- 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
9. INTEREST EXPENSE
| 2005 | 2004 | |
| $ | $ | |
| Interest on long-term debt | 93,346 | 143,444 |
| Other | 96,850 | 146,740 |
10. INCOME TAXES
| 2005 | 2004 | |
| $ | $ | |
| Current income tax expense | 1,086,116 | 397,948 |
| Future income tax expense (recovery) | (605,767) | 102,687 |
| 480,349 | 500,635 |
(a) Income tax expense varies from the amount that would be computed by applying the combined federal and provincial statutory income taxes rate as a result of the following:
| 2005 | 2004 (Note) |
|
| $ | $ | |
| Income taxes based on combined federal and provincial | ||
| statutory income tax rate of 36.12% in 2005 and 2004 | 466,151 | 290,489 |
| Increase (decrease) in income taxes resulting from: | ||
| Non-deductible expenses | 27,983 | 61,313 |
| Other temporary differences | (13,785) | 148,833 |
| Effective income tax provision | 480,349 | 500,635 |
A summary of significant components of future tax liabilities calculated in accordance with Canadian accounting principles at October 31, 2005 and 2004 are as follows:
| 2005 | 2004 |
|
| Non-current future tax liabilities: | ||
| Property, plant and equipment | (167,100) | (432,900) |
| Deferred charges | ||
| Intangible assets | (11,000) | (14,431) |
| (1,355,200) | (1,609,156) | |
| (1,533,300) | (2,056,487) | |
| Non-deductible expenses | ||
| Deferred revenue | 606,700 | 488,900 |
| Share issue costs | 105,600 | 140,820 |
| 712,300 | 629,720 | |
| Net Future tax liabiltiy | (821,000) | (1,426,767) |
11. CONTINGENT LIABILITY
The company is a defendant in a legal action with respect to a claim for fees subsequent to termination of an agreement. Based on the evidence available, it is management’s opinion that the claim is entirely without merit. No provision has been reflected in the financial statements relating to this action.