provide the employee with one month of notice for each year of service with the employer, with the minimum notice being twelve months. In lieu of notice of termination of employment, the employer shall pay to the employee: an amount equal to one times the employee’s average monthly compensation, the cash equivalent of all employee benefits to which the employee would have received or which would have been available to the employee for twelve months, an aggregate amount equal to the employee’s salary, if unpaid, up to and including effective time of termination, and vacation pay for any accrued but unused vacation, any outstanding amounts previously earned which remain unpaid in any incentive plan in which the employee participates, and any stock options which would vest in favour of the employee on the next anniversary dates but for the termination shall be vested”.

Board of Director Compensation

In conducting its annual benchmarking of compensation, the Compensation Committee considers the mix and level of compensation for directors to the mix and level for directors of a comparator group consisting of Canadian public companies of similar size and profitability. After reviewing the market data and applying the compensation principles adopted by the Corporation, the Compensation Committee makes its recommendations to the Board. Total compensation received by the Company’s directors for the year endedSeptember 30, 2013 is outlined in the table below.

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Director(1)	Fees earned ($)	Option Based Awards ($)	Share Based Awards ($)	Non-Equity Incentive Plan Compensation ($)	Pension Value ($)	Other Compensation ($)	Total $
Eugene I. Davis	31,250	11,533	Nil	Nil	Nil	Nil	42,783
William C. (Mickey) Dunn	117,250	61,454	Nil	Nil	Nil	Nil	178,704
Robert J.S. Gibson (outgoing)	85,750	61,454	Nil	Nil	Nil	Nil	147,204
Ron Chicoyne	129,750	61,454	Nil	Nil	Nil	Nil	191,204
Edward C. McClelland	69,600	61,454	Nil	Nil	Nil	Nil	131,054
Michael Shaw (outgoing)	77,250	63,411	Nil	Nil	Nil	Nil	140,661
Albert Mondor (outgoing)	162,500	61,454	Nil	Nil	Nil	Nil	223,954
Donald C. Campion	15,850	Nil	Nil	Nil	Nil	Nil	15,850
Thomas L. Fairfield	16,500	Nil	Nil	Nil	Nil	Nil	16,500
Timothy J. Bernlohr	16,500	Nil	Nil	Nil	Nil	Nil	16,500

None of the other directors of the Company were compensated for services rendered to the Company in any other capacity during the fiscal year ended September 30, 2013.

Standard Compensation Arrangements

Non-employee directors are compensated for their services through a combination of annual retainers and option and share based awards. Directors who are employees receive no additional compensation for serving on the Board or its committees.

The following table displays the compensation structure for effective to September 30, 2013for all non-employee directors:

Annual Retainer	$	60,000
Annual Committee Chair Retainer	$	15,000
Annual Lead Director Retainer	$	30,000
Audit Committee	$	5,000
Compensation Committee	$	5,000
Corporate Governance and Nominating Committee	$	5,000
Board Meeting Fee and Committee Meeting Fee (in person attendance)	$	1,500
Board Meeting Fee and Committee Meeting Fee (telephone attendance)	$	850

The following table displays the compensation structure for effective from October 1, 2013 for all non-employee directors, including the chairman of the Board:

Annual Retainer	$	60,000
Annual Committee Chair Retainer	$	15,000
Annual Lead Director Retainer	$	30,000
Audit Committee	$	5,000
Compensation Committee	$	5,000
Corporate Governance and Nominating Committee	$	5,000
Board Meeting Fee and Committee Meeting Fee (in person attendance)	$	1,500
Board Meeting Fee and Committee Meeting Fee (telephone attendance)	$	850

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Incentive Plan Awards

The following table contains information for outstanding share-based awards and option-based awards of the Company’s directors at September 30, 2013:

	Option-based Awards				Share-based Awards
Director	Number of securities underlying unexercised options (#)	Option exercise price ($)	Option Expiration date(1)	Value of unexercised in-the-money options ($)	Number of shares or units of shares that have not vested (#)	Market or payout value of share-based awards that have not vested ($)	Market or payout value of vested share-based awards not paid out or distributed ($)
Eugene I Davis	120	—	June 27, 2018	Nil	Nil	Nil	Nil
William C. (Mickey) Dunn	25	0.01	June 29, 2014	Nil	Nil	Nil	Nil
	25	0.02	June 25, 2015	Nil
	25	0.01	July 12, 2016	Nil
	25	0.01	August 14, 2017	Nil
Robert G.S. Gibson (outgoing)	25	0.01	November 11, 2013	Nil	Nil	Nil	Nil
	25	0.02		Nil
	25	0.01		Nil
	25	0.01		Nil
Ron Chicoyne	25	0.01	June 29, 2014	Nil	Nil	Nil	Nil
	25	0.02	June 25, 2015	Nil
	25	0.01	July 12, 2016	Nil
	25	0.01	August 14, 2017	Nil
Edward C. McClelland	17	0.01	June 29, 2014	Nil	Nil	Nil	Nil
	25	0.02	June 25, 2015	Nil
	25	0.01	July 12, 2016	Nil
	25	0.01	August 14, 2017	Nil
Michael Shaw (outgoing)	25	0.01	October 29, 2013	Nil	Nil	Nil	Nil
	25	0.02		Nil
	25	0.01		Nil
	25	0.01		Nil
Albert Mondor (outgoing)	25	0.01	November 11, 2013	Nil	Nil	Nil	Nil
	25	0.02		Nil
	25	0.01		Nil
	25	0.01		Nil

Note:

(1) Option expiration dates for outgoing directors is 90 days after the individual ceased to be a director of the Company.

The following table contains information for incentive plan award value vested or earned during the year ended September 30, 2013 for the Company’s directors:

Name	Option-based awards – Value vested during the year ($)	Share-based awards – Value vested during the year ($)	Non-equity incentive plan compensation – Value earned during the year ($)
William C. (Mickey) Dunn	71,675	Nil	Nil
Robert G.S. Gibson	71,675	Nil	Nil
Ron Chicoyne	71,675	Nil	Nil
Edward C. McClelland	71,675	Nil	Nil
Michael Shaw	96,787	Nil	Nil
Albert Mondor	71,675	Nil	Nil

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C. Board of Director Practices

Board of Directors are re-elected at the annual general meeting of the Company’s shareholders. Each of the current directors will continue to hold his respective office until his successor is elected or appointed, unless his office is earlier vacated under any of the relevant provisions of our Articles or applicable laws and regulations.

There are no directors’ service contracts with the Company or any of its subsidiaries providing for benefits upon termination of employment.

Audit Committee

Audit Committee’s Charter

The Company’s Audit Committee charter sets out its roles and objectives, responsibilities and duties, and membership standards for reporting to the Board. A copy of the charter is attached hereto as Exhibit 1.1 and is incorporated by reference into this Form 20-F.

Composition of the Audit Committee

The Company’s board of directors has a separately-designated standing audit committee (the “Audit Committee”) established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (the “Exchange Act”). The Audit Committee is composed of Donald Campion, Thomas Fairfield and Ron Chicoyne, all of whom, in the opinion of the Board, are independent and financially literate. Each member of the Audit Committee is “financially literate” within the meaning of applicable Canadian securities laws.

1. Donald Campion, BSc., MBA (Chairman of the Audit Committee)

Mr. Campion is a senior executive with broad corporate experience with strategic acquisitions, divestitures, integration activities and international operations. Mr. Campion currently serves as a director of Haynes International, Inc. (NASDAQ: HAYN), where he serves as the Chair of the Audit Committee, and is an independent director and Chair of the Audit Committee for three privately held companies. Mr. Campion had been a senior-level financial executive with a number of public and private companies. He spent 27 years with General Motors Corporation where he held various positions including CFO of several operating divisions, and he was the CFO of four privately held companies.

2. Thomas Fairfield, B.S.F.S.

Mr. Fairfield is Executive Vice President, Chief Operating Officer, Counsel and a director of Capmark Financial Group Inc. Capmark is a financial services company focused on the commercial real estate industry. Prior to joining Capmark in 2006, Mr. Fairfield practiced corporate and securities law for more than 20 years. He is admitted to the bar of the states of Connecticut, Pennsylvania, New York and the District of Columbia, and is a member of the American Bar Association and the National Association of Stock Plan Professionals.

3. Ron Chicoyne, CFA, CF, ICD.D

Mr. Chicoyne holds a Chartered Financial Analyst designation, Corporate Finance Qualification, Institute of Corporate Directors designation and received his Bachelor of Commerce (Honours) degree from the University of Manitoba. He is the founder and Managing Director of Links Capital Partners Ltd., a boutique corporate finance firm. Prior to this, he was a partner and director of the private equity firm, Mercantile Bancorp Limited.

Audit Committee Financial Expert

The Board has determined that it has at least one Audit Committee financial expert serving on its Audit Committee. The Company’s board of directors has determined that Donald Campion is an audit committee financial expert and is independent (as definded under Rule 10A-3 of the Exchange Act and Section 303A.06 of the New York Stock Exchange’s Listed Company Manual).

The U.S. Securities and Exchange Commission has indicated that the designation of a person as an audit committee financial expert does not make such person an “expert” for any purpose, impose on such person any duties, obligations or liability that

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are greater than those imposed on such person as a member of the Audit Committee and the Board in the absence of such designation and does not affect the duties, obligations or liability of any other member of the Audit Committee or the Board.

Pre-approval Policies and Procedures

As part of the Company’s corporate governance structure, the Audit Committee annually reviews and approves the terms and scope of the auditor’s engagement. To further ensure that the independence of the auditors is not compromised, Company policy requires that the Audit Committee also pre-approve all significant engagements of the auditors for non-audit services and monitor all other engagements.

In addition, all non-audit service engagements, regardless of the cost estimate, are required to be coordinated by the Company’s Chief Financial Officer, or a designate, to further ensure that adherence to this policy is monitored. All non-audit service engagements must also be reported to the Audit Committee on a quarterly basis.

External Audit Fees by Category

KPMG has served continually as the Company’s external auditor since January 2002. The following table lists the fees billed by KPMG, by category, during the last two fiscal years:

	Year Ended September 30, 2013		Year Ended September 30, 2012
Audit fees	$	1,458	$	638
Audit-related fees	$	199	$	510
Tax fees	$	10	$	4
All other fees	Nil		Nil
Total fees	$	1,667	$	1,152

Audit Fees - Audit fees were paid for professional services rendered by the auditors for the audit of the Company’s annual financial statements or services provided in connection with statutory and regulatory filings or engagements and the review of the Company’s interim financial statements.

Audit-related Fees - Audit-related fees were paid for assurance and related services that are related to the performance of the audit or review of the annual and interim financial statements and are not reported under the audit fees item above. These services consisted of special attest services as required by various government entities, services provided in relation to foreign investments and services in respect of special transactions.

Tax Fees - Tax fees were paid for professional services relating to tax compliance, tax advice and tax planning. These services consisted of the review of a goods and services tax re-assessment.

Compensation Committee

When determining the compensation of Cash Store Financial’s executive officers, including the Named Executive Officers (defined below), the compensation committee of the Board (the “Compensation Committee") considers the objectives of: (i) recruiting and retaining the executives and senior management critical to the success of Cash Store Financial and the enhancement of Shareholder value; (ii) providing fair and competitive compensation; (iii) balancing the interests of management and Shareholders of Cash Store Financial; and (iv) rewarding performance, both on an individual basis and with respect to the business in general. In order to achieve these objectives, the compensation paid to executive officers consists of base salary, performance-based bonus and long-term incentive in the form of Options. The Compensation Committee reviews the link between total compensation and company profitability within all executive level roles to help ensure compensation policies and practices are in line with Company health and profitability and to reduce overall risk as it pertains to the Company’s compensation policies and practices.

For the year ended September 30, 2013 the compensation of the Company’s Chief Executive Officer, Gordon Reykdal, was amended by the Board in September 2013 and consists of an annual base salary of $450,000 and other compensation not to exceed $34,000. Under the terms of the previous agreement, Mr. Reykdal was entitled to an annual service fee of $200,000 and a performance bonus based on 5% of the pre-tax profits of the Company.

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The base salary for each of the other executive officers of the Company is determined by an assessment of such executive officer’s performance, a consideration of competitive compensation levels in companies similar to the Company, and a review of the performance of the Company as a whole and the role such executive officer played in such corporate performance. Executive officers and employees involved in operations are eligible for bonuses based on: (i) business growth; and (ii) a percentage of the pre-tax profits earned by their area of responsibility. Administrative officers and employees are eligible for a bonus based on a percentage of their base salary taking into consideration their personal performance and the corporate financial performance.

The Compensation Committee takes an active role in establishing and monitoring compensation for executive officers that are related to Gordon Reykdal, the Company’s CEO. Mr. Reykdal’s son, Barret Reykdal, is the President and Chief Operating Officer of the Company’s United Kingdom Operations.

The Company’s compensation philosophy for executive officers is based on four fundamental objectives:

(i) to provide compensation packages that encourage profitability and motivate and reward performance;

(ii) to foster a sense of teamwork and fairness;

(iii) to be competitive with other companies of similar size and scope of operations so as to attract and retain talented executives; and

(iv) to align the interests of its executive officers with the long-term interests and health of the Company and its Shareholders.

When determining individual compensation levels for the Company’s executive officers, the Compensation Committee takes into consideration a variety of factors. These factors include the overall financial and operating performance of the Company, recommendations of the CEO and the CEO's assessment of: (i) the individual performance and contribution made by each executive officer to the success of the Company with reference to financial performance and achievement of corporate objectives; (ii) the responsibilities of each executive officer, including leadership and mentoring; (iii) the expertise and length of service of each executive officer; and (iv) industry comparables.

The following describes the Compensation Committee members and their relevant experience:

1. Timothy J. Bernlohr (Chairman), Independent

Professional experience:

• Managing director of TJB Management Consulting, LLC 2005 - Present

• President and CEO of RBX Industries Inc. from 2003 to 2005 and various executive positions from 1997 to 2003

Compensation committee experience:

• Neenah Foundry Inc.

• Bally Total Fitness Corporation

• United States Power Generating Company

• Trident Resources Corporation

Other board experience

• Champion Home Builders, Inc. (Chairman)

• The Manischewitz Company

• Chemtura Corporation (Lead Director)

• Contech Engineered Solutions (Lead Director)

• Atlas Air Worldwide Holdings Inc.

• Rock Tenn Corporation

2. Eugene I. Davis, Independent

Professional experience:

• Founder, CEO and Chairman of PIRINATE Consulting Group, LLC since 1999

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• Prior to founding PIRINATE Consulting, served as Chief Operating Officer of Total-Tel Communications, Inc.

• Served as President, Vice Chairman and Director of Emerson Radio Corp.

• Practiced corporate and securities law

Compensation committee experience:

• Atlas Air Worldwide Holdings Inc. (Chairman)

• Global Power Equipment Group

• Spectrum Brands Holdings Inc.

Other board experience

• WMI Holdings Corp.

• US Concrete Inc.

• Numerous other public and private company boards

3. Thomas L. Fairfield, Independent

Professional experience:

• Executive Vice President, General Counsel and Secretary of Capmark Financial Group from 2006 to 2011; Chief Operating Officer since 2011

• Partner at Reed Smith LLP from 2005 to 2006

• Partner at Paul, Hastings, Janofsky & Walker LLP from 2000 to 2005

• Partner at LeBoeuf, Lamb, Greene & MacRae LLP from 1991 to 2000

• Member of the National Association of Stock Plan Professionals

4. William C. (Mickey) Dunn, Independent

Professional experience:

• President Cardium Service and Supply from 1981 to 1999

• President Colorado Silica Sand Inc.  from 1989 to 1996

• President of many affiliated companies to above located throughout the world

Compensation committee experience:

• Bellatrix Exploration Inc. (Chairman)

• Precision Drilling Corp.

Other board experience

• Vero Energy Inc.

• Tesco

Executive Compensation Process

Each year, the CEO and the VP of Human Resources review and make a report to the Compensation Committee which includes:

(i) a general review of the Company’s operations for the year;

(ii) the annual competitive market review;

(iii) a review of summary financial results;

(iv) a summary of senior executive compensation for the preceding year(s);

(v) the performance of the senior executives’ over the past year; and

(vi) compensation data concerning the most senior associates of the Company.

Taking into consideration the information provided above, the CEO makes recommendations to the Compensation Committee on the executives’ compensation packages. The Compensation Committee meets to consider these recommendations and also to review compensation for the CEO.

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No fees have been paid in respect of services related to determining executive compensation for any director or executive officer of the Company in the past two fiscal years.

Annual Competitive Market Reviews

The CEO and Compensation Committee are regularly provided with market data, including a comparison of the monetary compensation to a representative sample of Canadian and American financial services and retail public companies, taking into consideration a range of market capitalization. The most recent Board compensation review and subsequent report was performed by an independent consulting firm of Wilkinson Consulting Group (the “Consulting Firm”) on December 19, 2012 and the recommendations were reviewed by the Compensation Committee on September 20, 2013. The review included the following components:

(i) individual meetings with the VP of Human Resources in order to gather information related to the roles and responsibilities, as well as a personal perspective on the strengths and weaknesses, of the Company’s current performance measures and competitive position with respect to compensation practices;

(ii) current and historical compensation information about the Company’s compensation philosophy and strategy, and reviewed all existing elements of compensation for the Named Executive Officers; and

(iii) research of other similarly situated companies as potential sources of market data. In order to gather relevant market data for consideration by the Compensation Committee, the Consulting Firm reviewed comparable positions at the following organizations, which were chosen on the basis of geographic and/or industry comparability:

• Advance America/Cash Advance Centers Inc.	• North American Energy Partners Inc.
• ATB Financial	• Precision Drilling Corporation
• Canadian Western Bank	• QC Holdings Inc.
• DFC Global Corp.	• Stantec
• Easyhome Ltd.	• The Brick Group Income Fund
• Ezcorp Inc.	• Metlife Inc.

The Consulting Firm billed $22,108 in the year ended September 30, 2013 and has not provided any other services to Cash Store Financial in the last three years.

D. Employees

The following presents a breakdown of the number of active employees of the Company as at the end of each of the last three financial periods:

	September 30, 2011	September 30, 2012	September 30, 2013
Canada	2,157	1,781	1,708
United Kingdom	17	182	148
Total	2,174	1,963	1,856

E. Share Ownership

See Item 6.A and Item 6.B above.

Stock Option Plan Information

The Share Plan was approved by the Board on February 8, 2011. All Options granted since approval by the Shareholders have and will be granted pursuant to the Share Option Plan.September 30, 2013. The maximum number of Cash Store Financial Shares which, at any time, may be reserved for issuance to “insiders” of Cash Store Financial under the Share Option Plan or any other share compensation arrangement cannot exceed 10% of the Cash Store Financial Shares outstanding. Additionally, the maximum number of Cash Store Financial Shares which, within any one year period, may be reserved for issuance to “insiders” under the Share Option Plan, or any other share compensation arrangement, cannot exceed 10% of the Cash Store Financial Shares outstanding. No fractional Cash Store Financial Shares may be purchased or issued under the Share Option Plan.

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The Board, the Compensation Committee, or another committee appointed for such purposes by the Board, may from time to time grant to directors, officers, employees and consultants of the Company or any subsidiary of the Company, as well as any management company providing services to the Company or any subsidiary (collectively, the “Eligible Persons”), Options in such numbers, for such terms, and at such exercise prices, as may be determined. The Board has the authority under the Share Option Plan to establish the exercise price at the time each Option is granted; however, the excercise price may not be lower than the greatest closing price of the Cash Store Financial Shares as traded on the Toronto Stock Exchange ("TSX") and any other stock exchange on which Cash Store Financial Shares are or may be listed from time to time, on the last trading day preceding the date on which the Option is approved by the Board (the “Market Price”). Options granted under the Share Option Plan must be exercised no later than 10 years after the date of grant. Options are not transferable other than by will or the laws of dissent and distribution and may be exercised during the lifetime of the optionee only by the optionee.

Unless the Board determines otherwise at the time of the grant, during each 12-month period from the date of the grant of the Option, within the first three years of the grant, the optionee may take up not more than one-third of the Cash Store Financial Shares covered by the Option, with the first one-third of the Cash Store Financial Shares covered by the Options being exercisable immediately during the first 12-month period following the grant thereof; provided, however, that if the number of Cash Store Financial Shares taken up under the Options during any such 12-month period is less than the amount of the Cash Store Financial Shares that are subject to the Options which have then vested, the optionee shall have the right, at any time, or from time to time during the remainder of the term of the Options, to purchase such number of Cash Store Financial Shares subject to the Options which were purchasable, but not purchased by him or her during such 12-month period.

If an optionee ceases to be an Eligible Person for any reason whatsoever other than death, each Option held by such optionee will cease to be exercisable 30 days following the termination date (being the date on which such optionee ceases to be an Eligible Person). If an optionee dies, the legal representative of the optionee may exercise the optionee’s Options within one year after the date of the optionee’s death but only up to and including the original option expiry date.

The Company provides no financial assistance to facilitate the purchase of Cash Store Financial Shares to directors, officers, employees or consultants who hold options granted under the Share Option Plan. Subject to corporate and other applicable laws, the Company may permit an optionee to elect to pay the excercise price by authorizing a third party to sell Cash Store Financial Shares (or a sufficient portion of such Cash Store Financial Shares) acquired upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise. In addition, the exercise price for Cash Store Financial Shares purchased under an Option may be paid either singly, or in combination with one or more of the alternative forms of payment, or such other consideration as the Board may permit.

The Board may at any time, and from time to time, and without Shareholder approval, amend any provision of the Share Option Plan, or any Options granted hereunder, or terminate the Share Option Plan, subject to any applicable regulatory or stock exchange requirements or approval at the time such amendment or termination, including, without limitation:

a. making amendments to Article 6 relating to the exercise of options, including by the inclusion of a cashless exercise feature whereby payment is in cash or Cash Store Financial Shares or otherwise;

b. making amendments to Article 5 relating to the expiry of outstanding Options;

c. making amendments deemed by the Board to be necessary or advisable because of any change in applicable securities laws or other laws;

d. making amendments to Sections 5.6 and 5.7 relating to the transferability of Options;

e. making amendments to the definitions set out in Article 2;

f. making amendments to the change of control provisions provided for in Article 8;

g. making amendments to Article 3 relating to the administration of the Plan;

h. making amendments to the vesting provisions of any outstanding Option(s); and

i. making any other amendment, fundamental or otherwise, not requiring shareholder approval under applicable laws or the rules of the TSX, including amendments of a “clerical” or “housekeeping” nature.

The Board shall not be permitted to amend:

a. Section 4.1 in order to increase the maximum number of Cash Store Financial Shares which may be issued under the Share Option Plan or so as to increase the Insider participation limits;

b. Article 9 so as to increase the ability of the Board to amend the Share Option Plan without Shareholder approval;

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c. the definition of “Eligible Person”;

d. the exercise price of any Option issued under the Share Option Plan to an Insider where such amendment reduces the exercise price of such Option; or

e. the term of any Option issued under the Share Option Plan to an Insider;

The Share Option Plan provides that in the event of a Change of Control, all options outstanding shall be immediately exercisable. A “Change of Control” means the occurrence of any one or more of the following events:

(i) the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of all or substantially all of the assets, rights or properties of the Company; or

(ii) the acquisition, or acquisition of control by any person, entity or group of persons or entities acting jointly or in concert (an “Acquiror”) of Cash Store Financial Shares (including without limitation, the right to vote or direct the voting) which, when added to the Cash Store Financial Shares owned of record or beneficially by the Acquiror to which the Acquiror has the right to direct the voting, would entitle the Acquiror and/or associates and/or affiliates of the Acquiror to cast or direct the casting of 30% or more of the votes attached to all of the Company’s outstanding voting shares which may be cast to elect directors of the Company or the successor Company (regardless of whether a meeting has been called to elect directors).

A copy of the Share Option Plan is attached hereto as Exhibit 2.1 and is incorporated by reference into this Form 20-F.

New Compensation Initiatives

Long-Term Incentive Plan

In November 2013, Cash Store Financial introduced a share unit plan (“Long-Term Incentive Plan”) that provides for (i) restricted share units (“RSUs”) and (ii) performance share units (“PSUs”), that may be granted to senior executives, vice presidents, and/or members of the management team of the Company and its affiliates (“Participants”) as a bonus in consideration of past services to the Company or its affiliates. The Long-Term Incentive Plan has been adopted by the Company to reduce its reliance on stock options and incent management through payment of compensation related to appreciation of the Shares and performance goals. RSUs and PSUs are collectively referred to as “Share Units”.

Under the Long-Term Incentive Plan, RSUs will vest on the entitlement date or dates, which shall not be later than December 31 of the year that is three years after the year of services for which the RSUs were granted (“Entitlement Date”). On an Entitlement Date, the Company will become obligated to make a payment to the Participant in cash equal to the five-day volume weighted average price of the Company’s common shares on the TSX multiplied by the number of RSUs held.

Under the Long-Term Incentive Plan, PSUs will vest on the entitlement date or dates which shall not be later than December 31 of the year that is three years after the year of services for which the PSUs were granted (“Entitlement Date”). In addition, to further enhance the Participant’s performance, the number of PSUs that will vest on an Entitlement Date will vary, depending on the achievement of relevant performance conditions (to be achieved by the Company, the Participant or a class of Participants) established upon the grant of such PSUs. PSUs will be settled in cash equal to the equal to the five-day volume weighted average price of the Company’s common shares on the TSX multiplied by the number of PSUs vested.

A Participant will have no right or entitlement whatsoever to receive cash payment until the Entitlement Date and, as a holder of Share Units, will not have any rights as a Shareholder of the Company.

A Participant’s Entitlement Date may be accelerated on the death or permanent disability of the Participant. In the event that a Participant is terminated with or without cause, any Share Unit previously credited to the Participant’s account that have not vested shall become void and the Participant shall have no entitlement to payment under the Long-Term Incentive Plan. In certain circumstances, on a change of control of the Company, the Share Units will vest immediately and the Entitlement Date will occur.

Under the Long Term Incentive Plan, the Company may elect to purchase common shares in the market to satisfy the payment of vested Share Units, subject to debt covenants.

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Deferred Share Unit Plan

In November 2013, the Company also established a director deferred share unit plan (“DSU Plan”) for the purpose of strengthening the alignment of interests between outside directors of the Company and designated affiliates (for the purposes of this section “Directors”) and the Company’s shareholders by linking a portion of annual director compensation to the future value of Cash Store Financials common shares. The DSU Plan will replace the granting of stock options as a more effective mean to achieve the forgoing stated purpose.

DSUs are bookkeeping entries and are subject to adjustment for dividends and normal anti-dilution events including the subdivision, consolidation or reclassification of the outstanding shares. DSUs are not assignable or transferable. The number of DSU granted to a Director is determined by dividing the amount of compensation allocated to be taken as DSUs by the closing price for a common share of the Company on the TSX on the business day immediately preceding the date of grant. Grants are, in the normal course, calculated and effected in instalments at the end of each quarter.

A Director is only entitled to payment in respect of the DSUs granted to him or her when the director ceases to be a director of the Company or an affiliate for any reason. On termination, the Company shall redeem each DSUs held by the Director for a payment in cash, being the product of: (i) the number of DSUs held by the Director on ceasing to be a director and (ii) the volume weighted average trading price of Cash Store Financial’s common shares on the TSX for the five consecutive trading days immediately prior to the date of separation. Payment will be made to the Director on such date as the Company determines not later than 60 days after the date of the director ceasing to be a Director.

ITEM 7. Major shareholders and related party transactions

A. Major Shareholders

Ownership of the Company’s securities are recorded on the books of its transfer agent in registered form, however the majority of such shares are registered in the name of intermediaries such as brokerage firms and clearing houses on behalf of their respective clients and in general the Company does not have knowledge of the beneficial owners thereof, except for the beneficial ownership by officers and directors of the Company. The Company is not directly or indirectly owned or controlled by another corporation or entity or by any foreign government.

The following table sets forth entities and individuals known to the Company to hold a voting interest of more than five percent (5%) of common shares issued and outstanding as of the filing date of this form:

Name	Number of Common Shares		Percentage of Outstanding Common Shares
Mr. Gordon Reykdal	3,640,300	(1)	20.7	%
Coliseum Capital Management, LLC	3,122,578	(2)	17.8	%
Beutel, Goodman & Co. Ltd.	1,835,200	(3)	10.4	%
Stonerise Capital Management, LLC	1,171,323	(4)	6.7	%

Notes:

(1) 3,222,635 of these shares are directly owned by 424187 Alberta Ltd., a company controlled by Mr. Gordon Reykdal; 272,968 are held by Mr. Gordon Reykdal directly and 144,697 are held by Mr. Gordon Reykdal’s spouse.

(2) Mr. Adam Gray and Mr. Christopher Shackelton share dispositive and voting power over these shares. The amount of common shares shown is as of September 30, 2013, the date of the most recent Schedule 13F filed with the U.S. Securities and Exchange Commission

(3) As described in Schedule 13G filed on January 17, 2013, all of the shares reported are owned by investment advisory clients of Beutel Goodman & Co Ltd. In its role as investment adviser, Beutel Goodman & Co Ltd. has voting and dispositive power with respect to these shares. Share holdings are reflective of those reported directly to the company by representatives Beutel Goodman & Co Ltd.

(4) Stonerise Capital Partners Master Fund, L.P. (“SCPMF”) directly holds the common shares of the Company. Stonerise Capital Management, LLC is the sole general partner of SCPMF. As a result, Stonerise Capital Management, LLC may be deemed to be the beneficial owner and to share the voting and dispositive power of the common shares held by SCPMF. The amount of common shares shown is as of September 30, 2013, the date of the most recent Schedule 13F filed with the SEC.

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There have been no significant changes in shareholdings of officers and directors of the Company for the past three financial years.

Based on publicly available information the following significant changes in the percentage ownership of major shareholders of the Company occurred during the past three years:

• On February 14, 2011, Janus Capital Management, LLC (“Janus”) filed Schedule 13G reporting a beneficial interest in the Company of 1,514,765 common shares, representing an 8.9% voting interest in the Company. On February 14, 2012, Janus filed Schedule 13G reporting a beneficial interest in the Company of 1,050,756 common shares, representing a 6.0% voting interest. As of September 30, 2012, Janus reported a beneficial interest in the Company of 751,846 common shares, representing a 4.3% voting interest. On January 31, 2012 Janus filed a Schedule 13G reporting a beneficial interest of nil common shares as of December 31, 2012.

• On February 14, 2012, Beutel, Goodman & Co. Ltd. filed Schedule 13G reporting a beneficial interest in the Company of 1,428,800 common shares, representing an 8.2% voting interest in the Company. On January 17, 2013, Beutel, Goodman & Co. Ltd. filed Schedule 13G reporting a beneficial interest in the Company of 1,885,600 common shares, representing a 10.8% voting interest in the Company.

As of October 31, 2013, Computershare, the Company’s registrar and transfer agent, reported that the Company’s common shares were held as follows:

Location	Number of Shares	Percentage of Shares		Number of Registered Shareholders of Record
Canada	14,744,488	83.9	%	19
United States	2,827,325	16.1	%	1
Total	17,571,813			21

See also Item 6.E “Share Ownership” for information regarding outstanding stock options to purchase common shares.

B. Related Party Transactions

Except as disclosed under the last paragraph of Item 6.A, and note 21 to the Company’s financial statements, attached hereto as Exhibit 99.1, to the best of the knowledge of the Board of Directors and executive officers of the Company, no director or executive officer of the Company or person or company that is the direct or indirect beneficial owner of, or who exercises control or direction over more than 10% of the outstanding Common Shares of, or any of their associates or affiliates, had any material interest, direct or indirect, in any transaction within the three most recently completed financial years, or during the current financial year, that has materially affected, or will materially affect, the Company.

C. Interests of Experts and Counsel

KPMG LLP, Chartered Accountants (“KPMG”) were the auditors of the Company for the year endedSeptember 30, 2013, and prepared and executed the audit report accompanying the annual financial statements. KPMG LLP have confirmed that they are independent with respect to the Company within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulation, and that are independent accountants with respect to the Company under all relevant US professional and regulatory standards.

ITEM 8. Financial information

A. Consolidated Statements and Other Financial Information

See “Item 17 - Financial Statements”.  The consolidated financial statements as required are found at Exhibit 99.1 to this Annual Report.  The audit report of KPMG is included immediately preceding the consolidated financial statements.

B. Significant Changes

No significant changes have occurred since the date of the annual financial statements.

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ITEM 9. LISTING

A. Offer and listing details.

The Common Shares are listed on the TSX under the symbol “CSF” and on the NYSE under the symbol “CSFS”. The tables below list the high and low prices for common shares of the Company for the past five years on an annual basis, two years on a quarterly basis and for the six months up to the filing date of this Annual Report:

Toronto Stock Exchange – Trading in Canadian Dollars

Annual	High	Low
2013	4.38	1.41
2012	8.41	2.85
2011	17.33	5.99
2010	18.74	10.20
2009	12.50	4.51
2008	6.50	3.51

	High	Low
Calendar 2013
Fourth Quarter	2.05	1.41
Third Quarter	2.65	1.55
Second Quarter	3.30	1.74
First Quarter	4.28	2.86
Calendar 2012
Fourth Quarter	5.73	2.85
Third Quarter	6.22	5.20
Second Quarter	6.15	5.22
First Quarter	8.41	5.65
Month ended
November 30, 2013	1.75	1.41
October 31, 2013	2.01	1.64
September 30, 2013	2.13	1.55
August 31, 2013	2.41	2.15
July 31, 2013	2.65	2.30
June 30, 2013	3.37	2.35

New York Stock Exchange – Trading in U.S. Dollars

Annual	High	Low
2013	4.37	1.35
2012	8.18	3.00
2011	17.34	5.84
2010	16.66	12.94
2009	—	—
2008	—	—

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	High	Low
	($)	($)
Calendar 2013
Fourth Quarter	1.98	1.35
Third Quarter	2.60	1.76
Second Quarter	3.28	1.67
First Quarter	4.27	2.43
Calendar 2012
Fourth Quarter	5.84	3.00
Third Quarter	6.31	5.31
Second Quarter	6.15	5.29
First Quarter	8.18	5.70
Month ended
November 30, 2013	1.64	1.35
October 31, 2013	1.93	1.56
September 30, 2013	2.06	1.56
August 31, 2013	2.29	2.08
July 31, 2013	2.57	2.26
June 30, 2013	3.25	2.29

B. Plan of distribution.

Not applicable.

C. Markets

See Item 9.A.

D. Selling Shareholder

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

The Company’s Restated Articles of Incorporation (the “Articles”) are registered with the Ontario Ministry of Government Services under Ontario corporation number 1511419. The Articles were attached as Exhibit 5.1 to the Company's September 30, 2012 20-F and are incorporated by reference into this Form 20-F.

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Objects and Purposes

Under Ontario law, an Ontario corporation has all the legal powers of a natural person. The Articles do not specify objects or purposes and contain no restrictions on the business the Company may carry on or on the powers the Company may exercise.

Board of Directors – Powers and Limitations

The Articles specify that the Company must have a minimum of one director and may have a maximum of 10 directors, however, under the Ontario Business Corporations Act (“OBCA”), a public company may not have less than three directors. Shareholders at the annual shareholders meeting determine the number of directors annually and all directors are elected at that time. There are no staggered directorships.

The OBCA requires that every director who is a party to, or who is a director or officer of, or has a material interest in, any person who is a party to, a material contract or transaction or a proposed material contract or transaction with the Company, must disclose in writing to the Company or request to have entered in the minutes of the meetings of directors the nature and extent of his or her interest, and must refrain from attending any part of a meeting of directors during which the contract or transaction is discussed and from voting in respect of the contract or transaction unless the contract or transaction is: (a) one relating primarily to his or her remuneration as a director of the corporation or an affiliate; (b) one for indemnity of or insurance for directors as contemplated under the OBCA; or (c) one with an affiliate. However, a director who is prohibited by the OBCA from voting on a material contract or proposed material contract may be counted in determining whether a quorum is present for the purpose of the resolution, if the director disclosed his or her interest in accordance with the OBCA and the contract or transaction was reasonable and fair to the corporation at the time it was approved.

The Company’s by-laws (the “By-laws”) provide that any such contract or transaction or proposed contract or transaction shall be referred to the Board of Directors or shareholders for approval even if such contract is one that in the ordinary course of the Company’s business would not require approval by the Board of Directors or shareholders, and a director interested in a contract or transaction so referred to the Board of Directors shall not vote on any resolution to approve the same except as permitted by the OBCA. If no quorum exists for the purpose of voting on a resolution to approve a contract or transaction only because a director is not permitted to be present at the meeting by reason of the above, the remaining directors shall be deemed to constitute a quorum for the purposes of voting on the resolution. Where all the directors are required to disclose their interests pursuant to the OBCA, the contract or transaction may be approved only by the shareholders.

The By-laws provide that the directors shall be paid such remuneration for their services as the Board of Directors may from time to time determine, and the By-laws do not preclude any director from serving the Company in any other capacity and receiving remuneration therefor.

The Articles provide that the directors may, without authorization of the shareholders: (a) borrow money upon the credit of the Company; (b) issue, reissue, sell or pledge debt obligations of the Company; (c) to the extent permitted by the OBCA, give a guarantee to secure performance of an obligation of any person; and (d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the Company owned or subsequently acquired, to secure any obligation of the Company to secure any such bonds, debentures, notes or other evidences of indebtedness or guarantee or any other present or future indebtedness, liability or other obligation of the Company. The Company’s By-laws also provide that the banking business of the Company, or any part thereof, including, without limitation, the borrowing of money and the giving of security therefor, shall be transacted with such banks, trust companies or other bodies corporate or organizations as may from time to time be designated by or under the authority of the Board of Directors, and shall be transacted under such agreements, instructions and delegations of powers as the Board of Directors may from time to time by resolution prescribe or authorize.

From time to time, and subject to the approval of shareholders of the Company through a vote cast at a meeting duly called for such purpose or consented to in writing by each shareholder of the Company entitled to vote at such a meeting, the Company may amend its articles to add, change or remove any provision that is permitted by the OBCA to be set out in its articles, including (without limitation) to add, change or remove any restriction upon the business or businesses that the Company may carry on or upon the powers that the Company may exercise.

The Board of Directors may, by resolution, amend or repeal any By-laws that regulate the business or affairs of the Company. The OBCA requires the Board of Directors to submit any such amendment or repeal to the Company’s shareholders at the next meeting of shareholders, and the shareholders may confirm, reject or amend the amendment or repeal.

Directors must be individuals of the age of majority (18), and meet eligibility criteria including not being mentally infirm and not having the status of a bankrupt. A minimum of 25% of the directors must be ordinarily resident in Canada. There is no

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mandatory retirement age under the Articles, By-laws, or the OBCA. Directors need not own any shares of the Company in order to qualify as directors.

The By-laws specify the number of directors shall be the number of directors determined from time to time by a resolution of the shareholders or, if a special resolution of the shareholders empowers the Board of Directors to determine the number of directors, then the number of directors determined by resolution of the Board of Directors. Under the OBCA, the Board of Directors are entitled, between successive annual general meetings, to appoint one or more additional directors but not more than one-third of the number of directors fixed at a shareholders meeting or actually elected at the preceding annual shareholders’ meeting. Directors automatically retire at the commencement of each annual meeting but may be re-elected thereat.

The Company is subject to the rules of the Toronto Stock Exchange and the New York Stock Exchange (collectively, the “Exchanges”) and compliance with Exchanges’ rules may supersede powers granted to the Board of Directors pursuant to the Articles.

Authorized Capital

The authorized capital of the Company comprises an unlimited amount of common shares without par value and an unlimited amount of preferred shares. All common shares rank pari passu for the payment of dividends and distributions in the event of wind-up. The By-laws stipulate that any dividends unclaimed after a period of six years from the date on which such dividend has been declared to be payable shall be forfeited and shall revert to the Company. As of December 31, 2012, 17,571,813 common shares and no preferred shares were outstanding.

The holders of common shares are entitled to receive notice of, and vote at every meeting of the shareholders of the common shares and have one (1) vote thereat for each such common share so held. Holders of common shares are entitled to receive such dividends as the Board of Directors may declare from time to time. In the event of the liquidation, dissolution or winding-up of the Company or other distribution of assets or property of the Company among its shareholders for the purpose of winding-up its affairs, the holders of common shares are entitled to share equally, share for share, in any distribution of the assets and property of the Company. The rights of holders of common shares to dividends or distributions of the type described above are subject to the rights, privileges, restrictions and conditions attached to any securities of the Company ranking in priority to the common shares, including preferred shares.

The Board of Directors of the Company may, from time to time, issue preferred shares in one or more series in an amount determined by the Board of Directors. The Board of Directors fix before issuance, the designation, rights, privileges, restrictions and conditions to attach to the preferred shares of each series, including, without limiting the generality of the foregoing, the rate, form, entitlement and payment of preferential dividends, the redemption price, terms, procedure and conditions of redemption, if any, voting rights and conversion rights (if any) and any sinking fund, purchase fund or other provisions attaching to the preferred shares of such series. Such shares may only be issued after the Board of Directors have filed an amendment with the Ontario Ministry of Government Services.

If any cumulative dividends or amounts payable on return of capital in respect of a series of shares are not paid in full, the preferred shares of all series will participate rateably in respect of accumulated dividends and return of capital. The preferred shares are entitled to preference over the common shares and any other shares of the Company ranking junior to the preferred shares with respect to the payment of dividends, if any, and in the distribution of assets in the event of liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of the assets of the Company among its shareholders for the purpose of winding up its affairs, and may also be given such other preferences over the common shares of the Company and any other shares of the Company ranking junior to the preferred shares as may be fixed by the resolution of the Board of Directors of the Company as to the respective series authorized to be issued.

Preferred shares of each series rank on parity with the preferred shares of every other series with respect to priority in the payment of dividends and in the distribution of assets in the event of liquidation, dissolution or winding up of the Company, whether voluntary or involuntary exclusive of any conversion rights that may affect the aforesaid.

No dividends may be declared or paid on or set apart for payment on any shares of the Company ranking junior to the preferred shares unless all dividends, if any, up to and including the dividend payable for the last completed period for which such dividend is payable on each series of preferred shares then issued and outstanding shall have been declared and paid or set apart for payment at the date of such declaration or payment or setting apart for payment on such shares of the Company ranking junior to the preferred shares nor shall the Company call for redemption or redeem or purchase for cancellation or reduce or otherwise pay off any of the preferred shares (less than the total amount then outstanding) or any shares of the Company

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ranking junior to the preferred shares unless all dividends up to and including the dividend payable, if any, for the last completed period for which such dividends shall be payable on each series of the preferred shares then issued and outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other payment.

Preferred shares of any series may be purchased for cancellation or made subject to redemption by the Company out of the capital pursuant to the provisions of the OBCA if the Board of Directors so provide in the resolution relating to the issuance of such preferred shares, and upon any other terms and conditions as specified as attaching to the preferred shares of such series as set forth in the said resolution relating to their issuance.

Holders of preferred shares are not entitled, as of right, to subscribe for or purchase or receive any part of any issue of shares or bonds, debentures or other securities of the Company.

No class of shares may be created or rights and privileges increased to rank in parity or priority with the rights and privileges of the preferred shares including, without limiting the generality of the foregoing, the rights of the preferred shares to receive dividends or to return of capital, without the approval of the holders of the preferred shares as required under the OBCA.

Capital increases and Other Changes

The Company may alter its Articles to (without limitation) change its name; add, change or remove any restriction upon the business or businesses that the corporation may carry on or upon the powers that the corporation may exercise; add, change or remove any maximum number of shares that the corporation is authorized to issue or any maximum consideration for which any shares of the corporation are authorized to be issued; create new classes of shares; change the designation of all or any of its shares, and add, change or remove any rights, privileges, restrictions and conditions, including rights to accrued dividends, in respect of all or any of its shares, whether issued or unissued; change the shares of any class or series, whether issued or unissued, into a different number of shares of the same class or series or into the same or a different number of shares of other classes or series; divide a class of shares, whether issued or unissued, into series and fix the number of shares in each series and the rights, privileges, restrictions and conditions thereof; authorize the Board of Directors to divide any class of unissued shares into series and fix the number of shares in each series and the rights, privileges, restrictions and conditions thereof; authorize the Board of Directors to change the rights, privileges, restrictions and conditions attached to unissued shares of any series; subject to the OBCA, increase or decrease the number, or minimum or maximum number, of directors; and add, change or remove restrictions on the issue, transfer or ownership of shares of any class or series. Such amendments require authorization by way of a special resolution of the shareholders (a special resolution being a resolution that is either submitted to a special meeting of the shareholders of a corporation duly called for the purpose of considering the resolution and passed, with or without amendment, at the meeting by at least two-thirds of the votes cast, or consented to in writing by each shareholder of the corporation entitled to vote at such a meeting or the shareholder’s attorney authorized in writing). The holders of shares of a class (or of a series of a class, if such series is affected by an amendment in a manner different from other shares of the same class) are entitled to vote separately as a class or series upon a proposal to amend the Articles that affect such securities.

