Financial Information
9. INCOME TAXES
| 2006 $ |
2005 $ |
|
| Current income tax expense | 1,083,361 | 1,086,116 |
| Future income tax expense (recovery) | (66,000) | (605,767) |
| 1,017,361 | 480,349 |
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:
| 2006 $ |
2005 $ |
|
| Income taxes based on combined federal and provincial statutory income tax rate of 36.12% in 2006 and in 2005 | 906,503 | 466,151 |
| Increase (decrease) in income taxes resulting from: | ||
| Non-deductible expenses | 66,326 | 27,983 |
| Other temporary differences | 44,532 | (13,785) |
| Effective income tax provision | 1,017,361 | 480,349 |
A summary of significant components of future tax liabilities calculated in accordance with Canadian accounting principles at October 31, 2006 and 2005 are as follows:
| 2006 $ |
2005 $ |
|
| Non-current future tax liabilities: | ||
| Property, plant and equipment | (500,000) | (167,100) |
| Deferred charges | (7,000) | (11,000) |
| Intangible assets | (1,100,000) | (1,355,200) |
| (1,607,000) | (1,533,300) | |
| Non current future tax assets | ||
| Deferred revenue | 781,000 | 606,700 |
| Share issue costs | 71,000 | 105,600 |
| 852,000 | 712,300 | |
| Net Future income tax liability | (755,000) | (821,000) |
10. CONTINGENT LIABILITY
The Company is a defendant in a legal action in the amount of $750,000 with respect to a claim for fees subsequent to termination of an agreement. Based on the evidence available, the Company believes the claim to be unfounded and will continue to vigorously defend its position. No provision has been reflected in the financial statements relating to this action.
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Testimonials
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Excellent service. Very refreshing!
-Tarin, ON -
Dan(the installer) was very communicative and helpful. He really explained everything well.
-Henrietta, OH -
Absolutely outstanding service and peace of mind.
-Marc, OH -
Thank you for your efficient service. Your live voice helped minimize damage and speedy police response - within 5 minutes! Congratulations
-A business, ON -
Thank you very much AlarmForce, we are very satisfied with your service.
-Danielle, ON -
We really appreciated how they added us urgently to their schedule for installation because of our distress. Great team.
-Francois, AB -
We have had our alarm system for many years now and have not had any problems. When we have set off the alarm, the reps I have dealt with have been wonderful.
-Bob, BC -
AlarmForce gives me a no-nonsense protection that is not matched by other competitors. While cars outside our home have been tampered with and had contents stolen, no one has ever touched our home. Perhaps it is the name, perhaps it is the consistent reminders on your commercials, but the crooks seem to leave us alone now that we have AlarmForce.
-Art V. - Calgary, AB
