Financial Information

CONSOLIDATED STATEMENT OF RETAINED EARNINGS

	2005	2004
	$	$
Operating activities		(Note 3)
Net income for the year	810,214	303,600
Items not involving cash:
Amortization:
Property, plant and equipment	2,185,597	1,598,352
Deferred charges	9,591	10,404
Intangible assets	752,577	490,412
Future income taxes	(605,767)	102,684
Stock Compensation	54,747	105,281
	3,206,959	2,610,733
Changes in non-cash components of working capital:
Accounts receivable	167,736	(164,801)
Inventory	(519,364)	87,393
Prepaid expenses and deposits	10,929	47,933
Accounts payable and accrued liabilities	159,398	986,929
Income taxes	181,551	255,248
Deferred Revenue	326,400	375,104
Unearned revenue	(14,822)	40,845
	311,828	1,628,651
	3,518,787	4,238,574
Investing activities
Additions to property, plant and equipment (net)	(2,616,996)	(2,531,268)

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF RETAINED EARNINGS

	2005	2004
		(Note 3)
Revenue	17,227,494	14,393,779
Cost of Sales	3,688,697	3,320,404
Gross Profit	13,538,797	11,073,375
Expenses
Selling	5,966,172	4,812,790
General and administrative	3,202,301	3,210,444
	9,168,473	8,023,234
Income from operations
before other expenses:	4,370,324	3,050,140
Other expenses:
Amortization:
Property, Plant and Equipment	2,185,598	1,598,352
Deferred charges	9,592	10,404
Intangible assets	752,577	490,412
Interest (Note 9)	96,850	146,740
	35,145
	3,079,762	2,245,908
Income before income taxes	1,290,563	804,232
Income taxes (Note 10)	480,349	500,632
Net income for the year	$810,214	$303,600
Basic net income per common share, ( Note 13)	$ 0.07	$ 0.03
Diluted net income per common share, ( Note 13)	$ 0.07	$ 0.03

See accompanying notes to financial statements.