Certain amendments to the Articles, including, but not limited to, amalgamations, re-domiciling or the sale, lease or exchange of all of the Company’s property may also give rise to rights of dissent subject to meeting certain conditions, whereby dissenting shareholders will be paid the “fair value” determined in accordance with the OBCA for their shares in cash if the matter is proceeded with.

No Limitation on Foreign Ownership

There are no limitations under the Articles or in the OBCA on persons who are not citizens of Canada holding or exercising their voting rights as holders of common shares. The Investment Canada Act may require review and approval by the Minister of Industry (Canada) of certain acquisitions of “control” of the Company by a “non-Canadian”. The threshold for acquisitions of control is generally defined as being one-third or more of the voting shares of the Company. “Non-Canadian” generally means an individual who is not a Canadian citizen, or a corporation, partnership, trust or joint venture that is ultimately controlled by non-Canadians.

Shareholder Meetings

The OBCA requires the Company to call an annual shareholders’ meeting not later than 15 months after holding the last preceding annual meeting and permits the Company to call a special shareholders’ meeting at any time. In addition, in accordance with the OBCA, the holders of not less than 5% of the Company’s shares carrying the right to vote at a meeting sought to be held may requisition the Board of Directors to call a special shareholders’ meeting for the purposes stated in the

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requisition. The Company is required to mail a notice of meeting and management information circular to registered shareholders not less than 21 days and not more than 50 days prior to the date of any annual or special shareholders’ meeting. The form and content of information circulars, proxies and like matters are governed by the OBCA, rules of the Exchanges and instruments of the Canadian Securities Administrators (the “CSA”), a pan-Canadian team of regulators with the goal of harmonizing securities legislation in Canada. These materials are also filed with Canadian provincial securities regulatory authorities and furnished to the SEC. The By-laws provide that a quorum of two shareholders in person or represented by proxy holding or representing by proxy at least 10% of the Company’s issued shares carrying the right to vote at the meeting is required to transact business at a shareholders’ meeting. Shareholders, and their duly appointed proxies and corporate representatives, as well as the Company’s auditors, are entitled to be admitted to the Company’s annual and special shareholders’ meetings. Any other person may be admitted only on the invitation of the chairman of the meeting or with the consent of the meeting.

Change in Control

Other than as disclosed under Item 6.B “Termination and Change of Control Benefits”, the Company does not have any agreements which are triggered by a take-over or other change of control, except that a take-over or change of control may result in the immediate vesting of previously granted and outstanding stock options. There are no provisions in the Articles or By-laws that would have an effect of delaying, deferring or preventing a change in control of the Company and that would operate only with respect to a merger, acquisition or corporate restructuring involving the Company of any its subsidiaries.

Neither the Articles nor the By-laws discuss limitations on the rights to own securities or exercise voting rights thereon.

The indenture governing the Notes contains covenants obligating the Company to take certain actions in the event of a change of control of the Company. Following a change of control, the Company must offer to repurchase all or any part of the outstanding Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of purchase. The Company will not be required to make such offer if a third-party makes an offer to repurchase all of the outstanding Notes in the manner, at the times and otherwise in conformity with the requirements set forth applicable to the Company under the indenture governing the Notes and purchases all Notes validly tendered and not withdrawn under such offer.

Insider Share Ownership and Early Warning Reporting

Neither the Articles nor the By-laws of the Company require disclosure of share ownership. Canadian securities legislation currently provides that “reporting insiders” of the Company, including but not limited to directors, the chief executive officer, chief financial officer, or chief operating officer of the Company, a significant shareholder or a major subsidiary of the Company, a person or company responsible for a principal business unit, division or function of the Company, significant shareholders of the Company (an entity owning or controlling more than 10% of the voting rights attached to the Company’s securities), as well as certain others entities must, within 10 days of becoming a “reporting insider”, file a report in the required form effective the date on which the person became a reporting insider, disclosing any direct or indirect beneficial ownership of, or control or direction over, securities of the Company and are generally required to file insider reports of changes in their ownership of the Company’s securities within five days following such change under National Instrument 55-104 – Insider Reporting Requirements and Exemptions, as adopted by the CSA.

Canadian securities legislation also provides that a person or company that acquires (whether or not by way of a take-over bid, offer to acquire or subscription from treasury) beneficial ownership of voting or equity securities or securities convertible into voting or equity securities of a reporting issuer that, together with previously held securities brings the total holdings of such holder to 10% or more of the outstanding securities of that class, must (a) issue and file forthwith a news release containing certain prescribed information and (b) file a report within two business days containing the same information set out in the news release. The acquiring person or company must also issue a news release and file a report each time it acquires, in the aggregate, an additional 2% or more of the outstanding securities of the same class and every time there is a change to any material fact in the news release and report previously issued and filed.

The rules in the United States governing the ownership threshold above which shareholder ownership must be disclosed are more stringent than those discussed above. Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), imposes reporting requirements on persons who acquire beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act) of more than 5% of a class of an equity security registered under Section 12 of the Exchange Act. In general, such persons must file, within ten days after such acquisition, a report of beneficial ownership with the SEC containing the information prescribed by the regulations under Section 13(d) of the Exchange Act and promptly file an amendment to such report to disclose any material change to the information reported, including any acquisition or disposition of 1% or more of the

54

outstanding securities of the registered class. Certain institutional investors that acquire shares in the ordinary course of business and not with the purpose or with the effect of changing or influencing the control of the issuer, are subject to lesser disclosure obligations.

C. Material Contracts

Except for contracts entered into in the ordinary course of business, the Company entered into the following agreements, copies of which are attached hereto as Exhibit 3.1:

• A credit agreement dated November 29, 2013 between the Company and Coliseum Capital Management, LLC, 8028702 Canada Inc. and 424187 Alberta Ltd. pursuant to which $12.0 million of loans were provided to the Company.

D. Exchange Controls

The Company is not aware of any Canadian federal or provincial laws, decrees or regulations that restrict the export or import of capital, including foreign exchange controls, or that affect the remittance of dividends, interest or other payments to a non-resident holder of common shares, other than withholding tax requirements.  Any such remittances to United States residents are generally subject to withholding tax, however no such remittances are likely in the foreseeable future.  See “Taxation”, below.

There is no limitation imposed by the laws of Canada or by the charter or other constituent documents of Cream on the right of a non-resident to hold or vote the common shares, other than as provided in the Investment Canada Act (the “Investment Act”).  The following discussion summarizes the material features of the Investment Act for a non-resident who proposes to acquire the common shares.  It is general only, it is not a substitute for independent advice from an investor’s own advisor, and it does not anticipate statutory or regulatory amendments.  The Company does not believe the Investment Act will have any effect on it or on its non-Canadian shareholders.

The Investment Act generally prohibits implementation of a “reviewable” investment by an individual, government or agency thereof, corporation, partnership, trust or joint venture (each an “entity”) that is not a “Canadian” as defined in the Investment Act (a “non-Canadian”), unless after review the Director of Investments appointed by the minister responsible for the Investment Act is satisfied that the investment is likely to be of net benefit to Canada.  The size and nature of a proposed transaction may give rise to an obligation to notify the Director to seek an advance ruling.  An investment in the Company’s common shares by a non-Canadian other than a “WTO Investor” (as that term is defined in the Investment Act and which term includes entities which are nationals of or are controlled by nationals of member states of the World Trade Organization) when the Company was not controlled by a WTO Investor, would be reviewable under the Investment Act if it was an investment to acquire control of the Company and the value of the assets of the Company, as determined in accordance with the regulations promulgated under the Investment Act, was over a certain figure, or if an order for review was made by the federal cabinet on the grounds that the investment related to Canada’s cultural heritage or national identity, regardless of the value of the assets of the Company.  An investment in the common shares by a WTO Investor, or by a non-Canadian when the Company was controlled by a WTO Investor, would be reviewable under the Investment Act if it was an investment to acquire control of the Company and the value of the assets of the Company, as determined in accordance with the regulations promulgated under the Investment Act, was not less than a specified amount, which for 2009 is Cdn$295 million.  A non-Canadian would acquire control of The Company for the purposes of the Investment Act if the non-Canadian acquired a majority of the common shares.  The acquisition of less than a majority but one-third or more of the common shares would be presumed to be an acquisition of control of the Company unless it could be established that, on the acquisition, the Company was not controlled in fact by the acquirer through the ownership of the common shares.

E. Taxation

ALL PROSPECTIVE INVESTORS ARE ADVISED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE SPECIFIC TAX CONSEQUENCES OF PURCHASING THE COMMON SHARES OF THE COMPANY.

Material Canadian Federal Income Tax Consequences for United States Residents

The following summarizes the material Canadian federal income tax consequences generally applicable to the holding and disposition of the Company’s common shares by a holder (in this summary, a “U.S. Holder”) who, (a) for the purposes of the Income Tax Act (Canada) (the “Tax Act”), is not resident in Canada, deals at arm’s length with the Company, holds the Company’s common shares directly and, not through a fiscally transparent entity, and as capital property and does not use or

55

hold such common shares in the course of carrying on, or otherwise in connection with, a business in Canada, and (b) for the purposes of the Canada-United States Income Tax Convention, 1980 (the “Treaty”), is a resident solely of the United States, has never been a resident of Canada, is a “qualifying person” within the meaning of the Treaty, and has not held or used (and does not hold or use) the Company’s common shares in connection with a permanent establishment or fixed base in Canada. This summary does not apply to traders or dealers in securities, limited liability companies, tax-exempt entities, insurers, financial institutions (including those to which the mark-to-market provisions of the Tax Act apply), or any other U.S. Holder to which special considerations apply.

This summary is based on the current provisions of the Tax Act including all regulations thereunder, the Treaty, all proposed amendments to the Tax Act, the regulations and the Treaty publicly announced by the Government of Canada to the date hereof, and the current administrative practices of the Canada Revenue Agency. It has been assumed that all currently proposed amendments will be enacted as proposed and that there will be no other relevant change in any governing law or administrative practice, although no assurances can be given in these respects. This summary does not take into account provincial, U.S., state or other foreign income tax law or practice. The tax consequences to any particular U.S. Holder will vary according to the status of that holder as an individual, trust, corporation, partnership or other entity, the jurisdictions in which that holder is subject to taxation, and generally according to that holder’s particular circumstances. Accordingly, this summary is not, and is not to be construed as, Canadian tax advice to any particular U.S. Holder.

Dividends

Dividends paid or deemed to be paid to a U.S. Holder by the Company will be subject to Canadian withholding tax. Under the Treaty, the rate of withholding tax on dividends paid to a U.S. Holder who beneficially owns the dividends is generally limited to 15% of the gross amount of the dividend (or 5% if the U.S. Holder is a corporation and beneficially owns at least 10% of the Company’s voting shares). The Company will be required to withhold the applicable withholding tax from any such dividend and remit it to the Canadian government for the U.S. Holder’s account.

Disposition

A U.S. Holder is not subject to tax under the Tax Act in respect of a capital gain realized on the disposition of a common share of the Company in the open market unless the share is “taxable Canadian property” to the holder thereof and the U.S. Holder is not entitled to relief under the Treaty. Generally, provided the common shares are listed on a "designated stock exchange" as defined in the tax act (which includes the NYSE and TSX), a common share will be taxable Canadian property to a U.S. Holder if, at any time during the 60 months preceding the disposition, one or any combination of (i) the U.S. Holder or (ii) persons with whom the U.S. Holder did not deal at arm’s length, or (iii) partnerships in which the U.S. Holder or a person with whom the U.S. Holder did not deal at arm's length holds a membership interest directly or indirectly, through one or more partnerships, owned 25% or more of the Company’s issued shares of any class or series and more than 50% of the fair market value of the common share was derived directly or indirectly, from one or any combination of real or immovable property situated in Canada, ‘‘Canadian resource properties’’, ‘‘timber resource properties’’ (each as defined in the Tax Act), and options in respect of or interests in, or for civil law rights in, any such properties (whether or not such property exists). If the common shares of the Company constitute taxable Canadian property to the U.S. holder, the U.S. holder may be subject to Canadian income tax on the gain. The U.S. Holder's taxable capital gain or loss from a disposition of the share is the amount, if any, by which the proceeds of disposition exceed (or are exceeded by) the aggregate of the adjusted cost base and reasonable expenses of disposition. One-half of the capital gain is included in income and one-half of the capital loss is must be deducted from capital gains realized in the same taxation year. Unused capital losses may be carried back three taxation years or forward indefinitely and applied to reduce capital gains realized in those years. U.S. Holders whose common shares constitute Canadian taxable property should consult with their own tax advisors.

A U.S. Holder whose common shares do constitute taxable Canadian property, and who might therefore be liable for Canadian income tax under the Tax Act, will generally be relieved from such liability under the Treaty unless the value of the Company's shares at the time of disposition is derived principally from real property situated in Canada. The value of the Company’s common shares is not currently derived principally from real property situated in Canada.

Certain U.S. Federal Income Tax Considerations

The following is a discussion of certain material U.S. federal income tax consequences of the acquisition, ownership and disposition of our common shares that are applicable to you if you are a U.S. Holder, as defined below. This discussion does not address all tax considerations that might be relevant to particular holders in light of their personal circumstances or to persons that are subject to special tax rules. In particular, the information set forth below deals only with U.S. Holders that will hold common shares as capital assets for U.S. federal income tax purposes (generally, property held for investment) and that do not

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own, and are not treated as owning, at any time, 10% or more of the total combined voting power of all classes of our stock entitled to vote. In addition, this description of the material U.S. federal income tax consequences does not address the tax treatment of special classes of U.S. Holders, such as:

• financial institutions;

• regulated investment companies;

• real estate investment trusts;

• tax-exempt entities;

• insurance companies;

• persons holding the common shares as part of a hedging, integrated or conversion transaction, constructive sale or “straddle;”

• persons who acquired common shares through the exercise or cancellation of employee stock options or otherwise as compensation for their services;

• U.S. expatriates;

• persons subject to the alternative minimum tax;

• dealers or traders in securities or currencies; or

• holders whose functional currency is not the U.S. dollar.

This summary does not address estate and gift tax or any U.S. federal tax consequences other than income tax or tax consequences under any state, local or foreign laws other than as provided in the section entitled “Material Canadian Federal Income Tax Consequences for United States Residents” provided above.

For purposes of this section, you are a “U.S. Holder” if you are: (1) an individual citizen of the United States or a resident alien of the United States as determined for U.S. federal income tax purposes; (2) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States or any state thereof or the District of Columbia; (3) an estate the income of which is subject to U.S. federal income taxation regardless of its source; or (4) a trust (A) if a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have authority to control all substantial decisions of the trust or (B) that has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person.

If a partnership or other pass-through entity is a beneficial owner of our common shares, the tax treatment of a partner or other owner will generally depend upon the status of the partner (or other owner) and the activities of the entity. If you are a partner (or other owner) of a pass-through entity that acquires common shares, you should consult your tax advisor regarding the tax consequences of acquiring, owning and disposing of common shares.

The following discussion is based upon the U.S. Internal Revenue Code of 1986, as amended (the “Code”), U.S. judicial decisions, administrative pronouncements, existing and proposed Treasury regulations, all as in effect as of the date hereof. All of the preceding authorities are subject to change, possibly with retroactive effect, so as to result in U.S. federal income tax consequences different from those discussed below. We have not requested, and will not request, a ruling from the U.S. Internal Revenue Service (the “IRS”) with respect to any of the U.S. federal income tax consequences described below, and as a result there can be no assurance that the IRS will not disagree with or challenge any of the conclusions we have reached and describe herein.

The following discussion is for general information only and is not intended to be, nor should it be construed to be, legal or tax advice to any holder or prospective holder of common shares and no opinion or representation with respect to the U.S. federal income tax consequences to any such holder or prospective holder is made. Prospective purchasers are urged to consult their tax advisors as to the particular consequences to them under U.S. federal, state and local, and applicable foreign, tax laws of the acquisition, ownership and disposition of common shares.

Distributions

Subject to the passive foreign investment company (“PFIC”) rules discussed below, the gross amount of any distribution with respect to a common share (which will include the amount of any Canadian taxes withheld) will be subject to U.S. federal income tax as foreign source dividend income to the extent that it is made from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Such amount will be includable in gross income by a U.S. Holder as ordinary income on the date received in accordance with the U.S. Holder’s regular method of accounting for U.S. federal income tax purposes. If a distribution exceeds the amount of our current and accumulated earnings and profits, it will be treated as a non-taxable return of capital to the extent of a U.S. Holder’s tax basis in the common shares on which it is paid, causing a reduction in the U.S. Holder’s adjusted basis in such common shares and thereby increasing the amount of gain, or

57

decreasing the amount of loss, to be recognized upon subsequent disposition of the common shares. To the extent a distribution exceeds the U.S. Holder’s basis in such common shares, it will be treated as a capital gain. However, we may not maintain the calculations of our earnings and profits in accordance with U.S. federal income tax principles, and each U.S. Holder may have to assume that any distribution by us with respect to the common shares will constitute ordinary dividend income.

The amount of any distribution made with respect to a common share in property other than cash will be the fair market value of such property on the date of distribution. Dividends paid by us will not be eligible for the dividends received deduction generally allowed to U.S. corporations on dividends received from another U.S. corporation. Reduced U.S. federal income tax rates apply to qualified dividends received by non-corporate U.S. Holders from a “qualified foreign corporation,” provided certain holding period and other requirements are met (including a requirement that the foreign corporation not be a PFIC in the year of the dividend or the preceding year).

Subject to certain limitations (including a minimum holding period requirement), any Canadian tax withheld with respect to distributions made on the common shares will be treated as foreign income taxes eligible for credit against your U.S. federal income tax liability. Alternatively, you may, subject to applicable limitations, elect to deduct the otherwise creditable Canadian withholding taxes for U.S. federal income tax purposes provided such election is made for all foreign income taxes paid or accrued for the relevant taxable year. Dividends received on our common shares will be treated as income from sources outside the United States and generally will constitute “passive category income” for U.S. foreign tax credit limitation purposes. The rules governing the foreign tax credit are complex and involve the application of rules that depend upon your particular circumstances. Accordingly, you are urged to consult your tax advisor regarding the availability of the foreign tax credit under your particular circumstances.

The gross amount of distributions paid in Canadian dollars will be included by you in income in a dollar amount calculated by reference to the exchange rate in effect on the day you actually or constructively receive the distribution in accordance with your regular method of accounting for federal income tax purposes regardless of whether the payment is in fact converted into U.S. dollars. If the Canadian dollars are converted into U.S. dollars on the date of the payment, you should not be required to recognize any foreign currency gain or loss with respect to the receipt of Canadian dollars as distributions. If, instead, the Canadian dollars are converted at a later date, any currency gains or losses resulting from the conversion of the Canadian dollars will be treated as U.S. source ordinary income or loss.

Sale, Exchange or Other Taxable Disposition of Common Shares

You generally will recognize gain or loss upon the sale, exchange or other taxable disposition of our common shares in an amount equal to the difference between (i) the amount realized upon the sale, exchange or other taxable disposition and (ii) your adjusted tax basis in the common shares. Generally, subject to the application of the PFIC rules discussed below, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if, on the date of the sale, exchange or other taxable disposition, you have held the common shares for more than one year. If you are an individual taxpayer, long-term capital gains are subject to taxation at favorable rates. The deductibility of capital losses is subject to limitations under the Code. Gain or loss, if any, that you realize upon a sale, exchange or other taxable disposition of common shares will be treated as having a United States source for U.S. foreign tax credit limitation purposes.

If you receive any foreign currency on the sale of common shares, you may recognize ordinary income or loss as a result of currency fluctuations between the date of the sale of common shares and the date the sale proceeds are converted into U.S. dollars.

An additional 3.8% tax will generally be imposed on the “net investment income” of individuals, estates and trusts whose income exceeds certain thresholds. “Net investment income” generally includes the following: (i) gross income from interest and dividends other than from the conduct of a non-passive trade or business; (ii) other gross income from a passive trade or business; and (iii) net gain attributable to the disposition of property other than property held in a non-passive trade or business. Therefore, dividends on, and capital gains from the sale or other taxable disposition of, the Common Shares may be subject to this additional tax.

Passive Foreign Investment Company Considerations

Special U.S. federal income tax rules apply to U.S. persons owning stock of a PFIC. A foreign corporation will be considered a PFIC for any taxable year in which (i) 75% or more of its gross income is passive income, or (ii) 50% or more of the average value (or, if elected, the adjusted tax basis) of its assets are considered “passive assets” (generally, assets that generate passive income).

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Based on past and current operations and financial projections, we believe we currently are not a PFIC and we do not expect to become a PFIC in the future. The determination of whether or not we are a PFIC is based on the application of complex U.S. federal income tax rules, which are subject to differing interpretations. Accordingly, there can be no assurance that the IRS will not challenge the determination made us concerning our PFIC status. If we were classified as a PFIC for any taxable year during which you hold our common shares, you would be subject to increased tax liability (generally including an interest charge) upon the sale or other disposition of the common shares or upon the receipt of certain distributions treated as “excess distributions,” unless you elect to be taxed currently (as discussed below) on your pro rata portion of our income, regardless of whether such income was actually distributed. An excess distribution generally would be any distribution to you with respect to common shares during a single taxable year that is greater than 125% of the average annual distributions received by you with respect to common shares during the three preceding taxable years or, if shorter, during your holding period for the common shares.

In addition, certain special, generally adverse rules will apply to the common shares if we are a PFIC. For example, under Section 1298(b)(6) of the Code, if you use PFIC shares as security for a loan (including a marginal loan) you will, except as may be provided in Treasury regulations, be treated as having made a taxable disposition of such shares.

Mark-to-Market Election

If the common shares are regularly traded on a registered national securities exchange or certain other exchanges or markets, then such common shares would constitute “marketable stock” for purposes of the PFIC rules, and you would not be subject to the foregoing PFIC rules if you made a mark-to-market election. After making such an election, you generally would include as ordinary income each year during which the election is in effect and during which we are a PFIC the excess, if any, of the fair market value of our common shares at the end of the taxable year over your adjusted basis in such common shares. These amounts of ordinary income would not be eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains. You also would be allowed to take an ordinary loss in respect of the excess, if any, of your adjusted basis in our common shares over their fair market value at the end of the taxable year (but only to the extent of the net amount of income that was previously included as a result of the mark-to-market election). Your tax basis in our common shares would be adjusted to reflect any income or loss amounts resulting from a mark-to-market election. If made, a mark-to-market election would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the common shares ceased to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation of the election. In the event that we are classified as a PFIC, you are urged to consult your tax advisor regarding the availability of the mark-to-market election, and whether the election would be advisable in your particular circumstances.

QEF Election

The PFIC tax rules outlined above also would not apply to you if you alternatively elected to treat us as a “qualified electing fund” or “QEF”. An election to treat us as a QEF will not be available, however, if we do not provide the information necessary to make such an election. We will not provide you with the information necessary to make a QEF election, and thus, the QEF election will not be available with respect to our common shares.

Notwithstanding any election made with respect to our common shares, dividends received with respect to our common shares will not constitute “qualified dividend income” if we are a PFIC in either the year of the distribution or the preceding taxable year. Dividends that do not constitute qualified dividend income are not eligible for taxation at the reduced tax rate discussed above in “Certain U.S. Federal Income Tax Considerations – Distributions.” Instead, such dividends would be subject to tax at ordinary income rates.

You are urged to consult your tax advisor concerning the U.S. federal income tax consequences of holding our common shares if we are considered a PFIC in any taxable year.

Information Reporting and Backup Withholding

In general, information reporting will apply to dividends paid to you in respect of common shares and the proceeds received by you from the sale, exchange or other disposition of common shares within the United States unless you are an exempt recipient. A backup withholding tax may apply to such payments if you fail to provide a taxpayer identification number or certification of exempt status or fail to report in full dividend and interest income.

In addition, U.S. Holders should be aware of reporting requirements with respect to the holding of certain foreign financial assets, including stock of foreign issuers which is not held in an account maintained by certain financial institutions, if the aggregate value of all of such assets exceeds U.S.$50,000. U.S. Holders should also be aware that if we were a PFIC, they

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would generally be required to file IRS Form 8621, which is also where they would make a QEF election, if applicable. The Treasury and IRS continue to issue new guidance regarding these information reporting requirements, and U.S. Holders should consult their own tax advisors regarding the application of the information reporting rules to our common shares and their particular situations.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or credit against your U.S. federal income tax liability, provided that the required information is furnished to the IRS.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

Any statement in this Annual Report about any of our contracts or other documents is not necessarily complete. If the contract or document is filed as an exhibit to this Annual Report, the contract or document is deemed to modify our description. You must review the exhibits themselves for a complete description of the contract or document.

We are subject to the informational reporting requirement of the Exchange Act and file reports and other information with the SEC. You may examine all reports and other information filed by the Company with the SEC, including the documents that are exhibits to this Annual Report, without charge, at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C., 20549. For more information on the public reference rooms, call the SEC at l.800.SEC.0330. Our reports and other information filed with the SEC are also available to the public from commercial document retrieval services and the website maintained by the SEC at http://www.sec.gov.

I. Subsidiary Information

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Cash Store Financial does not hold any market risk sensitive instruments entered into for trading purposes. For a discussion of the risks associated instruments entered into other than for trading purposes, see the disclosure included under the heading “Risk Factors – Foreign Currency” in Item 3.D, above, and in Note 22 to the Company’s financial statements, which are included as Exhibit 99.1 to this Annual Report incorporated by reference herein.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

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ITEM 15. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s disclosure controls and procedures (“DC&P”) are designed to provide reasonable assurance that the information the Company is required to disclose is recorded, processed, summarized and reported within the time periods specified under Canadian and US securities laws. They include controls and procedures designed to ensure that information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. As ofSeptember 30, 2013, an evaluation was carried out under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) under the US Securities Exchange Act of 1934 (the "1934 Act"), as amended, and in National Instrument 52-109 - Certification of Disclosure in Issuer’s Annual and Interim Filings under the Canadian Securities Administrators Rules and Policies ("NI 52-109"). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were not effective due to the material weaknesses in the Company’s internal control over financial reporting (“ICFR”) described below.

Management’s Report on Internal Control over Financial Reporting

Internal control over financial reporting is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and of the preparation of financial statements for external purposes in accordance with U.S. GAAP. Management, including the Chief Executive Officer and Chief Financial Officer, are responsible for establishing and maintaining adequate ICFR as such term is defined in Rule 13(a)‐15(f) under the 1934 Act and in NI 52-109. A material weakness in ICFR exists if the deficiency is such that there is reasonable possibility that a material misstatement of the annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

Because of its inherent limitations, ICFR may not prevent or detect misstatements. Also, projections or any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As of September 30, 2013, management of the Company assessed the effectiveness of the Company’s ICFR. In making this assessment, management of the Company used the criteria set forth in the Internal Control‐Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management has concluded that, as a result of the material weaknesses in ICFR discussed below, ICFR is not effective as ofSeptember 30, 2013.

Management identified two material weaknesses in ICFR described below. Each of these material weaknesses creates a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected on a timely basis. 

1. In the year ended September 30, 2012, management determined that it did not design and implement effective information and communication processes and controls specific to the determination of the provision for credit losses. Specifically, senior finance personnel did not effectively communicate with operations to obtain sufficient information regarding the Company's collection activities in making the determination of the provision for credit losses. This material weakness resulted in material errors in the unaudited interim financial statements in fiscal 2012. The accounts that could reasonably be affected by the material weakness are provision for credit losses and consumer advances receivable, net.

2. In the year ended September 30, 2012, management determined that the Company did not design and implement effective ICFR related to the review, interpretation and monitoring of legal and regulatory matters for financial reporting implications. Specifically, the Company did not have sufficient resources with the appropriate level of expertise to accurately monitor and assess legal and regulatory matters facing the Company. As a result, the Company's ICFR did not correctly interpret how the settlement terms and conditions of the March 5, 2004 British Columbia Class Action claim impacted the measurement of the associated liability as at September 30, 2010. As a result of these ineffective controls, the Company incorrectly measured and recorded the liability in its previously filed financial statements; however, it has now corrected for the error as described in Note 3 of the Company’s September 30, 2012 restated annual financial statements. The accounts that could reasonably be affected by this material weakness are corporate expenses, interest expense, income tax expense, other receivables (current and long term), deferred tax asset and accrued liabilities.

Each of these material weaknesses creates a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected on a timely basis.

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Changes in Internal Controls over Financial Reporting

The Company has taken the following remedial actions related to the above noted material weaknesses:

1. In response to the first material weakness identified above, as part of the preparation of the 2012 annual financial statements the Company formally adopted an accounting policy and established a credit committee, comprised of senior financial and operational executives, to meet on a regular basis to monitor credit loss rates and approve provisioning levels. Management also hired additional senior finance personnel in the fourth fiscal quarter of 2012 to assist in the monitoring of the provision for credit losses. As part of the preparation of the 2013 annual financial statements, the Company changed its estimation methodology to determine the provision for credit losses whereby now the Company fully charges-off past due consumer advances receivable when the advances remain in default status for 90 days. This change results in the acceleration of the point in time when consumer advances receivable are fully provided for, which management believes will reduce the estimation uncertainty when determining an appropriate provision for aged consumer advances, thereby reducing the risk of material misstatement.

2. In response to the second material weakness identified above, in April 2013 management established a process to coordinate communications internally as well as regularly consult with legal counsel and any other parties involved in legal and regulatory matters (i.e. a third party settlement administrator). This new control involves a review of the status of all legal and regulatory matters at each reporting period in order to assess the impact, if any, on the Company’s consolidated financial statements.

Although there have been significant improvements made to ICFR in relation to the material weaknesses described above, management believes that these material weaknesses continue to exist for the reasons discussed below:

• For the material weakness related to the provision for credit losses, management believes it has made significant improvements in the procedures and controls it utilizes to determine the provision for credit losses. However, as the Company has recently introduced new products into the marketplace (lines of credit) and is developing new ways to offer payday loans (through on-line lending and other means), Management needs sufficient time to assess whether these improvements will be effective in determining an appropriate provision for credit losses.

• For the material weaknesses related to the review, interpretation and monitoring of legal and regulatory matters, management needs sufficient time to strengthen in-house expertise and develop processes and controls whereby legal and regulatory matters are communicated to the Company’s finance department for assessment, under relevant US GAAP guidance, in a timely manner, before concluding that the material weakness has been remediated.

Auditor Attestation Report on Internal Control over Financial Reporting

The Company’s independent auditor, KPMG, has not issued an audit report as at September 30, 2013, on the effectiveness of ICFR due to an exemption for Emerging Growth Companies provided by The US Jumpstart our Business Startups Act, which was signed into law on April 5, 2012.

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

See Item 6.C.

ITEM 16B. CODE OF ETHICS

The Registrant has adopted a written Code of Business Conduct and Ethics. A copy of this code is available on SEDAR at www.sedar.com or to any person without charge, by written request addressed to: The Cash Store Financial Services Inc., Attention: Craig Warnock, Chief Financial Officer, 15511-123 Avenue Edmonton, Alberta Canada T5V 0C3, or by email (information@CSFinancial.ca).

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

See Item 6.C. No audit-related fees, tax fees or other non-audit fees were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

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ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Not applicable.

ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

The Company's corporate governance practices do not differ significantly from the practices followed by United States domestic companies listed on the NYSE.

PART III

ITEM 17. FINANCIAL STATEMENTS

The Company’s consolidated financial statements are stated in Canadian dollars and are prepared in accordance with U.S. generally accepted accounting principles.

The financial statements and notes thereto as required under Item 17 are attached as Exhibit 99.1 to this Annual Report and are incorporated by reference herein.  The audit report of KPMG is included therein and is also incorporated by reference herein.

ITEM 18. FINANCIAL STATEMENTS

See Item 17.

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ITEM 19. EXHIBITS

1.1	Audit Committee Charter
2.1	A credit agreement dated November 29, 2013 between the Company and Coliseum Capital Management, LLC, 8028702 Canada Inc. and 424187 Alberta Ltd. pursuant to which $12.0 million of loans were provided to the Company.
99.1	Consolidated Financial Statements and Audit report of KPMG
99.6.1	Certification pursuant to Rule 13a-14(A)/15d-14(a) of Chief Executive Officer
99.6.2	Certification pursuant to Rule 13a-14(A)/15d-14(a) of Chief Financial Officer
99.6.3	Certification pursuant to 18 U.S.C. Section 1350 of Chief Executive Officer
99.6.4	Certification pursuant to 18 U.S.C. Section 1350 of Chief Financial Officer

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SIGNATURES

The Cash Store Financial Services Inc. certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

THE CASH STORE FINANCIAL SERVICES INC.

/s/ Gordon Reykdal
Name: Gordon Reykdal
Title: Chief Executive Officer
DATED:	December 11, 2013

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EX-1.1

EXHIBIT 1.1

THE CASH STORE FINANCIAL SERVICES INC.

AUDIT COMMITTEE CHARTER

1. PURPOSE

1.1 The primary duties and responsibilities of the Audit Committee of the board of directors (“Board of Directors”) of The Cash Store Financial Services Inc. (the “Corporation”) are to:

(a) assist the Board of Directors with its oversight of the integrity of the Corporation’s financial statements and the Corporation’s compliance with legal and regulatory requirements;

(b) review and recommend to the Board for approval, prior to their public release, all material financial information required to be gathered and disclosed by the Corporation;

(c) oversee management designed and implemented accounting systems and internal controls; and

(d) be directly responsible for recommending, engaging, supervising, arranging for the compensation of and ensuring the independence and qualifications of any external auditor to the Corporation engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Corporation.

2. COMPOSITION AND MEETINGS

2.1 The Audit Committee will be comprised of at least three members of the Board each of whom will at all times be independent and financially literate as those terms are defined in National Instrument 52- 110 Audit Committees and the NYSE Listed Company Manual, and possess:

(a) an understanding of the accounting principles used by the Corporation to prepare its financial statements;

(b) the ability to assess the general application of such accounting principles in connection with the accounting for estimates, accruals and reserves;

(c) experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Corporation’s financial statements, or experience actively supervising one or more individuals engaged in such activities; and

(d) an understanding of internal controls and procedures for financial reporting.

2.2 The Audit Committee shall have at least one audit committee financial expert who has acquired the attributes listed above through education and experience as a principal financial officer, principal accounting officer, controller, public accountant, auditor, experience in positions performing similar functions, experience supervising persons performing similar functions, experience overseeing or assessing the performance of companies or public accountants with respect to preparation, auditing or evaluation of financial statements, or other relevant experience.

2.3 The Audit Committee is required to meet in person, or by telephone conference call at least once each quarter and as often thereafter as required to discharge the duties of the Audit Committee.

2.4 Each member of the Audit Committee shall serve at the pleasure of the Board of Directors and, in any event, only so long as that person shall be an independent director. The Board of Directors may

remove a member of the Audit Committee at any time in its sole discretion by resolution of the Board of Directors. The Directors may fill vacancies in the Audit Committee by election from among their number.

2.5 In connection with the appointment of the members of the Audit Committee, the Board of Directors will determine whether any proposed nominee for the Committee serves on the audit committees of more than three public companies. To the extent that any proposed nominee for membership on the Audit Committee serves on the audit committees of more than three public companies, the Board of Directors will make a determination as to whether such simultaneous services would impair the ability of such member to effectively serve on the Audit Committee and may disclose such determination in the Corporation’s annual report on Form 40-F or Form 20-F, as applicable, filed with the United States Securities and Exchange Commission (the “SEC”).

2.6 The Chairman of the Audit Committee appointed by the Board will, in consultation with the members, determine the schedule, time and place of meetings, and in consultation with management and the external auditor, establish the agenda for meetings.

2.7 Notice of the time and place of every meeting shall be given in writing, by email or facsimile to each member of the Audit Committee at least 24 hours prior to the time fixed for such meeting, provided that a member may in any manner waive a notice of meeting.

2.8 The Committee should hold an in-camera session without management present, including management directors, as a regular feature of each regularly scheduled Committee meeting.

3. QUORUM

3.1 A quorum for a meeting of the Audit Committee shall be a majority of members present in person or by telephone conference call.

4. RESPONSIBILITIES

The Audit Committee is responsible for:

4.1 Financial Reporting - Prior to public disclosure, the Audit Committee will meet to review and discuss with senior management and the independent external auditors and to recommend to the Board of Directors for approval, the Corporation’s:

(a) annual consolidated financial statements and interim unaudited consolidated financial statements;

(b) annual and interim management discussion and analysis of financial condition and results of operations (MD&A);

(c) earnings press release and earnings guidance, if any; and

(d) financial public disclosure documents, including but not limited to, prospectuses, press releases with financial results and relevant sections of the Corporation’s Annual Information Form, Management Information Circular, Annual Report and SEC Form 40-F or Form 20-F, as applicable.

4.2    Accounting and Financial Management

(a) The Audit Committee will review, together with management, the internal auditor and the external auditors:

(i) the Corporation’s major accounting policies (including the impact of alternative accounting policies), key management estimates, risks and judgments that could

materially affect the financial results and whether they should be disclosed in the MD&A;

(ii) any proposed changes to the Corporation’s accounting policies including alternative treatment available to the Corporation;

(iii) emerging accounting issues and their potential impact on the Corporation’s financial reporting;

(iv) the evaluation by either the internal or external auditors of the Corporation’s internal control systems, and management’s responses to any identified weaknesses; and

(v) the evaluation by management of the adequacy and effectiveness in the design and operation of the Corporation’s disclosure controls and internal controls over financial reporting.

(b) The Audit Committee will:

(i) be satisfied and obtain reasonable assurances from management and the external auditors that accounting systems are reliable; prescribed internal controls are effective; and adequate procedures are in place for the review of the disclosure of financial information extracted or derived from the Corporation’s financial statements;

(ii) periodically assess the adequacy of accounting systems, internal controls and procedures for the review of disclosure of financial information;

(iii) review control weaknesses identified by the external auditor and management's response;

(iv) review with the external auditor its view of the qualifications and performance of the key financial and accounting executives;

(v) discuss issues of its choosing with the external auditor, management and corporate counsel; and

(vi) make inquiries of the external auditor and legal counsel to the Corporation regarding potential claims, assessments, contingent liabilities, and legal and regulatory matters that may have a material impact on the financial statements of the Corporation.

4.3     Whistleblower Complaint Procedures

The Committee will:

(a) establish procedures for the confidential anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters. Following the receipt of any complaints received submitted through the confidential process established by the Corporation, if a complaint is deemed to require further investigation, the Audit Committee shall take appropriate steps to carry out such investigation, including appointing the appropriate investigators with respect to such complaint; and

(b) establish procedures for the receipt and treatment of complaints received by the Corporation regarding accounting, internal accounting controls and auditing matters and the retention (for at least 7 years) of copies of concerns and evidence of investigations.

4.4    Independent Audit Function

To preserve the independence of the external auditor responsible for preparing or issuing an auditor’s report or performing other audit, review or attest services for the Corporation, the external auditors will report directly to the Audit Committee and the Committee will be directly responsible for:

(a) maintaining direct communications with the external auditors ensuring that the external auditor is answerable to the Audit Committee, as representatives of the shareholders, rather than to the executive officers and management of the Corporation;

(b) overseeing the work of the external auditor;

(c) recommending to the Board of Directors the external auditor to be nominated;

(d) recommending to the Board of Directors the external auditor’s compensation;

(e) evaluating the external auditor’s qualifications, performance and independence including by annually reviewing:

(i) a report of the auditor describing its internal quality-control procedures;

(ii) material issues raised by its most recent internal quality-control review; and

(iii) the results of any inquiry or investigation by government or professional authorities of the auditor within the last five years;

(f) reviewing the experience and qualifications of the senior members of the external auditors, ensure that the lead audit partner is replaced periodically in accordance with applicable law, and that the audit firm continues to be independent;

(g) annually, prior to public disclosure of its annual financial statements, confirming that the external auditor has current participant status with the Canadian Public Accountability Board;

(h) reviewing and pre-approving any engagements for non-audit services to be provided by the external auditor and its affiliates in light of the estimated fees and impact on the external auditor’s independence;

(i) reviewing and approving the Corporation’s hiring policies regarding partners, employees and former partners and employees of the present and most recent former external auditor of the Corporation in compliance with the requirements set out in section 2.4 of National Instrument 52-110;

(j) pre-approving all audit services;

(k) meet with the external auditor prior to the audit to review the scope and general extent of the external auditor’s annual audit including planning and staffing the audit and the factors considered in determining the audit scope, including risk factors;

(l) meeting with the external auditor to:

(i) review significant changes to the audit plan, if any,

(ii) review any disputes or difficulties with management encountered during the audit, including any disagreements which, if not resolved, would have caused the external auditor to issue a non-standard report on the Corporation’s financial statements; and

(iii) review the co-operation received by the external auditor during its audit and interim reviews including their ability to access all requested records, data and information;

(m) meeting with the external auditor at least annually in the absence of management;

(n) resolving any disagreements between management and the external auditor;

(o) discussing or reviewing specific issues that arise from time-to-time with the external auditor; and

(p) directing the external auditor’s examinations to particular issues.

4.5    Internal Audit Function

The Audit Committee will:

(a) approve the appointment, replacement, or dismissal of the Vice President of the internal audit group;

(b) review and approve the compensation of the Vice President of the internal audit group;

(c) review and approve the reporting relationship of the internal auditor to ensure that an appropriate segregation of duties is maintained and that the internal auditor has an obligation to report directly to the Audit Committee on matters affecting the Audit Committee’s duties, irrespective of his or her other reporting relationships;

(d) direct the Vice President of the internal audit group to review any specific areas the Committee deems necessary;

(e) consider and review the following issues with management and the Vice President of internal audit:

i. significant findings of the internal audit group as well as management’s response to them;

ii. any difficulties encountered in the course of their internal audits, including any restrictions on the scope of their work or access to required information;

iii. the internal auditing budget and staffing;

iv. the Audit Services Charter; and

v. compliance with The Institute of Internal Auditors’ Standards for the Professional Practice of Internal Auditing.

5. RISK MANAGEMENT

The Audit Committee will:

(a) discuss the Corporation’s policies with respect to risk assessment and risk management, including guidelines and policies to govern the process by which risk assessment and risk management are undertaken;

(b) review transactions involving the Corporation and “related parties” as that term is defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (collectively, “Related Party Transactions”);

(c) monitor any Related Party Transactions and report to the Board of Directors on a regular basis regarding the nature of any Related Party Transactions;

(d) oversee and monitor any litigation, claim or regulatory investigation or proceeding involving the Corporation;

(e) review and approve annually, directors’ and officers’ third party liability insurance coverage; and

(f) review and monitor the Corporation’s insurance claims.

6. REPORTING

6.1 The Audit Committee is responsible, following each meeting, to report to the Board of Directors regarding its activities, findings, recommendations, any issues that arise with respect to the quality or integrity of the Corporation’s financial statements, compliance with applicable law, the performance and independence of the external auditor and the effectiveness of the internal audit function.

6.2 The Audit Committee will prepare any reports required to be prepared by the Committee under applicable law including quarterly reports regarding ongoing investigations made pursuant to the Corporation’s Whistleblower Policy.

7. AUTHORITY

7.1 The Audit Committee has the power to, at the expense of the Corporation and as it determines necessary, retain, instruct, compensate and terminate independent advisors (including independent counsel) to assist the Audit Committee in the discharge of its duties.

8. OTHER

8.1 The Audit Committee is responsible to annually review its own performance, and in its discretion, make recommendations to the Board of Directors regarding changes to its Charter and the position description of its Chairman.

Approved by the Board of Directors - December 11, 2013

EX-2.1

EX-99.1

Consolidated Financial Statements
For the years ended September 30, 2013, 2012 and 2011

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements are the responsibility of management and have been approved by the Board of Directors. The consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles and include some amounts based on management’s best estimates and informed judgments. When alternative accounting methods exist, management has chosen those it considers most appropriate in the circumstances.

The Cash Store Financial Services Inc. maintains a system of internal controls to provide reasonable assurance that transactions are properly authorized, financial records are accurate and reliable and the Company’s assets are properly accounted for and adequately safeguarded.

