- 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
The cash flows from operations and financing activities, and cash flows used in financing and investing activities for the years 2002-2006 are summarized below.
| 2006 $ |
2005 $ |
2004 $ |
2003 $ |
2002 $ |
|
| Cash flow from operations | 4,945,233 | 3,518,787 | 4,238,574 | 2,665,485 | 1,446,164 |
| Cash flow from (used in) financing activities | (339,202) | (1,184,520) | 3,802,947 | 296,869 | 323,058 |
| Cash flow used in investing activities | (4,783,796) | (2,616,996) | (7,693,607) | (2,984,470) | (1,877,326) |
The cash flow used in investing activities shows a significant increase primarily due to the Company acquiring property consisting of land and building in March 2006 in the approximate amount of $2.1 million to facilitate growth and expansion.
The Company expects to continue investing significantly in growth of the subscriber base, through marketing programs, which have been highly effective in Canada historically, and in the installation of new security systems in subscriber homes. Security systems are installed under three-year contracts, which are subsequently renewable annually. The Company manufactures the equipment that it installs and the manufacturing process involves purchasing various key components from foreign and domestic manufacturers, and utilizing local subcontractors in certain parts of the manufacturing process. The Company’s manufacturing operations are housed in Toronto where the alarm systems are manufactured. In addition to the standard system, the Company also manufactures AlarmPlus telephone line-cut technology that is available exclusively to subscribers of AlarmForce, which is the only Canadian alarm company that manufactures and installs AlarmPlus.
Financing activities
The Company is authorized to issue an unlimited number of common shares. The changes in the issued common shares of the Company during 2006 and 2005 were as follows:
| Number of Shares | Value $ |
|
| Balance, October 31, 2004 | 11,574,888 | 11,708,770 |
| Issued during the year: | ||
| For cash pursuant to option plan | 101,600 | 86,360 |
| Balance, October 31, 2005 | 11,676,488 | 11,795,130 |
| Issued during the year: | ||
| For cash pursuant to option plan | 412,300 | 350,455 |
| Balance, October 31, 2006 and January 11, 2007 | 12,088,788 | 12,145,585 |
The Company is committed to issuing 200,000 common shares under options that were outstanding at the end of the 2006 fiscal year (612,300 at the end of the 2005 fiscal year). Exercise prices under the options and the remaining life of options are summarized below.
| Expiry Date | Number as October 31, 2006 |
Remaining contractual life (Years) | Exercise Price |
| July 17, 2009 | 200,000 | 2.75 | $3.78 |