Financial Information
b) Revenue recognition:
In 2004, home alarm Company decided to retroactively adopt the Canadian accounting standards including CICA Emerging Issues Committee Abstract 142 “Revenue Arrangements with Multiple Deliverables” issued in December 2003, regarding the timing of revenue recognition and the classification of certain items as revenue or expense.
The accounting standard requires driveway alarm equipment installation revenue and related costs from both new and existing home alarm monitoring subscribers to be deferred and amortized over four years, the term of the customer agreement. Prior to adopting the new standard, revenues were recorded at the completion of the transaction.
The effect of these changes on the 2003 financial statement balances is as follows:
| Previously reported | Change |
Restated | |
| $ | $ | $ | |
| Balance Sheet | |||
| Deferred Revenue | - | 978,307 | 978,307 |
| Future Income Tax | 1,570,000 | (323,000) | 1,247,000 |
| Income Statement | |||
| Revenue | 12,520,851 | (534,762) | 11,986,089 |
| Cost of Sales | 3,427,176 | (255,691) | 3,171,485 |
| Income taxes | 851,862 | (213,000) | 638,862 |
| Net Income | 1,367,580 | (66,071) | 1,301,509 |
4. DEFERRED CHARGES
| 2004 | 2003 |
|
| $ | $ | |
| Deferred direct response marketing costs (net of accumulated amortization of $7,578,364; 2003 - $5,452,840)- | 5,778,219 | 4,235,556 |
| Deferred stock compensation | 96,859 | - |
| Deferred development costs (net of accumulated amortization of $55,953; 2003- $ 46,362) | 39,962 | 49,553 |
| Deferred charges relating to long-term debt (net of accumulated amortization of $6,500; 2003 - $5,687) | - | |
| 5, 915,040 | 4,285,922 |
5. PROPERTIES, PLANT AND EQUIPMENT
| 2004 | 2003 |
|||
| Cost | Accumulated Amortization |
Cost | Accumulated Amortization |
|
| $ | $ | $ | $ | |
| Computer equipment | 525,227 | 369,129 | 451,566 | 320,362 |
| Computer software | 226,583 | 97,756 | 112,106 | 69,855 |
| Furniture and fixtures | 264,210 | 146,404 | 222,657 | 122,147 |
| Leasehold improvements | 255,330 | 187,482 | 244,636 | 165,335 |
| Moulding equipment | 57,386 | 27,695 | 57,386 | 16,219 |
| Revenue equipment | 16,038,753 | 6,716,914 | 14,033,067 | 5,538,308 |
| 17,367,489 | 7,545,380 | 15,121,418 | 6,232,226 | |
| Net Book Value | 9,822,109 | 8,889,192 |
6. INTANGIBLE ASSETS
| Intangible assets consist of the following: | 2004 | 2003 |
| $ | $ | |
| Franchise rights | 3,994,909 | 2,415,425 |
| Other | - | 36,000 |
| 3,994,909 | 2,451,425 | |
| Less accumulated amortization | 819,106 | 509,951 |
| 3,175,803 | 1,941,474 |
Ask a Question
Testimonials
-
I don't know why anyone would use a different company - excellent product, excellent customer service, excellent price!
-Frank, BC -
I wanted to let you know what a nice person James Gipson is. He is so friendly and took his time and went beyond the call of duty explaining everything to me. It was not a rush job and I didn’t feel it was just taking my money. He is exceptional and I would like to make sure he knows he is appreciated.
-Inyang, GA -
We enjoy having AlarmForce in our home. It's a superior system that delivers on its promise of a much more affordable price than the other guys.
-Shane, AB -
Very happy with service, installation and operation of equipment . We now feel more secure in our home.
-Victor, ON -
No difficulties for the past four years, thank you. I enjoy the 2-way communication and also enjoy the calls prior to dispatching of emergency services. Avoids extra cost due to false alarms.
-Ken, ON -
It was five days before Christmas in 2009, when I was finally getting off of work, to come home and enjoy my holidays. I had been in Northern Alberta and British Columbia working for awhile and not getting the chance to come home very often. My landlord of the house, my spouse and I were renting, lived across the street and was able to watch our house while we were both out of town. It was 9:00pm the night before I flew home, when my landlord called to say our house had gotten broken into. I was very frustrated, upset and angry mainly because I come from a small town in Saskatchewan and not a lot of crime goes on. I did not know what to expect when I got home to see if all of our belongings were missing and the house destroyed. I remember coming home from the airport, very scared, not wanting to even stay at my house over night. When I got home, there was this feeling of someone there, but really there wasn't. Everything seemed to still be intact, and not missing, but I did not feel safe staying there by myself that night. I decided to stay with family. The next day, I called Alarm Force to have a system set up in our house. I was leaving for Saskatchewan within 72 hours, and no one from alarm force could come. This was very understandable since it was short timing. I explained to AlarmForce over the phone what had happened, how I did not feel safe, and I wanted to purchase a system. AlarmForce was very helpful. Their best intention was to get a system for me installed as soon as possible so I would feel safe in my own home. AlarmForce was very helpful and they worked with my landlord and me in installing a system in my house, even knowing me and my spouse were gone from Christmas. After Christmas I came home to find a wonderful, easy, accessible alarm to use that was very understanding to learn. The best part was how much room the alarm took up, which was not much! The amount of money I have to pay for having the alarm is well worth than having my belongings maybe gone one day, or myself in danger. I like how the payment system is set up on a monthly payment, and I can transfer my system to friends or family if need be. We still live in the house so it is definitely paying off. I also love that if we were to move, we can move our system to different locations. I am more home now, than I used to be but my spouse is still out of town lots. I sometimes get very nervous staying by myself which affects sometimes the way I sleep. Being paranoid about staying in a house by yourself is not a very good feeling. It bothers me a lot that for whoever broke in knows where I live and what belongings are in the house. Will they return? But when I put my alarm system on while I am in the house, and at night going to sleep- the system makes me feel very stress and paranoid free. I know if something was to happen and someone had gotten into my house- help would be around the corner. One time, my family was up visiting with our family dog, and we were going out for supper. I was not used to having a pet around, and I set the alarm not even thinking the dog was in the house. I had received a call from Alarm Force on our way to the restaurant but I missed the call. Next thing I knew, my landlord was calling me to state that he had received a call from AlarmForce. He knew most likely I set the alarm and the dog had been in the house. I was very shocked in how the phone call was sent out asking if everything was okay. This was the first time in over a year, AlarmForce had to call, and it was amazing how comforting the time was and how it did not take long for someone to contact me. This made me feel even better about the purchase we made of installing Alarm Force in our house. I would recommend Alarm Force to anyone who is insisting to have a system put into their house. I have told many people about my story of how Alarm Force was there for me, even if I was not able to be there. I explain to others how comforting it is to have someone “with” you even knowing no body physically is there. It is an affordable way to keep one or one's family safe.
-Sara G. - Edmonton, AB -
Customer called in to say how AlarmForce saved him. He was at church when the alarm was activated, AF dispatched the police and they were on the scene within minutes. They apprehended the culprit and the client's collection of musical instruments was safe.
-Kevin, GA -
I feel very comfortable with your alarm system. When testing and the alarm has gone off, they phone right away. My other alarm company waited 2-3 minutes before they phoned. I'm alone a lot and lot at night and feel very secure with AlarmForce. Thank you.
-Rod, AB