The Board of Directors is responsible for ensuring that management fulfills its responsibility for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Board of Directors carries out its responsibility for the financial statements through its Audit Committee. This Committee meets periodically with management and the independent external auditors to review the financial statements and to discuss audit, financial and internal control matters. The Company’s independent external auditors have full and free access to the Audit Committee. The Audit Committee is responsible for approving the remuneration and terms of engagement of the Company’s independent external auditors. The consolidated financial statements have been subject to an audit by the the Company’s external auditors, KPMG LLP, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) on behalf of the shareholders.

The consolidated financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized in note 1 of the notes to the consolidated financial statements.

Signed "Gordon J. Reykdal”	Signed "Craig Warnock”
Gordon Reykdal	Craig Warnock, FCMA
Chief Executive Officer	Chief Financial Officer

December 11, 2013

Edmonton, Alberta, Canada

Page 2

	KPMG LLP	Telephone	(780) 429-7300
	Chartered Accountants	Fax	(780) 429-7379
	10125 – 102 Street	Internet	www.kpmg.ca
	Edmonton AB  T5J 3V8
	Canada

INDEPENDENT AUDITORS’ REPORT OF REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of The Cash Store Financial Services Inc.

We have audited the accompanying consolidated financial statements of The Cash Store Financial Services Inc., which comprise the consolidated balance sheets as at September 30, 2013 and September 30, 2012, the consolidated statements of operations and comprehensive income (loss), changes in shareholders’ equity and cash flows for each of the years in the three-year period ended September 30, 2013, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Page 3

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of The Cash Store Financial Services Inc. as at September 30, 2013 and September 30, 2012, and its consolidated results of operations and its consolidated cash flows for each of the years in the three-year period ended September 30, 2013 in accordance with

U.S. generally accepted accounting principles.

Emphasis of Matter

We draw attention to Note 20 to the consolidated financial statements, which describes that the Company is the defendant in various lawsuits and other regulatory actions alleging noncompliance with payday lending and securities laws and regulations in multiple jurisdictions in Canada and the United States. The Company is also the defendant in a lawsuit seeking repayment of certain funds advanced to the Company and its affiliates by a third party lender. The Company is vigorously defending these actions. The ultimate outcome of these matters cannot presently be determined and, accordingly, no provision for any effects on the Company that may result from the outcome of these lawsuits has been made in the consolidated financial statements. Our opinion is not qualified in respect of these matters.

Chartered Accountants

Edmonton, Canada

December 11, 2013

Page 4

THE CASH STORE FINANCIAL SERVICES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except share and per share amounts)

	Years Ended
	September 30, 2011		September 30, 2012			September 30, 2013
REVENUE
Loan fees	$	136,623	$	137,994		$	152,430
Other income - Note 6	53,276		49,418			38,335
	$	189,899	$	187,412		$	190,765
BRANCH OPERATING EXPENSES
Salaries and benefits	67,017		65,944			58,653
Provision for credit losses - Note 5	2,559		31,004			36,607
Retention payments	26,786		9,968			11,659
Selling, general and administrative	24,109		23,595			20,449
Rent	18,427		18,940			18,581
Advertising and promotion	5,941		5,180			6,307
Depreciation of property and equipment	6,803		6,843			6,366
	151,642		161,474			158,622
BRANCH OPERATING MARGIN	38,257		25,938			32,143
CORPORATE AND OTHER EXPENSES
Corporate expenses	18,641		22,684			38,142
Interest expense	616		12,339			18,583
Depreciation of property and equipment	1,146		835			1,794
Amortization of intangible assets	965		5,138			7,517
Branch closure costs - Note 7	—		1,574			123
Impairment of property and equipment - Note 8	—		3,425			1,236
Expense to settle pre-existing relationships with third-party lenders - Note 3	—		36,820			—
INCOME (LOSS) BEFORE INCOME TAXES	16,889		(56,877		)	(35,252		)
INCOME TAXES - NOTE 12
Current expense (recovery)	6,157		(3,571		)	(12,429		)
Deferred expense (recovery)	153		(9,784		)	12,709
	6,310		(13,355		)	280
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)	$	10,579	$	(43,522	)	$	(35,532	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Note 17
Basic	17,259,196		17,431,809			17,564,292
Diluted	17,663,380		17,431,809			17,564,292
BASIC EARNINGS (LOSS) PER SHARE
Net income (loss) and comprehensive income (loss)	$	0.61	$	(2.50	)	$	(2.02	)
Net income (loss) and comprehensive income (loss)	$	0.60	$	(2.50	)	$	(2.02	)

See accompanying notes to the consolidated financial statements

Page 5

THE CASH STORE FINANCIAL SERVICES INC.

CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian Dollars)

	September 30 2012			September 30 2013
ASSETS
Current Assets
Cash	$	16,063		$	6,216
Restricted cash - Note 4	3,076			5,242
Consumer advances receivable, net - Note 5	32,440			25,592
Other receivables, net - Note 6	19,481			8,104
Prepaid expenses and other assets	2,454			3,471
Income taxes receivable	4,576			15,683
Deferred income taxes - Note 12	12,183			—
	90,273			64,308
Long term receivable - Note 6	460			836
Deposits and other assets	1,162			1,740
Deferred income taxes - Note 12	424			—
Deferred financing costs	7,523			6,203
Property and equipment, net of accumulated depreciation of $36,180 and $39,424 - Note 8	23,157			17,460
Intangible assets, net of accumulated amortization of $7,831 and $13,506 - Note 9	39,760			34,353
Goodwill - Note 10	39,685			39,685
	$	202,444		$	164,585
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	1,055		$	1,511
Accrued liabilities - Note 11	27,882			24,715
Current portion of deferred revenue - Note 14	1,000			1,000
Current portion of deferred lease inducements	436			333
Current portion of obligations under capital leases and other obligations - Note 15	1,180			1,185
	31,553			28,744
Deferred revenue - Note 14	3,917			2,918
Deferred lease inducements	985			686
Obligations under capital leases and other obligations - Note 15	3,608			3,441
Senior secured notes - Note 13	126,033			127,182
Deferred income taxes - Note 12	2,832			2,934
	168,928			165,905
SHAREHOLDERS' EQUITY
Share capital, number of voting common shares, issued and outstanding - 17,496,646 and 17,571,813 - Note 16	46,652			47,091
Additional paid-in capital	4,700			4,957
Deficit	(17,836		)	(53,368		)
	$	33,516		$	(1,320	)
	202,444			164,585

Litigations, Claims and Contingencies - Note 20

Subsequent Event - Note 25

Approved by the Board:

Signed "Gordon Reykdal"	Signed "Eugene Davis"
Director	Director

See accompanying notes to the consolidated financial statements

Page 6

THE CASH STORE FINANCIAL SERVICES INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(in thousands of Canadian Dollars)

	Common  Shares		Additional Paid- in Capital			Retained  Earnings (Deficit)			Total  Shareholders' Equity
Balance, September 30, 2010	$	43,468	$	3,981		$	29,305		$	76,754
Net loss and comprehensive loss	—		—			10,579			10,579
Dividends to common shareholders	—		—			(7,929		)	(7,929		)
Issuance of common shares	2,681		(589		)	—			2,092
Stock-based compensation expense	—		786			—			786
Total of other equity movements	2,681		197			(7,929		)	(5,051		)
Balance, September 30, 2011	46,149		4,178			31,955			82,282
Net loss and comprehensive loss	—		—			(43,522		)	(43,522		)
Dividends to common shareholders	—		—			(6,269		)	(6,269		)
Issuance of common shares	503		(211		)	—			292
Stock-based compensation expense	—		733			—			733
Total of other equity movements	503		522			(6,269		)	(5,244		)
Balance, September 30, 2012	46,652		4,700			(17,836		)	33,516
Net loss and comprehensive loss	—		—			(35,532		)	(35,532		)
Issuance of common shares	439		(182		)	—			257
Stock-based compensation expense	$	—	$	439		$	—		$	439
Total of other equity movements	439		257			—			696
Balance, September 30, 2013	47,091		4,957			(53,368		)	(1,320		)

See accompanying notes to the consolidated financial statements

Page 7

THE CASH STORE FINANCIAL SERVICES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of Canadian Dollars)

	Years ended September 30,
	2011			2012			2013
Cash provided by (used in):
OPERATING ACTIVITIES
Net income (loss)	$	10,579		$	(43,522	)	$	(35,532	)
Items not affecting cash:
Depreciation of property and equipment	7,950			7,678			8,160
Amortization of intangible assets	965			5,138			7,517
Impairment of assets	—			3,425			1,236
Provision for credit losses - Note 5	2,559			31,004			36,607
Expense to settle pre-existing relationships with third-party lenders - Note 3	—			36,820			—
Stock-based compensation	786			733			439
Accretion of long-term debt discount and amortization of deferred financing costs	—			1,466			2,469
Deferred income taxes	153			(9,784		)	12,709
Change in non-cash working capital:
Consumer advances receivable, net - Note 5	(2,744		)	(8,649		)	(29,759		)
Other receivables and long-term receivables	(3,666		)	(6,685		)	11,001
Prepaid expenses, deposits and other assets	(2,408		)	559			(1,595		)
Income taxes receivable	138			(4,576		)	(11,107		)
Accounts payable and accrued liabilities	2,942			2,915			(1,442		)
Income taxes payable	(2,116		)	(138		)	—
Deferred revenue	(1,217		)	(1,194		)	(999		)
Deferred lease inducements	106			(151		)	(402		)
	14,027			15,039			(698		)
INVESTING ACTIVITIES
Acquisition of short-term advances (Note 5b(i))	—			(27,235		)	—
Expense to settle pre-existing relationships with third-party lenders - Note 3	—			(36,820		)	—
Business acquisitions	(25		)	—			—
Purchase of intangible assets	(895		)	(31,068		)	(1,461		)
Purchase of property and equipment	(6,826		)	(4,713		)	(3,044		)
	(7,746		)	(99,836		)	(4,505		)
FINANCING ACTIVITIES
Repayment of obligations under capital leases and other obligations	(778		)	(961		)	(1,528		)
Proceeds from issuance of senior secured notes - Note 13	—			102,577			—
Restricted cash (Note 4)	(3,100		)	6,281			(2,166		)
Funding from (paid to) third-party lenders	—			(2,697		)	(1,207		)
Deferred financing costs	(14		)	(8,297		)	—
Dividends paid on common shares - Note 18	(7,929		)	(6,269		)	—
Issuance of common shares	2,092			292			257
	(9,729		)	90,926			(4,644		)
INCREASE (DECREASE) IN UNRESTRICTED CASH	(3,448		)	6,129			(9,847		)
UNRESTRICTED CASH, BEGINNING OF PERIOD	13,382			9,934			16,063
UNRESTRICTED CASH, END OF PERIOD	$	9,934		$	16,063		$	6,216
Supplemental cash flow information:
Interest paid	$	147		$	7,841		$	15,760
Interest received	30			4			39
Income taxes paid (received)	8,132			1,204			(1,137		)
Non-cash investing and financing activities:
Addition of capital lease obligations and other obligations	$	121		$	4,454		$	1,366
Addition of consumer loans portfolio in exchange for senior secured notes	—			22,779			—
Addition of intangible asset due to taxable difference on acquisition	—			2,524			—
Addition of goodwill due to taxable difference on acquisition	—			552			—
Addition of property and equipment included in accounts payable and accrued liabilities	283			515			62

See accompanying notes to the consolidated financial statements

Page 8

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Nature of Business

The Cash Store Financial Services Inc. (the “Company”) operates under three branch banners: The Cash Store Financial, Instaloans and The Title Store (TSX: CSF, NYSE: CSFS). The Company acts as lender and broker to facilitate short-term advances and provides other financial services, to income-earning consumers. As at September 30, 2013, the Company operated 537 (2012 - 536, 2011 - 586) branches. The Company has operations in Canada and the United Kingdom.

Although the Company’s business is not significantly affected by seasonality, the Company typically experiences its strongest revenues in the third and fourth quarters (which correspond with tax season and the summer months) followed by the first quarter (Christmas/holiday season). The second quarter is typically the weakest. In addition to seasonal demand, quarterly results are impacted by the number and timing of new branch openings and new product lines offered.

The Cash Store Financial is a Canadian corporation that is not affiliated with Cottonwood Financial Ltd. or the outlets of Cottonwood Financial Ltd. which operate in the United States under the name "Cash Store."  The Cash Store Financial does not conduct under the name "Cash Store" in the United States and does not own or provide any consumer lending services in the United States.

Note 1 – Significant Accounting Policies

(a) Basis of Presentation

The consolidated financial statements have been prepared by management in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

All figures are presented in Canadian dollars, unless otherwise disclosed.

(b) Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses during the reporting periods, and disclosures reported in these consolidated financial statements and accompanying notes. Certain significant judgments, estimates and assumptions, such as those related to the allowance for credit losses, valuation of acquired loans and lines of credit advances, valuation of goodwill and intangible assets, expense to settle pre-existing relationships with third-party lenders, deferred income taxes, the inputs in the calculation of financial covenants under the Indenture governing the senior secured notes, and accrued liabilities related to litigation and claims, depend upon subjective or complex judgments about matters that may be uncertain, and changes in those estimates could materially impact the consolidated financial statements. Actual results could differ from those estimates made by management.

(c) Risks and Uncertainties

The Company's future operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to differ materially from expectations include, but are not limited to, the application of laws and regulations to the Company's business (Note 20), the Company's ability to manage credit risk and continued access to capital. The Company manages these risks through operational and legal efforts, and continual evaluation of credit loss experience.

Page 9

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(c) Risks and Uncertainties (continued)

The Company’s business depends on the willingness of third-party lenders to make significant funds available for lending to the Company’s customers and to purchase loans that the Company has made. There are no assurances that existing or new third-party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a material adverse impact on the Company’s results of operations and financial condition.

(d) Revenue Recognition

Revenue arising from the direct lending of consumer advances (including: short-term advances and line of credit advances) to customers is recognized on a constant yield basis ratably over the term of the related loan, in loan fees in the consolidated statement of operations. Direct loan origination costs are deferred and recognized as a reduction in the yield of the related loan over its life. The Company charges late interest and default fees on direct lending loans in default status. Late interest and default fees are recorded once collected in other income.

Revenue from brokering short-term advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage fee has been collected. Late interest and default fees are recorded once collected in other income.

Revenue from brokering and the credit assessment of lines of credit advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage and credit assessment fees have been collected.

Included in other income in the consolidated statement of operations is revenue from insurance products, card fees, banking services, interest and default fees collected, money transfers, cheque cashing, and other miscellaneous services and fees. For these services, revenue is recognized when the services are rendered at the point-of-sale in the branch and the related fees charged have been collected from the customer. Services where the Company acts as an agent on behalf of third-party providers include banking services, card products, money transfers, bill payment services, and insurance products and are classified as agency fee income in Note 6(b).

(e) Retention Payments

When the Company acts as a broker on behalf of income earning consumers seeking short-term advances and lines of credit advances, the funding is provided by third-party lenders. The short-term advances and lines of credit advances provided by the third-party lenders are repayable by the customer to the third-party lenders and represent the assets of the lenders; accordingly, they are not included on the Company’s consolidated balance sheet.

To facilitate the short-term advance and lines of credit advance business, the Company has entered into agreements with third-party lenders who are prepared to lend to the Company’s customers. Pursuant to these agreements, the Company provides services to the lenders related to the collection of documents and information as well as loan collection services. Under the terms of the Company’s agreements with third-party lenders, responsibility for losses suffered on account of uncollectible advances rests with the third-party lender, unless the Company has not properly performed its duties as set forth under the terms of the agreement. The significant duties under the terms of the agreements generally include ensuring that any proposed short-term advance or line of credit advance was applied for through an authorized outlet, ensuring

Page 10

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(e) Retention Payments (continued)

each potential customer meets the short-term advance or line of credit advance selection criteria as set forth by the third-party lender prior to approval and release of funding, satisfying the documentation requirements in a full and timely manner, providing loan management services throughout the term of the short-term advance or line of credit advance and providing collection services on behalf of the third-party lender for all short-term advances and lines of credit advances funded which are not paid in full by the due date, all of which while ensuring information system integrity is maintained. In the event the Company does not properly perform its duties and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. A liability is recorded when it is determined that the Company has a liability under the agreement.

The Company’s Board of Directors (the "Board of Directors") regularly approves a resolution which authorizes management to pay a maximum annual amount of retention payments per quarter to the third-party lenders as consideration to those lenders that continue to be willing to fund advances to the Company’s customers. While the third-party lenders have not been guaranteed a return, the decision has been made to voluntarily make retention payments. Retention payments are recorded in the period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.

Also included in retention payments are amounts paid to third-party lenders to purchase lines of credit advances that exceed the advance's fair value. The arrangements with the third-party lenders permit the Company, at its discretion to purchase advances brokered for consideration of at least its fair value.  

(f) Provision for Credit Losses

Advances in default consist of direct lending consumer advances originated by the Company which are past due. The Company defines a past due or delinquent advance whereby payment has not been received in full from the customer on or before its contractual due date. A provision for credit loss is recorded when the Company no longer has reasonable assurance of timely collection of the full amount of principal and interest.

In determining whether the Company will be unable to collect all principal and interest payments due, the Company assesses relevant internal and external factors that affect loan collectability, including the amount of outstanding advances owed to the Company, historical percentages of advances written off, current collection patterns and other current economic trends. The provision for credit losses reduces the carrying amount of consumer advances receivables to their estimated realizable amounts. The provision is primarily based upon models that analyze specific portfolio statistics, and also reflects, to a lesser extent, management’s judgment regarding overall accuracy. The provision is reviewed monthly, and any additional provision as a result of historical loan performance, current and expected collection patterns and current economic trends is included in the provision for credit losses at that time.

In the prior year, the Company's policy for charging off uncollectible consumer advances originated by the Company was to write the advance off when an advance remained in default status for an extended period of time without any extended payment arrangements made. During the quarter ended September 30, 2013, the Company changed the methodology for estimating the provision for loan losses in order to reduce the estimation uncertainty inherent in this provision, improve the accuracy of the amounts recorded with the benefit of additional history in originating loans, and improve comparability with financial information reported by its competitors who charge-off past due amounts at an earlier date. The Company now fully charges off consumer advances receivable when the advances remain in default status for 90 days. This change resulted in the acceleration of the point in time when consumer advances receivable are fully provided for.

Page 11

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(f) Provision for Credit Losses (continued)

In accordance with FASB ASC No. 250 - Accounting Changes and Error Corrections, ("ASC 250"), the Company has determined that this a change in estimation methodology and accordingly is a change in estimate. The impact of this change in methodology resulted in an increase in the provision for consumer loan losses during the year ended September 30, 2013 of$5,218. Advances to customers who file for bankruptcy are written off upon receipt of the bankruptcy notice. Recoveries on amounts previously written off are credited against the provision for credit losses expense.

(g) Stock-Based Compensation

The Company has a stock-based compensation plan for employees and the Board of Directors, which is described in Note 16. The Company accounts for all stock-based compensation payments that are settled by the issuance of equity in accordance with a fair value-based method of accounting. Stock-based compensation awards are recognized in the consolidated financial statements over the period in which the related services are rendered, which is usually the vesting period of the option, or as applicable, over the period to the date an employee is eligible to retire, whichever is shorter, with a corresponding increase recorded in contributed surplus. The fair value is calculated using the Black-Scholes option-pricing model.

When options are exercised, the proceeds received by the Company, together with the amount in additional paid-in capital associated with the exercised options, are credited to share capital.

(h) Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised, and that proceeds from such exercises were used to acquire common shares at the average market price during the reporting period.

(i) Consumer Loans Receivable

Consumer Advances Originated by the Company

Unsecured short-term advances that the Company originates on its own behalf are reflected on the balance sheet in consumer advances receivable. Consumer advances receivable are reported net of an allowance for credit losses described above in “Provision for Credit Losses - Note 1(f)” and any deferred fees or costs. Origination fees on these advances, net of certain direct origination costs, are deferred and recognized as an adjustment of yield in interest income using the effective interest method.

The Company does not accrue interest when consumer advances are considered impaired. When ultimate collectability of the principal balance of the impaired advances is in doubt, all cash receipts on impaired advances are applied to reduce the principal amount of such advances until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and any increases in the allowance are charged to the provision for credit losses. Advances are written off against the allowance when all possible means of collections have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired advance.

Page 12

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(i) Consumer Loans Receivable (continued)

Acquired Short-Term Advances and Lines of Credit Advances (continued)

Acquired Short-Term Advances and Lines of Credit Advances

Short-term advances and line of credit advances acquired from the Company’s third-party lenders fall within the scope of FASB ASC 310-30, “Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality” as there is evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected. As such, acquired short-term advances and line of credit advances are accounted for separately from short-term advances and line of credit advances originated by the Company and are initially recorded at fair value, which represents expected cash flows discounted at a market rate of interest. The Company’s estimate of fair value of acquired short-term advances and line of credit advances includes assumptions regarding the amount and timing of both principal and interest payments, future credit losses, prepayments and discount rates. A provision for credit losses is not recorded at the acquisition date on acquired short-term advances because the fair value incorporates an estimate of expected credit losses. A loss on the acquisition of lines of credit advances is included in retention payments expense if the purchase price is greater than the fair value of the pooled portfolio of line of credit advances acquired. Advances acquired on a quarterly basis that have similar risk characteristics, primarily credit risk and underwriting criteria, are pooled and accounted for as a single asset with an aggregate expectation of cash flows.

Income recognition on acquired short-term advances and line of credit advances is based on a reasonable expectation of the timing and amount of cash flows to be collected. The expected cash flows in excess of the estimated fair value are recorded as interest income over the remaining life of the loan (accretable difference). The excess of contractual principal and interest over the expected cash flows is not recorded (non accretable difference). Subsequent to the acquisition date, any increases in cash flow over those expected at the purchase date in excess of the fair value that are significant and probable are recorded as an adjustment to the accretable difference on a prospective basis. Any subsequent decreases in cash flow below those expected at the purchase date that are significant and probable are recognized through an immediate reduction in the carrying amount of the portfolio and are included in the provision for credit loss expense.

The determination of fair value of acquired short-term advances and line of credit advances relies on estimates and significant judgments regarding future collections. Changes in those estimates could materially impact the consolidated financial statements.

Transfer of Short-Term Advances

Short-term advances that the Company has originated on its own behalf may be transferred to third-party lenders in exchange for cash. Advances transferred to the third-party lenders are done at fair value and the related advances are derecognized from the consolidated balance sheet . The determination of fair value relies on estimates and judgments regarding future collections using the methodology described in Note 1(f) to these consolidated financial statements.

Under the terms of the arrangements with the Company’s third-party lenders, the Company is maintained as the lender on record for the transferred advances and must continue to collect, maintain and enforce such advances on the third-party lenders behalf in all respects. The Company must pay a participation fee to the third-party lenders based on the principal of all advances collected for the agreed term of the advance at a rate that is equivalent to the interest rate accrued on the transferred advance. The participation fee is recorded in retention payments expense.

Page 13

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(j) Income Taxes

Income taxes are accounted for under the asset and liability method. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognized for the deferred income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Valuation allowances are recorded to reduce any deferred income tax assets to the amounts management concludes is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in corporate expenses.

(k) Fair Value of Financial Instruments

Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company does not use derivative financial instruments.

The fair values of financial instruments are determined with respect to the hierarchy that prioritizes the input to fair value measurement. In the absence of an active market, the Company determines fair value by using valuation techniques that refer to observable market data or estimated market prices. Fair values are inherently judgmental, thus the estimated fair values do not necessarily reflect amounts that would be received or paid in case of immediate settlement of these instruments. The use of different estimations, methodologies and assumptions could have a material effect on the estimated fair value amounts.

(l) Restricted Cash

Any cash provided to the Company for which withdrawal or use is restricted is classified as restricted cash.

(m) Long-Term Investments

The Company has long-term investments in The Cash Store Australia Holdings Inc. (“AUC”) and RTF Financial Holdings Inc. (“RTF”). The Company accounts for its long-term investments using the equity method of accounting as it has significant influence over the strategic operating, investing and financing activities due to board representation. The carrying amount of these long-term investments is $nil.

Page 14

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(n) Deferred Financing Costs

Underwriting, legal and other direct costs incurred in connection with the issuance of debt are included in deferred financing costs. Amortization of deferred financing costs is calculated using the effective interest method over the term of the related debt and recorded as interest expense.

(o) Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Computer hardware	4 years
Fixtures, furniture, and equipment	5 years
Signs	5 years
Vehicles	5 years

Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term and the estimated useful life of the asset. Repairs and maintenance costs are expensed as incurred.

(p) Intangible Assets

Intangible assets acquired as part of a business combination are initially recognized and measured at fair value. Intangible assets acquired individually or as part of a group of other assets that are not considered a business combination are recorded at cost.

The Company accounts for internally developed software costs in accordance with Accounting Standards Codification ("ASC") 350-40, "Internal Use Software," which requires the capitalization of certain costs incurred in connection with developing or obtaining software for internal use. The Company capitalizes internal use software if that software meets the following criteria:

• The software is acquired, internally developed or modified solely to meet the Company's internal needs; and

• No substantive plan exists or is being developed to market the software externally.

If these two criteria are met, the Company will capitalize labor costs of full time and temporary employees working directly on the development or modification of internal use software and hardware and software purchased specifically for the internal use software. Capitalized costs are depreciated over the estimated useful lives when the software is complete and ready for its intended use.

Amortization is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Customer list, contracts and relationships	3 years
Computer software	3 - 5 years
Non-compete agreements	Term of the agreements
Favorable supplier relationships	7 years
Proprietary knowledge	5 years
Brand name	Indefinite life

Page 15

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(q) Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is assigned, as of the date of the business combination, to reporting units that are expected to benefit from the business combination Goodwill is not amortized, but instead is assessed for impairment annually or more frequently if events or changes in circumstances indicate that it may be impaired, as described in Note 1(r).

(r) Impairment

Property and equipment and intangible assets subject to amortization

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of these assets which may include: applicable industry performance and prospects, general business and economic conditions that prevail and are expected to prevail, expected growth, maintaining its customer base, and achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of these assets. Furthermore, the process ofdetermining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates.

An asset group is the lowest level for which there are separate identifiable cash flows. For property and equipment, an asset group typically represents an individual branch. Any assets to be disposed of by sale are reported at the lower of carrying amount or fair value less costs to sell. Such assets are not depreciated while they are classified as held-for-sale.

For intangible assets subject to amortization, which include non-compete agreements, favourable supplier relationships, proprietary knowledge and software intangibles, impairment testing is performed using the expected undiscounted cash flows of the Canadian reporting unit.

As a result of the factors discussed in Note 8 that required a recoverability test to be performed over certain branches and corporate assets, the Company also performed a recoverability test on the asset group containing its intangible assets subject to amortization. The Company determined that the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the Canadian reporting unit was greater than the carrying amount of the Canadian reporting unit and accordingly no impairment existed.

Page 16

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(r) Impairment (continued)

Goodwill and brand name

Goodwill and the brand name intangible asset are tested for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances indicate the asset might be impaired.

The brand name impairment test consists of a comparison of the fair value of the brand name with its carrying value. If the carrying amount exceeds its fair value, an impairment is recognized equal to the amount of the excess.

The Company assesses qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. If the qualitative assessment results in a determination that goodwill has more-likely-than-not been impaired, the Company performs the two-step goodwill impairment test. In the first step, the carrying amount of the reporting unit, including goodwill, is compared to its fair value. When the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired and the second step of the impairment test is unnecessary. The second step is carried out when the carrying amount of a reporting unit exceeds its fair value, in which case, the impliedfair value of the reporting unit's goodwill, determined in the same manner as the value of goodwill is determined in a business combination, is compared with its carrying amount to measure the amount of the impairment loss, if any.

As a result certain events and circumstances, including recent operating results and regulatory matters, the Company completed an impairment test on goodwill and the Instaloans brand name on June 30, 2013 and determined that there was no impairment of goodwill as the fair value of the Company's Canadian reporting unit exceeded its carrying value and the fair value of the Instaloans brand name exceeded its carrying value as at June 30, 2013. The Company performed its annual impairment assessment on July 1, 2013 and no impairment was identified.

(s) Litigation Accruals

In view of the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company cannot state with confidence what the eventual outcome of pending matters will be, what the timing of the ultimate resolution of these matters will be, what the eventual loss, fines, or penalties related to each pending matter may be, or the extent to which such amounts may be recoverable under the Company's insurance policies.

In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters when those matters present loss contingencies which are both probable and estimable. When loss contingencies are not both probable and estimable, the Company does not establish reserves. In the matters described in Note 20, loss contingencies are not both probable and estimable in the view of management, and accordingly, reserves have not been established for those matters. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending litigation and regulatory matters, including the litigation and regulatory matters described in Note 20, will have a material adverse effect on the consolidated financial position or liquidity of the Company, but may be material to the Company's result of operations for any particular reporting period.

Page 17

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 1 – Significant Accounting Policies (continued)

(t) Deferred Revenue

The Company has entered into a long-term services contract for which it received an advance payment. The advance payment was recorded as deferred revenue and is recognized as revenue using the straight-line method over the life of the contract.

(u) Leases

Leases are classified as capital or operating depending upon the terms and conditions of the related contracts. Assets under capital leases are recorded as property and equipment with a corresponding obligation. Obligations under capital leases are reduced by lease payments net of imputed interest. Computer and phone operating lease expenses are recorded in selling, general, and administrative expenses. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. Branch operating leases are recorded in branch operating expense within the rent caption.

(v) Branch Operating and Corporate Expenses

The direct costs incurred in operating the Company’s branch network have been classified as branch operating expenses. These costs include salaries and benefits of branch and regional employees, retention payments, rent expense, provision for loan losses, advertising and promotion, depreciation of branch property and equipment, and other costs incurred by the branches. Corporate expenses incurred by the Company are excluded from branch operating expenses, and include salaries and benefits of corporate employees, corporate rent, professional fees and legal costs.

(w) Branch Closure Costs

Branch closure costs represent management's estimate of severance payments, costs to clean and vacate the premises, losses related to the write-off of leasehold improvements and signage, and lease cancellation expenses related to closing a branch. Additionally, closing or consolidating branches could result in the impairment of receivables, long-lived assets, or goodwill. A liability for severance payments, unless contractually obligated, is recognized when management: (i) decides to close a center and this plan is unlikely to change; (ii) determines that an employee cannot be relocated to another center; and (iii) informs the employee of the termination and the benefits that will be paid. Costs to terminate the lease are recorded at the earlier of the date the lease is terminated or the date the leased property is no longer used. All other expenses are recorded when incurred.

(x) Foreign Currency

The financial statements of the Company’s operations in the United Kingdom have been translated into Canadian dollars. Monetary assets and liabilities are translated at the current exchange rate at each period end while non-monetary assets and liabilities are translated at historical exchange rates. Statement of operations items are translated at the average exchange rate for the period. Resulting translation adjustments are included in corporate expenses. Gains or losses from foreign currency transactions are included in corporate expenses.

(y) Operating Segments

The Company conducts business through two operating segments: Canada and the United Kingdom. For reporting purposes the Canada and united Kingdom operating segments are aggregated for based on the similar nature of the operations, customers, and regulatory environment.

Page 18

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 2 – Changes in Accounting Policies and Practices

The following standards were adopted for the year ended September 30, 2013:

In September 2011, FASB issued ASU No. 2011-08 “Intangibles – Goodwill and Other”. This ASU allows companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. The ASU is effective for fiscal years beginning after December 15, 2011. The adoption of the provisions of ASU No. 2011-08 has not had a material impact on the Company’s consolidated financial statements.

In December 2011, FASB issued ASU No. 2011-11 “Disclosures about Offsetting Assets and Liabilities”. This ASU attempts to provide users of financial statements with information to understand the extent of offsetting in the statement of financial position and improve comparability between International Financial Reporting Standards and U.S. GAAP. The adoption of the provisions of ASU No. 2011-11 has not had a material impact on the Company’s consolidated financial statements.

In July 2012, FASB issued ASU No. 2012-02 “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. This ASU attempts to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with “Intangibles – Goodwill and Other – General Intangibles Other than Goodwill (Subtopic 350-30)”. The adoption of the provisions of ASU No. 2012-02 has not had a material impact on the Company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted:

In February 2013, FASB issued ASU No. 2013-04 “Liabilities – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date - (Topic 405)”. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date except for obligations addressed within existing guidance in U.S. GAAP. ASU No. 2013-04 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2013. The Company is currently evaluating the impact of the adoption of the provisions of ASU No. 2013-04 on its consolidated financial statements.

In July 2013, FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists - (Topic 740).” This ASU provides guidance on the financial statement presentation of unrecognized tax benefits when an operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2013. The Company is currently evaluating the impact of the adoption of the provisions of ASU No. 2013-11 on its consolidated financial statements.

Page 19

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 3 – Acquisition of Consumer Advances Portfolio

On January 31, 2012, the Company acquired a portfolio of short-term advances from third-party lenders for total consideration of $116,334. At the date of acquisition, the gross contractual principal and income of the acquired short-term advances was $319,906.

The total consideration paid to third-party lenders was allocated to consumer advances receivable, intangible assets and the premium paid to settle pre-existing relationships with third-party lenders. The determination of fair value of each component of the transaction was subject to management judgment and estimates of future cash flows, collection rates, forecasts and assumptions that a market participant would use in pricing the components. In accordance with U.S. GAAP the Company determined that the premium paid settled the pre-existing relationships between the Company and third-party lenders. Accordingly, the expense was measured at its fair value and recorded as an expense in the consolidated statement of operations as part of the acquisition transaction.

The total consideration was allocated as set forth below:

Consumer advances receivable	$	50,014
Non-compete agreements	15,524
Favorable supplier relationships	14,220
Proprietary knowledge	2,280
Expense to settle pre-existing relationships with third-party lenders	36,820
Deferred tax liability	(2,524		)
Total consideration	$	116,334

Note 5 and Note 9 separately disclose the September 30, 2013 carrying amount of the acquired short-term advances and related intangible assets respectively.

Page 20

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 4 - Cash

The significant components of cash are as follows:

	September 30, 2012		September 30, 2013
Cash	$	16,063	$	6,216
Restricted cash	3,076		5,242
	$	19,139	$	11,458

As at September 30, 2013, restricted cash includes $666 (September 30, 2012 - $635) of funds held by a financial institution as security related to banking arrangements and $4,575 (September 30, 2012 - $2,441) advanced from third-party lenders in excess of consumer loans written to customers.

Note 5 – Consumer Advances Receivable, net

	September 30, 2012			September 30, 2013
Short-term advances receivable	$	50,834		$	25,428
Term loans receivable	569			—
Line of credit advances receivable	849			3,751
Allowance for credit losses	(26,397		)	(9,835		)
Consumer advances originated by the Company	25,855			19,344
Acquired short-term advances and line of credit advances	6,585			6,248
	$	32,440		$	25,592

a) Consumer Advances Receivable Originated by the Company

Age analysis of Consumer Advances Receivable:

	September 30, 2012			September 30, 2013
Consumer advances receivable
Current	$	17,019		$	14,606
1-30 days past due date	8,791			6,502
31-60 days past due date	3,934			4,179
61-90 days past due date	3,469			3,892
Greater than 90 days past due date	19,039			—
Consumer advances receivable	52,252			29,179
Allowance for credit losses	(26,397		)	(9,835		)
	$	25,855		$	19,344

Page 21

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 5 – Consumer Advances Receivable, net

a) Consumer Advances Receivable Originated by the Company (continued)

Analysis of Allowance for Credit Losses:

	September 30, 2012			September 30, 2013
Balance, beginning of period	$	2,783		$	26,397
Provisions made for credit losses	31,004			35,072
Charge-offs	(7,408		)	(52,320		)
Effect of foreign exchange translation	18			686
Balance, end of period	$	26,397		$	9,835

Analysis of Provisions made for Credit Losses:

	Years Ended
	September 30, 2011		September 30, 2012		September 30, 2013
Provisions made for credit losses	$	2,559	$	31,004	$	35,072
Impairment of January 31, 2012 acquisition (Note 5 (b)(i))	—		—		1,011
Impairment of purchased lines of credit advances (Note 5 (b)(ii))	—		—		524
Balance, end of period	$	2,559	$	31,004	$	36,607

Transfer of Short Term Advances

During the year the Company transferred $16,410 (2012 - $24,100) of gross short-term advances to third-party lenders in exchange for cash. The gross advances were transferred at fair value and no gain or loss was recorded. The fair value of the transferred advances of $14,259 (2012 - $17,600) was determined using the contractual loan value less a provision for credit losses of $2,151 (2012 - $6,500).

b) Acquired Short-Term Advances and Lines of Credit Advances

	September 30, 2012		September 30, 2013
January 31, 2012 short-term advances acquisition (Note 5b(i))	$	6,585	$	1,715
Fiscal 2013 Q2 acquired line of credit advances (Note 5b(ii))	—		47
Fiscal 2013 Q3 acquired line of credit advances (Note 5b(ii))	—		1,173
Fiscal 2013 Q4 acquired line of credit advances (Note 5b(ii))	—		3,313
	$	6,585	$	6,248

Page 22

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 5 – Consumer Advances Receivable, net (continued)

(i) January 31, 2012 Acquisition

On January 31, 2012, the Company acquired a portfolio of short-term advances from various third-party lenders. At the date of purchase, the undiscounted contractual cash flows of the acquired short-term advances portfolio totaled $319,906 and the expected cash flows at acquisition totaled $51,491. The Company recorded the fair value of the advances acquired of $50,014 as the carrying value of the acquired short-term advances as of the acquisition date. During the year ended September 30, 2013, based on current collection trends, the

The Company revised its forecast of future cash flows related to this acquired portfolio and included with part of the provision for credit losses expense for the year ended September 30, 2013 was an impairment charge of $1,011 related to this acquired portfolio.

After accretion and net collections of $47,288 and an impairment of $1,011, the remaining carrying value of the acquired short-term advances balance as of September 30, 2013 was $1,715 (September 30, 2012 - $6,585).

(ii) Purchase of Lines of Credit Advances

Commencing in February 2013 the Company purchased line of credit advances from the third-party lenders for consideration equal to the contractually required payments of the line of credit advances. The following table summarizes acquisition date information for purchased lines of credit advances acquired during the year ended September 30, 2013:

Line of Credit Advances Acquired in the Quarter Ended:	Fiscal 2013 Q2		Fiscal 2013 Q3		Fiscal 2013 Q4		Total
Contractually required payments	$	7,298	$	11,650	$	21,031	$	39,979
Loss recorded as retention payments	756		2,171		4,183		7,110
Initial carrying amount at acquisition date	$	6,542	$	9,479	$	16,848	$	32,869
Collections and accretion to September 30, 2013	6,370		7,907		13,535		27,812
Impairment recorded as provision for credit losses	125		399		—		524
Carrying amount at September 30, 2013	$	47	$	1,173	$	3,313	$	4,533

Note 6 – Other Receivables, net and Other Income

(a) Other Receivables, net

	September 30 2012		September 30 2013
Due from investee corporations	$	3	$	1
Due from vendors for agency services	12,332		10,812
Other	7,606		2,484
Allowance for doubtful accounts	—		(4,357		)
	$	19,941	$	8,940
Long term portion:
Due from vendors for agency services	460		836
	$	460	$	836
	$	19,481	$	8,104

Page 23

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 6 – Other Receivables, net and Other Income (continued)

(a) Other Receivables, net (continued)

Age analysis of Other Receivables, net:

	September 30 2012		September 30 2013
Current	$	14,035	$	5,847
Current to 3 months past due	3,284		1,639
3 months to 6 months past due	1,148		629
6 months to one year past due	613		2,403
Greater than one year past due	$	401	1,943
Total other receivables gross	$	19,481	$	12,461
Allowance for doubtful accounts	$	—	(4,357		)
Total other receivables, net	$	19,481	$	8,104

Due from Vendors

Due from vendors includes $10,812 (2012 - $12,332) of short-term receivables from vendors, with which the Company has agency arrangements to provide bank accounts, debit and prepaid MasterCard and insurance products to our customers.

Included in this amount are gross receivables of $9,802 (September 30, 2012 - $11,316) due from a vendor. The Company has recorded an allowance of $4,357 (2012 - $nil), within corporate expense, to provide for a portion of those overdue receivables for specific amounts in dispute or where collection is otherwise considered doubtful.

Other

Amounts included in Other are amounts related to the BC Consumer Protection compliance order (Note 20(b)(ii)), the third party administration of the British Columbia class actions settlement fund as at September 30, 2012 (Note 20(a)(i)) and other amounts due in the normal course of business.

(b) Other Income

	September 30 2011		September 30 2012		September 30 2013
Agency fee income	$	46,809	$	39,847	$	25,386
Other income	6,467		9,571		12,949
	$	53,276	$	49,418	$	38,335

Page 24

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 7 - Branch Closure Costs

During the year ended September 30, 2013, in the normal course of operations the Company closed 12 branches in Canada (2012 - 63, 2011 - nil). The Company also closed one branch in the United Kingdom subsequent to year end and incurred $123 (2012 - $1,574, 2011 - $nil) in branch closure costs. The closure of the one branch in the United Kingdom will occur in the first quarter of the year ending September 30, 2014. The charges included $80 (2012 - $1,389, 2011 - $nil) relating to lease buy-out costs, $10 (2012 - $60, 2011 - $nil) in employee severance and benefit costs, and $33 (2012 - $125, 2011 - $nil) in other costs.

Of the $123 of branch closure costs recorded, $94 (2012 - $879, 2011 - $nil) is included in accrued liabilities as at September 30, 2013. The Company expects these accrued liabilities to be settled within one year.

Note 8 – Property and Equipment

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,006	$	21,928	$	9,078
Fixtures, furniture, and equipment	11,297		7,489		3,808
Computer hardware	9,028		5,564		3,464
Signs	5,425		4,395		1,030
Vehicles	77		48		29
Land	51		—		51
	$	56,884	$	39,424	$	17,460

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,804	$	19,468	$	12,336
Fixtures, furniture, and equipment	13,598		7,422		6,176
Computer hardware	7,201		4,423		2,778
Signs	6,606		4,839		1,767
Vehicles	77		28		49
Land	51		—		51
	$	59,337	$	36,180	$	23,157

Property and equipment includes the following capital leases:

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	3,531	$	2,560	$	971
Fixtures, furniture and equipment	1,661		1,183		478
	$	5,192	$	3,743	$	1,449

Page 25

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 8 – Property and Equipment (continued)

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	2,814	$	1,761	$	1,053
Fixtures, furniture and equipment	1,661		851		810
	$	4,475	$	2,612	$	1,863

Depreciation of property and equipment for the year ended September 30, 2013, includes $1,131 (2012 - $796, 2011 - $165) relating to property and equipment under capital leases.

During the year ended September 30, 2013, additions to property and equipment included $717 (2012- $1,401, 2011 - $121) of assets that were acquired by means of capital lease.

Impairment of Property and Equipment

During the year endedSeptember 30, 2013, as a result of certain events and circumstances, including recent operating results and regulatory matters, the Company determined that it was necessary to test the recoverability of certain branches and corporate assets that are not allocated to individual branches. During the year ended September 30, 2013, the Company recorded an impairment charge of $1,236 (2012 - $3,425, 2011 - nil) as a result of impairments identified in certain branches. In addition, the Company determined that the asset group containing the Company's corporate property and equipment was recoverable as at September 30, 2013. The property and equipment impaired included leasehold improvements, fixtures, furniture and equipment, signage, and computer equipment.

Note 9 - Intangible Assets

	September 30, 2013
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	—	$	—	$	—
Favorable supplier relationships	14,220		3,433		10,787
Non-compete agreements	15,897		5,386		10,511
Proprietary knowledge	2,280		750		1,530
Computer software	10,162		3,937		6,225
Brand name	5,300		—		5,300
	$	47,859	$	13,506	$	34,353

Page 26

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 9 – Intangible Assets

	September 30, 2012
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	962	$	938	$	24
Favorable supplier relationships	14,220		1,375		12,845
Non-compete agreements	16,031		2,369		13,662
Proprietary knowledge	2,280		300		1,980
Computer software	8,798		2,849		5,949
Brand name	5,300		—		5,300
	$	47,591	$	7,831	$	39,760

The estimated annual amortization expense for the next five years for intangible assets subject to amortization is as follows:

Fiscal year ending September 30	2014		2015		2016		2017		2018
Amortization expense for intangible assets	$	7,598	$	7,489	$	6,977	$	4,187	$	2,159

Amortization of intangible assets for the year ended September 30, 2013, includes $451 (2012 - $nil, 2011 - $nil) relating to intangible assets under capital leases.

