- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Financial Information
7. OTHER ASSETS
As at October 31, 2004, all non-interest bearing loans provided to purchase common shares from treasury pursuant to an employment agreement had been repaid. The loans were repaid from the proceeds of the sale of common shares.
8. LONG-TERM DEBT
| 2004 | 2003 | |
| $ | $ | |
| Revolving term loans | 2,216,601 | 4,030,131 |
| Less: Current portion | 1,241,549 | 2,076,133 |
| 975,052 | 1,953,998 |
The company has credit facilities in the aggregate amount of approximately $5,650,000. Loans made under the respective facilities are repayable over various terms, in monthly installments of principal plus interest at the prime rate plus 0.75% per annum, pursuant to individual contract periods. A general assignment of book debts, a general security agreement, and an assignment of the proceeds of a $300,000 life insurance policy have been pledged as collateral.
| Future minimum payments are due as follows:2004 | Total |
| $ | |
| 2005 | 1,241,549 |
| 2006 | 657,279 |
| 2007 | 307,347 |
| 2008 | 10,426 |
| 2,216,601 |
9. SHARE CAPITAL
The company is authorized to issue an unlimited number of common shares.
The changes in the issued common shares of the company during 2004 and 2003 are as follows:
| Number of Shares | Value |
|
| $ | ||
| Balance, October 31, 2002 | 8,895,403 | 5,539,042 |
| Issued during the year: | 3,994,909 | 2,451,425 |
| For cash pursuant to option plan | 167,500 | 142,375 |
| For other consideration pursuant to options (i) | 26,400 | 35,112 |
| For other consideration (ii) | 50,000 | 92,500 |
| Balance, October 31, 2003 | 9,139,303 | 5,809,029 |
| Issued during the year: | ||
| For cash pursuant to private placement (ii) | 2,000,000 | 5,438,686 |
| For cash pursuant to option plan | 406,600 | 353,810 |
| For other consideration (ii) | 28,985 | 107, 245 |
| Balance, October 31, 2004 | 11,574,888 | 11,708,770 |
(i) The shares were recorded at the fair value of $ 1.33 per share on the date of issuance.
(ii) As part of consideration in acquiring franchise rights the Company issued 50,000 shares at $ 1.85 per share in 2003 and 28,985 shares at $3.7 per share in 2004.The fair values of the shares were determined at the date of issuance.
(iii) On December 2, 2003, the company issued 1,000,000 common shares at a share price of $2.50 under a private placement for net proceeds of $2,345,930 .On June 29, 2004, the company issued an additional 1,000,000 common shares at a share price of $ $3.25 under a private placement for net proceeds of $3,092,756. Share issue costs of $ 311,333, net of income taxes of $ 176,000 were charged to Share Capital.