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:

The remaining contractual life and exercise price of options outstanding and options exercisable as at October 31, 2005 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.