During the year ended September 30, 2013, additions to computer software included $649 (2012 - $727, 2011 - $nil) of assets that were acquired by means of capital lease.

Note 10 - Goodwill

	September 30, 2012		September 30, 2013
Balance, beginning of period	$	39,133	$	39,685
Goodwill acquired	—		—
Other	552		—
Balance, end of period	$	39,685	$	39,685

Page 27

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 11 – Accrued Liabilities

	September 30, 2012		September 30, 2013
Class action settlementsNote 20 (a)	$	11,448	$	6,262
Accrued salaries and benefits	2,807		4,003
Amounts due to third party lenders	5,782		4,575
Interest accrued on long-term debt - Note 13	2,540		2,540
Other accruals	5,305		7,335
	$	27,882	$	24,715

The amounts due to third-party lenders include funds made available by lenders but not yet advanced to customers, any liability under the lending agreement, any approved and unpaid retention payments, and loan repayments and interest amounts collected from customers. Amounts due to third-party lenders are non-interest bearing, unsecured and have no specified repayment terms.

Note 12 - Income Taxes

(a) Provision for Income Taxes

The income tax provision (recovery) differs from the amount that would be computed by applying the statutory income tax rates of 25.0% (2012 – 26.5%, 2011 – 28.0%) to income as a result of the following:

	September 30, 2011			September 30, 2012			September 30, 2013
Income (loss) before income taxes	$	16,889		$	(56,877	)	$	(35,252	)
Computed tax expense (recovery) at statutory income tax rates	$	4,729		$	(15,072	)	$	(8,813	)
Change in enacted tax rates	(31		)	108			(3		)
Book to filing adjustments and adjustment of prior year immaterial errors	1,180			(245		)	(579		)
Change in valuation allowance	—			1,980			10,166
Stock-based compensation	206			186			110
Rate difference on losses carried back	—			(532		)	(702		)
Permanent differences and other	226			220			101
Total income tax provision (recovery)	$	6,310		$	(13,355	)	$	280

The company recorded a valuation allowance against a portion of its Canadian and United Kingdom net deferred tax assets as atSeptember 30, 2013 which amounted to $12,146. As at September 30, 2012, the Company had provided a valuation allowance against its United Kingdom deferred tax assets, which amounted to $1,980. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. Due to cumulative pre-tax losses, realization is not considered more likely than not and the Company has not recorded the benefit of the majority of its deferred tax assets.

Page 28

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 12 - Income Taxes (continued)

(a) Provision for Income Taxes (continued)

As at September 30, 2013, the Company has tax loss carry forwards in the amount of $21,365 (September 30, 2012- $9,826). The increase was a result of additional net operating losses for the year ended September 30, 2013. The net operating loss carry forwards related to Canadian operations, which are available to offset future taxable income, will begin to expire in 2033, if not utilized. The net operating loss carry forwards related to United Kingdom do not have an expiry date.

The Company’s tax positions for 2008 to present in Canada remain subject to examination by tax authorities. The Company’s tax position for the current and prior fiscal year in the United Kingdom remains subject to examination by tax authorities.

(b) Deferred Income Taxes

The tax effects that give rise to significant portions of the deferred income tax assets and liabilities are presented below:

	September 30, 2012			September 30, 2013
Deferred income tax assets:
Current:
Accrued liability for class action settlements and other temporary differences	$	3,919		$	302
Expense to settle pre-existing relationships with third-party lenders	3,814			714
Loss on acquisition of lines of credit advances	—			2,275
Loan loss provision	4,450			2,813
Valuation allowance for current deferred tax assets	—			(6,104		)
	$	12,183		$	—
Non-current:
Losses available to be carried forward	2,404			5,223
Property and equipment	1,782			1,919
Deferred lease inducements	200			112
Deferred revenue	1,032			1,032
Discount on senior secured notes	85			228
Valuation allowance for non-current deferred tax assets	(1,980		)	(6,042		)
	$	3,523		$	2,472
Deferred income tax liabilities:
Intangible assets and goodwill	$	(5,711	)	$	(4,959	)
Deferred financing costs and other	(220		)	(447		)
	$	(5,931	)	$	(5,406	)
Net deferred income taxes	$	9,775		$	(2,934	)

Classified as:

	September 30, 2012			September 30, 2013
Current asset	$	12,183		$	—
Non-current asset	424			—
Current liability	—			—
Non-current liability	(2,832		)	(2,934		)
	9,775			(2,934		)

Page 29

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 13 – Senior secured notes

On January 31, 2012, the Company issued, through a private placement in Canada and the U.S., $132.5 million of 11.5% Senior Secured Notes (the “Notes”).  The Notes mature on January 31, 2017 and bear interest on the aggregate principal amount from the date of issue at 11.5% per annum payable on a semi-annual basis in equal installments on January 31 and July 31 of each year, commencing in July of 2012. The notes were issued at a price of 94.608% resulting in an effective interest rate of 13.4%.

The Company used the majority of the proceeds of the Notes to acquire a portfolio of consumer loans as described in Note 3.

The Notes are guaranteed, jointly and severally, on a senior secured basis, by each of the Company’s existing and future restricted subsidiaries that guarantee indebtedness or indebtedness of any subsidiary guarantor under any carve-out for credit facility. The Notes are secured on a second-priority basis by liens on all of the Company’s and its restricted subsidiaries’ existing and future property subject to specified permitted liens and exceptions. Any future credit facility as well as certain other future debt will be secured by a first-priority lien on this collateral. 

The Notes are redeemable at the option of the Company, in whole or in part, at any time on or after July 31, 2014 at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption date if redeemed during the periods set forth below.

For the period below	Percentage
On or after July 31, 2014	103.084	%
On or after January 31, 2015	102.091	%
On or after July 31, 2015	101.127	%
On or after January 31, 2016	101.194	%
On or after July 31, 2016	100.000	%

Prior to July 31, 2014, the Company is entitled at its option on one or more occasions to redeem up to 35% of the aggregate principal amount of the Notes originally issued under a trust indenture (the “Trust Indenture”) at a redemption price of 111.5% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date if:

• such redemption is made with the proceeds of one or more Equity Offerings as defined in the Trust Indenture;

• at least 65% of the aggregate principal amount of the Notes (including Additional Notes) originally issued under the Trust Indenture remain outstanding immediately after the occurrence of such redemption (excluding Notes held by the Company or any of its subsidiaries); and

• the redemption occurs within 90 days of such Equity Offering.

If a change in control occurs, the holders of the Notes will have the right to require the Company to purchase all or a portion of the Notes, at a purchase price in cash equal to 101% of the principal amount of the Notes offered for repurchase plus accrued interest to the date of purchase.

As at September 30, 2013, the Company was in compliance with all of the covenants in the Trust Indenture.

Page 30

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 14 – Deferred Revenue

	September 30, 2012		September 30, 2013
Current	$	1,000	$	1,000
Long-term	3,917		2,918
	$	4,917	$	3,918

On September 1, 2010, the Company entered into an agreement with Ria Financial Services, a division of Euronet Worldwide Inc. to supply money transfer services across the Company’s network of branches in Canada. The Company received a $7,000 signing bonus, which is recognized into revenue using the straight-line method over the 7 year term of the agreement.

Note 15 - Obligations under Capital Leases and Other

The Company has entered into capital leasing and other obligation arrangements related to leasehold improvements, office furniture and equipment:

	September 30, 2013
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $71 including imputed interest ranging from 5.0% - 22.7%; due to mature between 2013 - 2027; secured by assets with an aggregate carrying amount of $4,674.	$	6,946	$	2,320	$	4,626
Less current portion	1,612		427		1,185
	$	5,334	$	1,893	$	3,441

	September 30, 2012
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	$	7,281	$	2,493	$	4,788
Less current portion	1,565		385		1,180
	$	5,716	$	2,108	$	3,608

Page 31

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 15 - Obligations under Capital Leases and Other (continued)

The capital lease and other obligation repayments are due as follows:

	Aggregate Due		Less Imputed Interest		Net
2014	$	1,612	$	427	$	1,185
2015	973		326		647
2016	855		256		599
2017	506		203		303
2018	300		184		116
2019 and thereafter	2,699		923		1,776
	$	6,945	$	2,319	$	4,626

During the year ended September 30, 2013, the Company incurred interest charges related to capital leases and other obligations in the amount of $494 (2012- $222, 2011- $147). These changes have been included in corporate expenses.

Note 16 – Share Capital

(a) Issued share capital

	September 30, 2012			September 30, 2013
	Number of Shares	Amount		Number of Shares	Amount
Authorized:
Unlimited common shares with no par value
Issued:
Balance, beginning of period	17,419,214	$	46,149	17,496,646	$	46,652
Transfer from contributed surplus for stock options exercised	—	211		—	182
Options exercised	77,432	292		75,167	257
Balance, end of period	17,496,646	$	46,652	17,571,813	$	47,091

Page 32

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 16 – Share Capital (continued)

(b) Options to Employees and Directors

The Company has a stock option plan for certain employees, officers and directors. Options issued under the plan have vesting terms that vary depending on date granted and other factors. All stock options must be exercised over specified periods not to exceed five years from the date granted.

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Outstanding, beginning of year	979,168		$	9.42	1,219,236		$	8.84
Granted	325,000		5.88		195,000		2.58
Exercised	(77,432	)	3.77		(75,167	)	3.39
Expired	—		—		(130,733	)	4.66
Forfeited and cancelled	(7,500	)	8.80		(40,001	)	9.93
Outstanding, end of year	1,219,236		8.84		1,168,335		8.57
Exercisable, end of year	662,573		$	8.87	684,334		$	10.88

At September 30, 2013, the number outstanding, the weighted average remaining contractual life, the weighted average exercise price and the number of options exercisable are as follows:

Fiscal Year Granted	Number Outstanding	Weighted Average Remaining Term	Weighted Average Exercise Price		Number Exercisable
2009	126,667	8 mos.	7.08		126,667
2010	366,668	16 mos.	12.81		366,668
2011	155,000	33 mos.	12.96		103,335
2012	325,000	64 mos.	5.88		87,664
2013	195,000	57 mos.	2.59		—
	1,168,335	34 mos.	$	8.57	684,334

The fair value of common share options is estimated at the grant date using the Black-Scholes option pricing model based on the following weighted average assumptions:

	September 30, 2012		September 30, 2013
Risk free interest rate	1.3	%	1.7	%
Expected life (years)	4		5
Expected volatility	45.5	%	47.5	%
Expected dividends	5.3	%	—	%

During the year ended September 30, 2013, the weighted average grant-date fair value of options granted was estimated at $1.11 (September 30, 2012- $1.36) per option.

The Company is authorized to issue an additional 1,715,568 equity share options under its existing stock option plan.

Page 33

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 16 – Share Capital (continued)

A summary of the status of the Company's nonvested share options as of September 30, 2012 and the changes during the year ended September 30, 2013, is presented below:

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Nonvested, beginning of period	473,336		$	12.17	556,663		$	8.80
Granted	325,000		5.88		195,000		2.58
Vested	(239,173	)	11.51		(260,995	)	10.59
Forfeited and cancelled	(2,500	)	8.80		(6,667	)	10.30
Nonvested, end of period	556,663		$	8.80	484,001		$	5.31

The pre-tax intrinsic value of options exercised during the year ended September 30, 2013, was $93 (September 30, 2012 - $162). The total fair value of options that vested during the year ended September 30, 2013, was $692 (September 30, 2012 - $765).

As at September 30, 2013, the aggregate intrinsic value of options outstanding was $nil (September 30, 2012 - $296), while the aggregate intrinsic value of the options that are currently exercisable was $nil (2011- $296).

As at September 30, 2013, there was $581 of total unrecognized compensation costs related to non-vested stock options. The Company expects to recognize this expense over a weighted average period of 2.64 years.

For the year ended September 30, 2013, the total cash received for stock options exercised totaled $257 (2012 - $292, 2011 - $939).

Note 17 - Per Share Amounts

For the year ended September 30, 2013, the effect of dilutive securities was $nil (2012 - $nil, 2011 - $404). For the year ended September 30, 2013, there were 1,168,335stock options which were anti-dilutive and therefore not considered in computing diluted earnings per share (2012-1,219,236,2011-nil)

Page 34

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 18 - Dividends

For the year ended September 30, 2013, there were no dividends declared or paid to shareholders.

	September 30, 2012
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.12	November 16, 2011	December 14, 2011	$	2,091
Dividend $0.12	February 8, 2012	March 7, 2012	2,091
Dividend $0.06	May 10, 2012	June 7, 2012	1,039
Dividend $0.06	August 10, 2012	September 7, 2012	1,048
			$	6,269

	September 30, 2011
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.10	December 6, 2010	December 21, 2010	$	1,710
Dividend $0.12	February 7, 2011	February 21, 2011	2,062
Dividend $0.12	May 9, 2011	May 24, 2011	2,084
Dividend $0.12	August 10, 2011	August 25, 2011	2,073
			$	7,929

The Company reviews its dividend distribution policy on a quarterly basis, evaluating its financial position, profitability, cash flow and other factors that the Board of Directors considers relevant.

The ability to declare and pay dividends is subject to compliance with a restricted payment covenant stipulated in the Indenture governing the Notes. The Company remains in compliance with all covenants under this Indenture.

Page 35

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 19 – Commitments

Operating Lease Commitments

The Company is committed to future minimum annual operating lease payments for office and branch premises, which expire through 2027 as follows:

	Aggregate Lease Payments
2014	$	20,419
2015	14,539
2016	9,628
2017	7,564
2018	5,658
Thereafter	25,281
	$	83,089

Note 20 – Litigation, Claims and Contingencies

(a) Litigation and Claims

The Company is subject to various asserted and unasserted claims during the course of business of which the outcome of many of these matters is currently not determinable. Due to the uncertainty surrounding the litigation process, unless otherwise stated below, the Company is unable to reasonably estimate the range of loss, if any, in connection with the asserted and unasserted legal actions against it. The Company believes that it has conducted business in accordance with applicable laws and is defending each claim vigorously. In addition to the litigation and claims discussed below, the Company is involved in routine litigation and administrative proceedings arising in the normal course of business.

(i) British Columbia

March 5, 2004 Claim

On March 5, 2004, an action under the Class Proceedings Act was commenced in the Supreme Court of British Columbia by Andrew Bodnar and others proposing that a class action be certified on his own behalf and on behalf of all persons who have borrowed money from the defendants, The Cash Store Financial and All Trans Credit Union Ltd. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code of Canada (the “Code”). On May 25, 2006, the claim in British Columbia was affirmed as a certified class proceeding of Canada by the British Columbia Court of Appeal. In fiscal 2007, the plaintiffs in the British Columbia action brought forward an application to have certain of the Company’s customers’ third-party lenders added to the claim. On March 18, 2008, another action commenced in the Supreme Court of British Columbia by David Wournell and others against The Cash Store Financial, Instaloans Inc., and others in respect of the business carried out under the name Instaloans since April 2005. Collectively, the above actions are referred to as the “British Columbia Related Actions”.

Page 36

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(i) British Columbia (continued)

March 5, 2004 Claim (continued)

On May 12, 2009, the Company settled the British Columbia Related Actions in principle and on February 28, 2010 the settlement was approved by the Court. Under the terms of the court approved settlement, the Company was to pay to the eligible class members who were advanced funds under a loan agreement and who repaid the payday loan plus brokerage fees and interest in full, or who met certain other eligibility criteria, a maximum estimated amount including legal expenses of$18,800, consisting of $9,400in cash and$9,400in credit vouchers. The credit vouchers can be used to pay existing outstanding brokerage fees and interest, to pay a portion of brokerage fees and interest which may arise in the future through new loans advanced, or can be redeemed for cash from January 1, 2014 to June 30, 2014. The credit vouchers are not transferable and have no expiry date. After approved legal expenses of $6,438were paid in March 2010, the balance of the settlement amount remaining to be disbursed was $12,362, consisting of $6,181of cash and $6,181 of vouchers.

By September 30, 2010, the Company received approximately 6,300individual claims representing total valid claims in excess of the settlement fund. As the valid claims exceed the balance of the remaining settlement fund, under the terms of the settlement agreement, the entire settlement fund of$12,362was mailed to claimants in November 2012 in the form of cash and vouchers on a pro-rata basis. As at September 30, 2013, $5,140 of the $6,131 cheques issued had been cashed and $595 of vouchers had been redeemed.

In arriving at the liability recorded at the balance sheet date, the voucher portion of the settlement fund of$6,181has been discounted using a discount rate of 16.2%. During the year endedSeptember 30, 2013, the Company recorded accretion expense of$854 (2012 - $716, 2011 - $616) in interest expense. The total liability related to the settlement atSeptember 30, 2013 is $6,162 (September 30, 2012- $11,303).

September 11, 2012 Claim

On September 11, 2012, an action under the British Columbia Class Proceedings Act was commenced in the Supreme Court of British Columbia by Roberta Stewart against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. claiming on behalf of the plaintiff and class members who, on or after November 1, 2009 borrowed a loan from the Company in British Columbia, and that the Company charged, required or accepted an amount that is in excess of 23% of the amount loaned of the principal which is contrary to s. 17(1) of the Payday Loans Regulation and s. 112.02(2) of the Business Practices Consumer Protection Act (“BPCPA”) and charged, required or accepted an amount in relation to each cash card issued to a class member which is contrary to s. 112.04(1)(f) of the BPCPA; made the provision of each payday loan contingent on class members purchasing a cash card and services related thereto, contrary to s. 19(1) of the Payday Loans Regulation and s. 112.08(1)(m) of the BPCPA; and discounted the amount in the payday loan agreement to be the loan amount borrowed, by deducting and withholding from the loan advance an amount representing a portion of the total costs of credit, contrary to s.112.08(1)(e) of the BPCPA.

The Class members seek an order, pursuant to s.112.10(2) and s. 172(3)(a) of the BPCPA, requiring that the Company refund all monies paid in excess of the Loan principal of each payday loan, including the Cash Card Fee Amounts, the Loan Fees, and any other fees or charges collected by the Company in relation to the payday loan, damages for conspiracy, and interest pursuant to the Court Order Interest Act at the rate of 30% compounded annually, as set out in the payday loan agreements or such other rate as the Court considers appropriate.

Page 37

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(i) British Columbia (continued)

September 11, 2012 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(ii) Alberta

January 19, 2010 Claim

A statement of claim was served in Alberta by Shaynee Tschritter and Lynn Armstrong alleging that the Company was in breach of s. 347 of the Code (the interest rate provision) and certain provincial consumer protection statutes.

On January 19, 2010, the plaintiffs in the Alberta action brought forward an application to have a related subsidiary, as well as certain of the Company's customers’ third-party lenders, directors and officers added to the claim.

The Company agreed to a motion to certify the class proceeding if the third party lenders, officers and directors were removed as defendants. Class counsel agreed to the Company’s proposal. Consequently, the certification motion was granted in November of 2011.

The Company believes that it conducted its business in accordance with applicable laws and is defending the action vigorously. The likelihood of loss, if any, is not determinable at this time.

September 18, 2012 Claim

On September 18, 2012, an action under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Kostas Efthimiou against The Cash Store Inc., Instaloans Inc., and The Cash Store Financial Services Inc. on behalf of all persons who, on or after March 1, 2010, borrowed a loan from the Cash Store or Instaloans that met the definition of a "payday loan" proposing that the Company has violated s. 11 and 12 of the Payday Loan Regulations in that all amounts charged to and collected from the Plaintiff and Class members by the Company in relation to the payday loans advanced to the Plaintiff and Class members in excess of the loan principal are Unlawful Charges under the Payday Loan Regulation and therefore seek restitution of or damages for the Unlawful Charges paid by the Plaintiff and Class members, repayment of the Unlawful Charges paid by the Plaintiff and Class members, damages for conspiracy, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Page 38

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(ii) Alberta (continued)

June 3, 2013 Claim

On June 3, 2013, a statement of claim brought under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Darren Hughes against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

On September 16, 2013, the Court of Queen's bench of Alberta granted a consent order staying this claim in favour of pursuing the Ontario June 4, 2013 Claim(Note 20(a)(v)).

September 18, 2013 Claim

On September 18, 2013, an action in the Court of Queen’s Bench of Alberta was commenced against the Company, certain of its officers and affiliates, including The Cash Store Inc., certain of its associated companies, including The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc., and other corporate defendants, seeking repayment of certain funds advanced to the Company, its affiliates and the associated companies by Assistive Financial Corp.("Assistive"), a former related party third-party lender. An application for interim relief, including the appointment of an inspector, was brought by the plaintiffs and is currently scheduled to be heard by the Court of Queen’s Bench of Alberta on December 12, 2013. The action by Assistive also seeks damages equivalent to $110,000 together with interest thereon at the rate of17.5% per year.

The Company believes the action is wholly without merit and intends to vigorously defend itself. The likelihood and amount of liability, if any, is not determinable at this time.

(iii) Saskatchewan

On October 9, 2012, an action under the Saskatchewan Class Actions Act was commenced in the Saskatchewan Court of Queen’s Bench by John Ironbow against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. on behalf of all persons who, on or after January 1, 2012, borrowed a loan from the Company that met the definition of a “payday loan” proposing that the Company has made payday loans contingent on the supply of other goods or services contrary to s. 29 of the Payday Loans Act, charged or received amounts which are not provided for in the Payday Loans Act or Payday Loans Regulation, contrary to s. 23(5) of the Act, deducting or withholding from the initial advance an amount representing a portion of the cost of borrowing or other charges, contrary to s. 25 of the Payday Loans Act and charging or receiving an amount in excess of 23% of the loan principal, contrary to s. 23(1) and (4) of the Act and s. 14(1) of the Regulation. The plaintiff seeks restitution of damages for unlawful charges paid by the plaintiff and class members, repayment of unlawful charges paid by the plaintiff and class members, damages, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Page 39

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(iv) Manitoba

April 23, 2010 Claim

On April 23, 2010, an action under the Manitoba Class Proceedings Act was commenced in the Manitoba Court of Queen’s Bench ("Manitoba Court") by Scott Meeking against The Cash Store Financial Services Inc., The Cash Store Inc. and 1152919 Alberta Ltd o/a Instaloans, proposing that a class action be certified on his own behalf and on behalf of all persons in Manitoba and others outside the province who obtained a payday loan from Cash Store or Instaloans. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code.

A class proceeding in Ontario in McCutcheon v. The Cash Store Inc. et al. was certified in 2006 and settled in 2008. That decision affected Manitoba residents, and presumptively resolved claims with respect to loans borrowed by Mr. Meeking, and other Manitoba residents, on or before December 2, 2008.

The Company asked the Manitoba court to enforce the Ontario settlement against Mr. Meeking. On September 9, 2013, the Manitoba Court of Appeal agreed that the Ontario Superior Court of Justice had properly exercised jurisdiction over Manitoba residents, including Mr. Meeking and his prospective class members, and enforced the Ontario settlement relating to borrowers of payday loans from the Company. However, it concluded that the Ontario judgment is not enforceable in Manitoba against Instaloans customers and for signature and title loans (as opposed to payday loans), as the Manitoba court determine Ontario had not given proper notice to Manitoba residents.

On September 12, 2013, the Manitoba Court certified Mr. Meeking’s claim as a class proceeding. On October 11, 2013, the Company applied for leave to appeal the certification decision.

On November 8, 2013, the Company filed an application for leave to appeal to the Supreme Court of Canada, seeking to appeal the Manitoba Court of Appeal decision that declined to enforce the Ontario settlement against Instaloans customers. The plaintiffs have also filed an application for leave to appeal to the Supreme Court of Canada, seeking to set aside the portion of the Manitoba Court of Appeal decision that enforced the Ontario settlement.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

November 1, 2012 Claim

On November 1, 2012, an action was commenced in Manitoba under The Class Proceedings Act by Sheri Rehill against The Cash Store Financial Services Inc., The Cash Store Inc., Instaloans Inc. and other defendants, on behalf of all persons who, on or after October 18, 2010, borrowed a loan from the Company in Manitoba where that loan met the definition of a “payday loan” as defined by the Payday Loans Act, S.S. 2007, c. P-4.3. The action alleges that the Company made loans contingent on the purchase of another product or service, contrary to s. 154.2 of the Consumer Protection Act, R.S.M. 1987, c. C-200, as am. (CPA), discounted the principal amount of loans by deducting or withholding an amount representing a portion of the cost of credit from the initial advance, contrary to s. 154.1 of the CPA and charging, requiring and accepting amounts in excess of the 17% total cost of credit limit contrary to s. 147(1) of the CPA and s. 13.1 of the Payday Loan Regulation, Man. Reg. 99/2007, as am. The plaintiff pleads for restitution and repayment of all amounts paid by borrowers as a cost of credit for their payday loans, damages for an alleged conspiracy, and interest on all amounts alleged to be owing.

Page 40

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(iv) Manitoba (continued)

November 1, 2012 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(v) Ontario

October 1, 2010 Claim

The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an action in the Superior Court of Ontario against National Money Mart Company (“Money Mart”) on October 1, 2010 for trade-mark infringement under sections 7, 19, 20 and 22 of the Trade-Marks Act, misrepresentation in the form of false and misleading advertising contrary to sections 52 and 74.01 of the Competition Act and the common law tort of passing off. The action relates to a national negative advertising campaign launched by Money Mart featuring the use of the Company’s registered trade-marks alongside negative statements comparing the Company's payday loan products to Money Mart’s loan products. Statements made in the Money Mart advertising campaign include, among other things, that the Company’s loan products are more expensive and less convenient than Money Mart’s and involve more forms and hassle. The Company seeks injunctive relief as well as $60,000in damages in its Statement of Claim. Money Mart filed its statement of defense on May 2, 2011. The parties have settled a discovery plan and the next step in the action is to proceed to discoveries.

The likelihood and amount of gain (or loss), if any, is not determinable at this time.

August 31, 2011 Application

On August 31, 2011, in response to regulatory amendments to come into force on September 1, 2011, The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an Application for Judicial Review in the Ontario Superior Court of Justice. The Application sought an order declaring that certain of the new amended regulations are outside the scope of the regulation-making authority under the Payday Loans Act, 2008, and were made without due process. The hearing was held on October 2, 2013. On November 5, 2013 the Court dismissed the Company’s application. The Company filed a notice of motion for leave to appeal to the Court of Appeal on November 22, 2013.

August 1, 2012 Claim

On August 1, 2012, an action under the Ontario Class Proceedings Act was commenced in the Ontario Supreme Court of Justice by Timothy Yeoman against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. and other defendants, claiming on behalf of the plaintiff and class members who entered into payday loan transactions with the Company in Ontario between September 1, 2011 and the date of judgment, that the Company operated an unlawful business model as the Company did not provide borrowers with the option to take their payday loan in an immediate liquid form and thereby misrepresenting the total cost of borrowing as the cost of additional services and devices should have been included.

Page 41

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(v) Ontario (continued)

August 1, 2012 Claim (continued)

The class members plead entitlement to damages and costs of investigation and prosecution pursuant to s. 36 of the Competition Act inclusive of the fees, interest and other amounts that the Company charged to the class members.

By Court order dated August 27, 2013, the plaintiff was permitted to amend the claim to add additional defendants. This amendment further claims that the Company’s lines of credit, offered since February 1, 2013, are payday loans subject to the Payday Loans Act, and are being offered without a payday loans license. The amendment claims that the Company acted in an unlawful conspiracy with the additional defendants.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

July 5, 2012

On July 5, 2012, The Cash Store Inc. and Instaloans Inc. were charged with the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Guelph (The Cash Store Inc.), Brantford, and Sarnia, Ontario (Instaloans Inc.). The charges were laid in each of the three jurisdictions on July 5, 2012 as a result of investigations made by the Ministry of Consumer Services relating to consumer complaints made by three consumers.

On November 18, 2013, Instaloans Inc. and The Cash Store Inc. pleaded guilty and were convicted of the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Brantford, Sarnia, and Guelph, Ontario, respectively.  As a result of this plea, The Cash Store and Instaloans Inc. agreed to pay $50per conviction, in addition to a victim fee surcharge of 25%, for a total fine of$188. 

June 4, 2013 Claim

On June 4, 2013, a statement of claim brought under the Ontario Class Proceedings Act was commenced in the Ontario Superior Court of Justice by David Fortier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

Following the stay of the related Alberta claim, an amended statement of claim was issued on October 17, 2013, which, among other things, adds a statutory claim under the Alberta Securities Act. The plaintiffs’ motion seeking leave to pursue a secondary market liability claim under Part XXIII.1 of the Ontario Securities Act and to certify the claim as a class action under the Ontario Class Proceedings Act is currently scheduled to be heard by the Ontario Superior Court of Justice on May 20 and 21, 2014.

Page 42

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(v) Ontario (continued)

June 4, 2013 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

June 7, 2013 Application

On June 7, 2013, an application was commenced in the Ontario Superior Court of Justice pursuant to section 54(1) of the Payday Loans Act, 2008, by the Director designated under the Ministry of Consumer and Business Services Act, naming The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. as respondents. The application seeks a declaration that the basic line of credit product offered constitutes a ‘payday loan’ under subsection 1(1) of the Payday Loans Act, and seeks orders requiring the Company to obtain a payday loan broker license and restraining the Company from acting as a loan broker of the basic line of credit without a broker’s license. The Application was heard by the Ontario Superior Court of Justice on November 29, 2013. It is unknown when a decision on this matter will be been rendered.

The Company has vigorously defended this application and the likelihood and amount of liability, if any, is not determinable at this time.

(vi)Quebec

On July 11, 2013, a statement of claim brought under the Quebec Class Proceedings Act was commenced in the Quebec Superior Court of Justice by Marianne Dessis and Jean-Jacques Fournier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

As at September 30, 2013, the Company reached an agreement with the plaintiffs' counsel whereby the plaintiffs will proceed with the Ontario June 4, 2013 claim (Note 20(a)(v)) and seek a stay of the Quebec claim.

(vii)New York

May 20, 2013 Claim

On May 20, 2013, Globis Capital Partners, L.P. filed a civil claim against the Company and Gordon J. Reykdal, Chief Executive Officer, in the United States District Court of the Southern District of New York for alleged violations of Sections 10(a) and 20(a) of the Securities Exchange Act of 1934 claiming unspecified damages.

As at September 30, 2013, this claim has been combined with the June 27, 2013 claim below, given the similarity of the claims.

Page 43

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(vii)New York

June 27, 2013 Claim

On June 27, 2013, proposed class action proceedings for violation of U.S. federal securities laws were commenced by lead plaintiff Charles Nutsch in the United States District Court of the Southern District of New York against the The Cash Store Financial Services Inc. and certain of its present and former officers on behalf of purchasers of the common stock of The Cash Store Financial Services Inc. during the period between November 24, 2010 and May 13, 2013, inclusive. The proposed class actions concern alleged misrepresentations made in the Company's quarterly and annual financial statements between November 24, 2010 and May 13, 2013. In particular, the complaints allege that the Company overvalued the consumer loan portfolio acquired from third-party lenders, overstated its net income, understated losses on its internal consumer loans portfolio, and understated its liabilities associated with the settlement of the British Columbia class action.

By order dated July 9, 2013, the court consolidated the May 20, 2013 and June 27, 2013 actions for pretrial purposes. On September 17, 2013, the Court issued an order appointing Globis Capital Partners L.P. and Globis Overseas Funds Ltd. as lead plaintiffs in the class action. The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(viii)Other Matters

The Company is also currently involved in ordinary, routine litigation and administrative proceedings incidental to its business, including regulatory enforcement matters, contractual disputes, individual consumer claims, and employment related matters from time to time. The Company believes the likely outcome of any other pending cases and proceedings will not be material to its business or its financial condition.

(b) Contingencies

(i) Third-Party Lenders

In addition to direct lending, the Company acts as a broker on behalf of consumers seeking short-term advances. The funding for those advances is provided directly to the customers by the third-party lenders. The Company has entered into business arrangements with a number of third-party lenders that are prepared to consider lending to customers. Pursuant to these agreements, services related to the collection of documents and information, as well as loan collection services are provided to the third-party lenders. The agreements also provide that the third party lenders are responsible for losses suffered as a result of uncollectible loans provided the required duties under the terms of the agreements have been properly performed by the Company. In the event the duties are not properly performed and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. The Company’s contingent risk is the balance of the third-party lenders' loan portfolio which totaled $29,865as at September 30, 2013 (2012- $27,792).

To date, no claims have been made by the third-party lenders under the terms of the agreements and no payments have been made or accrued by the Company pursuant to this clause in the agreements. Risk is managed through compliance with the loan limits, procedures and selection criteria established by the lenders.

Page 44

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(b) Contingencies (continued)

(ii) British Columbia Compliance Order

On March 23, 2012, the Company was issued a compliance order (the “Order”) and administrative penalty from Consumer Protection BC. The Order directs the Company to refund to all borrowers with loan agreements negotiated with the Company or its subsidiaries between November 1, 2009 and the date of the order, the amount of any issuance fee charged, required or accepted for or in relation to the issuance of a cash card. The Order also directed the Company to pay an administrative penalty of $25in addition to costs. On November 30, 2012, Consumer Protection BC issued a supplementary compliance order directing that unclaimed refund amounts, to a maximum of $1,100 be deposited into a consumer protection fund. On December 14, 2012, the Company filed a Petition for Judicial Review in the British Columbia Supreme Court seeking an order quashing or setting aside the Order and Supplemental Order, and seeking declarations that it had not contravened sections 112.04(1)(f) of the Business Practices and Consumer Protection Act, or section 17 and 19 of the Payday Loan Regulation. The Petition was heard by the Court on June 26, 27, and 28, 2013. A decision has not yet been released. The estimated exposure with respect to this order is between $248and $1,100including penalties, legal costs and additional costs. The balance of the accrued liability related to this order as at September 30, 2013 is $187 (2012 - $248).

(iii) Special Investigation

The Company’s Audit Committee was made aware of written communications that contained questions about the acquisition of the consumer loan portfolio from third-party lenders in late January 2012 (the “Transaction”) and included allegations regarding the existence of undisclosed related party transactions in connection with the Transaction. In response to this allegation, legal counsel to a special committee of independent directors of the Company (the “Special Committee”) retained an independent accounting firm to conduct a special investigation.  The investigation followed a review conducted by the Company’s internal auditor under thedirection of the Audit Committee of the Board, and the restatement by the Company in December 2012 of its unaudited interim quarterly financial statements and MD&A for periods ended March 31, 2012 and June 30, 2012.

The investigation covered the period from December 1, 2010 to January 15, 2013 and was carried out over four months.  It involved interviews of current and former officers, directors, employees and advisors of the Company and a review of relevant documents and agreements as well as electronically stored information obtained from Company computers and those of employees, former employees and directors most likely to have information relevant to the investigation.

The Special Committee has reported its findings on the allegations to the Board of Directors and, consistent with the recommendation made to the Board of Directors by the Special Committee, the Board of Directors has determined that no further corrections or restatements of previously reported financial statements and other public disclosures are required in relation to the Transaction.

(c) Regulatory Requirements

The Company's business is regulated by various provincial and federal laws and regulations, which are subject to change and which may impose significant costs or limitations on the way the Company conducts or expands its business. The payday loan industry has seen increased regulation in recent years. While the Company has worked closely with regulators, its business is still significantly impacted by these regulations. Management has been actively planning an upstream transition in both product offerings and services, however this process takes time. Furthermore, its regulatory environment is changing at different paces in different provinces, making it more difficult to plan and implement this transition.

Page 45

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 20 - Litigation, Claims and Contingencies (continued)

(c) Regulatory Requirements (continued)

The Company is closely working with the regulatory bodies to manage the impact any regulatory changes will have on its business.

Note 21 – Related Party and Other Transactions

(a) The Cash Store Australia Holdings Inc. ("AUC")

The Company owns 3,000,000 shares, or approximately 18.3%of the outstanding common shares of AUC, acquired at a price of $0.06per share. The carrying amount of this investment is $nil as at September 30, 2013 (September 30, 2012 - $nil). At September 30, 2013, the aggregate quoted market value of the Company’s investment in AUC was $nil (September 30, 2012 - $570). In December of 2012 the Alberta, Ontario and British Columbia Securities Commissions issued cease trade orders in respect of the shares of AUC for failure to file financial statements. On September 13, 2013, AUC's operating subsidiary appointed a voluntary administrator pursuant to Section 436A of the Australian Corporations Act 2001. In the opinion of the directors of AUC, AUC is insolvent. The Administrator has taken control of the operations and assets and the application to have the cease trade orders revoked have been withdrawn by AUC.

The Company previously provided administrative services to AUC. The Company had a services agreement with AUC to provide ongoing services such as financial and accounting support, administrative services, and the use of the Company’s information technology and telecommunication systems.

Included in corporate expenses is a recovery of $nil (2012 - $284, 2011 - $363) relating to these services. These transactions were subject to normal trade terms and were measured at the transaction amount. As at September 30, 2013, the Company has a $nil(September 30,2012 - $3) receivable from AUC. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment.

(b) RTF Financial Holdings Inc. ("RTF")

The Company owns 6,000,000shares, or approximately 15.7%, of RTF acquired at a price of$0.06per share.The carrying amount of this investment is $nil as at September 30, 2013 (September 30, 2012 - $nil). No aggregate quoted market value of the Company’s investment in RTF exists as the company is not publicly traded.

The Company had a services agreement with RTF to provide ongoing services such as financial and accounting support and contracts administrative services.

Included in corporate expenses is a recovery of $nil (2012- $140, 2011- $240) relating to these services. These transactions were subject to normal trade terms and were measured at the transaction amount.

As at September 30, 2013, the Company has a $1 (September 30, 2012 - $nil) receivable from RTF. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment.

Page 46

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 21 – Related Party and Other Transactions (continued)

(c) Third-party Lenders

(i) Assistive Financial Corp. ("Assistive"), a privately held entity that raised capital and provided advances to the Company’s customers is controlled by the father of Cameron Schiffner, the former Senior Vice President of Operations of the Company. In addition, Cameron Schiffner’s brother was a member of management of AUC and is a member of management of Assistive.

On September 11, 2013, Cameron Schiffner's employment with the Company was terminated and Assistive is no longer considered a related party. On September 18, 2013, Assistive commenced an action in the Court of Queen's Bench of Alberta against the Company (Note 20(a)(ii)).

Included in retention payments are$993 (2012- $4,185, 2011- $11,674) of amounts paid or payable directly to Assistive. As atSeptember 30, 2013, included in accrued liabilities is$485 (September 30, 2012- $659) due to Assistive. This amount has also been included in the Company's restricted cash balance. During the year ended September 30, 2012, the Company transferred consumer advances receivable, net of the provision for loan losses, of $3,914to Assistive for consideration of $3,914. The Company’s contingent risk in Assistive's loan portfolio totaled $84as at September 30, 2013 (September 30, 2012- $7,240).

As part of the acquisition of the consumer advances portfolio on January 31, 2012 as described in Note 3, $45,520of the total purchase consideration was paid to Assistive, of which$14,407is an estimate of Assistive’s proportionate share of the expense to settle pre-existing relationships, which wasapproximated based on the proportion of the consideration paid to each third-party lender. The acquisition agreement was signed on behalf of Assistive by Cameron Schiffner’s brother.

(ii) An immediate family member of Michael Shaw, a former director of the Company, advanced funds to a privately held entity that raised capital and provided advances to the Company’s customers (third-party lender) and acted as a third-party lender prior to the acquisition of the consumer advances portfolio on January 31, 2012.

On July 31, 2013, Michael Shaw resigned from the Board of Directors and is no longer a related party.

There have been no transactions between the Company and this third-party lender subsequent to January 31, 2012. Included in retention payments are $nil (2012- $1,377, 2011- $4,801) of amounts paid or payable directly to this third-party lender. As atSeptember 30, 2013, included in accrued liabilities is $nil (September 30, 2012- $nil) due to this third-party lender. The Company’s contingent risk in this third-party lender’s consumer advances portfolio totaled $nilas at September 30, 2013 (September 30, 2012- $nil).

As part of the acquisition of the short-term advances portfolio on January 31, 2012 as described in Note 3, $23,944 of the total purchase consideration was paid to this third-party lender of which $7,578is an estimate of this third-party lender’s proportionate share in the expense to settle pre-existing relationships which was approximated based on the proportion of the consideration paid to each third-party lender.

(iii) A privately held entity that began acting as a third-party lender after January 31, 2012 is controlled by Bruce Hull, who is a former director of AUC.

On June 18, 2013, Bruce Hull resigned from the Board of Directors of AUC and is no longer a related party.

Page 47

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 21 – Related Party and Other Transactions (continued)

(a) Third-party Lenders (continued)

Included in retention payments are $24 (2012 - $36, 2011 - $nil) of amounts paid or payable directly to this third third-party lender. As at September 30, 2013, included in accrued liabilities is $183 (September 30, 2012 - $166) due to this third-party lender. This amount has been included in the Company’s restricted cash balance. The Company’s contingent risk in this third-party lender’s consumer advances portfolio totaled $104as atSeptember 30, 2013 (September 30, 2012 - $171).

All transactions with third-party lenders have been measured at the transaction amount, which is the amount of consideration agreed to by the Company and the third-party lenders.

Note 22 – Financial Instruments and Risk Management

(a) Fair Values

The Company’s financial instruments consist of cash, consumer advances receivables, net, other receivables, net, and accounts payable and accrued liabilities, all of which are short-term in nature and their fair value approximates their carrying value. The fair value of obligations under capital leases and secured senior notes are determined by estimating future cash flows on a borrowing-by-borrowing basis, and discounting these future cash flows using a rate which takes into account the Company’s spread for credit risk with similar terms and types of debt arrangements.

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	September 30, 2012				September 30, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash	$	19,139	$	19,139	$	11,458	$	11,458
Other receivables	19,481		19,481		8,104		8,104
Consumer advances receivable	32,440		32,440		25,592		25,592
Long term receivable	$	460	$	460	$	836	$	836
Financial Liabilities
Accounts payable and accrued liabilities	$	28,937	$	28,937	$	26,226	$	26,226
Obligations under capital leases and other obligations	4,788		4,788		4,626		4,626
Senior secured notes	$	126,033	$	131,906	$	127,182	$	121,370

(b) Risk Management

The Company is exposed to a number of financial risks in the normal course of its business operations, including market risks, as well as credit and liquidity risks. The nature of the financial risks and the Company’s strategy for managing these risks has not changed significantly from the prior year.

Market risk is the risk of loss that results from changes in market factors such as foreign currency exchange rates and interest rates. The level of market risk to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets, and contract portfolios.

Page 48

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

Overall, the Company’s Board of Directors has responsibility for the establishment and approval of the Company's risk management policies. To manage the exposure to changes in market risk, management performs a risk assessment on a continual basis to help ensure that all significant risks related to the Company and its operations have been reviewed and assessed to reflect changes in market conditions and the Company's operating activities. The following summarizes the types of risks to which the Company is exposed, and the risk management instruments used to mitigate them. The sensitivities provided below are hypothetical and should not be considered to be predictive of future performance or indicative of earnings on these contracts. The Company does not currently use derivative financial instruments to manage its market risks and does not hold or issue derivative financial instruments for trading or speculative purposes.

(i) Currency Risk

Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As the Company has operations in the United Kingdom, it is exposed to risk from changes in the exchange rates between the Canadian dollar and the British pound. While the Company attempts to match cash outlays with cash inflows in the same currency, fluctuations in exchange rates creates volatility with cash flows and reported amounts for revenues and expenses on a period-to-period basis, however, this is not considered significant to the Company.

(ii) Interest Rate Risk

The fair value of financial instruments with fixed interest rates, such as the Company’s Senior Secured Notes, fluctuate with changes in market interest rates. However, these fluctuations do not affect earnings, as the Company’s debt is carried at amortized cost and the carrying value does not change as interest rates change.

(iii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s cash, other receivables, consumer advances receivable, and long-term receivable. The maximum amount of credit risk exposure is limited to the carrying amount of the balances disclosed in these financial statements.

The best representation of the Company’s maximum exposure (excluding tax effects) to credit risk, which is a worst case scenario and does not reflect results expected by the Company, is as set out in the following table:

	September 30, 2012		September 30, 2013
Cash - Note 4	$	19,139	$	11,458
Consumer advances receivable, net - Note 5	32,440		25,592
Other receivables, net - Note 6	19,481		8,104
Long-term receivable - Note 6	460		836
	$	71,520	$	45,990

Cash: Credit risk associated with cash is minimized substantially by ensuring that these financial assets are placed with reputable financial institutions that have been accorded strong investment grade ratings by a primary rating agency.

