Financial Information
Notes to Consolidated Financial Statements
1. NATURE OF BUSINESS
AlarmForce Industries Inc., (the “Company”) provides security alarm monitoring and related services to residential and commercial subscribers throughout Canada and in selected states of the U.S. The Company is a leading provider of two-way voice alarm systems and monitoring services and was incorporated under the laws of Canada on November 16, 1988.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Canada.
(a) Basis of Consolidation
These consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and AlarmForce LP, a limited partnership. Inter-company balances and transactions have been eliminated.
(b) Revenue Recognition
(i) The Company earns majority of its revenue from subscribers for monitoring services and equipment. Revenue from monitoring services is recognized over the term of the subscriber agreement as the services are provided. The subscriber agreements are non-cancelable over a three or four year term with automatic annual renewals thereafter.
(ii) Revenue and the related costs from the sale of equipment, which consists principally of the sale of alarm equipment, are deferred and recognized over the respective three and four year terms of the subscriber agreement.
(iii) Unearned revenue results from subscribers who are billed for monitoring in advance of the period in which such services are provided, on a monthly, quarterly or annual basis. Revenues from monitoring activities are recognized in the period such services are provided. The maximum period for which subscribers are billed in advance is one year.
(c) Inventory
Inventory, consisting principally of alarm equipment and accessories, are valued as follows:
i) For used equipment and accessories, at the lower of the weighted average amortized cost and net realizable value; and
(ii) For new equipment and accessories, at the lower of cost on a first-in, first-out basis and net realizable value.
(d) Cash and Cash Equivalents
Cash and cash equivalents consists of cash and short-term guaranteed investment certificates, which are carried at the lower of cost and market value. These cash equivalents are cashable within a 90 day period.
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Testimonials
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I've been using an Alarm Force security system in my business for 3.5 years. The system is EXACTLY what I wanted, the installer/tech was friendly, courteous and informed. I've had four alarms in the time I've had the system; two because my back door was frozen shut in the winter and couldn't shut my alarm off in time, 1 because I forgot to shut my alarm off, and 1 because someone did, in fact, try to break into my shop. My alarm system was recommended by my insurance agent, and I can safely say that it was a wise choice.
-Louise C. - Vulcan, AB -
Installation representative was very helpful and professional.
-Doris, NC -
We have only set our alarm off once by accident. Rep was great. As far as we know we have not had any attempted break-ins and have not been broken into since AlarmForce was installed.
-Ivan & Mary F. -
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'm almost blind and yet I was successful in installing the unit. Even a totally blind person, who lives too far away for a service person to come, could do it. The keypad is also one which a blind client could use. Some alarm systems have LCD displays that are hard for visually impaired folks to read and impossible for the blind to use. My testimony would encourage blind folks and loved ones of them to use Alarmforce for their protection. It also would give blind clients the feeling of accomplishment if they can set up and operate their own system, rather than having to beg a sighted friend for help.
-Brue A. - AB -
Recently we had a technician come in regarding my alarm working incorrectly. He fixed the issue and spent about one hour addressing our concerns for safety in our basement. We had a motion sensor installed. Any time your people have been here they are knowledgeable and patient. I am very satisfied with AlarmForce.
-Teresa, AB -
AlarmForce is the best choice. They make sure you get the best system that not only works with your budget..and does NOT try to sell you anything you will not need or is no use for your home/garage...I have been fortunate enough not to have any one try to break into my home since I got the system..couldn't say that before...they make me feel more secure because they are very caring and no matter where I am in my travels I know I can count on them to protect my sons and my home..I always worried about my sons and my house when I was away..Not now.. Knowing that even when my sons sleep they are as I say "being watched over by the Angels at AlarmForce" My experience with AlarmForce has always been pleasant and reassuring..They answer all and every question I have..They are always willing to help with testing my equipment.. Letting me know what needs to be replaced if anything(batteries etc)..When I go away they ALWAYS ask details of my departure and arrival back home..who to contact if there is an emergency..t hey never question me why I want the police called and not one of their own security...Full of information and always so caring! My best experience was when I was so unhappy with my other alarm company the staff at AlarmForce made it so easy for me to say YES to using AlarmForce and leaving the 'other" company… that was over 3 years ago!! Thank You for making it so easy! It is a Perfect Fit in Security for My Family! I am always recommending folks to AlarmForce..I simply tell them there is no price you can put on your families safety...with AlarmForce it is cost efficient..You wouldn't get the care their team provides any where else..most of all The Peace of Mind You have knowing not only your house but your family is being taken care of at all times!! They make life simple for you and your family.. Thank You AlarmForce for treating my Family like it is your own, you are keeping safe at all times!
-Kelli P - Edmonton, AB -
Unfortunately at this point my girlfriend and I can only afford the bare minimum and so we live in one of the worst parts of the city in Calgary. Our neighborhood is full of drug deals, prostitution, stealing and constant fighting. We have a dog but even still we are so grateful to have Alarm Force. AlarmForce makes us feel safe and we know that if we are out of town our house will be protected. The system is easy to use and makes us feel better when we are not at home. Thanks AlarmForce!
-Stephen V - Calgary, AB
