Consolidated Balance Sheet For the years ended Oct 31, 2006 and Oct. 31, 2005
| 2006 | 2005 | |
| $ | $ | |
| ASSETS | ||
| Current | ||
| Cash and cash equivalents | 3,909,309 | 4,087,074 |
| Accounts receivable | 274,405 | 244,136 |
| Inventory | 2,140,069 | 1,670,656 |
| Prepaid expenses and deposits | 40,013 | 39,936 |
| 6,363,796 | 6,041,802 | |
| Deferred charges (Note 3) | 33,411 | 72,482 |
| Property, plant and equipment (Note 4) | 14,066,022 | 10,253,508 |
| Intangible assets (Note 5) | 3,417,321 | 4,021,491 |
| $23,880,550 | $20,389,283 | |
| LIABILITIES | ||
| Current | ||
| Accounts payable and accrued liabilities | 2,964,706 | 2,378,375 |
| Unearned revenue | 575,152 | 439,712 |
| Income taxes payable | 646,631 | 445,753 |
| Current portion of long-term debt (Note 6) | 330,015 | 660,480 |
| 4,516,504 | 3,924,320 | |
| Deferred revenue | 2,161,296 | 1,679,811 |
| Long-term debt (Note 6) | 926,047 | 285,240 |
| Future income taxes (Note 9) | 755,000 | 821,000 |
| 8,358,847 | 6,710,371 | |
| Contingent Liability (Note 10) | ||
| SHAREHOLDERS’ EQUITY | ||
| Share capital (Note 7) | 12,145,585 | 11,795,130 |
| Paid-in capital - options (Note 7) | 202,140 | 202,140 |
| Retained earnings | 3,173,978 | 1,681,642 |
| 15,521,703 | 13,678,912 | |
| $23,880,550 | $20,389,283 |
See accompanying notes to financial statements.
Approved on behalf of the Board:

Joel Matlin, Director

Peter Silverberg, Director
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Testimonials
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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 -
By, the way the alarm system is great - I feel much safer now especially when my husband is on the graveyard shift. The fellow that installed it for us too was very professional and helpful.
-Debbie, BC -
I want to thank you most sincerely for your response this morning when I apparently triggered a false alarm at our residence and left our back door unlocked. I was having some difficulty with my wife when we left (she has Alzheimer's disease). When I returned about an hour later I noticed the door was now locked and the telephone was ringing. It was your office with notification of the alarm and your response. Our son also phoned shortly afterwards to advise that you had notified him also in response to the alarm. I had also neglected to turn on my cell phone. Again, my sincere appreciation for your immediate response and corrective action; but then, that's why we subscribe to AlarmForce. But please accept my apology for causing the problem in the first place.
-Norman, ON -
We are very much satisfied with your service and we will definitely recommend to our friends and neighbors. Thank you for protecting us.
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We really appreciated how they added us urgently to their schedule for installation because of our distress. Great team.
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Very satisfied and sleep securely at night. Thank you.
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Neil was very helpful, friendly and professional.
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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