Page 49

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

(iii) Credit Risk (continued)

Other receivables, net and Long-term receivables: Other receivables, net and Long-term receivables include amounts owing to the Company from various parties. Included in this amount are gross receivables of $9,802 (September 30, 2012 - $11,316) due from a vendor. The Company has recorded an allowance of $4,357 against a portion of the overdue receivables for specific amounts in dispute or where collection is otherwise considered doubtful. These balances represent a concentration of credit risk to the Company. For these entities, the Company performs an ongoing review of their credit status.

Consumer advances receivable: The Company also directly lends to its customers and has no significant concentration of credit risk with any particular individual related to short-term advances.

Credit risk relates to the possibility of default of payment on the Company’s consumer advances receivable. The Company performs ongoing credit evaluations, and reviews the aging of the receivable, payment history and other factors, and it establishes a provision for loan losses when it is determined that a loan is impaired.

Refer to Note 5 for an analysis of the age of consumer advances receivable originated by the Company as of September 30, 2013 and the activity related to the Company’s allowance for credit losses.

The Company makes significant estimates in respect of the allowance for credit losses. Historical information is considered when determining whether past-due accounts should be provided for and the same factors are considered when determining whether to write off amounts charged to the allowance against the consumer advances receivable.

(iv)  Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due or will not receive sufficient funds from its third-party lenders to advance to the Company’s customers. The Company manages all liquidity risk through maintaining a sufficient working capital amount through daily monitoring of cash balances and operating results.

The Company's principal sources of cash are third-party lender funds and cash generated from operating activities. The Company is able to both purchase and sell consumer advances with third-party lenders in order to manage its working capital requirements.

In addition to cash from operations, the Company plans to fund working capital by securing credit facilities as permitted under the terms of the indenture governing the Senior Secured Notes, secure new third-party lenders and additional capital from existing third-party lenders.

In the absence of securing additional funding, the Company could face substantial liquidity problems and might be required to sell material assets or operations to attempt to meet its debt service and other obligations. If the Company is unable to make the required payments on its debt obligations, the Company would be in default under the terms of its indebtedness which could result in an acceleration of the repayment obligations. Any such default, or any attempt to alter the business plans and operations to satisfy the obligations under the Company’s indebtedness, could materially adversely affect the Company’s business, prospects, results of operations and financial condition.

Page 50

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

(iv)  Liquidity Risk (continued)

The maximum exposures to liquidity risk are represented by the carrying amount of accounts payable and accrued liabilities, as well as payment obligations under capital leases and senior secured notes, which are made up of the following:

	Carrying Amount		Contractual Cash Flows		Less Than 1 Year		1-3 Years
Accounts payable and accrued liabilities	$	26,226	$	26,226	$	26,226	$	—
Obligations under capital leases (including interest)	4,626		6,946		1,612		2,334
Senior secured notes	127,182		183,291		15,238		168,053
	$	158,034	$	216,463	$	43,076	$	170,387

Note 23 - Segmented Information

The following is a summary of revenue and long-lived assets for the Company’s geographical segments:

	September 30, 2011		September 30, 2012		September 30, 2013
REVENUE
Canada	$	187,356	$	177,186	$	180,412
United Kingdom	2,543		10,226		10,353
	$	189,899	$	187,412	$	190,765

	September 30, 2012		September 30, 2013
LONG-LIVED ASSETS
Canada	$	99,972	$	88,210
United Kingdom	2,630		3,289
	$	102,602	$	91,499

Long-lived assets include property and equipment, intangible assets and goodwill.

Note 24 – Comparative Figures

Certain comparative figures have been reclassified to conform to the presentation adopted for the current period. Specifically, certain amounts previously recorded in restricted cash have been reclassified to cash and certain amounts previously recorded in long term receivable have been reclassified to other receivables, net. Additionally, certain amounts on the consolidated statements of cash flows have been reclassified to conform to the presentation of the current year.

Page 51

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 25 - Subsequent Event

On November 29, 2013 the Company entered into a credit agreement (the “Credit Agreement”) with Coliseum Capital Management, LLC (“Coliseum”), 8028702 Canada Inc. and 424187 Alberta Ltd. (“Alberta Ltd.”) (collectively, the “Lenders”), pursuant to which the Lenders have provided $12,000 of loans.

Pursuant to the Credit Agreement, 424187 Alberta Ltd. (the “Agent”) acts as agent for the Lenders. The loans made under the credit facility bear interest at 12.5% per annum, payable monthly in arrears, on the 29th day of each month. If an event of default occurs under the Credit Agreement, the interest rate is increased by 2% for so long as the event of default remains. The Credit Agreement provides that an additional $20,500 may be advanced for a total maximum loan amount of $32,500. The Lenders have a right of first refusal in respect of any additional advances. If the Lenders do not exercise their right of first refusal, the Company is free to obtain loan advances from other lenders who agree to become party to the Credit Agreement. The loans outstanding at any time are subject to the requirement that the maximum amount outstanding cannot exceed 75% of the unrestricted cash of the Company plus 75% of the net consumer advances receivable of the Company not more than 90 days in arrears (the “Borrowing Base”). If the total amount outstanding under the loan at any time exceeds the Borrowing Base, the Company must repay to the Initial Lenders, on a pro rata basis, an amount which will result in the loans not being in excess of the Borrowing Base. Such payment must be made within 20 days of the month end in which the Borrowing Base was exceeded.

Loans made under the Credit Facility mature on November 29, 2016 (the “Maturity Date”) or on such earlier date as the principal amount of all loans owing from time to time plus accrued and unpaid interest and all other amounts due under the Credit Agreement may become payable under the Credit Agreement. The Company may repay the loans at any time subject to payment of a prepayment fee as follows:

(a) If the prepayment is on or before November 29, 2014, the greater of (A) the interest that would accrue if the amount were to remain outstanding until November 29, 2014 and (B) 4% of the amount;

(b) If the prepayment is after November 29, 2014 but on or prior to November 29, 2015, 3% of the amount; and

(c)    If the prepayment is after November 29, 2015, no fee.

The Company has agreed to designate the loans made under the Credit Agreement as priority lien debt and obtain the benefit of the security granted by the Company pursuant to the Collateral Trust and Intercreditor Agreement entered into in connection with the Company’s 11.5% senior secured notes.

The Company believes this Credit Agreement to be important in achieving the Company’s long-term strategic plans and will fund operations and growth in key business areas.

In addition to certain covenants relating to the payment of the loans and the authority of the Company to enter into the Credit Agreement, the Company has covenanted in favour of the Lenders:

(a)    to comply with the covenants granted to the holders of the 11.5% senior secured notes;

(b)    not to designate any additional debt under the Collateral Trust Agreement; and

(c) to meet the following Adjusted EBITDA targets on a quarterly basis over the term of the Credit Agreement:

i) $4,000 for the first 3 months of the 2014 fiscal year

ii) $10,000 for the first 6 months of the 2014 fiscal year

iii) $17,000 for the for the first 9 months of the 2014 fiscal year

iv) $25,000 for the 2014 fiscal year

v) $23,625 on a rolling four quarter basis at the end of the first quarter of fiscal year 2015

vi) $26,250 on a rolling four quarter basis at the end of the second quarter of fiscal year 2015

Page 52

THE CASH STORE FINANCIAL SERVICES INC.

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2013, 2012 AND 2011

(in thousands, except share and per share amounts)

(unaudited)

Note 25 - Subsequent Event (continued)

vii) $26,875 on a rolling four quarter basis at the end of the third quarter of fiscal year 2015

viii) $27,500 for the 2015 fiscal year

ix) $28,125 on a rolling four quarter basis at the end of the first quarter of fiscal year 2016

x) $28,750 on a rolling four quarter basis at the end of the second quarter of fiscal year 2016

xi) $29,375 on a rolling four quarter basis at the end of the third quarter of fiscal year 2016

xii) $30,000 for the 2016 fiscal year

Under the credit agreement, Adjusted EBITDA means the net income (or loss) of the Company, on a consolidated basis, before interest expense, income tax expense, depreciation of property and equipment, and amortization of intangible assets and before the deduction or addition of extraordinary and/or non-recurring expenses as reported in the Borrower’s quarterly and annual Management’s Discussion and Analysis in the section entitled “EBITDA and Adjusted EBITDA reconciliation”.

In addition to the rights of the Lenders to demand payment and instruct the Agent to begin the process to realize on the security under the Collateral Trust and Intercreditor Agreement, upon the occurrence and during the continuance of an event of default, the Lenders have the right, but not the obligation, to appoint a financial advisor to review the affairs of the Company and to appoint a director to the Board.

424187 Alberta Ltd., which has committed to loan $2,000 of the initial $12,000 drawn, is controlled by the Company’s CEO and a director, Gordon Reykdal. Coliseum, which has committed to loan $5,000 of the initial $12,000 drawn, owns 17.8% of the common shares of the Company.

Page 53

EX-99.6.1

Exhibit 99.6.1

CERTIFICATION REQUIRED BY RULE 13a-14(a) OR RULE 15d-14(a), PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gordon Reykdal, certify that:

1.I have reviewed this annual report on Form 20-F of The Cash Store Financial Services Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4.The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

By:	/s/ Gordon Reykdal
Name:	Gordon Reykdal
Title:	Chief Executive Officer
Date:	December 11, 2013

EX-99.6.2

Exhibit 99.6.2

CERTIFICATION REQUIRED BY RULE 13a-14(a) OR RULE 15d-14(a), PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Craig Warnock, certify that:

1.I have reviewed this annual report on Form 20-F of The Cash Store Financial Services Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4.The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

By:	/s/ Craig Warnock
Name:	Craig Warnock
Title:	Chief Financial Officer
Date:	December 11, 2013

EX-99.6.3

Exhibit 99.6.3

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

The Cash Store Financial Services Inc. (the “Company”) is filing with the U.S. Securities and Exchange Commission on the date hereof, its annual report on Form 20-F for the fiscal year ended September 30, 2013 (the “Report”).

I, Gordon Reykdal, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as enacted pursuant to section 906 of the U.S. Sarbanes-Oxley Act of 2002, that:

(i)the Report fully complies with the requirements of section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Gordon Reykdal
Name:	Gordon Reykdal
Title:	Chief Executive Officer
Date:	December 11, 2013

EX-99.6.4

Exhibit 99.6.4

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

The Cash Store Financial Services Inc. (the “Company”) is filing with the U.S. Securities and Exchange Commission on the date hereof, its annual report on Form 20-F for the fiscal year ended September 30, 2013 (the “Report”).

I, Craig Warnock, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as enacted pursuant to section 906 of the U.S. Sarbanes-Oxley Act of 2002, that:

(i)the Report fully complies with the requirements of section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Craig Warnock
Name:	Craig Warnock
Title:	Chief Financial Officer
Date:	December 11, 2013

XML

Deferred Revenue (Details Textual) (CAD)			12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011 Deferred Bonus [Member]	Sep. 30, 2013 Deferred Bonus [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue, signing bonus	3,918,000	4,917,000		7,000,000
Deferred revenue recognition period			7 years

XML

Intangible Assets (Details 2) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Finite-Lived Intangible Assets [Line Items]
Accumulated depreciation	3,743	2,612
Computer software [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated depreciation	451	0	0
Additions acquired by means of capital lease	649	727	0

XML

Accrued Liabilities (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Payables and Accruals [Abstract]
Class action settlements Note 20 (a)	6,262	11,448
Accrued salaries and benefits	4,003	2,807
Amounts due to third party lenders	4,575	5,782
Interest accrued on long-term debt - Note 13	2,540	2,540
Other accruals	7,335	5,305
Accrued liabilities	24,715	27,882

XML

Share Capital (Details 2) (CAD)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Number outstanding	1,168,335
Weighted average remaining term	34 months
Weighted average exercise price	8.57	8.84	9.42
Number exercisable	684,334	662,573
Stock Option Granted 2009 [Member]
Number outstanding	126,667
Weighted average remaining term	8 months
Weighted average exercise price	7.08
Number exercisable	126,667
Stock Option Granted 2010 [Member]
Number outstanding	366,668
Weighted average remaining term	16 months
Weighted average exercise price	12.81
Number exercisable	366,668
Stock Option Granted 2011 [Member]
Number outstanding	155,000
Weighted average remaining term	33 months
Weighted average exercise price	12.96
Number exercisable	103,335
Stock Option Granted 2012 [Member]
Number outstanding	325,000
Weighted average remaining term	64 months
Weighted average exercise price	5.88
Number exercisable	87,664
Stock Option Granted 2013 [Member]
Number outstanding	195,000
Weighted average remaining term	57 months
Weighted average exercise price	2.59
Number exercisable	0

XML

Litigations, Claims and Contingencies (Details Textual) (CAD) In Thousands, unless otherwise specified	0 Months Ended	1 Months Ended		12 Months Ended								12 Months Ended
	Oct. 02, 2010	Mar. 31, 2010	May 31, 2009	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010 claim	Sep. 18, 2013	Nov. 01, 2012	Oct. 12, 2012	Sep. 11, 2012	Sep. 30, 2013 Maximum [Member]	Sep. 30, 2013 Minimum [Member]	Mar. 31, 2010 Cash [Member]	May 12, 2009 Cash [Member]	Mar. 31, 2010 Credit Vouchers [Member]	May 12, 2009 Credit Vouchers [Member]	Nov. 18, 2013 Subsequent Event [Member]
Loss Contingencies [Line Items]
Legal expenses		6,438	18,800
Settlement agreement, consideration		12,362													9,400		9,400	188
Settlement amount to be disbursed							12,362							6,181		6,181
Amount of cheques issued				5,140
Amount of cheques cashed				6,131
Amount of vouchers redeemed				595
Number of new claims filed							6,300
Voucher portion of settlement fund				6,181
Percentage of discount on liability settlement				16.20%
Accretion expense				854	716	616
Estimated litigation liability relating to British Columbia March 5, 2004 class action				6,162	11,303
Estimated litigation liability, percent of loaned amount										23.00%	23.00%
Estimated litigation liability, loan fee											30.00%
Estimated litigation liability, percent of total cost of credit limit									17.00%
Estimate of possible loss								110,000
Estimate of possible loss, interest rate								17.50%
Damages sought, value	60,000
Fee per conviction (in dollars per conviction)																		50,000
Victim fee surcharge percentage																		25.00%
Contingent risk, third party loan portfolio				29,865	27,792
Administrative penalty				25
Customer refund liability relates to British Columbia Compliance Order												1,100
Estimated exposure related to Order				187	248							1,100	248

XML

Goodwill

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

	September 30, 2012		September 30, 2013
Balance, beginning of period	$	39,133	$	39,685
Goodwill acquired	—		—
Other	552		—
Balance, end of period	$	39,685	$	39,685

XML

Significant Accounting Policies (Details)	12 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation method	straight-line method
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	4 years
Fixtures, furniture, and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Signs [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years

XML

CONSOLIDATED BALANCE SHEETS [Parenthetical] (CAD) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]
Accumulated depreciation, property and equipment	39,424	36,180
Accumulated amortization, Intangible assets	13,506	7,831
Common shares, issued	17,571,813	17,496,646
Common shares, outstanding	17,571,813	17,496,646

XML

Acquisition of Consumer Loans Portfolio

12 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Acquisition of Consumer Advances Portfolio

Acquisition of Consumer Advances Portfolio

On January 31, 2012, the Company acquired a portfolio of short-term advances from third-party lenders for total consideration of $116,334. At the date of acquisition, the gross contractual principal and income of the acquired short-term advances was $319,906.

The total consideration paid to third-party lenders was allocated to consumer advances receivable, intangible assets and the premium paid to settle pre-existing relationships with third-party lenders. The determination of fair value of each component of the transaction was subject to management judgment and estimates of future cash flows, collection rates, forecasts and assumptions that a market participant would use in pricing the components. In accordance with U.S. GAAP the Company determined that the premium paid settled the pre-existing relationships between the Company and third-party lenders. Accordingly, the expense was measured at its fair value and recorded as an expense in the consolidated statement of operations as part of the acquisition transaction.

The total consideration was allocated as set forth below:

Consumer advances receivable	$	50,014
Non-compete agreements	15,524
Favorable supplier relationships	14,220
Proprietary knowledge	2,280
Expense to settle pre-existing relationships with third-party lenders	36,820
Deferred tax liability	(2,524		)
Total consideration	$	116,334

Note 5 and Note 9 separately disclose the September 30, 2013 carrying amount of the acquired short-term advances and related intangible assets respectively.

XML

Per Share Amounts

12 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Per Share Amounts

Per Share Amounts

For the year ended September 30, 2013, the effect of dilutive securities was $nil (2012 - $nil, 2011 - $404). For the year ended September 30, 2013, there were 1,168,335stock options which were anti-dilutive and therefore not considered in computing diluted earnings per share (2012-1,219,236,2011-nil)

XML

Other Receivables and Other Income (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, gross	12,461	19,481
Allowance for doubtful accounts, other receivables	(4,357)	0
Other receivables, net	8,940	19,941
Other receivables, long term portion, net	836	460
Other receivables, net	8,104	19,481
Due from investee corporations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, gross	1	3
Due from vendors for agency services [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, gross	10,812	12,332
Other receivables, long term portion, gross	836	460
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, gross	2,484	7,606

XML

Acquisition of Consumer Advances Portfolio (Details) (CAD) In Thousands, unless otherwise specified	Jan. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Deferred tax liability	(2,524)
Total consideration	116,334
Consumer advances receivable [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total acquired assets	50,014
Non-compete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total acquired assets	15,524
Favorable supplier relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total acquired assets	14,220
Proprietary knowledge [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total acquired assets	2,280
Expense to settle pre-existing relationships with third-party lenders [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total acquired assets	36,820

XML

Accrued Liabilities

12 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

	September 30, 2012		September 30, 2013
Class action settlementsNote 20 (a)	$	11,448	$	6,262
Accrued salaries and benefits	2,807		4,003
Amounts due to third party lenders	5,782		4,575
Interest accrued on long-term debt - Note 13	2,540		2,540
Other accruals	5,305		7,335
	$	27,882	$	24,715

The amounts due to third-party lenders include funds made available by lenders but not yet advanced to customers, any liability under the lending agreement, any approved and unpaid retention payments, and loan repayments and interest amounts collected from customers. Amounts due to third-party lenders are non-interest bearing, unsecured and have no specified repayment terms.

XML

Obligations under Capital Leases and Other (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Debt Instrument [Line Items]
Various leases and other obligations - repayable in monthly instalments totaling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	4,626	4,788
Less current portion	1,185	1,180
Deferred lease inducements	3,441	3,608
Capital Lease Aggregate Due [Member]
Debt Instrument [Line Items]
Various leases and other obligations - repayable in monthly instalments totaling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	6,946	7,281
Less current portion	1,612	1,565
Deferred lease inducements	5,334	5,716
Capital Lease Imputed Interest [Member]
Debt Instrument [Line Items]
Various leases and other obligations - repayable in monthly instalments totaling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	2,320	2,493
Less current portion	427	385
Deferred lease inducements	1,893	2,108

XML

Dividends (Tables)

12 Months Ended

Sep. 30, 2013

Dividends [Abstract]

Schedule of Dividend Payment Restrictions

For the year ended September 30, 2013, there were no dividends declared or paid to shareholders.

	September 30, 2012
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.12	November 16, 2011	December 14, 2011	$	2,091
Dividend $0.12	February 8, 2012	March 7, 2012	2,091
Dividend $0.06	May 10, 2012	June 7, 2012	1,039
Dividend $0.06	August 10, 2012	September 7, 2012	1,048
			$	6,269

	September 30, 2011
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.10	December 6, 2010	December 21, 2010	$	1,710
Dividend $0.12	February 7, 2011	February 21, 2011	2,062
Dividend $0.12	May 9, 2011	May 24, 2011	2,084
Dividend $0.12	August 10, 2011	August 25, 2011	2,073
			$	7,929

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Income Taxes (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Deferred income tax assets:
Accrued liability for class action settlements and other temporary differences	302	3,919
Expense to settle pre-existing relationships with third-party lenders	714	3,814
Loss on acquisition of lines of credit advances	2,275	0
Loan loss provision	2,813	4,450
Valuation allowance for current deferred tax assets	(6,104)	0
Deferred tax assets (current)	0	12,183
Non-current:
Losses available to be carried forward	5,223	2,404
Property and equipment	1,919	1,782
Deferred lease inducements	112	200
Deferred revenue	1,032	1,032
Discount on senior secured notes	228	85
Valuation allowance for non-current deferred tax assets	(6,042)	(1,980)
Deferred tax assets	2,472	3,523
Deferred income tax liabilities:
Intangible assets and goodwill	(4,959)	(5,711)
Deferred financing costs and other	(447)	(220)
Deferred tax liabilities, net	(5,406)	(5,931)
Net deferred income taxes	(2,934)	9,775

XML

Acquisition of Consumer Advances Portfolio (Details Textual) (CAD) In Thousands, unless otherwise specified	0 Months Ended
	Jan. 31, 2012
Business Combinations [Abstract]
Total consideration	116,334
Gross contractual principal and income of acquired loan portfolio	319,906

XML

Other Receivables and Other Income (Tables)

12 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Other Receivables

Other Receivables, net

	September 30 2012		September 30 2013
Due from investee corporations	$	3	$	1
Due from vendors for agency services	12,332		10,812
Other	7,606		2,484
Allowance for doubtful accounts	—		(4,357		)
	$	19,941	$	8,940
Long term portion:
Due from vendors for agency services	460		836
	$	460	$	836
	$	19,481	$	8,104

Note 6 – Other Receivables, net and Other Income (continued)

(a) Other Receivables, net (continued)

Age analysis of Other Receivables, net:

	September 30 2012		September 30 2013
Current	$	14,035	$	5,847
Current to 3 months past due	3,284		1,639
3 months to 6 months past due	1,148		629
6 months to one year past due	613		2,403
Greater than one year past due	$	401	1,943
Total other receivables gross	$	19,481	$	12,461
Allowance for doubtful accounts	$	—	(4,357		)
Total other receivables, net	$	19,481	$	8,104

Other Income

Other Income

	September 30 2011		September 30 2012		September 30 2013
Agency fee income	$	46,809	$	39,847	$	25,386
Other income	6,467		9,571		12,949
	$	53,276	$	49,418	$	38,335

XML

Litigation, Claims and Contingencies

12 Months Ended

Sep. 30, 2013

Loss Contingency [Abstract]

Litigation, Claims and Contingencies

Litigation, Claims and Contingencies

(a) Litigation and Claims

The Company is subject to various asserted and unasserted claims during the course of business of which the outcome of many of these matters is currently not determinable. Due to the uncertainty surrounding the litigation process, unless otherwise stated below, the Company is unable to reasonably estimate the range of loss, if any, in connection with the asserted and unasserted legal actions against it. The Company believes that it has conducted business in accordance with applicable laws and is defending each claim vigorously. In addition to the litigation and claims discussed below, the Company is involved in routine litigation and administrative proceedings arising in the normal course of business.

(i) British Columbia

March 5, 2004 Claim

On March 5, 2004, an action under the Class Proceedings Act was commenced in the Supreme Court of British Columbia by Andrew Bodnar and others proposing that a class action be certified on his own behalf and on behalf of all persons who have borrowed money from the defendants, The Cash Store Financial and All Trans Credit Union Ltd. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code of Canada (the “Code”). On May 25, 2006, the claim in British Columbia was affirmed as a certified class proceeding of Canada by the British Columbia Court of Appeal. In fiscal 2007, the plaintiffs in the British Columbia action brought forward an application to have certain of the Company’s customers’ third-party lenders added to the claim. On March 18, 2008, another action commenced in the Supreme Court of British Columbia by David Wournell and others against The Cash Store Financial, Instaloans Inc., and others in respect of the business carried out under the name Instaloans since April 2005. Collectively, the above actions are referred to as the “British Columbia Related Actions”.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(i) British Columbia (continued)

March 5, 2004 Claim (continued)

On May 12, 2009, the Company settled the British Columbia Related Actions in principle and on February 28, 2010 the settlement was approved by the Court. Under the terms of the court approved settlement, the Company was to pay to the eligible class members who were advanced funds under a loan agreement and who repaid the payday loan plus brokerage fees and interest in full, or who met certain other eligibility criteria, a maximum estimated amount including legal expenses of$18,800, consisting of $9,400in cash and$9,400in credit vouchers. The credit vouchers can be used to pay existing outstanding brokerage fees and interest, to pay a portion of brokerage fees and interest which may arise in the future through new loans advanced, or can be redeemed for cash from January 1, 2014 to June 30, 2014. The credit vouchers are not transferable and have no expiry date. After approved legal expenses of $6,438were paid in March 2010, the balance of the settlement amount remaining to be disbursed was $12,362, consisting of $6,181of cash and $6,181 of vouchers.

By September 30, 2010, the Company received approximately 6,300individual claims representing total valid claims in excess of the settlement fund. As the valid claims exceed the balance of the remaining settlement fund, under the terms of the settlement agreement, the entire settlement fund of$12,362was mailed to claimants in November 2012 in the form of cash and vouchers on a pro-rata basis. As at September 30, 2013, $5,140 of the $6,131 cheques issued had been cashed and $595 of vouchers had been redeemed.

In arriving at the liability recorded at the balance sheet date, the voucher portion of the settlement fund of$6,181has been discounted using a discount rate of 16.2%. During the year endedSeptember 30, 2013, the Company recorded accretion expense of$854 (2012 - $716, 2011 - $616) in interest expense. The total liability related to the settlement atSeptember 30, 2013 is $6,162 (September 30, 2012- $11,303).

September 11, 2012 Claim

On September 11, 2012, an action under the British Columbia Class Proceedings Act was commenced in the Supreme Court of British Columbia by Roberta Stewart against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. claiming on behalf of the plaintiff and class members who, on or after November 1, 2009 borrowed a loan from the Company in British Columbia, and that the Company charged, required or accepted an amount that is in excess of 23% of the amount loaned of the principal which is contrary to s. 17(1) of the Payday Loans Regulation and s. 112.02(2) of the Business Practices Consumer Protection Act (“BPCPA”) and charged, required or accepted an amount in relation to each cash card issued to a class member which is contrary to s. 112.04(1)(f) of the BPCPA; made the provision of each payday loan contingent on class members purchasing a cash card and services related thereto, contrary to s. 19(1) of the Payday Loans Regulation and s. 112.08(1)(m) of the BPCPA; and discounted the amount in the payday loan agreement to be the loan amount borrowed, by deducting and withholding from the loan advance an amount representing a portion of the total costs of credit, contrary to s.112.08(1)(e) of the BPCPA.

The Class members seek an order, pursuant to s.112.10(2) and s. 172(3)(a) of the BPCPA, requiring that the Company refund all monies paid in excess of the Loan principal of each payday loan, including the Cash Card Fee Amounts, the Loan Fees, and any other fees or charges collected by the Company in relation to the payday loan, damages for conspiracy, and interest pursuant to the Court Order Interest Act at the rate of 30% compounded annually, as set out in the payday loan agreements or such other rate as the Court considers appropriate.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(i) British Columbia (continued)

September 11, 2012 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(ii) Alberta

January 19, 2010 Claim

A statement of claim was served in Alberta by Shaynee Tschritter and Lynn Armstrong alleging that the Company was in breach of s. 347 of the Code (the interest rate provision) and certain provincial consumer protection statutes.

On January 19, 2010, the plaintiffs in the Alberta action brought forward an application to have a related subsidiary, as well as certain of the Company's customers’ third-party lenders, directors and officers added to the claim.

The Company agreed to a motion to certify the class proceeding if the third party lenders, officers and directors were removed as defendants. Class counsel agreed to the Company’s proposal. Consequently, the certification motion was granted in November of 2011.

The Company believes that it conducted its business in accordance with applicable laws and is defending the action vigorously. The likelihood of loss, if any, is not determinable at this time.

September 18, 2012 Claim

On September 18, 2012, an action under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Kostas Efthimiou against The Cash Store Inc., Instaloans Inc., and The Cash Store Financial Services Inc. on behalf of all persons who, on or after March 1, 2010, borrowed a loan from the Cash Store or Instaloans that met the definition of a "payday loan" proposing that the Company has violated s. 11 and 12 of the Payday Loan Regulations in that all amounts charged to and collected from the Plaintiff and Class members by the Company in relation to the payday loans advanced to the Plaintiff and Class members in excess of the loan principal are Unlawful Charges under the Payday Loan Regulation and therefore seek restitution of or damages for the Unlawful Charges paid by the Plaintiff and Class members, repayment of the Unlawful Charges paid by the Plaintiff and Class members, damages for conspiracy, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(ii) Alberta (continued)

June 3, 2013 Claim

On June 3, 2013, a statement of claim brought under the Alberta Class Proceedings Act was commenced in the Alberta Court of Queen's Bench by Darren Hughes against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

On September 16, 2013, the Court of Queen's bench of Alberta granted a consent order staying this claim in favour of pursuing the Ontario June 4, 2013 Claim(Note 20(a)(v)).

September 18, 2013 Claim

On September 18, 2013, an action in the Court of Queen’s Bench of Alberta was commenced against the Company, certain of its officers and affiliates, including The Cash Store Inc., certain of its associated companies, including The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc., and other corporate defendants, seeking repayment of certain funds advanced to the Company, its affiliates and the associated companies by Assistive Financial Corp.("Assistive"), a former related party third-party lender. An application for interim relief, including the appointment of an inspector, was brought by the plaintiffs and is currently scheduled to be heard by the Court of Queen’s Bench of Alberta on December 12, 2013. The action by Assistive also seeks damages equivalent to $110,000 together with interest thereon at the rate of17.5% per year.

The Company believes the action is wholly without merit and intends to vigorously defend itself. The likelihood and amount of liability, if any, is not determinable at this time.

(iii) Saskatchewan

On October 9, 2012, an action under the Saskatchewan Class Actions Act was commenced in the Saskatchewan Court of Queen’s Bench by John Ironbow against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. on behalf of all persons who, on or after January 1, 2012, borrowed a loan from the Company that met the definition of a “payday loan” proposing that the Company has made payday loans contingent on the supply of other goods or services contrary to s. 29 of the Payday Loans Act, charged or received amounts which are not provided for in the Payday Loans Act or Payday Loans Regulation, contrary to s. 23(5) of the Act, deducting or withholding from the initial advance an amount representing a portion of the cost of borrowing or other charges, contrary to s. 25 of the Payday Loans Act and charging or receiving an amount in excess of 23% of the loan principal, contrary to s. 23(1) and (4) of the Act and s. 14(1) of the Regulation. The plaintiff seeks restitution of damages for unlawful charges paid by the plaintiff and class members, repayment of unlawful charges paid by the plaintiff and class members, damages, interest on all amounts found to be owing and any such associated legal costs.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(iv) Manitoba

April 23, 2010 Claim

On April 23, 2010, an action under the Manitoba Class Proceedings Act was commenced in the Manitoba Court of Queen’s Bench ("Manitoba Court") by Scott Meeking against The Cash Store Financial Services Inc., The Cash Store Inc. and 1152919 Alberta Ltd o/a Instaloans, proposing that a class action be certified on his own behalf and on behalf of all persons in Manitoba and others outside the province who obtained a payday loan from Cash Store or Instaloans. The action stems from the allegations that all payday loan fees collected by the defendants constitute interest and therefore violate s. 347 of the Criminal Code.

A class proceeding in Ontario in McCutcheon v. The Cash Store Inc. et al. was certified in 2006 and settled in 2008. That decision affected Manitoba residents, and presumptively resolved claims with respect to loans borrowed by Mr. Meeking, and other Manitoba residents, on or before December 2, 2008.

The Company asked the Manitoba court to enforce the Ontario settlement against Mr. Meeking. On September 9, 2013, the Manitoba Court of Appeal agreed that the Ontario Superior Court of Justice had properly exercised jurisdiction over Manitoba residents, including Mr. Meeking and his prospective class members, and enforced the Ontario settlement relating to borrowers of payday loans from the Company. However, it concluded that the Ontario judgment is not enforceable in Manitoba against Instaloans customers and for signature and title loans (as opposed to payday loans), as the Manitoba court determine Ontario had not given proper notice to Manitoba residents.

On September 12, 2013, the Manitoba Court certified Mr. Meeking’s claim as a class proceeding. On October 11, 2013, the Company applied for leave to appeal the certification decision.

On November 8, 2013, the Company filed an application for leave to appeal to the Supreme Court of Canada, seeking to appeal the Manitoba Court of Appeal decision that declined to enforce the Ontario settlement against Instaloans customers. The plaintiffs have also filed an application for leave to appeal to the Supreme Court of Canada, seeking to set aside the portion of the Manitoba Court of Appeal decision that enforced the Ontario settlement.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

November 1, 2012 Claim

On November 1, 2012, an action was commenced in Manitoba under The Class Proceedings Act by Sheri Rehill against The Cash Store Financial Services Inc., The Cash Store Inc., Instaloans Inc. and other defendants, on behalf of all persons who, on or after October 18, 2010, borrowed a loan from the Company in Manitoba where that loan met the definition of a “payday loan” as defined by the Payday Loans Act, S.S. 2007, c. P-4.3. The action alleges that the Company made loans contingent on the purchase of another product or service, contrary to s. 154.2 of the Consumer Protection Act, R.S.M. 1987, c. C-200, as am. (CPA), discounted the principal amount of loans by deducting or withholding an amount representing a portion of the cost of credit from the initial advance, contrary to s. 154.1 of the CPA and charging, requiring and accepting amounts in excess of the 17% total cost of credit limit contrary to s. 147(1) of the CPA and s. 13.1 of the Payday Loan Regulation, Man. Reg. 99/2007, as am. The plaintiff pleads for restitution and repayment of all amounts paid by borrowers as a cost of credit for their payday loans, damages for an alleged conspiracy, and interest on all amounts alleged to be owing.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(iv) Manitoba (continued)

November 1, 2012 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(v) Ontario

October 1, 2010 Claim

The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an action in the Superior Court of Ontario against National Money Mart Company (“Money Mart”) on October 1, 2010 for trade-mark infringement under sections 7, 19, 20 and 22 of the Trade-Marks Act, misrepresentation in the form of false and misleading advertising contrary to sections 52 and 74.01 of the Competition Act and the common law tort of passing off. The action relates to a national negative advertising campaign launched by Money Mart featuring the use of the Company’s registered trade-marks alongside negative statements comparing the Company's payday loan products to Money Mart’s loan products. Statements made in the Money Mart advertising campaign include, among other things, that the Company’s loan products are more expensive and less convenient than Money Mart’s and involve more forms and hassle. The Company seeks injunctive relief as well as $60,000in damages in its Statement of Claim. Money Mart filed its statement of defense on May 2, 2011. The parties have settled a discovery plan and the next step in the action is to proceed to discoveries.

The likelihood and amount of gain (or loss), if any, is not determinable at this time.

August 31, 2011 Application

On August 31, 2011, in response to regulatory amendments to come into force on September 1, 2011, The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. commenced an Application for Judicial Review in the Ontario Superior Court of Justice. The Application sought an order declaring that certain of the new amended regulations are outside the scope of the regulation-making authority under the Payday Loans Act, 2008, and were made without due process. The hearing was held on October 2, 2013. On November 5, 2013 the Court dismissed the Company’s application. The Company filed a notice of motion for leave to appeal to the Court of Appeal on November 22, 2013.

August 1, 2012 Claim

On August 1, 2012, an action under the Ontario Class Proceedings Act was commenced in the Ontario Supreme Court of Justice by Timothy Yeoman against The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. and other defendants, claiming on behalf of the plaintiff and class members who entered into payday loan transactions with the Company in Ontario between September 1, 2011 and the date of judgment, that the Company operated an unlawful business model as the Company did not provide borrowers with the option to take their payday loan in an immediate liquid form and thereby misrepresenting the total cost of borrowing as the cost of additional services and devices should have been included.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(v) Ontario (continued)

August 1, 2012 Claim (continued)

The class members plead entitlement to damages and costs of investigation and prosecution pursuant to s. 36 of the Competition Act inclusive of the fees, interest and other amounts that the Company charged to the class members.

By Court order dated August 27, 2013, the plaintiff was permitted to amend the claim to add additional defendants. This amendment further claims that the Company’s lines of credit, offered since February 1, 2013, are payday loans subject to the Payday Loans Act, and are being offered without a payday loans license. The amendment claims that the Company acted in an unlawful conspiracy with the additional defendants.

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

July 5, 2012

On July 5, 2012, The Cash Store Inc. and Instaloans Inc. were charged with the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Guelph (The Cash Store Inc.), Brantford, and Sarnia, Ontario (Instaloans Inc.). The charges were laid in each of the three jurisdictions on July 5, 2012 as a result of investigations made by the Ministry of Consumer Services relating to consumer complaints made by three consumers.

On November 18, 2013, Instaloans Inc. and The Cash Store Inc. pleaded guilty and were convicted of the offence of acting as a lender without being licensed as a lender and without having received notice in writing from the Registrar of the licence, contrary to section 6(1) of the Payday Loans Act, 2008, c.9 in Brantford, Sarnia, and Guelph, Ontario, respectively.  As a result of this plea, The Cash Store and Instaloans Inc. agreed to pay $50per conviction, in addition to a victim fee surcharge of 25%, for a total fine of$188. 

June 4, 2013 Claim

On June 4, 2013, a statement of claim brought under the Ontario Class Proceedings Act was commenced in the Ontario Superior Court of Justice by David Fortier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

Following the stay of the related Alberta claim, an amended statement of claim was issued on October 17, 2013, which, among other things, adds a statutory claim under the Alberta Securities Act. The plaintiffs’ motion seeking leave to pursue a secondary market liability claim under Part XXIII.1 of the Ontario Securities Act and to certify the claim as a class action under the Ontario Class Proceedings Act is currently scheduled to be heard by the Ontario Superior Court of Justice on May 20 and 21, 2014.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(v) Ontario (continued)

June 4, 2013 Claim (continued)

The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

June 7, 2013 Application

On June 7, 2013, an application was commenced in the Ontario Superior Court of Justice pursuant to section 54(1) of the Payday Loans Act, 2008, by the Director designated under the Ministry of Consumer and Business Services Act, naming The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc. as respondents. The application seeks a declaration that the basic line of credit product offered constitutes a ‘payday loan’ under subsection 1(1) of the Payday Loans Act, and seeks orders requiring the Company to obtain a payday loan broker license and restraining the Company from acting as a loan broker of the basic line of credit without a broker’s license. The Application was heard by the Ontario Superior Court of Justice on November 29, 2013. It is unknown when a decision on this matter will be been rendered.

The Company has vigorously defended this application and the likelihood and amount of liability, if any, is not determinable at this time.

(vi)Quebec

On July 11, 2013, a statement of claim brought under the Quebec Class Proceedings Act was commenced in the Quebec Superior Court of Justice by Marianne Dessis and Jean-Jacques Fournier against The Cash Store Financial Services Inc. and certain of its present and former directors and officers. The plaintiff alleges, among other things, that the Company made misrepresentations during the period from November 24, 2010 to May 24, 2013 regarding the Company's internal controls over financial reporting and the value of the loan portfolio acquired from third-party lenders, losses on its internal consumer loan portfolio, and its liability associated with the settlement of the March 5, 2004 British Columbia Class Action (Note 20(a)(i)).

As at September 30, 2013, the Company reached an agreement with the plaintiffs' counsel whereby the plaintiffs will proceed with the Ontario June 4, 2013 claim (Note 20(a)(v)) and seek a stay of the Quebec claim.

(vii)New York

May 20, 2013 Claim

On May 20, 2013, Globis Capital Partners, L.P. filed a civil claim against the Company and Gordon J. Reykdal, Chief Executive Officer, in the United States District Court of the Southern District of New York for alleged violations of Sections 10(a) and 20(a) of the Securities Exchange Act of 1934 claiming unspecified damages.

As at September 30, 2013, this claim has been combined with the June 27, 2013 claim below, given the similarity of the claims.

Note 20 - Litigation, Claims and Contingencies (continued)

(a) Litigation and Claims (continued)

(vii)New York

June 27, 2013 Claim

On June 27, 2013, proposed class action proceedings for violation of U.S. federal securities laws were commenced by lead plaintiff Charles Nutsch in the United States District Court of the Southern District of New York against the The Cash Store Financial Services Inc. and certain of its present and former officers on behalf of purchasers of the common stock of The Cash Store Financial Services Inc. during the period between November 24, 2010 and May 13, 2013, inclusive. The proposed class actions concern alleged misrepresentations made in the Company's quarterly and annual financial statements between November 24, 2010 and May 13, 2013. In particular, the complaints allege that the Company overvalued the consumer loan portfolio acquired from third-party lenders, overstated its net income, understated losses on its internal consumer loans portfolio, and understated its liabilities associated with the settlement of the British Columbia class action.

By order dated July 9, 2013, the court consolidated the May 20, 2013 and June 27, 2013 actions for pretrial purposes. On September 17, 2013, the Court issued an order appointing Globis Capital Partners L.P. and Globis Overseas Funds Ltd. as lead plaintiffs in the class action. The Company is vigorously defending this action and the likelihood and amount of liability, if any, is not determinable at this time.

(viii)Other Matters

The Company is also currently involved in ordinary, routine litigation and administrative proceedings incidental to its business, including regulatory enforcement matters, contractual disputes, individual consumer claims, and employment related matters from time to time. The Company believes the likely outcome of any other pending cases and proceedings will not be material to its business or its financial condition.

(b) Contingencies

(i) Third-Party Lenders

In addition to direct lending, the Company acts as a broker on behalf of consumers seeking short-term advances. The funding for those advances is provided directly to the customers by the third-party lenders. The Company has entered into business arrangements with a number of third-party lenders that are prepared to consider lending to customers. Pursuant to these agreements, services related to the collection of documents and information, as well as loan collection services are provided to the third-party lenders. The agreements also provide that the third party lenders are responsible for losses suffered as a result of uncollectible loans provided the required duties under the terms of the agreements have been properly performed by the Company. In the event the duties are not properly performed and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. The Company’s contingent risk is the balance of the third-party lenders' loan portfolio which totaled $29,865as at September 30, 2013 (2012- $27,792).

To date, no claims have been made by the third-party lenders under the terms of the agreements and no payments have been made or accrued by the Company pursuant to this clause in the agreements. Risk is managed through compliance with the loan limits, procedures and selection criteria established by the lenders.

Note 20 - Litigation, Claims and Contingencies (continued)

(b) Contingencies (continued)

(ii) British Columbia Compliance Order

On March 23, 2012, the Company was issued a compliance order (the “Order”) and administrative penalty from Consumer Protection BC. The Order directs the Company to refund to all borrowers with loan agreements negotiated with the Company or its subsidiaries between November 1, 2009 and the date of the order, the amount of any issuance fee charged, required or accepted for or in relation to the issuance of a cash card. The Order also directed the Company to pay an administrative penalty of $25in addition to costs. On November 30, 2012, Consumer Protection BC issued a supplementary compliance order directing that unclaimed refund amounts, to a maximum of $1,100 be deposited into a consumer protection fund. On December 14, 2012, the Company filed a Petition for Judicial Review in the British Columbia Supreme Court seeking an order quashing or setting aside the Order and Supplemental Order, and seeking declarations that it had not contravened sections 112.04(1)(f) of the Business Practices and Consumer Protection Act, or section 17 and 19 of the Payday Loan Regulation. The Petition was heard by the Court on June 26, 27, and 28, 2013. A decision has not yet been released. The estimated exposure with respect to this order is between $248and $1,100including penalties, legal costs and additional costs. The balance of the accrued liability related to this order as at September 30, 2013 is $187 (2012 - $248).

(iii) Special Investigation

The Company’s Audit Committee was made aware of written communications that contained questions about the acquisition of the consumer loan portfolio from third-party lenders in late January 2012 (the “Transaction”) and included allegations regarding the existence of undisclosed related party transactions in connection with the Transaction. In response to this allegation, legal counsel to a special committee of independent directors of the Company (the “Special Committee”) retained an independent accounting firm to conduct a special investigation.  The investigation followed a review conducted by the Company’s internal auditor under thedirection of the Audit Committee of the Board, and the restatement by the Company in December 2012 of its unaudited interim quarterly financial statements and MD&A for periods ended March 31, 2012 and June 30, 2012.

The investigation covered the period from December 1, 2010 to January 15, 2013 and was carried out over four months.  It involved interviews of current and former officers, directors, employees and advisors of the Company and a review of relevant documents and agreements as well as electronically stored information obtained from Company computers and those of employees, former employees and directors most likely to have information relevant to the investigation.

The Special Committee has reported its findings on the allegations to the Board of Directors and, consistent with the recommendation made to the Board of Directors by the Special Committee, the Board of Directors has determined that no further corrections or restatements of previously reported financial statements and other public disclosures are required in relation to the Transaction.

(c) Regulatory Requirements

The Company's business is regulated by various provincial and federal laws and regulations, which are subject to change and which may impose significant costs or limitations on the way the Company conducts or expands its business. The payday loan industry has seen increased regulation in recent years. While the Company has worked closely with regulators, its business is still significantly impacted by these regulations. Management has been actively planning an upstream transition in both product offerings and services, however this process takes time. Furthermore, its regulatory environment is changing at different paces in different provinces, making it more difficult to plan and implement this transition.

Note 20 - Litigation, Claims and Contingencies (continued)

(c) Regulatory Requirements (continued)

The Company is closely working with the regulatory bodies to manage the impact any regulatory changes will have on its business.

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Commitments

12 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments

Commitments

Operating Lease Commitments

The Company is committed to future minimum annual operating lease payments for office and branch premises, which expire through 2027 as follows:

	Aggregate Lease Payments
2014	$	20,419
2015	14,539
2016	9,628
2017	7,564
2018	5,658
Thereafter	25,281
	$	83,089

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Commitments (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
2014	20,419
2015	14,539
2016	9,628
2017	7,564
2018	5,658
Thereafter	25,281
Total future minimum operating lease payments	83,089

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Obligations under Capital Leases and Other (Tables)

12 Months Ended

Sep. 30, 2013

Leases [Abstract]

Schedule Of Capital Lease Obligation

The Company has entered into capital leasing and other obligation arrangements related to leasehold improvements, office furniture and equipment:

	September 30, 2013
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $71 including imputed interest ranging from 5.0% - 22.7%; due to mature between 2013 - 2027; secured by assets with an aggregate carrying amount of $4,674.	$	6,946	$	2,320	$	4,626
Less current portion	1,612		427		1,185
	$	5,334	$	1,893	$	3,441

	September 30, 2012
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	$	7,281	$	2,493	$	4,788
Less current portion	1,565		385		1,180
	$	5,716	$	2,108	$	3,608

Schedule of Future Minimum Lease Payments for Capital Leases

The capital lease and other obligation repayments are due as follows:

	Aggregate Due		Less Imputed Interest		Net
2014	$	1,612	$	427	$	1,185
2015	973		326		647
2016	855		256		599
2017	506		203		303
2018	300		184		116
2019 and thereafter	2,699		923		1,776
	$	6,945	$	2,319	$	4,626

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Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Property, Plant and Equipment, Percentage Of Depreciation

Property and equipment are carried at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Computer hardware	4 years
Fixtures, furniture, and equipment	5 years
Signs	5 years
Vehicles	5 years

Schedule of Finite-Lived Intangible Assets

Amortization is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Customer list, contracts and relationships	3 years
Computer software	3 - 5 years
Non-compete agreements	Term of the agreements
Favorable supplier relationships	7 years
Proprietary knowledge	5 years
Brand name	Indefinite life

	September 30, 2013
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	—	$	—	$	—
Favorable supplier relationships	14,220		3,433		10,787
Non-compete agreements	15,897		5,386		10,511
Proprietary knowledge	2,280		750		1,530
Computer software	10,162		3,937		6,225
Brand name	5,300		—		5,300
	$	47,859	$	13,506	$	34,353

	September 30, 2012
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	962	$	938	$	24
Favorable supplier relationships	14,220		1,375		12,845
Non-compete agreements	16,031		2,369		13,662
Proprietary knowledge	2,280		300		1,980
Computer software	8,798		2,849		5,949
Brand name	5,300		—		5,300
	$	47,591	$	7,831	$	39,760

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Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Amortization is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Customer list, contracts and relationships	3 years
Computer software	3 - 5 years
Non-compete agreements	Term of the agreements
Favorable supplier relationships	7 years
Proprietary knowledge	5 years
Brand name	Indefinite life

	September 30, 2013
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	—	$	—	$	—
Favorable supplier relationships	14,220		3,433		10,787
Non-compete agreements	15,897		5,386		10,511
Proprietary knowledge	2,280		750		1,530
Computer software	10,162		3,937		6,225
Brand name	5,300		—		5,300
	$	47,859	$	13,506	$	34,353

	September 30, 2012
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	962	$	938	$	24
Favorable supplier relationships	14,220		1,375		12,845
Non-compete agreements	16,031		2,369		13,662
Proprietary knowledge	2,280		300		1,980
Computer software	8,798		2,849		5,949
Brand name	5,300		—		5,300
	$	47,591	$	7,831	$	39,760

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated annual amortization expense for the next five years for intangible assets subject to amortization is as follows:

Fiscal year ending September 30	2014		2015		2016		2017		2018
Amortization expense for intangible assets	$	7,598	$	7,489	$	6,977	$	4,187	$	2,159

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Commitments (Tables)

12 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The Company is committed to future minimum annual operating lease payments for office and branch premises, which expire through 2027 as follows:

	Aggregate Lease Payments
2014	$	20,419
2015	14,539
2016	9,628
2017	7,564
2018	5,658
Thereafter	25,281
	$	83,089

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Comparative Figures

12 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Comparative Figures

Comparative Figures

Certain comparative figures have been reclassified to conform to the presentation adopted for the current period. Specifically, certain amounts previously recorded in restricted cash have been reclassified to cash and certain amounts previously recorded in long term receivable have been reclassified to other receivables, net. Additionally, certain amounts on the consolidated statements of cash flows have been reclassified to conform to the presentation of the current year.

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Consumer Advances Receivable, net (Details 4) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Jan. 31, 2012
Consumer Loans Receivable [Abstract]
January 31, 2012 short-term advances acquisition (Note 5b(i))	1,715	6,585	319,906
Fiscal 2013 Q2 acquired line of credit advances (Note 5b(ii))	47	0
Fiscal 2013 Q3 acquired line of credit advances (Note 5b(ii))	1,173	0	51,491
Fiscal 2013 Q4 acquired line of credit advances (Note 5b(ii))	3,313	0
Carrying amount	6,248	6,585	50,014

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Property and Equipment (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Property, Plant and Equipment [Line Items]
Cost	5,192	4,475
Accumulated Depreciation	3,743	2,612
Net Book Value	1,449	1,863
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Cost	3,531	2,814
Accumulated Depreciation	2,560	1,761
Net Book Value	971	1,053
Fixtures, furniture, and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	1,661	1,661
Accumulated Depreciation	1,183	851
Net Book Value	478	810

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Consumer Advances Receivable, net (Details 3) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Consumer Loans Receivable [Abstract]
Provisions made for credit losses	35,072	31,004	2,559
Impairment of January 31, 2012 acquisition (Note 5 (b)(i))	1,011	0	0
Impairment of purchased lines of credit advances (Note 5 (b)(ii))	524	0	0
Balance, end of period	36,607	31,004	2,559

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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision (recovery) differs from the amount that would be computed by applying the statutory income tax rates of 25.0% (2012 – 26.5%, 2011 – 28.0%) to income as a result of the following:

	September 30, 2011			September 30, 2012			September 30, 2013
Income (loss) before income taxes	$	16,889		$	(56,877	)	$	(35,252	)
Computed tax expense (recovery) at statutory income tax rates	$	4,729		$	(15,072	)	$	(8,813	)
Change in enacted tax rates	(31		)	108			(3		)
Book to filing adjustments and adjustment of prior year immaterial errors	1,180			(245		)	(579		)
Change in valuation allowance	—			1,980			10,166
Stock-based compensation	206			186			110
Rate difference on losses carried back	—			(532		)	(702		)
Permanent differences and other	226			220			101
Total income tax provision (recovery)	$	6,310		$	(13,355	)	$	280

Schedule of Deferred Tax Assets and Liabilities

The tax effects that give rise to significant portions of the deferred income tax assets and liabilities are presented below:

	September 30, 2012			September 30, 2013
Deferred income tax assets:
Current:
Accrued liability for class action settlements and other temporary differences	$	3,919		$	302
Expense to settle pre-existing relationships with third-party lenders	3,814			714
Loss on acquisition of lines of credit advances	—			2,275
Loan loss provision	4,450			2,813
Valuation allowance for current deferred tax assets	—			(6,104		)
	$	12,183		$	—
Non-current:
Losses available to be carried forward	2,404			5,223
Property and equipment	1,782			1,919
Deferred lease inducements	200			112
Deferred revenue	1,032			1,032
Discount on senior secured notes	85			228
Valuation allowance for non-current deferred tax assets	(1,980		)	(6,042		)
	$	3,523		$	2,472
Deferred income tax liabilities:
Intangible assets and goodwill	$	(5,711	)	$	(4,959	)
Deferred financing costs and other	(220		)	(447		)
	$	(5,931	)	$	(5,406	)
Net deferred income taxes	$	9,775		$	(2,934	)

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Other Receivables and Other Income (Detail Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Due from vendors	10,812	12,332
Allowance for doubtful accounts, other receivables	4,357	0
Direct Cash Payments Inc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Due from one vendor	9,802	11,316

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Share Capital (Details 3)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stockholders' Equity Note [Abstract]
Risk free interest rate	1.70%	1.30%
Expected life (years)	5 years	4 years
Expected volatility	47.50%	45.50%
Expected dividends	0.00%	5.30%

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Share Capital (Details 4) (Options To Employees and Directors [Member], CAD)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Options To Employees and Directors [Member]
Nonvested, beginning of period	556,663	473,336
Total options for shares, granted	195,000	325,000
Total options for shares, vested	(260,995)	(239,173)
Total options for shares, forfeited and cancelled	(6,667)	(2,500)
Nonvested, end of period	484,001	556,663
Weighted average exercise price, nonvested, beginning of period	8.80	12.17
Weighted average price, granted	2.58	5.88
Weighted average price, vested	10.59	11.51
Weighted average price, forfeited and cancelled	10.30	8.80
Weighted average exercise price, nonvested, end of period	5.31	8.80

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Per Share Amounts (Details Textual)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive securities	0	0	404,000
Anti-dilutive shares	1,168,335
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	1,168,335	1,219,236	0

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Dividends

12 Months Ended

Sep. 30, 2013

Dividends [Abstract]

Dividends

Dividends

For the year ended September 30, 2013, there were no dividends declared or paid to shareholders.

	September 30, 2012
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.12	November 16, 2011	December 14, 2011	$	2,091
Dividend $0.12	February 8, 2012	March 7, 2012	2,091
Dividend $0.06	May 10, 2012	June 7, 2012	1,039
Dividend $0.06	August 10, 2012	September 7, 2012	1,048
			$	6,269

	September 30, 2011
	Declared effective	Paid to shareholders	Total
Dividend per Common Share
Dividend $0.10	December 6, 2010	December 21, 2010	$	1,710
Dividend $0.12	February 7, 2011	February 21, 2011	2,062
Dividend $0.12	May 9, 2011	May 24, 2011	2,084
Dividend $0.12	August 10, 2011	August 25, 2011	2,073
			$	7,929

The Company reviews its dividend distribution policy on a quarterly basis, evaluating its financial position, profitability, cash flow and other factors that the Board of Directors considers relevant.

The ability to declare and pay dividends is subject to compliance with a restricted payment covenant stipulated in the Indenture governing the Notes. The Company remains in compliance with all covenants under this Indenture.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
OPERATING ACTIVITIES
Net income (loss)	(35,532)	(43,522)	10,579
Items not affecting cash:
Depreciation of property and equipment	8,160	7,678	7,950
Amortization of intangible assets	7,517	5,138	965
Impairment of assets	1,236	3,425	0
Provision for credit losses - Note 5	36,607	31,004	2,559
Expense to settle pre-existing relationships with third-party lenders - Note 3	0	36,820	0
Stock-based compensation	439	733	786
Accretion of long-term debt discount and amortization of deferred financing costs	2,469	1,466	0
Deferred income taxes	12,709	(9,784)	153
Change in non-cash working capital:
Consumer advances receivable, net - Note 5	(29,759)	(8,649)	(2,744)
Other receivables and long-term receivables	11,001	(6,685)	(3,666)
Prepaid expenses, deposits and other assets	(1,595)	559	(2,408)
Income taxes receivable	(11,107)	(4,576)	138
Accounts payable and accrued liabilities	(1,442)	2,915	2,942
Income taxes payable	0	(138)	(2,116)
Deferred revenue	(999)	(1,194)	(1,217)
Deferred lease inducements	(402)	(151)	106
Net cash provided by (used in) operating activities	(698)	15,039	14,027
INVESTING ACTIVITIES
Acquisition of short-term advances (Note 5b(i))	0	(27,235)	0
Expense to settle pre-existing relationships with third-party lenders - Note 3	0	(36,820)	0
Business acquisitions	0	0	(25)
Purchase of intangible assets	(1,461)	(31,068)	(895)
Purchase of property and equipment	(3,044)	(4,713)	(6,826)
Net cash provided by (used in) investing activities	(4,505)	(99,836)	(7,746)
FINANCING ACTIVITIES
Repayment of obligations under capital leases and other obligations	(1,528)	(961)	(778)
Proceeds from issuance of senior secured notes - Note 13	0	102,577	0
Restricted cash (Note 4)	(2,166)	6,281	(3,100)
Funding from (paid to) third-party lenders	(1,207)	(2,697)	0
Deferred financing costs	0	(8,297)	(14)
Dividends paid on common shares - Note 18	0	(6,269)	(7,929)
Issuance of common shares	257	292	2,092
Net cash provided by (used in) financing activities	(4,644)	90,926	(9,729)
INCREASE (DECREASE) IN UNRESTRICTED CASH	(9,847)	6,129	(3,448)
UNRESTRICTED CASH, BEGINNING OF PERIOD	16,063	9,934	13,382
UNRESTRICTED CASH, END OF PERIOD	6,216	16,063	9,934
Supplemental cash flow information:
Interest paid	15,760	7,841	147
Interest received	39	4	30
Income taxes paid (received)	(1,137)	1,204	8,132
Non-cash investing and financing activities:
Addition of capital lease obligations and other obligations	1,366	4,454	121
Addition of consumer loans portfolio in exchange for senior secured notes	0	22,779	0
Addition of intangible asset due to taxable difference on acquisition	0	2,524	0
Addition of goodwill due to taxable difference on acquisition	0	552	0
Addition of property and equipment included in accounts payable and accrued liabilities	62	515	283

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Subsequent Event (Details) (CAD)	Sep. 30, 2013 Senior Secured Notes [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period One [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Two [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Three [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Four [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Five [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Six [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Seven [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Eight [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Nine [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Ten [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Elevan [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Covenant, Period Twelve [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Redemption, Period One [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Redemption, Period Two [Member]	Nov. 29, 2013 Subsequent Event [Member] Credit Agreement [Member] Debt Instrument, Redemption, Period Three [Member]	Nov. 29, 2013 424187 Alberta Limited [Member] Subsequent Event [Member] Credit Agreement [Member]	Nov. 29, 2013 Coliseum Capital Management, LLC [Member] Subsequent Event [Member]	Nov. 29, 2013 Coliseum Capital Management, LLC [Member] Subsequent Event [Member] Credit Agreement [Member]
Subsequent Event [Line Items]
Amount outstanding		12,000,000																2,000,000		5,000,000
Interest rate, stated percentage	11.50%	12.50%
Credit agreement, default, increase in interest rate		2.00%
Remaining borrowing capacity		20,500,000
Maximum borrowing capacity		32,500,000
Credit agreement, covenant, maximum outstanding amount to unrestricted cash		75.00%
Credit agreement, covenant, maximum outstanding amount to customer advances receivable		75.00%
Credit agreement, covenant, number of days customer advances receivable outstanding		90 days
Credit agreement, covenant, required payment period if borrowing base is exceeded		20 days
Credit agreement, redemption, prepayment fee, percent															4.00%	3.00%
Credit agreement, redemption, prepayment fee, amount																	0
Credit agreement, covenant, Adjusted EBITDA			4,000,000	10,000,000	17,000,000	25,000,000	23,625,000	26,250,000	26,875,000	27,500,000	28,125,000	28,750,000	29,375,000	30,000,000
Percentage of stock owned by third party																			17.80%

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Significant Accounting Policies

12 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

(a) Basis of Presentation

The consolidated financial statements have been prepared by management in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

All figures are presented in Canadian dollars, unless otherwise disclosed.

(b) Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses during the reporting periods, and disclosures reported in these consolidated financial statements and accompanying notes. Certain significant judgments, estimates and assumptions, such as those related to the allowance for credit losses, valuation of acquired loans and lines of credit advances, valuation of goodwill and intangible assets, expense to settle pre-existing relationships with third-party lenders, deferred income taxes, the inputs in the calculation of financial covenants under the Indenture governing the senior secured notes, and accrued liabilities related to litigation and claims, depend upon subjective or complex judgments about matters that may be uncertain, and changes in those estimates could materially impact the consolidated financial statements. Actual results could differ from those estimates made by management.

(c) Risks and Uncertainties

The Company's future operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to differ materially from expectations include, but are not limited to, the application of laws and regulations to the Company's business (Note 20), the Company's ability to manage credit risk and continued access to capital. The Company manages these risks through operational and legal efforts, and continual evaluation of credit loss experience.

Note 1 – Significant Accounting Policies (continued)

(c) Risks and Uncertainties (continued)

The Company’s business depends on the willingness of third-party lenders to make significant funds available for lending to the Company’s customers and to purchase loans that the Company has made. There are no assurances that existing or new third-party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a material adverse impact on the Company’s results of operations and financial condition.

(d) Revenue Recognition

Revenue arising from the direct lending of consumer advances (including: short-term advances and line of credit advances) to customers is recognized on a constant yield basis ratably over the term of the related loan, in loan fees in the consolidated statement of operations. Direct loan origination costs are deferred and recognized as a reduction in the yield of the related loan over its life. The Company charges late interest and default fees on direct lending loans in default status. Late interest and default fees are recorded once collected in other income.

Revenue from brokering short-term advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage fee has been collected. Late interest and default fees are recorded once collected in other income.

Revenue from brokering and the credit assessment of lines of credit advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage and credit assessment fees have been collected.

Included in other income in the consolidated statement of operations is revenue from insurance products, card fees, banking services, interest and default fees collected, money transfers, cheque cashing, and other miscellaneous services and fees. For these services, revenue is recognized when the services are rendered at the point-of-sale in the branch and the related fees charged have been collected from the customer. Services where the Company acts as an agent on behalf of third-party providers include banking services, card products, money transfers, bill payment services, and insurance products and are classified as agency fee income in Note 6(b).

(e) Retention Payments

When the Company acts as a broker on behalf of income earning consumers seeking short-term advances and lines of credit advances, the funding is provided by third-party lenders. The short-term advances and lines of credit advances provided by the third-party lenders are repayable by the customer to the third-party lenders and represent the assets of the lenders; accordingly, they are not included on the Company’s consolidated balance sheet.

To facilitate the short-term advance and lines of credit advance business, the Company has entered into agreements with third-party lenders who are prepared to lend to the Company’s customers. Pursuant to these agreements, the Company provides services to the lenders related to the collection of documents and information as well as loan collection services. Under the terms of the Company’s agreements with third-party lenders, responsibility for losses suffered on account of uncollectible advances rests with the third-party lender, unless the Company has not properly performed its duties as set forth under the terms of the agreement. The significant duties under the terms of the agreements generally include ensuring that any proposed short-term advance or line of credit advance was applied for through an authorized outlet, ensuring

Note 1 – Significant Accounting Policies (continued)

(e) Retention Payments (continued)

each potential customer meets the short-term advance or line of credit advance selection criteria as set forth by the third-party lender prior to approval and release of funding, satisfying the documentation requirements in a full and timely manner, providing loan management services throughout the term of the short-term advance or line of credit advance and providing collection services on behalf of the third-party lender for all short-term advances and lines of credit advances funded which are not paid in full by the due date, all of which while ensuring information system integrity is maintained. In the event the Company does not properly perform its duties and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. A liability is recorded when it is determined that the Company has a liability under the agreement.

The Company’s Board of Directors (the "Board of Directors") regularly approves a resolution which authorizes management to pay a maximum annual amount of retention payments per quarter to the third-party lenders as consideration to those lenders that continue to be willing to fund advances to the Company’s customers. While the third-party lenders have not been guaranteed a return, the decision has been made to voluntarily make retention payments. Retention payments are recorded in the period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.

Also included in retention payments are amounts paid to third-party lenders to purchase lines of credit advances that exceed the advance's fair value. The arrangements with the third-party lenders permit the Company, at its discretion to purchase advances brokered for consideration of at least its fair value.  

(f) Provision for Credit Losses

Advances in default consist of direct lending consumer advances originated by the Company which are past due. The Company defines a past due or delinquent advance whereby payment has not been received in full from the customer on or before its contractual due date. A provision for credit loss is recorded when the Company no longer has reasonable assurance of timely collection of the full amount of principal and interest.

In determining whether the Company will be unable to collect all principal and interest payments due, the Company assesses relevant internal and external factors that affect loan collectability, including the amount of outstanding advances owed to the Company, historical percentages of advances written off, current collection patterns and other current economic trends. The provision for credit losses reduces the carrying amount of consumer advances receivables to their estimated realizable amounts. The provision is primarily based upon models that analyze specific portfolio statistics, and also reflects, to a lesser extent, management’s judgment regarding overall accuracy. The provision is reviewed monthly, and any additional provision as a result of historical loan performance, current and expected collection patterns and current economic trends is included in the provision for credit losses at that time.

In the prior year, the Company's policy for charging off uncollectible consumer advances originated by the Company was to write the advance off when an advance remained in default status for an extended period of time without any extended payment arrangements made. During the quarter ended September 30, 2013, the Company changed the methodology for estimating the provision for loan losses in order to reduce the estimation uncertainty inherent in this provision, improve the accuracy of the amounts recorded with the benefit of additional history in originating loans, and improve comparability with financial information reported by its competitors who charge-off past due amounts at an earlier date. The Company now fully charges off consumer advances receivable when the advances remain in default status for 90 days. This change resulted in the acceleration of the point in time when consumer advances receivable are fully provided for.

Note 1 – Significant Accounting Policies (continued)

(f) Provision for Credit Losses (continued)

In accordance with FASB ASC No. 250 - Accounting Changes and Error Corrections, ("ASC 250"), the Company has determined that this a change in estimation methodology and accordingly is a change in estimate. The impact of this change in methodology resulted in an increase in the provision for consumer loan losses during the year ended September 30, 2013 of$5,218. Advances to customers who file for bankruptcy are written off upon receipt of the bankruptcy notice. Recoveries on amounts previously written off are credited against the provision for credit losses expense.

(g) Stock-Based Compensation

The Company has a stock-based compensation plan for employees and the Board of Directors, which is described in Note 16. The Company accounts for all stock-based compensation payments that are settled by the issuance of equity in accordance with a fair value-based method of accounting. Stock-based compensation awards are recognized in the consolidated financial statements over the period in which the related services are rendered, which is usually the vesting period of the option, or as applicable, over the period to the date an employee is eligible to retire, whichever is shorter, with a corresponding increase recorded in contributed surplus. The fair value is calculated using the Black-Scholes option-pricing model.

When options are exercised, the proceeds received by the Company, together with the amount in additional paid-in capital associated with the exercised options, are credited to share capital.

(h) Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised, and that proceeds from such exercises were used to acquire common shares at the average market price during the reporting period.

(i) Consumer Loans Receivable

Consumer Advances Originated by the Company

Unsecured short-term advances that the Company originates on its own behalf are reflected on the balance sheet in consumer advances receivable. Consumer advances receivable are reported net of an allowance for credit losses described above in “Provision for Credit Losses - Note 1(f)” and any deferred fees or costs. Origination fees on these advances, net of certain direct origination costs, are deferred and recognized as an adjustment of yield in interest income using the effective interest method.

The Company does not accrue interest when consumer advances are considered impaired. When ultimate collectability of the principal balance of the impaired advances is in doubt, all cash receipts on impaired advances are applied to reduce the principal amount of such advances until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and any increases in the allowance are charged to the provision for credit losses. Advances are written off against the allowance when all possible means of collections have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired advance.

Note 1 – Significant Accounting Policies (continued)

(i) Consumer Loans Receivable (continued)

Acquired Short-Term Advances and Lines of Credit Advances (continued)

Acquired Short-Term Advances and Lines of Credit Advances

Short-term advances and line of credit advances acquired from the Company’s third-party lenders fall within the scope of FASB ASC 310-30, “Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality” as there is evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected. As such, acquired short-term advances and line of credit advances are accounted for separately from short-term advances and line of credit advances originated by the Company and are initially recorded at fair value, which represents expected cash flows discounted at a market rate of interest. The Company’s estimate of fair value of acquired short-term advances and line of credit advances includes assumptions regarding the amount and timing of both principal and interest payments, future credit losses, prepayments and discount rates. A provision for credit losses is not recorded at the acquisition date on acquired short-term advances because the fair value incorporates an estimate of expected credit losses. A loss on the acquisition of lines of credit advances is included in retention payments expense if the purchase price is greater than the fair value of the pooled portfolio of line of credit advances acquired. Advances acquired on a quarterly basis that have similar risk characteristics, primarily credit risk and underwriting criteria, are pooled and accounted for as a single asset with an aggregate expectation of cash flows.

Income recognition on acquired short-term advances and line of credit advances is based on a reasonable expectation of the timing and amount of cash flows to be collected. The expected cash flows in excess of the estimated fair value are recorded as interest income over the remaining life of the loan (accretable difference). The excess of contractual principal and interest over the expected cash flows is not recorded (non accretable difference). Subsequent to the acquisition date, any increases in cash flow over those expected at the purchase date in excess of the fair value that are significant and probable are recorded as an adjustment to the accretable difference on a prospective basis. Any subsequent decreases in cash flow below those expected at the purchase date that are significant and probable are recognized through an immediate reduction in the carrying amount of the portfolio and are included in the provision for credit loss expense.

The determination of fair value of acquired short-term advances and line of credit advances relies on estimates and significant judgments regarding future collections. Changes in those estimates could materially impact the consolidated financial statements.

Transfer of Short-Term Advances

Short-term advances that the Company has originated on its own behalf may be transferred to third-party lenders in exchange for cash. Advances transferred to the third-party lenders are done at fair value and the related advances are derecognized from the consolidated balance sheet . The determination of fair value relies on estimates and judgments regarding future collections using the methodology described in Note 1(f) to these consolidated financial statements.

Under the terms of the arrangements with the Company’s third-party lenders, the Company is maintained as the lender on record for the transferred advances and must continue to collect, maintain and enforce such advances on the third-party lenders behalf in all respects. The Company must pay a participation fee to the third-party lenders based on the principal of all advances collected for the agreed term of the advance at a rate that is equivalent to the interest rate accrued on the transferred advance. The participation fee is recorded in retention payments expense.

Note 1 – Significant Accounting Policies (continued)

(j) Income Taxes

Income taxes are accounted for under the asset and liability method. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognized for the deferred income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Valuation allowances are recorded to reduce any deferred income tax assets to the amounts management concludes is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in corporate expenses.

(k) Fair Value of Financial Instruments

Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company does not use derivative financial instruments.

The fair values of financial instruments are determined with respect to the hierarchy that prioritizes the input to fair value measurement. In the absence of an active market, the Company determines fair value by using valuation techniques that refer to observable market data or estimated market prices. Fair values are inherently judgmental, thus the estimated fair values do not necessarily reflect amounts that would be received or paid in case of immediate settlement of these instruments. The use of different estimations, methodologies and assumptions could have a material effect on the estimated fair value amounts.

(l) Restricted Cash

Any cash provided to the Company for which withdrawal or use is restricted is classified as restricted cash.

(m) Long-Term Investments

The Company has long-term investments in The Cash Store Australia Holdings Inc. (“AUC”) and RTF Financial Holdings Inc. (“RTF”). The Company accounts for its long-term investments using the equity method of accounting as it has significant influence over the strategic operating, investing and financing activities due to board representation. The carrying amount of these long-term investments is $nil.

Note 1 – Significant Accounting Policies (continued)

(n) Deferred Financing Costs

Underwriting, legal and other direct costs incurred in connection with the issuance of debt are included in deferred financing costs. Amortization of deferred financing costs is calculated using the effective interest method over the term of the related debt and recorded as interest expense.

(o) Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Computer hardware	4 years
Fixtures, furniture, and equipment	5 years
Signs	5 years
Vehicles	5 years

Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term and the estimated useful life of the asset. Repairs and maintenance costs are expensed as incurred.

(p) Intangible Assets

Intangible assets acquired as part of a business combination are initially recognized and measured at fair value. Intangible assets acquired individually or as part of a group of other assets that are not considered a business combination are recorded at cost.

The Company accounts for internally developed software costs in accordance with Accounting Standards Codification ("ASC") 350-40, "Internal Use Software," which requires the capitalization of certain costs incurred in connection with developing or obtaining software for internal use. The Company capitalizes internal use software if that software meets the following criteria:

• The software is acquired, internally developed or modified solely to meet the Company's internal needs; and

• No substantive plan exists or is being developed to market the software externally.

If these two criteria are met, the Company will capitalize labor costs of full time and temporary employees working directly on the development or modification of internal use software and hardware and software purchased specifically for the internal use software. Capitalized costs are depreciated over the estimated useful lives when the software is complete and ready for its intended use.

Amortization is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Customer list, contracts and relationships	3 years
Computer software	3 - 5 years
Non-compete agreements	Term of the agreements
Favorable supplier relationships	7 years
Proprietary knowledge	5 years
Brand name	Indefinite life

Note 1 – Significant Accounting Policies (continued)

(q) Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is assigned, as of the date of the business combination, to reporting units that are expected to benefit from the business combination Goodwill is not amortized, but instead is assessed for impairment annually or more frequently if events or changes in circumstances indicate that it may be impaired, as described in Note 1(r).

(r) Impairment

Property and equipment and intangible assets subject to amortization

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of these assets which may include: applicable industry performance and prospects, general business and economic conditions that prevail and are expected to prevail, expected growth, maintaining its customer base, and achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of these assets. Furthermore, the process ofdetermining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates.

An asset group is the lowest level for which there are separate identifiable cash flows. For property and equipment, an asset group typically represents an individual branch. Any assets to be disposed of by sale are reported at the lower of carrying amount or fair value less costs to sell. Such assets are not depreciated while they are classified as held-for-sale.

For intangible assets subject to amortization, which include non-compete agreements, favourable supplier relationships, proprietary knowledge and software intangibles, impairment testing is performed using the expected undiscounted cash flows of the Canadian reporting unit.

As a result of the factors discussed in Note 8 that required a recoverability test to be performed over certain branches and corporate assets, the Company also performed a recoverability test on the asset group containing its intangible assets subject to amortization. The Company determined that the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the Canadian reporting unit was greater than the carrying amount of the Canadian reporting unit and accordingly no impairment existed.

Note 1 – Significant Accounting Policies (continued)

(r) Impairment (continued)

Goodwill and brand name

Goodwill and the brand name intangible asset are tested for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances indicate the asset might be impaired.

The brand name impairment test consists of a comparison of the fair value of the brand name with its carrying value. If the carrying amount exceeds its fair value, an impairment is recognized equal to the amount of the excess.

The Company assesses qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. If the qualitative assessment results in a determination that goodwill has more-likely-than-not been impaired, the Company performs the two-step goodwill impairment test. In the first step, the carrying amount of the reporting unit, including goodwill, is compared to its fair value. When the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired and the second step of the impairment test is unnecessary. The second step is carried out when the carrying amount of a reporting unit exceeds its fair value, in which case, the impliedfair value of the reporting unit's goodwill, determined in the same manner as the value of goodwill is determined in a business combination, is compared with its carrying amount to measure the amount of the impairment loss, if any.

As a result certain events and circumstances, including recent operating results and regulatory matters, the Company completed an impairment test on goodwill and the Instaloans brand name on June 30, 2013 and determined that there was no impairment of goodwill as the fair value of the Company's Canadian reporting unit exceeded its carrying value and the fair value of the Instaloans brand name exceeded its carrying value as at June 30, 2013. The Company performed its annual impairment assessment on July 1, 2013 and no impairment was identified.

(s) Litigation Accruals

In view of the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company cannot state with confidence what the eventual outcome of pending matters will be, what the timing of the ultimate resolution of these matters will be, what the eventual loss, fines, or penalties related to each pending matter may be, or the extent to which such amounts may be recoverable under the Company's insurance policies.

In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters when those matters present loss contingencies which are both probable and estimable. When loss contingencies are not both probable and estimable, the Company does not establish reserves. In the matters described in Note 20, loss contingencies are not both probable and estimable in the view of management, and accordingly, reserves have not been established for those matters. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending litigation and regulatory matters, including the litigation and regulatory matters described in Note 20, will have a material adverse effect on the consolidated financial position or liquidity of the Company, but may be material to the Company's result of operations for any particular reporting period.

Note 1 – Significant Accounting Policies (continued)

(t) Deferred Revenue

The Company has entered into a long-term services contract for which it received an advance payment. The advance payment was recorded as deferred revenue and is recognized as revenue using the straight-line method over the life of the contract.

(u) Leases

Leases are classified as capital or operating depending upon the terms and conditions of the related contracts. Assets under capital leases are recorded as property and equipment with a corresponding obligation. Obligations under capital leases are reduced by lease payments net of imputed interest. Computer and phone operating lease expenses are recorded in selling, general, and administrative expenses. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. Branch operating leases are recorded in branch operating expense within the rent caption.

(v) Branch Operating and Corporate Expenses

The direct costs incurred in operating the Company’s branch network have been classified as branch operating expenses. These costs include salaries and benefits of branch and regional employees, retention payments, rent expense, provision for loan losses, advertising and promotion, depreciation of branch property and equipment, and other costs incurred by the branches. Corporate expenses incurred by the Company are excluded from branch operating expenses, and include salaries and benefits of corporate employees, corporate rent, professional fees and legal costs.

(w) Branch Closure Costs

Branch closure costs represent management's estimate of severance payments, costs to clean and vacate the premises, losses related to the write-off of leasehold improvements and signage, and lease cancellation expenses related to closing a branch. Additionally, closing or consolidating branches could result in the impairment of receivables, long-lived assets, or goodwill. A liability for severance payments, unless contractually obligated, is recognized when management: (i) decides to close a center and this plan is unlikely to change; (ii) determines that an employee cannot be relocated to another center; and (iii) informs the employee of the termination and the benefits that will be paid. Costs to terminate the lease are recorded at the earlier of the date the lease is terminated or the date the leased property is no longer used. All other expenses are recorded when incurred.

(x) Foreign Currency

The financial statements of the Company’s operations in the United Kingdom have been translated into Canadian dollars. Monetary assets and liabilities are translated at the current exchange rate at each period end while non-monetary assets and liabilities are translated at historical exchange rates. Statement of operations items are translated at the average exchange rate for the period. Resulting translation adjustments are included in corporate expenses. Gains or losses from foreign currency transactions are included in corporate expenses.

(y) Operating Segments

The Company conducts business through two operating segments: Canada and the United Kingdom. For reporting purposes the Canada and united Kingdom operating segments are aggregated for based on the similar nature of the operations, customers, and regulatory environment.

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Cash

12 Months Ended

Sep. 30, 2013

Cash and Cash Equivalents [Abstract]

Cash

Cash

The significant components of cash are as follows:

	September 30, 2012		September 30, 2013
Cash	$	16,063	$	6,216
Restricted cash	3,076		5,242
	$	19,139	$	11,458

As at September 30, 2013, restricted cash includes $666 (September 30, 2012 - $635) of funds held by a financial institution as security related to banking arrangements and $4,575 (September 30, 2012 - $2,441) advanced from third-party lenders in excess of consumer loans written to customers.

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Property and Equipment (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Property, Plant and Equipment [Abstract]
Depreciation of property and equipment under capital leases	1,131	796	165
Property and equipment, additions	717	1,401	121
Property and equipment, impairment charges	1,236	3,425	0

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Changes in Accounting Policies and Practices

12 Months Ended

Sep. 30, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Changes in Accounting Policies and Practices

Changes in Accounting Policies and Practices

The following standards were adopted for the year ended September 30, 2013:

In September 2011, FASB issued ASU No. 2011-08 “Intangibles – Goodwill and Other”. This ASU allows companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. The ASU is effective for fiscal years beginning after December 15, 2011. The adoption of the provisions of ASU No. 2011-08 has not had a material impact on the Company’s consolidated financial statements.

In December 2011, FASB issued ASU No. 2011-11 “Disclosures about Offsetting Assets and Liabilities”. This ASU attempts to provide users of financial statements with information to understand the extent of offsetting in the statement of financial position and improve comparability between International Financial Reporting Standards and U.S. GAAP. The adoption of the provisions of ASU No. 2011-11 has not had a material impact on the Company’s consolidated financial statements.

In July 2012, FASB issued ASU No. 2012-02 “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. This ASU attempts to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with “Intangibles – Goodwill and Other – General Intangibles Other than Goodwill (Subtopic 350-30)”. The adoption of the provisions of ASU No. 2012-02 has not had a material impact on the Company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted:

In February 2013, FASB issued ASU No. 2013-04 “Liabilities – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date - (Topic 405)”. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date except for obligations addressed within existing guidance in U.S. GAAP. ASU No. 2013-04 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2013. The Company is currently evaluating the impact of the adoption of the provisions of ASU No. 2013-04 on its consolidated financial statements.

In July 2013, FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists - (Topic 740).” This ASU provides guidance on the financial statement presentation of unrecognized tax benefits when an operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2013. The Company is currently evaluating the impact of the adoption of the provisions of ASU No. 2013-11 on its consolidated financial statements.

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Goodwill (Tables)

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

	September 30, 2012		September 30, 2013
Balance, beginning of period	$	39,133	$	39,685
Goodwill acquired	—		—
Other	552		—
Balance, end of period	$	39,685	$	39,685

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Related Party and Other Transactions

12 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party and Other Transactions

Related Party and Other Transactions

(a) The Cash Store Australia Holdings Inc. ("AUC")

The Company owns 3,000,000 shares, or approximately 18.3%of the outstanding common shares of AUC, acquired at a price of $0.06per share. The carrying amount of this investment is $nil as at September 30, 2013 (September 30, 2012 - $nil). At September 30, 2013, the aggregate quoted market value of the Company’s investment in AUC was $nil (September 30, 2012 - $570). In December of 2012 the Alberta, Ontario and British Columbia Securities Commissions issued cease trade orders in respect of the shares of AUC for failure to file financial statements. On September 13, 2013, AUC's operating subsidiary appointed a voluntary administrator pursuant to Section 436A of the Australian Corporations Act 2001. In the opinion of the directors of AUC, AUC is insolvent. The Administrator has taken control of the operations and assets and the application to have the cease trade orders revoked have been withdrawn by AUC.

The Company previously provided administrative services to AUC. The Company had a services agreement with AUC to provide ongoing services such as financial and accounting support, administrative services, and the use of the Company’s information technology and telecommunication systems.

Included in corporate expenses is a recovery of $nil (2012 - $284, 2011 - $363) relating to these services. These transactions were subject to normal trade terms and were measured at the transaction amount. As at September 30, 2013, the Company has a $nil(September 30,2012 - $3) receivable from AUC. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment.

(b) RTF Financial Holdings Inc. ("RTF")

The Company owns 6,000,000shares, or approximately 15.7%, of RTF acquired at a price of$0.06per share.The carrying amount of this investment is $nil as at September 30, 2013 (September 30, 2012 - $nil). No aggregate quoted market value of the Company’s investment in RTF exists as the company is not publicly traded.

The Company had a services agreement with RTF to provide ongoing services such as financial and accounting support and contracts administrative services.

Included in corporate expenses is a recovery of $nil (2012- $140, 2011- $240) relating to these services. These transactions were subject to normal trade terms and were measured at the transaction amount.

As at September 30, 2013, the Company has a $1 (September 30, 2012 - $nil) receivable from RTF. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment.

Note 21 – Related Party and Other Transactions (continued)

(c) Third-party Lenders

(i) Assistive Financial Corp. ("Assistive"), a privately held entity that raised capital and provided advances to the Company’s customers is controlled by the father of Cameron Schiffner, the former Senior Vice President of Operations of the Company. In addition, Cameron Schiffner’s brother was a member of management of AUC and is a member of management of Assistive.

On September 11, 2013, Cameron Schiffner's employment with the Company was terminated and Assistive is no longer considered a related party. On September 18, 2013, Assistive commenced an action in the Court of Queen's Bench of Alberta against the Company (Note 20(a)(ii)).

Included in retention payments are$993 (2012- $4,185, 2011- $11,674) of amounts paid or payable directly to Assistive. As atSeptember 30, 2013, included in accrued liabilities is$485 (September 30, 2012- $659) due to Assistive. This amount has also been included in the Company's restricted cash balance. During the year ended September 30, 2012, the Company transferred consumer advances receivable, net of the provision for loan losses, of $3,914to Assistive for consideration of $3,914. The Company’s contingent risk in Assistive's loan portfolio totaled $84as at September 30, 2013 (September 30, 2012- $7,240).

As part of the acquisition of the consumer advances portfolio on January 31, 2012 as described in Note 3, $45,520of the total purchase consideration was paid to Assistive, of which$14,407is an estimate of Assistive’s proportionate share of the expense to settle pre-existing relationships, which wasapproximated based on the proportion of the consideration paid to each third-party lender. The acquisition agreement was signed on behalf of Assistive by Cameron Schiffner’s brother.

(ii) An immediate family member of Michael Shaw, a former director of the Company, advanced funds to a privately held entity that raised capital and provided advances to the Company’s customers (third-party lender) and acted as a third-party lender prior to the acquisition of the consumer advances portfolio on January 31, 2012.

On July 31, 2013, Michael Shaw resigned from the Board of Directors and is no longer a related party.

There have been no transactions between the Company and this third-party lender subsequent to January 31, 2012. Included in retention payments are $nil (2012- $1,377, 2011- $4,801) of amounts paid or payable directly to this third-party lender. As atSeptember 30, 2013, included in accrued liabilities is $nil (September 30, 2012- $nil) due to this third-party lender. The Company’s contingent risk in this third-party lender’s consumer advances portfolio totaled $nilas at September 30, 2013 (September 30, 2012- $nil).

As part of the acquisition of the short-term advances portfolio on January 31, 2012 as described in Note 3, $23,944 of the total purchase consideration was paid to this third-party lender of which $7,578is an estimate of this third-party lender’s proportionate share in the expense to settle pre-existing relationships which was approximated based on the proportion of the consideration paid to each third-party lender.

(iii) A privately held entity that began acting as a third-party lender after January 31, 2012 is controlled by Bruce Hull, who is a former director of AUC.

On June 18, 2013, Bruce Hull resigned from the Board of Directors of AUC and is no longer a related party.

Note 21 – Related Party and Other Transactions (continued)

(a) Third-party Lenders (continued)

Included in retention payments are $24 (2012 - $36, 2011 - $nil) of amounts paid or payable directly to this third third-party lender. As at September 30, 2013, included in accrued liabilities is $183 (September 30, 2012 - $166) due to this third-party lender. This amount has been included in the Company’s restricted cash balance. The Company’s contingent risk in this third-party lender’s consumer advances portfolio totaled $104as atSeptember 30, 2013 (September 30, 2012 - $171).

All transactions with third-party lenders have been measured at the transaction amount, which is the amount of consideration agreed to by the Company and the third-party lenders.

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Subsequent Event

12 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On November 29, 2013 the Company entered into a credit agreement (the “Credit Agreement”) with Coliseum Capital Management, LLC (“Coliseum”), 8028702 Canada Inc. and 424187 Alberta Ltd. (“Alberta Ltd.”) (collectively, the “Lenders”), pursuant to which the Lenders have provided $12,000 of loans.

Pursuant to the Credit Agreement, 424187 Alberta Ltd. (the “Agent”) acts as agent for the Lenders. The loans made under the credit facility bear interest at 12.5% per annum, payable monthly in arrears, on the 29th day of each month. If an event of default occurs under the Credit Agreement, the interest rate is increased by 2% for so long as the event of default remains. The Credit Agreement provides that an additional $20,500 may be advanced for a total maximum loan amount of $32,500. The Lenders have a right of first refusal in respect of any additional advances. If the Lenders do not exercise their right of first refusal, the Company is free to obtain loan advances from other lenders who agree to become party to the Credit Agreement. The loans outstanding at any time are subject to the requirement that the maximum amount outstanding cannot exceed 75% of the unrestricted cash of the Company plus 75% of the net consumer advances receivable of the Company not more than 90 days in arrears (the “Borrowing Base”). If the total amount outstanding under the loan at any time exceeds the Borrowing Base, the Company must repay to the Initial Lenders, on a pro rata basis, an amount which will result in the loans not being in excess of the Borrowing Base. Such payment must be made within 20 days of the month end in which the Borrowing Base was exceeded.

Loans made under the Credit Facility mature on November 29, 2016 (the “Maturity Date”) or on such earlier date as the principal amount of all loans owing from time to time plus accrued and unpaid interest and all other amounts due under the Credit Agreement may become payable under the Credit Agreement. The Company may repay the loans at any time subject to payment of a prepayment fee as follows:

(a) If the prepayment is on or before November 29, 2014, the greater of (A) the interest that would accrue if the amount were to remain outstanding until November 29, 2014 and (B) 4% of the amount;

(b) If the prepayment is after November 29, 2014 but on or prior to November 29, 2015, 3% of the amount; and

(c)    If the prepayment is after November 29, 2015, no fee.

The Company has agreed to designate the loans made under the Credit Agreement as priority lien debt and obtain the benefit of the security granted by the Company pursuant to the Collateral Trust and Intercreditor Agreement entered into in connection with the Company’s 11.5% senior secured notes.

The Company believes this Credit Agreement to be important in achieving the Company’s long-term strategic plans and will fund operations and growth in key business areas.

In addition to certain covenants relating to the payment of the loans and the authority of the Company to enter into the Credit Agreement, the Company has covenanted in favour of the Lenders:

(a)    to comply with the covenants granted to the holders of the 11.5% senior secured notes;

(b)    not to designate any additional debt under the Collateral Trust Agreement; and

(c) to meet the following Adjusted EBITDA targets on a quarterly basis over the term of the Credit Agreement:

i) $4,000 for the first 3 months of the 2014 fiscal year

ii) $10,000 for the first 6 months of the 2014 fiscal year

iii) $17,000 for the for the first 9 months of the 2014 fiscal year

iv) $25,000 for the 2014 fiscal year

v) $23,625 on a rolling four quarter basis at the end of the first quarter of fiscal year 2015

vi) $26,250 on a rolling four quarter basis at the end of the second quarter of fiscal year 2015

Note 25 - Subsequent Event (continued)

vii) $26,875 on a rolling four quarter basis at the end of the third quarter of fiscal year 2015

viii) $27,500 for the 2015 fiscal year

ix) $28,125 on a rolling four quarter basis at the end of the first quarter of fiscal year 2016

x) $28,750 on a rolling four quarter basis at the end of the second quarter of fiscal year 2016

xi) $29,375 on a rolling four quarter basis at the end of the third quarter of fiscal year 2016

xii) $30,000 for the 2016 fiscal year

Under the credit agreement, Adjusted EBITDA means the net income (or loss) of the Company, on a consolidated basis, before interest expense, income tax expense, depreciation of property and equipment, and amortization of intangible assets and before the deduction or addition of extraordinary and/or non-recurring expenses as reported in the Borrower’s quarterly and annual Management’s Discussion and Analysis in the section entitled “EBITDA and Adjusted EBITDA reconciliation”.

In addition to the rights of the Lenders to demand payment and instruct the Agent to begin the process to realize on the security under the Collateral Trust and Intercreditor Agreement, upon the occurrence and during the continuance of an event of default, the Lenders have the right, but not the obligation, to appoint a financial advisor to review the affairs of the Company and to appoint a director to the Board.

424187 Alberta Ltd., which has committed to loan $2,000 of the initial $12,000 drawn, is controlled by the Company’s CEO and a director, Gordon Reykdal. Coliseum, which has committed to loan $5,000 of the initial $12,000 drawn, owns 17.8% of the common shares of the Company.

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Property and Equipment (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Property, Plant and Equipment [Line Items]
Cost	56,884	59,337
Accumulated Depreciation	39,424	36,180
Net Book Value	17,460	23,157
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	31,006	31,804
Accumulated Depreciation	21,928	19,468
Net Book Value	9,078	12,336
Fixtures, furniture, and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	11,297	13,598
Accumulated Depreciation	7,489	7,422
Net Book Value	3,808	6,176
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Cost	9,028	7,201
Accumulated Depreciation	5,564	4,423
Net Book Value	3,464	2,778
Signs [Member]
Property, Plant and Equipment [Line Items]
Cost	5,425	6,606
Accumulated Depreciation	4,395	4,839
Net Book Value	1,030	1,767
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Cost	77	77
Accumulated Depreciation	48	28
Net Book Value	29	49
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	51	51
Accumulated Depreciation	0	0
Net Book Value	51	51

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Financial Instruments and Risk Management (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	6,216	16,063	9,934	13,382
Other receivables	8,104	19,481
Consumer advances receivable	25,592	32,440
Long-term receivable	836	460
Obligations under capital leases and other obligations	4,626	4,788
Level 1 [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	11,458	19,139
Level 1 [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	11,458	19,139
Level 2 [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other receivables	8,104	19,481
Consumer advances receivable	25,592	32,440
Long-term receivable	836	460
Accounts payable and accrued liabilities	26,226	28,937
Obligations under capital leases and other obligations	4,626	4,788
Senior secured notes	127,182	126,033
Level 2 [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other receivables	8,104	19,481
Consumer advances receivable	25,592	32,440
Long-term receivable	836	460
Accounts payable and accrued liabilities	26,226	28,937
Obligations under capital leases and other obligations	4,626	4,788
Senior secured notes	121,370	131,906

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Consumer Advances Receivable, net (Tables)

12 Months Ended

Sep. 30, 2013

Consumer Loans Receivable [Abstract]

Schedule Of Consumer Loans Receivable

	September 30, 2012			September 30, 2013
Short-term advances receivable	$	50,834		$	25,428
Term loans receivable	569			—
Line of credit advances receivable	849			3,751
Allowance for credit losses	(26,397		)	(9,835		)
Consumer advances originated by the Company	25,855			19,344
Acquired short-term advances and line of credit advances	6,585			6,248
	$	32,440		$	25,592

Schedule of Accounts, Notes, Loans and Financing Receivable

Age analysis of Consumer Advances Receivable:

	September 30, 2012			September 30, 2013
Consumer advances receivable
Current	$	17,019		$	14,606
1-30 days past due date	8,791			6,502
31-60 days past due date	3,934			4,179
61-90 days past due date	3,469			3,892
Greater than 90 days past due date	19,039			—
Consumer advances receivable	52,252			29,179
Allowance for credit losses	(26,397		)	(9,835		)
	$	25,855		$	19,344

Allowance for Credit Losses on Financing Receivables

Analysis of Allowance for Credit Losses:

	September 30, 2012			September 30, 2013
Balance, beginning of period	$	2,783		$	26,397
Provisions made for credit losses	31,004			35,072
Charge-offs	(7,408		)	(52,320		)
Effect of foreign exchange translation	18			686
Balance, end of period	$	26,397		$	9,835

Schedule of Provisions for Credit Losses

	Years Ended
	September 30, 2011		September 30, 2012		September 30, 2013
Provisions made for credit losses	$	2,559	$	31,004	$	35,072
Impairment of January 31, 2012 acquisition (Note 5 (b)(i))	—		—		1,011
Impairment of purchased lines of credit advances (Note 5 (b)(ii))	—		—		524
Balance, end of period	$	2,559	$	31,004	$	36,607

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

The following table summarizes acquisition date information for purchased lines of credit advances acquired during the year ended September 30, 2013:

Line of Credit Advances Acquired in the Quarter Ended:	Fiscal 2013 Q2		Fiscal 2013 Q3		Fiscal 2013 Q4		Total
Contractually required payments	$	7,298	$	11,650	$	21,031	$	39,979
Loss recorded as retention payments	756		2,171		4,183		7,110
Initial carrying amount at acquisition date	$	6,542	$	9,479	$	16,848	$	32,869
Collections and accretion to September 30, 2013	6,370		7,907		13,535		27,812
Impairment recorded as provision for credit losses	125		399		—		524
Carrying amount at September 30, 2013	$	47	$	1,173	$	3,313	$	4,533

Acquired Short-Term Advances and Lines of Credit Advances

	September 30, 2012		September 30, 2013
January 31, 2012 short-term advances acquisition (Note 5b(i))	$	6,585	$	1,715
Fiscal 2013 Q2 acquired line of credit advances (Note 5b(ii))	—		47
Fiscal 2013 Q3 acquired line of credit advances (Note 5b(ii))	—		1,173
Fiscal 2013 Q4 acquired line of credit advances (Note 5b(ii))	—		3,313
	$	6,585	$	6,248

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Branch Closure Costs (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended						3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2013 Canada [Member] branch	Sep. 30, 2012 Canada [Member] branch	Sep. 30, 2011 Canada [Member] branch	Dec. 11, 2013 Subsequent Event [Member] United Kingdom [Member] branch
Restructuring Cost and Reserve [Line Items]
Number of branches closed				12	63	0	1
Branch closure costs	123	1,574	0
Lease buy-out costs	80	1,389	0
Severance costs	10	60	0
Other expenses	33	125	0
Accrued liability included in branch closure costs	94	879	0

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Share Capital (Details Textual) (CAD) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Stockholders' Equity Note [Abstract]
Weighted average grant-date fair value of options granted	1.11	1.36
Additional equity share options authorized	1,715,568
Pre-tax intrinsic value of options exercised	93	162
Fair value of options, vested	692	765
Aggregate intrinsic value of options outstanding	0	296
Aggregate intrinsic value of options currently exercisable	0	296
Unrecognized compensation costs related to non-vested stock options	581
Total compensation cost not yet recognized, period for recognition	2 years 7 months 21 days
Proceeds from stock options exercised	257	292	939

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Significant Accounting Policies (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]
Provision for loan losses, impact for change in estimation method	5,218

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Financial Instruments and Risk Management (Tables)

12 Months Ended

Sep. 30, 2013

Investments, All Other Investments [Abstract]

Schedule Of Financial Instruments and Risk Management

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	September 30, 2012				September 30, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash	$	19,139	$	19,139	$	11,458	$	11,458
Other receivables	19,481		19,481		8,104		8,104
Consumer advances receivable	32,440		32,440		25,592		25,592
Long term receivable	$	460	$	460	$	836	$	836
Financial Liabilities
Accounts payable and accrued liabilities	$	28,937	$	28,937	$	26,226	$	26,226
Obligations under capital leases and other obligations	4,788		4,788		4,626		4,626
Senior secured notes	$	126,033	$	131,906	$	127,182	$	121,370

Maximum Exposure To Credit Risk

The best representation of the Company’s maximum exposure (excluding tax effects) to credit risk, which is a worst case scenario and does not reflect results expected by the Company, is as set out in the following table:

	September 30, 2012		September 30, 2013
Cash - Note 4	$	19,139	$	11,458
Consumer advances receivable, net - Note 5	32,440		25,592
Other receivables, net - Note 6	19,481		8,104
Long-term receivable - Note 6	460		836
	$	71,520	$	45,990

Maximum Exposures To Liquidity Risk

The maximum exposures to liquidity risk are represented by the carrying amount of accounts payable and accrued liabilities, as well as payment obligations under capital leases and senior secured notes, which are made up of the following:

	Carrying Amount		Contractual Cash Flows		Less Than 1 Year		1-3 Years
Accounts payable and accrued liabilities	$	26,226	$	26,226	$	26,226	$	—
Obligations under capital leases (including interest)	4,626		6,946		1,612		2,334
Senior secured notes	127,182		183,291		15,238		168,053
	$	158,034	$	216,463	$	43,076	$	170,387

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Deferred Revenue (Tables)

12 Months Ended

Sep. 30, 2013

Deferred Revenue Disclosure [Abstract]

Schedule of Deferred Revenue

	September 30, 2012		September 30, 2013
Current	$	1,000	$	1,000
Long-term	3,917		2,918
	$	4,917	$	3,918

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CONSOLIDATED BALANCE SHEETS (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
ASSETS
Cash	6,216	16,063
Restricted cash - Note 4	5,242	3,076
Consumer advances receivable, net - Note 5	25,592	32,440
Other receivables, net - Note 6	8,104	19,481
Prepaid expenses and other assets	3,471	2,454
Income taxes receivable	15,683	4,576
Deferred income taxes - Note 12	0	12,183
Current assets	64,308	90,273
Long term receivable - Note 6	836	460
Deposits and other assets	1,740	1,162
Deferred income taxes - Note 12	0	424
Deferred financing costs	6,203	7,523
Property and equipment, net of accumulated depreciation of $36,180 and $39,424 - Note 8	17,460	23,157
Intangible assets, net of accumulated amortization of $7,831 and $13,506 - Note 9	34,353	39,760
Goodwill - Note 10	39,685	39,685
Assets	164,585	202,444
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	1,511	1,055
Accrued liabilities - Note 11	24,715	27,882
Current portion of deferred revenue - Note 14	1,000	1,000
Current portion of deferred lease inducements	333	436
Current portion of obligations under capital leases and other obligations - Note 15	1,185	1,180
Current liabilities	28,744	31,553
Deferred revenue - Note 14	2,918	3,917
Deferred lease inducements	686	985
Obligations under capital leases and other obligations - Note 15	3,441	3,608
Senior secured notes - Note 13	127,182	126,033
Deferred income taxes - Note 12	2,934	2,832
Noncurrent liabilities	165,905	168,928
SHAREHOLDERS' EQUITY
Share capital, number of voting common shares, issued and outstanding - 17,496,646 and 17,571,813 - Note 16	47,091	46,652
Additional paid-in capital	4,957	4,700
Deficit	(53,368)	(17,836)
Stockholders' equity	(1,320)	33,516
Liabilities and equity	164,585	202,444

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Branch Closure Costs

12 Months Ended

Sep. 30, 2013

Branch Closure Costs [Abstract]

Branch Closure Costs

Branch Closure Costs

During the year ended September 30, 2013, in the normal course of operations the Company closed 12 branches in Canada (2012 - 63, 2011 - nil). The Company also closed one branch in the United Kingdom subsequent to year end and incurred $123 (2012 - $1,574, 2011 - $nil) in branch closure costs. The closure of the one branch in the United Kingdom will occur in the first quarter of the year ending September 30, 2014. The charges included $80 (2012 - $1,389, 2011 - $nil) relating to lease buy-out costs, $10 (2012 - $60, 2011 - $nil) in employee severance and benefit costs, and $33 (2012 - $125, 2011 - $nil) in other costs.

Of the $123 of branch closure costs recorded, $94 (2012 - $879, 2011 - $nil) is included in accrued liabilities as at September 30, 2013. The Company expects these accrued liabilities to be settled within one year.

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (CAD) In Thousands, unless otherwise specified	Total	Common Shares	Additional Paid-in Capital	Retained Earnings (Deficit)
Balance at Sep. 30, 2010	76,754	43,468	3,981	29,305
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	10,579			10,579
Dividends to common shareholders	(7,929)			(7,929)
Issuance of common shares	2,092	2,681	(589)
Stock-based compensation expense	786		786
Total of other equity movements	(5,051)	2,681	197	(7,929)
Balance at Sep. 30, 2011	82,282	46,149	4,178	31,955
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	(43,522)			(43,522)
Dividends to common shareholders	(6,269)			(6,269)
Issuance of common shares	292	503	(211)
Stock-based compensation expense	733		733
Total of other equity movements	(5,244)	503	522	(6,269)
Balance at Sep. 30, 2012	33,516	46,652	4,700	(17,836)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	(35,532)			(35,532)
Issuance of common shares	257	439	(182)
Stock-based compensation expense	439		439
Total of other equity movements	696	439	257	0
Balance at Sep. 30, 2013	(1,320)	47,091	4,957	(53,368)

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Cash (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Cash and Cash Equivalents [Abstract]
Cash	6,216	16,063	9,934	13,382
Restricted cash	5,242	3,076
Cash and restricted cash	11,458	19,139

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CAD) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
REVENUE
Loan fees	152,430	137,994	136,623
Other income - Note 6	38,335	49,418	53,276
Revenues	190,765	187,412	189,899
BRANCH OPERATING EXPENSES
Salaries and benefits	58,653	65,944	67,017
Provision for credit losses - Note 5	36,607	31,004	2,559
Retention payments	11,659	9,968	26,786
Selling, general and administrative	20,449	23,595	24,109
Rent	18,581	18,940	18,427
Advertising and promotion	6,307	5,180	5,941
Depreciation of property and equipment	6,366	6,843	6,803
Operating expenses	158,622	161,474	151,642
BRANCH OPERATING MARGIN	32,143	25,938	38,257
CORPORATE AND OTHER EXPENSES
Corporate expenses	(38,142)	(22,684)	(18,641)
Interest expense	(18,583)	(12,339)	(616)
Depreciation of property and equipment	1,794	835	1,146
Amortization of intangible assets	(7,517)	(5,138)	(965)
Branch closure costs - Note 7	123	1,574	0
Impairment of property and equipment - Note 8	1,236	3,425	0
Expense to settle pre-existing relationships with third-party lenders - Note 3	0	(36,820)	0
INCOME (LOSS) BEFORE INCOME TAXES	(35,252)	(56,877)	16,889
INCOME TAXES - NOTE 12
Current expense (recovery)	(12,429)	(3,571)	6,157
Deferred expense (recovery)	12,709	(9,784)	153
Total income tax provision (recovery)	280	(13,355)	6,310
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)	(35,532)	(43,522)	10,579
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Note 17
Basic (in shares)	17,564,292	17,431,809	17,259,196
Diluted (in shares)	17,564,292	17,431,809	17,663,380
BASIC EARNINGS (LOSS) PER SHARE
Net income (loss) and comprehensive income (loss) (in dollars per share)	(2.02)	(2.50)	0.61
Net income (loss) and comprehensive income (loss) (in dollars per share)	(2.02)	(2.50)	0.60

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Segmented Information (Tables)

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area

The following is a summary of revenue and long-lived assets for the Company’s geographical segments:

	September 30, 2011		September 30, 2012		September 30, 2013
REVENUE
Canada	$	187,356	$	177,186	$	180,412
United Kingdom	2,543		10,226		10,353
	$	189,899	$	187,412	$	190,765

	September 30, 2012		September 30, 2013
LONG-LIVED ASSETS
Canada	$	99,972	$	88,210
United Kingdom	2,630		3,289
	$	102,602	$	91,499

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Income Taxes (Details) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	(35,252)	(56,877)	16,889
Computed tax expense (recovery) at statutory income tax rates	(8,813)	(15,072)	4,729
Change in enacted tax rates	(3)	108	(31)
Book to filing adjustments and adjustment of prior year immaterial errors	(579)	(245)	1,180
Change in valuation allowance	10,166	1,980	0
Stock-based compensation	110	186	206
Rate difference on losses carried back	(702)	(532)	0
Permanent differences and other	101	220	226
Total income tax provision (recovery)	280	(13,355)	6,310

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Intangible Assets (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2014	7,598
2015	7,489
2016	6,977
2017	4,187
2018	2,159

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Financial Instruments and Risk Management

12 Months Ended

Sep. 30, 2013

Investments, All Other Investments [Abstract]

Financial Instruments and Risk Management

Financial Instruments and Risk Management

(a) Fair Values

The Company’s financial instruments consist of cash, consumer advances receivables, net, other receivables, net, and accounts payable and accrued liabilities, all of which are short-term in nature and their fair value approximates their carrying value. The fair value of obligations under capital leases and secured senior notes are determined by estimating future cash flows on a borrowing-by-borrowing basis, and discounting these future cash flows using a rate which takes into account the Company’s spread for credit risk with similar terms and types of debt arrangements.

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	September 30, 2012				September 30, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash	$	19,139	$	19,139	$	11,458	$	11,458
Other receivables	19,481		19,481		8,104		8,104
Consumer advances receivable	32,440		32,440		25,592		25,592
Long term receivable	$	460	$	460	$	836	$	836
Financial Liabilities
Accounts payable and accrued liabilities	$	28,937	$	28,937	$	26,226	$	26,226
Obligations under capital leases and other obligations	4,788		4,788		4,626		4,626
Senior secured notes	$	126,033	$	131,906	$	127,182	$	121,370

(b) Risk Management

The Company is exposed to a number of financial risks in the normal course of its business operations, including market risks, as well as credit and liquidity risks. The nature of the financial risks and the Company’s strategy for managing these risks has not changed significantly from the prior year.

Market risk is the risk of loss that results from changes in market factors such as foreign currency exchange rates and interest rates. The level of market risk to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets, and contract portfolios.

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

Overall, the Company’s Board of Directors has responsibility for the establishment and approval of the Company's risk management policies. To manage the exposure to changes in market risk, management performs a risk assessment on a continual basis to help ensure that all significant risks related to the Company and its operations have been reviewed and assessed to reflect changes in market conditions and the Company's operating activities. The following summarizes the types of risks to which the Company is exposed, and the risk management instruments used to mitigate them. The sensitivities provided below are hypothetical and should not be considered to be predictive of future performance or indicative of earnings on these contracts. The Company does not currently use derivative financial instruments to manage its market risks and does not hold or issue derivative financial instruments for trading or speculative purposes.

(i) Currency Risk

Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As the Company has operations in the United Kingdom, it is exposed to risk from changes in the exchange rates between the Canadian dollar and the British pound. While the Company attempts to match cash outlays with cash inflows in the same currency, fluctuations in exchange rates creates volatility with cash flows and reported amounts for revenues and expenses on a period-to-period basis, however, this is not considered significant to the Company.

(ii) Interest Rate Risk

The fair value of financial instruments with fixed interest rates, such as the Company’s Senior Secured Notes, fluctuate with changes in market interest rates. However, these fluctuations do not affect earnings, as the Company’s debt is carried at amortized cost and the carrying value does not change as interest rates change.

(iii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s cash, other receivables, consumer advances receivable, and long-term receivable. The maximum amount of credit risk exposure is limited to the carrying amount of the balances disclosed in these financial statements.

The best representation of the Company’s maximum exposure (excluding tax effects) to credit risk, which is a worst case scenario and does not reflect results expected by the Company, is as set out in the following table:

	September 30, 2012		September 30, 2013
Cash - Note 4	$	19,139	$	11,458
Consumer advances receivable, net - Note 5	32,440		25,592
Other receivables, net - Note 6	19,481		8,104
Long-term receivable - Note 6	460		836
	$	71,520	$	45,990

Cash: Credit risk associated with cash is minimized substantially by ensuring that these financial assets are placed with reputable financial institutions that have been accorded strong investment grade ratings by a primary rating agency.

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

(iii) Credit Risk (continued)

Other receivables, net and Long-term receivables: Other receivables, net and Long-term receivables include amounts owing to the Company from various parties. Included in this amount are gross receivables of $9,802 (September 30, 2012 - $11,316) due from a vendor. The Company has recorded an allowance of $4,357 against a portion of the overdue receivables for specific amounts in dispute or where collection is otherwise considered doubtful. These balances represent a concentration of credit risk to the Company. For these entities, the Company performs an ongoing review of their credit status.

Consumer advances receivable: The Company also directly lends to its customers and has no significant concentration of credit risk with any particular individual related to short-term advances.

Credit risk relates to the possibility of default of payment on the Company’s consumer advances receivable. The Company performs ongoing credit evaluations, and reviews the aging of the receivable, payment history and other factors, and it establishes a provision for loan losses when it is determined that a loan is impaired.

Refer to Note 5 for an analysis of the age of consumer advances receivable originated by the Company as of September 30, 2013 and the activity related to the Company’s allowance for credit losses.

The Company makes significant estimates in respect of the allowance for credit losses. Historical information is considered when determining whether past-due accounts should be provided for and the same factors are considered when determining whether to write off amounts charged to the allowance against the consumer advances receivable.

(iv)  Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due or will not receive sufficient funds from its third-party lenders to advance to the Company’s customers. The Company manages all liquidity risk through maintaining a sufficient working capital amount through daily monitoring of cash balances and operating results.

The Company's principal sources of cash are third-party lender funds and cash generated from operating activities. The Company is able to both purchase and sell consumer advances with third-party lenders in order to manage its working capital requirements.

In addition to cash from operations, the Company plans to fund working capital by securing credit facilities as permitted under the terms of the indenture governing the Senior Secured Notes, secure new third-party lenders and additional capital from existing third-party lenders.

In the absence of securing additional funding, the Company could face substantial liquidity problems and might be required to sell material assets or operations to attempt to meet its debt service and other obligations. If the Company is unable to make the required payments on its debt obligations, the Company would be in default under the terms of its indebtedness which could result in an acceleration of the repayment obligations. Any such default, or any attempt to alter the business plans and operations to satisfy the obligations under the Company’s indebtedness, could materially adversely affect the Company’s business, prospects, results of operations and financial condition.

Note 22 – Financial Instruments and Risk Management (continued)

(b) Risk Management (continued)

(iv)  Liquidity Risk (continued)

The maximum exposures to liquidity risk are represented by the carrying amount of accounts payable and accrued liabilities, as well as payment obligations under capital leases and senior secured notes, which are made up of the following:

	Carrying Amount		Contractual Cash Flows		Less Than 1 Year		1-3 Years
Accounts payable and accrued liabilities	$	26,226	$	26,226	$	26,226	$	—
Obligations under capital leases (including interest)	4,626		6,946		1,612		2,334
Senior secured notes	127,182		183,291		15,238		168,053
	$	158,034	$	216,463	$	43,076	$	170,387

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Share Capital

12 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Share Capital

Share Capital

(a) Issued share capital

	September 30, 2012			September 30, 2013
	Number of Shares	Amount		Number of Shares	Amount
Authorized:
Unlimited common shares with no par value
Issued:
Balance, beginning of period	17,419,214	$	46,149	17,496,646	$	46,652
Transfer from contributed surplus for stock options exercised	—	211		—	182
Options exercised	77,432	292		75,167	257
Balance, end of period	17,496,646	$	46,652	17,571,813	$	47,091

Note 16 – Share Capital (continued)

(b) Options to Employees and Directors

The Company has a stock option plan for certain employees, officers and directors. Options issued under the plan have vesting terms that vary depending on date granted and other factors. All stock options must be exercised over specified periods not to exceed five years from the date granted.

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Outstanding, beginning of year	979,168		$	9.42	1,219,236		$	8.84
Granted	325,000		5.88		195,000		2.58
Exercised	(77,432	)	3.77		(75,167	)	3.39
Expired	—		—		(130,733	)	4.66
Forfeited and cancelled	(7,500	)	8.80		(40,001	)	9.93
Outstanding, end of year	1,219,236		8.84		1,168,335		8.57
Exercisable, end of year	662,573		$	8.87	684,334		$	10.88

At September 30, 2013, the number outstanding, the weighted average remaining contractual life, the weighted average exercise price and the number of options exercisable are as follows:

Fiscal Year Granted	Number Outstanding	Weighted Average Remaining Term	Weighted Average Exercise Price		Number Exercisable
2009	126,667	8 mos.	7.08		126,667
2010	366,668	16 mos.	12.81		366,668
2011	155,000	33 mos.	12.96		103,335
2012	325,000	64 mos.	5.88		87,664
2013	195,000	57 mos.	2.59		—
	1,168,335	34 mos.	$	8.57	684,334

The fair value of common share options is estimated at the grant date using the Black-Scholes option pricing model based on the following weighted average assumptions:

	September 30, 2012		September 30, 2013
Risk free interest rate	1.3	%	1.7	%
Expected life (years)	4		5
Expected volatility	45.5	%	47.5	%
Expected dividends	5.3	%	—	%

During the year ended September 30, 2013, the weighted average grant-date fair value of options granted was estimated at $1.11 (September 30, 2012- $1.36) per option.

The Company is authorized to issue an additional 1,715,568 equity share options under its existing stock option plan.

Note 16 – Share Capital (continued)

A summary of the status of the Company's nonvested share options as of September 30, 2012 and the changes during the year ended September 30, 2013, is presented below:

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Nonvested, beginning of period	473,336		$	12.17	556,663		$	8.80
Granted	325,000		5.88		195,000		2.58
Vested	(239,173	)	11.51		(260,995	)	10.59
Forfeited and cancelled	(2,500	)	8.80		(6,667	)	10.30
Nonvested, end of period	556,663		$	8.80	484,001		$	5.31

The pre-tax intrinsic value of options exercised during the year ended September 30, 2013, was $93 (September 30, 2012 - $162). The total fair value of options that vested during the year ended September 30, 2013, was $692 (September 30, 2012 - $765).

As at September 30, 2013, the aggregate intrinsic value of options outstanding was $nil (September 30, 2012 - $296), while the aggregate intrinsic value of the options that are currently exercisable was $nil (2011- $296).

As at September 30, 2013, there was $581 of total unrecognized compensation costs related to non-vested stock options. The Company expects to recognize this expense over a weighted average period of 2.64 years.

For the year ended September 30, 2013, the total cash received for stock options exercised totaled $257 (2012 - $292, 2011 - $939).

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Financial Instruments and Risk Management (Details 2) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Obligations under capital leases (including interest)	4,626	4,788
1 to 3 Years [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Accounts payable and accrued liabilities	0
Obligations under capital leases (including interest)	2,334
Senior secured notes	168,053
Liabilities	170,387
Less Than 1 Year [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Accounts payable and accrued liabilities	26,226
Obligations under capital leases (including interest)	1,612
Senior secured notes	15,238
Liabilities	43,076
Contractual Cash Flow [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Accounts payable and accrued liabilities	26,226
Obligations under capital leases (including interest)	6,946
Senior secured notes	183,291
Liabilities	216,463
Carrying Amount [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Accounts payable and accrued liabilities	26,226
Obligations under capital leases (including interest)	4,626
Senior secured notes	127,182
Liabilities	158,034

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Senior secured notes (Tables)

12 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Redemption Prices Percentages of Principal Amount

The Notes are redeemable at the option of the Company, in whole or in part, at any time on or after July 31, 2014 at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption date if redeemed during the periods set forth below.

For the period below	Percentage
On or after July 31, 2014	103.084	%
On or after January 31, 2015	102.091	%
On or after July 31, 2015	101.127	%
On or after January 31, 2016	101.194	%
On or after July 31, 2016	100.000	%

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Goodwill (Details) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Goodwill [Roll Forward]
Balance, beginning of period	39,685	39,133
Goodwill acquired	0	0
Other	0	552
Balance, end of period	39,685	39,685

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Significant Accounting Policies (Details 1)	12 Months Ended
	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, amortization method	straight-line method
Customer list, contracts and relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, estimated useful life	3 years
Favorable supplier relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, estimated useful life	7 years
Proprietary knowledge [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, estimated useful life	5 years
Minimum [Member] | Computer software [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, estimated useful life	3 years
Maximum [Member] | Computer software [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, estimated useful life	5 years

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Consumer Advances Receivable, net (Details 5) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Jan. 31, 2012
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	1,715	6,585		319,906
Initial carrying amount at acquisition date	14,259	17,600
Impairment recorded as provision for credit losses	35,072	31,004	2,559
Carrying amount at September 30, 2013	6,248	6,585		50,014
Purchased Receivables [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	39,979
Loss recorded as retention payments	7,110
Initial carrying amount at acquisition date	32,869
Collections and accretion to September 30, 2013	27,812
Impairment recorded as provision for credit losses	524
Carrying amount at September 30, 2013	4,533
Purchased Receivables [Member] | Fiscal 2013 Q2 [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	7,298
Loss recorded as retention payments	756
Initial carrying amount at acquisition date	6,542
Collections and accretion to September 30, 2013	6,370
Impairment recorded as provision for credit losses	125
Carrying amount at September 30, 2013	47
Purchased Receivables [Member] | Fiscal 2013 Q3 [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	11,650
Loss recorded as retention payments	2,171
Initial carrying amount at acquisition date	9,479
Collections and accretion to September 30, 2013	7,907
Impairment recorded as provision for credit losses	399
Carrying amount at September 30, 2013	1,173
Purchased Receivables [Member] | Fiscal 2013 Q4 [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	21,031
Loss recorded as retention payments	4,183
Initial carrying amount at acquisition date	16,848
Collections and accretion to September 30, 2013	13,535
Impairment recorded as provision for credit losses	0
Carrying amount at September 30, 2013	3,313

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Property and Equipment (Tables)

12 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,006	$	21,928	$	9,078
Fixtures, furniture, and equipment	11,297		7,489		3,808
Computer hardware	9,028		5,564		3,464
Signs	5,425		4,395		1,030
Vehicles	77		48		29
Land	51		—		51
	$	56,884	$	39,424	$	17,460

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,804	$	19,468	$	12,336
Fixtures, furniture, and equipment	13,598		7,422		6,176
Computer hardware	7,201		4,423		2,778
Signs	6,606		4,839		1,767
Vehicles	77		28		49
Land	51		—		51
	$	59,337	$	36,180	$	23,157

Schedule of Capital Leased Assets

Property and equipment includes the following capital leases:

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	3,531	$	2,560	$	971
Fixtures, furniture and equipment	1,661		1,183		478
	$	5,192	$	3,743	$	1,449

Note 8 – Property and Equipment (continued)

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	2,814	$	1,761	$	1,053
Fixtures, furniture and equipment	1,661		851		810
	$	4,475	$	2,612	$	1,863

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Acquisition of Consumer Advances Portfolio (Tables)

12 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Schedule Of Consumer Loan Portfolio and Related Intangible Assets

The total consideration was allocated as set forth below:

Consumer advances receivable	$	50,014
Non-compete agreements	15,524
Favorable supplier relationships	14,220
Proprietary knowledge	2,280
Expense to settle pre-existing relationships with third-party lenders	36,820
Deferred tax liability	(2,524		)
Total consideration	$	116,334

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Cash (Tables)

12 Months Ended

Sep. 30, 2013

Cash and Cash Equivalents [Abstract]

Schedule Of Cash Components

The significant components of cash are as follows:

	September 30, 2012		September 30, 2013
Cash	$	16,063	$	6,216
Restricted cash	3,076		5,242
	$	19,139	$	11,458

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Other Receivables and Other Income

12 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Other Receivables and Other Income

Other Receivables, net and Other Income

(a) Other Receivables, net

	September 30 2012		September 30 2013
Due from investee corporations	$	3	$	1
Due from vendors for agency services	12,332		10,812
Other	7,606		2,484
Allowance for doubtful accounts	—		(4,357		)
	$	19,941	$	8,940
Long term portion:
Due from vendors for agency services	460		836
	$	460	$	836
	$	19,481	$	8,104

Note 6 – Other Receivables, net and Other Income (continued)

(a) Other Receivables, net (continued)

Age analysis of Other Receivables, net:

	September 30 2012		September 30 2013
Current	$	14,035	$	5,847
Current to 3 months past due	3,284		1,639
3 months to 6 months past due	1,148		629
6 months to one year past due	613		2,403
Greater than one year past due	$	401	1,943
Total other receivables gross	$	19,481	$	12,461
Allowance for doubtful accounts	$	—	(4,357		)
Total other receivables, net	$	19,481	$	8,104

Due from Vendors

Due from vendors includes $10,812 (2012 - $12,332) of short-term receivables from vendors, with which the Company has agency arrangements to provide bank accounts, debit and prepaid MasterCard and insurance products to our customers.

Included in this amount are gross receivables of $9,802 (September 30, 2012 - $11,316) due from a vendor. The Company has recorded an allowance of $4,357 (2012 - $nil), within corporate expense, to provide for a portion of those overdue receivables for specific amounts in dispute or where collection is otherwise considered doubtful.

Other

Amounts included in Other are amounts related to the BC Consumer Protection compliance order (Note 20(b)(ii)), the third party administration of the British Columbia class actions settlement fund as at September 30, 2012 (Note 20(a)(i)) and other amounts due in the normal course of business.

(b) Other Income

	September 30 2011		September 30 2012		September 30 2013
Agency fee income	$	46,809	$	39,847	$	25,386
Other income	6,467		9,571		12,949
	$	53,276	$	49,418	$	38,335

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Consumer Advances Receivable, net (Details 2) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	26,397	2,783
Provisions made for credit losses	35,072	31,004	2,559
Charge-offs	(52,320)	(7,408)
Effect of foreign exchange translation	686	18
Balance, end of period	9,835	26,397	2,783

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Obligations under Capital Leases and Other (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended			1 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2013 Capital Lease Aggregate Due [Member]	Sep. 30, 2012 Capital Lease Aggregate Due [Member]	Sep. 30, 2013 Capital Lease Aggregate Due [Member] Minimum [Member]	Sep. 30, 2012 Capital Lease Aggregate Due [Member] Minimum [Member]	Sep. 30, 2013 Capital Lease Aggregate Due [Member] Maximum [Member]	Sep. 30, 2012 Capital Lease Aggregate Due [Member] Maximum [Member]
Capital Leased Assets [Line Items]
Repayment of obligations under capital leases	1,528	961	778	71	72
Imputed interest percentage						5.00%	0.00%	22.70%	19.80%
Aggregate carrying amount of asset	1,449	1,863		4,674	4,834
Interest charges related to capital leases and other obligations	494	222	147

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Segmented Information

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Note 23 - Segmented Information

The following is a summary of revenue and long-lived assets for the Company’s geographical segments:

	September 30, 2011		September 30, 2012		September 30, 2013
REVENUE
Canada	$	187,356	$	177,186	$	180,412
United Kingdom	2,543		10,226		10,353
	$	189,899	$	187,412	$	190,765

	September 30, 2012		September 30, 2013
LONG-LIVED ASSETS
Canada	$	99,972	$	88,210
United Kingdom	2,630		3,289
	$	102,602	$	91,499

Long-lived assets include property and equipment, intangible assets and goodwill.

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Accrued Liabilities (Tables)

12 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

	September 30, 2012		September 30, 2013
Class action settlementsNote 20 (a)	$	11,448	$	6,262
Accrued salaries and benefits	2,807		4,003
Amounts due to third party lenders	5,782		4,575
Interest accrued on long-term debt - Note 13	2,540		2,540
Other accruals	5,305		7,335
	$	27,882	$	24,715

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Financial Instruments and Risk Management (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Concentration Risk [Line Items]
Cash	6,216	16,063	9,934	13,382
Other receivables, net	8,104	19,481
Long-term receivable	836	460
Assets	164,585	202,444
Credit Risk Maximum Exposure [Member]
Concentration Risk [Line Items]
Cash	11,458	19,139
Consumer advances receivable, net	25,592	32,440
Other receivables, net	8,104	19,481
Long-term receivable	836	460
Assets	45,990	71,520

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Intangible Assets

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

	September 30, 2013
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	—	$	—	$	—
Favorable supplier relationships	14,220		3,433		10,787
Non-compete agreements	15,897		5,386		10,511
Proprietary knowledge	2,280		750		1,530
Computer software	10,162		3,937		6,225
Brand name	5,300		—		5,300
	$	47,859	$	13,506	$	34,353

	September 30, 2012
	Cost		Accumulated Amortization		Net Book Value
Customer contracts, relationships, lists and other	$	962	$	938	$	24
Favorable supplier relationships	14,220		1,375		12,845
Non-compete agreements	16,031		2,369		13,662
Proprietary knowledge	2,280		300		1,980
Computer software	8,798		2,849		5,949
Brand name	5,300		—		5,300
	$	47,591	$	7,831	$	39,760

The estimated annual amortization expense for the next five years for intangible assets subject to amortization is as follows:

Fiscal year ending September 30	2014		2015		2016		2017		2018
Amortization expense for intangible assets	$	7,598	$	7,489	$	6,977	$	4,187	$	2,159

Amortization of intangible assets for the year ended September 30, 2013, includes $451 (2012 - $nil, 2011 - $nil) relating to intangible assets under capital leases.

During the year ended September 30, 2013, additions to computer software included $649 (2012 - $727, 2011 - $nil) of assets that were acquired by means of capital lease.

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Share Capital (Details 1) (CAD)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stockholders' Equity Note [Abstract]
Total options for shares outstanding, beginning of year	1,219,236	979,168
Total options for shares, granted	195,000	325,000
Total options for shares, exercised	(75,167)	(77,432)
Total options for shares, expired	(130,733)	0
Total options for shares, forfeited and cancelled	(40,001)	(7,500)
Total options for shares outstanding, end of year	1,168,335	1,219,236
Total options for shares, exercisable, end of year	684,334	662,573
Weighted average price, outstanding, beginning of year	8.84	9.42
Weighted average price, granted	2.58	5.88
Weighted average price, exercised	3.39	3.77
Weighted average price, expired	4.66	0.00
Weighted average price, forfeited and cancelled	9.93	8.80
Weighted average price, outstanding, end of year	8.57	8.84
Weighted average price,, exercisable, end of year	10.88	8.87

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Intangible Assets (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Finite-Lived Intangible Assets [Line Items]
Cost	47,859	47,591
Accumulated Amortization	13,506	7,831
Net Book Value	34,353	39,760
Customer contracts, relationships, lists and other [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	0	962
Accumulated Amortization	0	938
Net Book Value	0	24
Favorable supplier relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	14,220	14,220
Accumulated Amortization	3,433	1,375
Net Book Value	10,787	12,845
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	15,897	16,031
Accumulated Amortization	5,386	2,369
Net Book Value	10,511	13,662
Proprietary knowledge [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	2,280	2,280
Accumulated Amortization	750	300
Net Book Value	1,530	1,980
Computer software [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	10,162	8,798
Accumulated Amortization	3,937	2,849
Net Book Value	6,225	5,949
Brand name [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	5,300	5,300
Accumulated Amortization	0	0
Net Book Value	5,300	5,300

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Consumer Advances Receivable, net

12 Months Ended

Sep. 30, 2013

Consumer Loans Receivable [Abstract]

Consumer Advances Receivable, net

Consumer Advances Receivable, net

	September 30, 2012			September 30, 2013
Short-term advances receivable	$	50,834		$	25,428
Term loans receivable	569			—
Line of credit advances receivable	849			3,751
Allowance for credit losses	(26,397		)	(9,835		)
Consumer advances originated by the Company	25,855			19,344
Acquired short-term advances and line of credit advances	6,585			6,248
	$	32,440		$	25,592

a) Consumer Advances Receivable Originated by the Company

Age analysis of Consumer Advances Receivable:

	September 30, 2012			September 30, 2013
Consumer advances receivable
Current	$	17,019		$	14,606
1-30 days past due date	8,791			6,502
31-60 days past due date	3,934			4,179
61-90 days past due date	3,469			3,892
Greater than 90 days past due date	19,039			—
Consumer advances receivable	52,252			29,179
Allowance for credit losses	(26,397		)	(9,835		)
	$	25,855		$	19,344

Note 5 – Consumer Advances Receivable, net

a) Consumer Advances Receivable Originated by the Company (continued)

Analysis of Allowance for Credit Losses:

	September 30, 2012			September 30, 2013
Balance, beginning of period	$	2,783		$	26,397
Provisions made for credit losses	31,004			35,072
Charge-offs	(7,408		)	(52,320		)
Effect of foreign exchange translation	18			686
Balance, end of period	$	26,397		$	9,835

Analysis of Provisions made for Credit Losses:

	Years Ended
	September 30, 2011		September 30, 2012		September 30, 2013
Provisions made for credit losses	$	2,559	$	31,004	$	35,072
Impairment of January 31, 2012 acquisition (Note 5 (b)(i))	—		—		1,011
Impairment of purchased lines of credit advances (Note 5 (b)(ii))	—		—		524
Balance, end of period	$	2,559	$	31,004	$	36,607

Transfer of Short Term Advances

During the year the Company transferred $16,410 (2012 - $24,100) of gross short-term advances to third-party lenders in exchange for cash. The gross advances were transferred at fair value and no gain or loss was recorded. The fair value of the transferred advances of $14,259 (2012 - $17,600) was determined using the contractual loan value less a provision for credit losses of $2,151 (2012 - $6,500).

b) Acquired Short-Term Advances and Lines of Credit Advances

	September 30, 2012		September 30, 2013
January 31, 2012 short-term advances acquisition (Note 5b(i))	$	6,585	$	1,715
Fiscal 2013 Q2 acquired line of credit advances (Note 5b(ii))	—		47
Fiscal 2013 Q3 acquired line of credit advances (Note 5b(ii))	—		1,173
Fiscal 2013 Q4 acquired line of credit advances (Note 5b(ii))	—		3,313
	$	6,585	$	6,248

Note 5 – Consumer Advances Receivable, net (continued)

(i) January 31, 2012 Acquisition

On January 31, 2012, the Company acquired a portfolio of short-term advances from various third-party lenders. At the date of purchase, the undiscounted contractual cash flows of the acquired short-term advances portfolio totaled $319,906 and the expected cash flows at acquisition totaled $51,491. The Company recorded the fair value of the advances acquired of $50,014 as the carrying value of the acquired short-term advances as of the acquisition date. During the year ended September 30, 2013, based on current collection trends, the

The Company revised its forecast of future cash flows related to this acquired portfolio and included with part of the provision for credit losses expense for the year ended September 30, 2013 was an impairment charge of $1,011 related to this acquired portfolio.

After accretion and net collections of $47,288 and an impairment of $1,011, the remaining carrying value of the acquired short-term advances balance as of September 30, 2013 was $1,715 (September 30, 2012 - $6,585).

(ii) Purchase of Lines of Credit Advances

Commencing in February 2013 the Company purchased line of credit advances from the third-party lenders for consideration equal to the contractually required payments of the line of credit advances. The following table summarizes acquisition date information for purchased lines of credit advances acquired during the year ended September 30, 2013:

Line of Credit Advances Acquired in the Quarter Ended:	Fiscal 2013 Q2		Fiscal 2013 Q3		Fiscal 2013 Q4		Total
Contractually required payments	$	7,298	$	11,650	$	21,031	$	39,979
Loss recorded as retention payments	756		2,171		4,183		7,110
Initial carrying amount at acquisition date	$	6,542	$	9,479	$	16,848	$	32,869
Collections and accretion to September 30, 2013	6,370		7,907		13,535		27,812
Impairment recorded as provision for credit losses	125		399		—		524
Carrying amount at September 30, 2013	$	47	$	1,173	$	3,313	$	4,533

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Nature of Business

12 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Nature of Business

The Cash Store Financial Services Inc. (the “Company”) operates under three branch banners: The Cash Store Financial, Instaloans and The Title Store (TSX: CSF, NYSE: CSFS). The Company acts as lender and broker to facilitate short-term advances and provides other financial services, to income-earning consumers. As at September 30, 2013, the Company operated 537 (2012 - 536, 2011 - 586) branches. The Company has operations in Canada and the United Kingdom.

Although the Company’s business is not significantly affected by seasonality, the Company typically experiences its strongest revenues in the third and fourth quarters (which correspond with tax season and the summer months) followed by the first quarter (Christmas/holiday season). The second quarter is typically the weakest. In addition to seasonal demand, quarterly results are impacted by the number and timing of new branch openings and new product lines offered.

The Cash Store Financial is a Canadian corporation that is not affiliated with Cottonwood Financial Ltd. or the outlets of Cottonwood Financial Ltd. which operate in the United States under the name "Cash Store."  The Cash Store Financial does not conduct under the name "Cash Store" in the United States and does not own or provide any consumer lending services in the United States.

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Share Capital (Details) (CAD) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Issued:
Balance, beginning of period, number of shares	17,496,646	17,419,214
Transfer from contributed surplus for stock options exercised, number of shares	0	0
Options exercised, number of shares	75,167	77,432
Balance, end of period, number of shares	17,571,813	17,496,646
Balance, beginning of period, amount	46,652	46,149
Transfer from contributed surplus for stock options exercised, amount	182	211
Options exercised, amount	257	292
Balance, end of period, amount	47,091	46,652

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Nature of Business (Details Textual)	Sep. 30, 2013 branch	Sep. 30, 2012 branch	Sep. 30, 2011 branch
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of branches in which entity operates	537	536	586

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Share Capital (Tables)

12 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule Of Issued Share Capital

	September 30, 2012			September 30, 2013
	Number of Shares	Amount		Number of Shares	Amount
Authorized:
Unlimited common shares with no par value
Issued:
Balance, beginning of period	17,419,214	$	46,149	17,496,646	$	46,652
Transfer from contributed surplus for stock options exercised	—	211		—	182
Options exercised	77,432	292		75,167	257
Balance, end of period	17,496,646	$	46,652	17,571,813	$	47,091

Schedule of Share-based Compensation, Stock Options, Activity

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Outstanding, beginning of year	979,168		$	9.42	1,219,236		$	8.84
Granted	325,000		5.88		195,000		2.58
Exercised	(77,432	)	3.77		(75,167	)	3.39
Expired	—		—		(130,733	)	4.66
Forfeited and cancelled	(7,500	)	8.80		(40,001	)	9.93
Outstanding, end of year	1,219,236		8.84		1,168,335		8.57
Exercisable, end of year	662,573		$	8.87	684,334		$	10.88

Schedule Of Weighted Average Exercise Price, Remaining Contractual Life

At September 30, 2013, the number outstanding, the weighted average remaining contractual life, the weighted average exercise price and the number of options exercisable are as follows:

Fiscal Year Granted	Number Outstanding	Weighted Average Remaining Term	Weighted Average Exercise Price		Number Exercisable
2009	126,667	8 mos.	7.08		126,667
2010	366,668	16 mos.	12.81		366,668
2011	155,000	33 mos.	12.96		103,335
2012	325,000	64 mos.	5.88		87,664
2013	195,000	57 mos.	2.59		—
	1,168,335	34 mos.	$	8.57	684,334

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

The fair value of common share options is estimated at the grant date using the Black-Scholes option pricing model based on the following weighted average assumptions:

	September 30, 2012		September 30, 2013
Risk free interest rate	1.3	%	1.7	%
Expected life (years)	4		5
Expected volatility	45.5	%	47.5	%
Expected dividends	5.3	%	—	%

Schedule of Nonvested Share Activity

A summary of the status of the Company's nonvested share options as of September 30, 2012 and the changes during the year ended September 30, 2013, is presented below:

	September 30, 2012				September 30, 2013
	Total Options for Shares		Weighted Average Price		Total Options for Shares		Weighted Average Price
Nonvested, beginning of period	473,336		$	12.17	556,663		$	8.80
Granted	325,000		5.88		195,000		2.58
Vested	(239,173	)	11.51		(260,995	)	10.59
Forfeited and cancelled	(2,500	)	8.80		(6,667	)	10.30
Nonvested, end of period	556,663		$	8.80	484,001		$	5.31

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Financial Instruments and Risk Management (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Concentration Risk [Line Items]
Allowance for doubtful accounts, other receivables	4,357	0
Directcash Payments Inc [Member]
Concentration Risk [Line Items]
Due from one vendor	9,802	11,316

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Income Taxes (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Valuation Allowance [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate	25.00%	26.50%	28.00%
Valuation allowance, amount	12,146
Income tax loss carry forward	21,365	9,826
United Kingdom [Member]
Valuation Allowance [Line Items]
Valuation allowance, amount	1,980

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Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Basic Of Presentation

Basis of Presentation

The consolidated financial statements have been prepared by management in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

All figures are presented in Canadian dollars, unless otherwise disclosed.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses during the reporting periods, and disclosures reported in these consolidated financial statements and accompanying notes. Certain significant judgments, estimates and assumptions, such as those related to the allowance for credit losses, valuation of acquired loans and lines of credit advances, valuation of goodwill and intangible assets, expense to settle pre-existing relationships with third-party lenders, deferred income taxes, the inputs in the calculation of financial covenants under the Indenture governing the senior secured notes, and accrued liabilities related to litigation and claims, depend upon subjective or complex judgments about matters that may be uncertain, and changes in those estimates could materially impact the consolidated financial statements. Actual results could differ from those estimates made by management.

Risks and Uncertainties

Risks and Uncertainties

The Company's future operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to differ materially from expectations include, but are not limited to, the application of laws and regulations to the Company's business (Note 20), the Company's ability to manage credit risk and continued access to capital. The Company manages these risks through operational and legal efforts, and continual evaluation of credit loss experience.

Note 1 – Significant Accounting Policies (continued)

(c) Risks and Uncertainties (continued)

The Company’s business depends on the willingness of third-party lenders to make significant funds available for lending to the Company’s customers and to purchase loans that the Company has made. There are no assurances that existing or new third-party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a material adverse impact on the Company’s results of operations and financial condition.

Revenue Recognition

Revenue Recognition

Revenue arising from the direct lending of consumer advances (including: short-term advances and line of credit advances) to customers is recognized on a constant yield basis ratably over the term of the related loan, in loan fees in the consolidated statement of operations. Direct loan origination costs are deferred and recognized as a reduction in the yield of the related loan over its life. The Company charges late interest and default fees on direct lending loans in default status. Late interest and default fees are recorded once collected in other income.

Revenue from brokering short-term advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage fee has been collected. Late interest and default fees are recorded once collected in other income.

Revenue from brokering and the credit assessment of lines of credit advances for customers is reported in loan fees on the statement of operations and is recognized once all services have been rendered, all advance amounts have been received by the customer, and the brokerage and credit assessment fees have been collected.

Included in other income in the consolidated statement of operations is revenue from insurance products, card fees, banking services, interest and default fees collected, money transfers, cheque cashing, and other miscellaneous services and fees. For these services, revenue is recognized when the services are rendered at the point-of-sale in the branch and the related fees charged have been collected from the customer. Services where the Company acts as an agent on behalf of third-party providers include banking services, card products, money transfers, bill payment services, and insurance products and are classified as agency fee income in Note 6(b).

Retention Payments

Retention Payments

When the Company acts as a broker on behalf of income earning consumers seeking short-term advances and lines of credit advances, the funding is provided by third-party lenders. The short-term advances and lines of credit advances provided by the third-party lenders are repayable by the customer to the third-party lenders and represent the assets of the lenders; accordingly, they are not included on the Company’s consolidated balance sheet.

To facilitate the short-term advance and lines of credit advance business, the Company has entered into agreements with third-party lenders who are prepared to lend to the Company’s customers. Pursuant to these agreements, the Company provides services to the lenders related to the collection of documents and information as well as loan collection services. Under the terms of the Company’s agreements with third-party lenders, responsibility for losses suffered on account of uncollectible advances rests with the third-party lender, unless the Company has not properly performed its duties as set forth under the terms of the agreement. The significant duties under the terms of the agreements generally include ensuring that any proposed short-term advance or line of credit advance was applied for through an authorized outlet, ensuring

Note 1 – Significant Accounting Policies (continued)

(e) Retention Payments (continued)

each potential customer meets the short-term advance or line of credit advance selection criteria as set forth by the third-party lender prior to approval and release of funding, satisfying the documentation requirements in a full and timely manner, providing loan management services throughout the term of the short-term advance or line of credit advance and providing collection services on behalf of the third-party lender for all short-term advances and lines of credit advances funded which are not paid in full by the due date, all of which while ensuring information system integrity is maintained. In the event the Company does not properly perform its duties and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. A liability is recorded when it is determined that the Company has a liability under the agreement.

The Company’s Board of Directors (the "Board of Directors") regularly approves a resolution which authorizes management to pay a maximum annual amount of retention payments per quarter to the third-party lenders as consideration to those lenders that continue to be willing to fund advances to the Company’s customers. While the third-party lenders have not been guaranteed a return, the decision has been made to voluntarily make retention payments. Retention payments are recorded in the period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.

Also included in retention payments are amounts paid to third-party lenders to purchase lines of credit advances that exceed the advance's fair value. The arrangements with the third-party lenders permit the Company, at its discretion to purchase advances brokered for consideration of at least its fair value.  

Provision for Credit Losses

(f) Provision for Credit Losses

Advances in default consist of direct lending consumer advances originated by the Company which are past due. The Company defines a past due or delinquent advance whereby payment has not been received in full from the customer on or before its contractual due date. A provision for credit loss is recorded when the Company no longer has reasonable assurance of timely collection of the full amount of principal and interest.

In determining whether the Company will be unable to collect all principal and interest payments due, the Company assesses relevant internal and external factors that affect loan collectability, including the amount of outstanding advances owed to the Company, historical percentages of advances written off, current collection patterns and other current economic trends. The provision for credit losses reduces the carrying amount of consumer advances receivables to their estimated realizable amounts. The provision is primarily based upon models that analyze specific portfolio statistics, and also reflects, to a lesser extent, management’s judgment regarding overall accuracy. The provision is reviewed monthly, and any additional provision as a result of historical loan performance, current and expected collection patterns and current economic trends is included in the provision for credit losses at that time.

In the prior year, the Company's policy for charging off uncollectible consumer advances originated by the Company was to write the advance off when an advance remained in default status for an extended period of time without any extended payment arrangements made. During the quarter ended September 30, 2013, the Company changed the methodology for estimating the provision for loan losses in order to reduce the estimation uncertainty inherent in this provision, improve the accuracy of the amounts recorded with the benefit of additional history in originating loans, and improve comparability with financial information reported by its competitors who charge-off past due amounts at an earlier date. The Company now fully charges off consumer advances receivable when the advances remain in default status for 90 days. This change resulted in the acceleration of the point in time when consumer advances receivable are fully provided for.

Note 1 – Significant Accounting Policies (continued)

(f) Provision for Credit Losses (continued)

In accordance with FASB ASC No. 250 - Accounting Changes and Error Corrections, ("ASC 250"), the Company has determined that this a change in estimation methodology and accordingly is a change in estimate. The impact of this change in methodology resulted in an increase in the provision for consumer loan losses during the year ended September 30, 2013 of$5,218. Advances to customers who file for bankruptcy are written off upon receipt of the bankruptcy notice. Recoveries on amounts previously written off are credited against the provision for credit losses expense.

(

Stock Based Compensation

Stock-Based Compensation

The Company has a stock-based compensation plan for employees and the Board of Directors, which is described in Note 16. The Company accounts for all stock-based compensation payments that are settled by the issuance of equity in accordance with a fair value-based method of accounting. Stock-based compensation awards are recognized in the consolidated financial statements over the period in which the related services are rendered, which is usually the vesting period of the option, or as applicable, over the period to the date an employee is eligible to retire, whichever is shorter, with a corresponding increase recorded in contributed surplus. The fair value is calculated using the Black-Scholes option-pricing model.

When options are exercised, the proceeds received by the Company, together with the amount in additional paid-in capital associated with the exercised options, are credited to share capital.

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised, and that proceeds from such exercises were used to acquire common shares at the average market price during the reporting period.

Consumer Loans Receivable

Consumer Loans Receivable

Consumer Advances Originated by the Company

Unsecured short-term advances that the Company originates on its own behalf are reflected on the balance sheet in consumer advances receivable. Consumer advances receivable are reported net of an allowance for credit losses described above in “Provision for Credit Losses - Note 1(f)” and any deferred fees or costs. Origination fees on these advances, net of certain direct origination costs, are deferred and recognized as an adjustment of yield in interest income using the effective interest method.

The Company does not accrue interest when consumer advances are considered impaired. When ultimate collectability of the principal balance of the impaired advances is in doubt, all cash receipts on impaired advances are applied to reduce the principal amount of such advances until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and any increases in the allowance are charged to the provision for credit losses. Advances are written off against the allowance when all possible means of collections have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired advance.

Note 1 – Significant Accounting Policies (continued)

(i) Consumer Loans Receivable (continued)

Acquired Short-Term Advances and Lines of Credit Advances (continued)

Acquired Short-Term Advances and Lines of Credit Advances

Short-term advances and line of credit advances acquired from the Company’s third-party lenders fall within the scope of FASB ASC 310-30, “Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality” as there is evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected. As such, acquired short-term advances and line of credit advances are accounted for separately from short-term advances and line of credit advances originated by the Company and are initially recorded at fair value, which represents expected cash flows discounted at a market rate of interest. The Company’s estimate of fair value of acquired short-term advances and line of credit advances includes assumptions regarding the amount and timing of both principal and interest payments, future credit losses, prepayments and discount rates. A provision for credit losses is not recorded at the acquisition date on acquired short-term advances because the fair value incorporates an estimate of expected credit losses. A loss on the acquisition of lines of credit advances is included in retention payments expense if the purchase price is greater than the fair value of the pooled portfolio of line of credit advances acquired. Advances acquired on a quarterly basis that have similar risk characteristics, primarily credit risk and underwriting criteria, are pooled and accounted for as a single asset with an aggregate expectation of cash flows.

Income recognition on acquired short-term advances and line of credit advances is based on a reasonable expectation of the timing and amount of cash flows to be collected. The expected cash flows in excess of the estimated fair value are recorded as interest income over the remaining life of the loan (accretable difference). The excess of contractual principal and interest over the expected cash flows is not recorded (non accretable difference). Subsequent to the acquisition date, any increases in cash flow over those expected at the purchase date in excess of the fair value that are significant and probable are recorded as an adjustment to the accretable difference on a prospective basis. Any subsequent decreases in cash flow below those expected at the purchase date that are significant and probable are recognized through an immediate reduction in the carrying amount of the portfolio and are included in the provision for credit loss expense.

The determination of fair value of acquired short-term advances and line of credit advances relies on estimates and significant judgments regarding future collections. Changes in those estimates could materially impact the consolidated financial statements.

Transfer of Short-Term Advances

Short-term advances that the Company has originated on its own behalf may be transferred to third-party lenders in exchange for cash. Advances transferred to the third-party lenders are done at fair value and the related advances are derecognized from the consolidated balance sheet . The determination of fair value relies on estimates and judgments regarding future collections using the methodology described in Note 1(f) to these consolidated financial statements.

Under the terms of the arrangements with the Company’s third-party lenders, the Company is maintained as the lender on record for the transferred advances and must continue to collect, maintain and enforce such advances on the third-party lenders behalf in all respects. The Company must pay a participation fee to the third-party lenders based on the principal of all advances collected for the agreed term of the advance at a rate that is equivalent to the interest rate accrued on the transferred advance. The participation fee is recorded in retention payments expense.

Income Taxes

Income Taxes

Income taxes are accounted for under the asset and liability method. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognized for the deferred income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Valuation allowances are recorded to reduce any deferred income tax assets to the amounts management concludes is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in corporate expenses.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company does not use derivative financial instruments.

The fair values of financial instruments are determined with respect to the hierarchy that prioritizes the input to fair value measurement. In the absence of an active market, the Company determines fair value by using valuation techniques that refer to observable market data or estimated market prices. Fair values are inherently judgmental, thus the estimated fair values do not necessarily reflect amounts that would be received or paid in case of immediate settlement of these instruments. The use of different estimations, methodologies and assumptions could have a material effect on the estimated fair value amounts.

Restricted Cash

Restricted Cash

Any cash provided to the Company for which withdrawal or use is restricted is classified as restricted cash.

Long-Term Investments

Long-Term Investments

The Company has long-term investments in The Cash Store Australia Holdings Inc. (“AUC”) and RTF Financial Holdings Inc. (“RTF”). The Company accounts for its long-term investments using the equity method of accounting as it has significant influence over the strategic operating, investing and financing activities due to board representation. The carrying amount of these long-term investments is $nil.

Deferred Financing Costs

Deferred Financing Costs

Underwriting, legal and other direct costs incurred in connection with the issuance of debt are included in deferred financing costs. Amortization of deferred financing costs is calculated using the effective interest method over the term of the related debt and recorded as interest expense.

Property and Equipment

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Computer hardware	4 years
Fixtures, furniture, and equipment	5 years
Signs	5 years
Vehicles	5 years

Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term and the estimated useful life of the asset. Repairs and maintenance costs are expensed as incurred.

Intangible Assets

Intangible Assets

Intangible assets acquired as part of a business combination are initially recognized and measured at fair value. Intangible assets acquired individually or as part of a group of other assets that are not considered a business combination are recorded at cost.

The Company accounts for internally developed software costs in accordance with Accounting Standards Codification ("ASC") 350-40, "Internal Use Software," which requires the capitalization of certain costs incurred in connection with developing or obtaining software for internal use. The Company capitalizes internal use software if that software meets the following criteria:

• The software is acquired, internally developed or modified solely to meet the Company's internal needs; and

• No substantive plan exists or is being developed to market the software externally.

If these two criteria are met, the Company will capitalize labor costs of full time and temporary employees working directly on the development or modification of internal use software and hardware and software purchased specifically for the internal use software. Capitalized costs are depreciated over the estimated useful lives when the software is complete and ready for its intended use.

Amortization is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated Useful Life
Customer list, contracts and relationships	3 years
Computer software	3 - 5 years
Non-compete agreements	Term of the agreements
Favorable supplier relationships	7 years
Proprietary knowledge	5 years
Brand name	Indefinite life

Goodwill

Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is assigned, as of the date of the business combination, to reporting units that are expected to benefit from the business combination Goodwill is not amortized, but instead is assessed for impairment annually or more frequently if events or changes in circumstances indicate that it may be impaired, as described in Note 1(r).

Impairment

(r) Impairment

Property and equipment and intangible assets subject to amortization

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of these assets which may include: applicable industry performance and prospects, general business and economic conditions that prevail and are expected to prevail, expected growth, maintaining its customer base, and achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of these assets. Furthermore, the process ofdetermining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates.

An asset group is the lowest level for which there are separate identifiable cash flows. For property and equipment, an asset group typically represents an individual branch. Any assets to be disposed of by sale are reported at the lower of carrying amount or fair value less costs to sell. Such assets are not depreciated while they are classified as held-for-sale.

For intangible assets subject to amortization, which include non-compete agreements, favourable supplier relationships, proprietary knowledge and software intangibles, impairment testing is performed using the expected undiscounted cash flows of the Canadian reporting unit.

As a result of the factors discussed in Note 8 that required a recoverability test to be performed over certain branches and corporate assets, the Company also performed a recoverability test on the asset group containing its intangible assets subject to amortization. The Company determined that the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the Canadian reporting unit was greater than the carrying amount of the Canadian reporting unit and accordingly no impairment existed.

Note 1 – Significant Accounting Policies (continued)

(r) Impairment (continued)

Goodwill and brand name

Goodwill and the brand name intangible asset are tested for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances indicate the asset might be impaired.

The brand name impairment test consists of a comparison of the fair value of the brand name with its carrying value. If the carrying amount exceeds its fair value, an impairment is recognized equal to the amount of the excess.

The Company assesses qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. If the qualitative assessment results in a determination that goodwill has more-likely-than-not been impaired, the Company performs the two-step goodwill impairment test. In the first step, the carrying amount of the reporting unit, including goodwill, is compared to its fair value. When the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired and the second step of the impairment test is unnecessary. The second step is carried out when the carrying amount of a reporting unit exceeds its fair value, in which case, the impliedfair value of the reporting unit's goodwill, determined in the same manner as the value of goodwill is determined in a business combination, is compared with its carrying amount to measure the amount of the impairment loss, if any.

As a result certain events and circumstances, including recent operating results and regulatory matters, the Company completed an impairment test on goodwill and the Instaloans brand name on June 30, 2013 and determined that there was no impairment of goodwill as the fair value of the Company's Canadian reporting unit exceeded its carrying value and the fair value of the Instaloans brand name exceeded its carrying value as at June 30, 2013. The Company performed its annual impairment assessment on July 1, 2013 and no impairment was identified.

Litigation Accruals

Litigation Accruals

In view of the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company cannot state with confidence what the eventual outcome of pending matters will be, what the timing of the ultimate resolution of these matters will be, what the eventual loss, fines, or penalties related to each pending matter may be, or the extent to which such amounts may be recoverable under the Company's insurance policies.

In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters when those matters present loss contingencies which are both probable and estimable. When loss contingencies are not both probable and estimable, the Company does not establish reserves. In the matters described in Note 20, loss contingencies are not both probable and estimable in the view of management, and accordingly, reserves have not been established for those matters. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending litigation and regulatory matters, including the litigation and regulatory matters described in Note 20, will have a material adverse effect on the consolidated financial position or liquidity of the Company, but may be material to the Company's result of operations for any particular reporting period.

Deferred Revenue

Deferred Revenue

The Company has entered into a long-term services contract for which it received an advance payment. The advance payment was recorded as deferred revenue and is recognized as revenue using the straight-line method over the life of the contract.

Leases

Leases

Leases are classified as capital or operating depending upon the terms and conditions of the related contracts. Assets under capital leases are recorded as property and equipment with a corresponding obligation. Obligations under capital leases are reduced by lease payments net of imputed interest. Computer and phone operating lease expenses are recorded in selling, general, and administrative expenses. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. Branch operating leases are recorded in branch operating expense within the rent caption.

Branch Operating and Corporate Expenses

Branch Operating and Corporate Expenses

The direct costs incurred in operating the Company’s branch network have been classified as branch operating expenses. These costs include salaries and benefits of branch and regional employees, retention payments, rent expense, provision for loan losses, advertising and promotion, depreciation of branch property and equipment, and other costs incurred by the branches. Corporate expenses incurred by the Company are excluded from branch operating expenses, and include salaries and benefits of corporate employees, corporate rent, professional fees and legal costs.

Branch Closure Costs

Branch Closure Costs

Branch closure costs represent management's estimate of severance payments, costs to clean and vacate the premises, losses related to the write-off of leasehold improvements and signage, and lease cancellation expenses related to closing a branch. Additionally, closing or consolidating branches could result in the impairment of receivables, long-lived assets, or goodwill. A liability for severance payments, unless contractually obligated, is recognized when management: (i) decides to close a center and this plan is unlikely to change; (ii) determines that an employee cannot be relocated to another center; and (iii) informs the employee of the termination and the benefits that will be paid. Costs to terminate the lease are recorded at the earlier of the date the lease is terminated or the date the leased property is no longer used. All other expenses are recorded when incurred.

Foreign Currency

Foreign Currency

The financial statements of the Company’s operations in the United Kingdom have been translated into Canadian dollars. Monetary assets and liabilities are translated at the current exchange rate at each period end while non-monetary assets and liabilities are translated at historical exchange rates. Statement of operations items are translated at the average exchange rate for the period. Resulting translation adjustments are included in corporate expenses. Gains or losses from foreign currency transactions are included in corporate expenses.

Operating Segments

Operating Segments

The Company conducts business through two operating segments: Canada and the United Kingdom. For reporting purposes the Canada and united Kingdom operating segments are aggregated for based on the similar nature of the operations, customers, and regulatory environment.

XML

Related Party and Other Transactions (Details Textual) (CAD) In Thousands, except Share data, unless otherwise specified	12 Months Ended													12 Months Ended										0 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2013 Cameron Schiffner [Member]	Sep. 30, 2012 Cameron Schiffner [Member]	Sep. 30, 2011 Cameron Schiffner [Member]	Sep. 30, 2013 Michael Shaw [Member]	Sep. 30, 2012 Michael Shaw [Member]	Jan. 31, 2012 Michael Shaw [Member]	Sep. 30, 2011 Michael Shaw [Member]	Sep. 30, 2013 Bruce Hull [Member]	Sep. 30, 2012 Bruce Hull [Member]	Sep. 30, 2011 Bruce Hull [Member]	Sep. 30, 2013 Cash Store Australia Holdings Inc [Member]	Sep. 30, 2012 Cash Store Australia Holdings Inc [Member]	Sep. 30, 2013 Rtf Financial Holdings Inc [Member]	Sep. 30, 2012 Rtf Financial Holdings Inc [Member]	Sep. 30, 2013 Service Agreements [Member] Cash Store Australia Holdings Inc [Member]	Sep. 30, 2012 Service Agreements [Member] Cash Store Australia Holdings Inc [Member]	Sep. 30, 2011 Service Agreements [Member] Cash Store Australia Holdings Inc [Member]	Sep. 30, 2013 Service Agreements [Member] Rtf Financial Holdings Inc [Member]	Sep. 30, 2012 Service Agreements [Member] Rtf Financial Holdings Inc [Member]	Sep. 30, 2011 Service Agreements [Member] Rtf Financial Holdings Inc [Member]	Jan. 31, 2012 Consumer Portfolio Segment [Member] Cameron Schiffner [Member]	Jan. 31, 2012 Consumer Portfolio Segment [Member] Michael Shaw [Member]
Related Party Transaction [Line Items]
Shares outstanding														3,000,000		6,000,000
Ownership percentage														18.30%		15.70%
Carrying amount of investment sold														0	0	0	0
Quoted market value														0	570
Selling, general and administrative expenses	20,449	23,595	24,109															0	284	363	0	140	240
Related party transaction, receivable from related party																		0	3		1	0
Share price (in dollars per share)														0.06		0.06
Retention payments, paid or payable				993	4,185	11,674	0	1,377		4,801	24	36	0
Accrued liabilities due to third-party lender				485	659		0	0			183	166
Consumer loans receivable, net of provision for loan losses				3,914
Business acquisition, contingent consideration, potential cash payment				84	7,240		0	0	23,944		104	171												45,520
Estimate of third-party lender's proportionate share of expenses to settle pre-existing relationships																								14,407	7,578

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Dividends (Details) (CAD) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)	0
Dividends to common shareholders, total		6,269	7,929
Dividend 0.12 [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)		0.12	0.12
Dividends payable, date declared effective		Nov. 16, 2011	Feb. 07, 2011
Paid to shareholders		Dec. 14, 2011	Feb. 21, 2011
Dividends to common shareholders, total		2,091	2,062
Dividend 0.12 One [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)		0.12	0.12
Dividends payable, date declared effective		Feb. 08, 2012	May 09, 2011
Paid to shareholders		Mar. 07, 2012	May 24, 2011
Dividends to common shareholders, total		2,091	2,084
Dividend 0.12 Two [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)			0.12
Dividends payable, date declared effective			Aug. 10, 2011
Paid to shareholders			Aug. 25, 2011
Dividends to common shareholders, total			2,073
Dividend 0.06 [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)		0.06
Dividends payable, date declared effective		May 10, 2012
Paid to shareholders		Jun. 07, 2012
Dividends to common shareholders, total		1,039
Dividend 0.06 One [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)		0.06
Dividends payable, date declared effective		Aug. 10, 2012
Paid to shareholders		Sep. 07, 2012
Dividends to common shareholders, total		1,048
Dividend 0.10 [Member]
Schedule of Dividends [Line Items]
Dividend per common share (in dollars per share)			0.10
Dividends payable, date declared effective			Dec. 06, 2010
Paid to shareholders			Dec. 21, 2010
Dividends to common shareholders, total			1,710

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Income Taxes (Details 2) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Current asset	0	12,183
Non-current asset	0	424
Current liability	0	0
Non-current liability	(2,934)	(2,832)
Net deferred income taxes	(2,934)	9,775

XML

Obligations under Capital Leases and Other (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013
Debt Instrument [Line Items]
2014	1,185
2015	647
2016	599
2017	303
2018	116
2019 and thereafter	1,776
Capital leases, future minimum payments due	4,626
Capital Lease Aggregate Due [Member]
Debt Instrument [Line Items]
2014	1,612
2015	973
2016	855
2017	506
2018	300
2019 and thereafter	2,699
Capital leases, future minimum payments due	6,945
Capital Lease Imputed Interest [Member]
Debt Instrument [Line Items]
2014	427
2015	326
2016	256
2017	203
2018	184
2019 and thereafter	923
Capital leases, future minimum payments due	2,319

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Consumer Advances Receivable, net (Details Textual) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Jan. 31, 2012
Consumer Loans Receivable [Abstract]
Net consumer loans transferred to third party lenders in exchange for cash	16,410	24,100
Fair value of transferred advances	14,259	17,600
Allowance for consumer loan losses, charge-offs relating to transferred loans	2,151	6,500
Contractual cash flows of acquired advances	1,715	6,585		319,906
Expected cash flows of acquired advances	1,173	0		51,491
Carrying value of acquired advances	6,248	6,585		50,014
Impairment of acquired advances	1,011	0	0
Accretion and net collections	47,288

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Cash (Details Textual) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash and Cash Equivalents [Line Items]
Restricted cash	5,242	3,076
Financial Institution for Banking Arrangements [Member]
Cash and Cash Equivalents [Line Items]
Restricted cash	666	635
Third Party Lender [Member]
Cash and Cash Equivalents [Line Items]
Restricted cash	4,575	2,441

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Senior secured notes (Details ) (Senior Secured Notes [Member])	12 Months Ended
	Sep. 30, 2013
On Or After July 31, 2014 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redemption prices	103.084%
On Or After January 31, 2015 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redemption prices	102.091%
On Or After July 31, 2015 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redemption prices	101.127%
On Or After January 31, 2016 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redemption prices	101.194%
On Or After July 31, 2016 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redemption prices	100.00%

XML

Income Taxes

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

(a) Provision for Income Taxes

The income tax provision (recovery) differs from the amount that would be computed by applying the statutory income tax rates of 25.0% (2012 – 26.5%, 2011 – 28.0%) to income as a result of the following:

	September 30, 2011			September 30, 2012			September 30, 2013
Income (loss) before income taxes	$	16,889		$	(56,877	)	$	(35,252	)
Computed tax expense (recovery) at statutory income tax rates	$	4,729		$	(15,072	)	$	(8,813	)
Change in enacted tax rates	(31		)	108			(3		)
Book to filing adjustments and adjustment of prior year immaterial errors	1,180			(245		)	(579		)
Change in valuation allowance	—			1,980			10,166
Stock-based compensation	206			186			110
Rate difference on losses carried back	—			(532		)	(702		)
Permanent differences and other	226			220			101
Total income tax provision (recovery)	$	6,310		$	(13,355	)	$	280

The company recorded a valuation allowance against a portion of its Canadian and United Kingdom net deferred tax assets as atSeptember 30, 2013 which amounted to $12,146. As at September 30, 2012, the Company had provided a valuation allowance against its United Kingdom deferred tax assets, which amounted to $1,980. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. Due to cumulative pre-tax losses, realization is not considered more likely than not and the Company has not recorded the benefit of the majority of its deferred tax assets.

Note 12 - Income Taxes (continued)

(a) Provision for Income Taxes (continued)

As at September 30, 2013, the Company has tax loss carry forwards in the amount of $21,365 (September 30, 2012- $9,826). The increase was a result of additional net operating losses for the year ended September 30, 2013. The net operating loss carry forwards related to Canadian operations, which are available to offset future taxable income, will begin to expire in 2033, if not utilized. The net operating loss carry forwards related to United Kingdom do not have an expiry date.

The Company’s tax positions for 2008 to present in Canada remain subject to examination by tax authorities. The Company’s tax position for the current and prior fiscal year in the United Kingdom remains subject to examination by tax authorities.

(b) Deferred Income Taxes

The tax effects that give rise to significant portions of the deferred income tax assets and liabilities are presented below:

	September 30, 2012			September 30, 2013
Deferred income tax assets:
Current:
Accrued liability for class action settlements and other temporary differences	$	3,919		$	302
Expense to settle pre-existing relationships with third-party lenders	3,814			714
Loss on acquisition of lines of credit advances	—			2,275
Loan loss provision	4,450			2,813
Valuation allowance for current deferred tax assets	—			(6,104		)
	$	12,183		$	—
Non-current:
Losses available to be carried forward	2,404			5,223
Property and equipment	1,782			1,919
Deferred lease inducements	200			112
Deferred revenue	1,032			1,032
Discount on senior secured notes	85			228
Valuation allowance for non-current deferred tax assets	(1,980		)	(6,042		)
	$	3,523		$	2,472
Deferred income tax liabilities:
Intangible assets and goodwill	$	(5,711	)	$	(4,959	)
Deferred financing costs and other	(220		)	(447		)
	$	(5,931	)	$	(5,406	)
Net deferred income taxes	$	9,775		$	(2,934	)

Classified as:

	September 30, 2012			September 30, 2013
Current asset	$	12,183		$	—
Non-current asset	424			—
Current liability	—			—
Non-current liability	(2,832		)	(2,934		)
	9,775			(2,934		)

XML

Property and Equipment

12 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,006	$	21,928	$	9,078
Fixtures, furniture, and equipment	11,297		7,489		3,808
Computer hardware	9,028		5,564		3,464
Signs	5,425		4,395		1,030
Vehicles	77		48		29
Land	51		—		51
	$	56,884	$	39,424	$	17,460

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Leasehold improvements	$	31,804	$	19,468	$	12,336
Fixtures, furniture, and equipment	13,598		7,422		6,176
Computer hardware	7,201		4,423		2,778
Signs	6,606		4,839		1,767
Vehicles	77		28		49
Land	51		—		51
	$	59,337	$	36,180	$	23,157

Property and equipment includes the following capital leases:

	September 30, 2013
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	3,531	$	2,560	$	971
Fixtures, furniture and equipment	1,661		1,183		478
	$	5,192	$	3,743	$	1,449

Note 8 – Property and Equipment (continued)

	September 30, 2012
	Cost		Accumulated Depreciation		Net Book Value
Computer hardware	$	2,814	$	1,761	$	1,053
Fixtures, furniture and equipment	1,661		851		810
	$	4,475	$	2,612	$	1,863

Depreciation of property and equipment for the year ended September 30, 2013, includes $1,131 (2012 - $796, 2011 - $165) relating to property and equipment under capital leases.

During the year ended September 30, 2013, additions to property and equipment included $717 (2012- $1,401, 2011 - $121) of assets that were acquired by means of capital lease.

Impairment of Property and Equipment

During the year endedSeptember 30, 2013, as a result of certain events and circumstances, including recent operating results and regulatory matters, the Company determined that it was necessary to test the recoverability of certain branches and corporate assets that are not allocated to individual branches. During the year ended September 30, 2013, the Company recorded an impairment charge of $1,236 (2012 - $3,425, 2011 - nil) as a result of impairments identified in certain branches. In addition, the Company determined that the asset group containing the Company's corporate property and equipment was recoverable as at September 30, 2013. The property and equipment impaired included leasehold improvements, fixtures, furniture and equipment, signage, and computer equipment.

XML

Other Receivables and Other Income (Details 1) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Receivables [Abstract]
Current	5,847	14,035
Current to 3 months past due	1,639	3,284
3 months to 6 months past due	629	1,148
6 months to one year past due	2,403	613
Greater than one year past due	1,943	401
Total other receivables gross	12,461	19,481
Allowance for doubtful accounts	(4,357)	0
Total other receivables, net	8,104	19,481
Agency fee income	25,386	39,847	46,809
Other income	12,949	9,571	6,467
Total other income	38,335	49,418	53,276

XML

Obligations under Capital Leases and Other

12 Months Ended

Sep. 30, 2013

Leases [Abstract]

Obligations under Capital Leases and Other

Obligations under Capital Leases and Other

The Company has entered into capital leasing and other obligation arrangements related to leasehold improvements, office furniture and equipment:

	September 30, 2013
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $71 including imputed interest ranging from 5.0% - 22.7%; due to mature between 2013 - 2027; secured by assets with an aggregate carrying amount of $4,674.	$	6,946	$	2,320	$	4,626
Less current portion	1,612		427		1,185
	$	5,334	$	1,893	$	3,441

	September 30, 2012
	Aggregate Due		Less Imputed Interest		Net
Various leases and other obligations - repayable in monthly instalments totalling $72 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2027; secured by assets with an aggregate carrying amount of $4,834.	$	7,281	$	2,493	$	4,788
Less current portion	1,565		385		1,180
	$	5,716	$	2,108	$	3,608

Note 15 - Obligations under Capital Leases and Other (continued)

The capital lease and other obligation repayments are due as follows:

	Aggregate Due		Less Imputed Interest		Net
2014	$	1,612	$	427	$	1,185
2015	973		326		647
2016	855		256		599
2017	506		203		303
2018	300		184		116
2019 and thereafter	2,699		923		1,776
	$	6,945	$	2,319	$	4,626

During the year ended September 30, 2013, the Company incurred interest charges related to capital leases and other obligations in the amount of $494 (2012- $222, 2011- $147). These changes have been included in corporate expenses.

XML

Senior secured notes

12 Months Ended

Sep. 30, 2013

Senior Notes [Abstract]

Senior secured notes

Senior secured notes

On January 31, 2012, the Company issued, through a private placement in Canada and the U.S., $132.5 million of 11.5% Senior Secured Notes (the “Notes”).  The Notes mature on January 31, 2017 and bear interest on the aggregate principal amount from the date of issue at 11.5% per annum payable on a semi-annual basis in equal installments on January 31 and July 31 of each year, commencing in July of 2012. The notes were issued at a price of 94.608% resulting in an effective interest rate of 13.4%.

The Company used the majority of the proceeds of the Notes to acquire a portfolio of consumer loans as described in Note 3.

The Notes are guaranteed, jointly and severally, on a senior secured basis, by each of the Company’s existing and future restricted subsidiaries that guarantee indebtedness or indebtedness of any subsidiary guarantor under any carve-out for credit facility. The Notes are secured on a second-priority basis by liens on all of the Company’s and its restricted subsidiaries’ existing and future property subject to specified permitted liens and exceptions. Any future credit facility as well as certain other future debt will be secured by a first-priority lien on this collateral. 

The Notes are redeemable at the option of the Company, in whole or in part, at any time on or after July 31, 2014 at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption date if redeemed during the periods set forth below.

For the period below	Percentage
On or after July 31, 2014	103.084	%
On or after January 31, 2015	102.091	%
On or after July 31, 2015	101.127	%
On or after January 31, 2016	101.194	%
On or after July 31, 2016	100.000	%

Prior to July 31, 2014, the Company is entitled at its option on one or more occasions to redeem up to 35% of the aggregate principal amount of the Notes originally issued under a trust indenture (the “Trust Indenture”) at a redemption price of 111.5% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date if:

• such redemption is made with the proceeds of one or more Equity Offerings as defined in the Trust Indenture;

• at least 65% of the aggregate principal amount of the Notes (including Additional Notes) originally issued under the Trust Indenture remain outstanding immediately after the occurrence of such redemption (excluding Notes held by the Company or any of its subsidiaries); and

• the redemption occurs within 90 days of such Equity Offering.

If a change in control occurs, the holders of the Notes will have the right to require the Company to purchase all or a portion of the Notes, at a purchase price in cash equal to 101% of the principal amount of the Notes offered for repurchase plus accrued interest to the date of purchase.

As at September 30, 2013, the Company was in compliance with all of the covenants in the Trust Indenture.

XML

Segmented Information (Details) (CAD) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Segment Reporting Information [Line Items]
Revenue	190,765	187,412	189,899
Long-lived assets	91,499	102,602
Canada [Member]
Segment Reporting Information [Line Items]
Revenue	180,412	177,186	187,356
Long-lived assets	88,210	99,972
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenue	10,353	10,226	2,543
Long-lived assets	3,289	2,630

XML

DOCUMENT AND ENTITY INFORMATION	12 Months Ended
	Sep. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Cash Store Financial Services Inc.
Entity Central Index Key	0001490658
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Trading Symbol	csfs
Entity Common Stock, Shares Outstanding	17,571,813
Document Type	20-F
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Senior secured notes (Details Textual) (Senior Secured Notes [Member], CAD) In Millions, unless otherwise specified	12 Months Ended
	Sep. 30, 2013
Debt Instrument [Line Items]
Interest rate, stated percentage	11.50%
Debt instrument, maturity date	Jan. 31, 2017
Percentage of notes issued price	94.608%
Debt instrument, interest rate, effective percentage	13.40%
Percentage of debt instrument aggregate principal amount	35.00%
Percentage of debt instrument redemption price	111.50%
Remaining percentage of debt instrument aggregate principal amount	65.00%
Percentage of purchase price in cash of debt instrument	101.00%
Private Placement [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt	132.5

XML

Deferred Revenue

12 Months Ended

Sep. 30, 2013

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

Deferred Revenue

	September 30, 2012		September 30, 2013
Current	$	1,000	$	1,000
Long-term	3,917		2,918
	$	4,917	$	3,918

On September 1, 2010, the Company entered into an agreement with Ria Financial Services, a division of Euronet Worldwide Inc. to supply money transfer services across the Company’s network of branches in Canada. The Company received a $7,000 signing bonus, which is recognized into revenue using the straight-line method over the 7 year term of the agreement.

XML

Consumer Advances Receivable, net (Details 1) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Consumer Loans Receivable [Abstract]
Current	14,606	17,019
1-30 days past due date	6,502	8,791
31-60 days past due date	4,179	3,934
61-90 days past due date	3,892	3,469
Greater than 90 days past due date	0	19,039
Consumer advances receivable	29,179	52,252
Allowance for credit losses	(9,835)	(26,397)	(2,783)
Consumer advances originated by the Company	19,344	25,855

XML

Consumer Advances Receivable, net (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Consumer Loans Receivable [Abstract]
Short-term advances receivable	25,428	50,834
Term loans receivable	0	569
Line of credit advances receivable	3,751	849
Allowance for credit losses	(9,835)	(26,397)	(2,783)
Consumer advances originated by the Company	19,344	25,855
Acquired short-term advances and line of credit advances	6,248	6,585
Consumer loans receivable, net	25,592	32,440

XML

Deferred Revenue (Details) (CAD) In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Deferred Revenue Disclosure [Abstract]
Current	1,000	1,000
Long-term	2,918	3,917
Deferred revenue	3,918	4,917