Financial Information
11. COMMITMENT
The Company is committed to operating leases for premises, vehicles, and office equipment expiring at various dates up to June 30, 2011. Future minimum lease payments are as follows:
| Premises $ |
Vehicles $ |
Equipment $ |
Total $ |
|
| 2007 | 52,757 | 39,596 | 22,649 | 115,002 |
| 2008 | 35,171 | 29,912 | 22,649 | 87,732 |
| 2009 | - | - | 10,581 | 10,581 |
| - | - | 4,060 | 4,060 | |
| Total | 87,928 | 69,508 | 68,792 | 226,228 |
12. EARNINGS PER SHARE
The following table sets forth the calculation of the basic earnings and diluted earnings:
| 2006 $ |
2005 $ |
|
| Basic earnings available to common shareholders | $1,492,336 | $810,214 |
| Weighted average number of common shares outstanding – basic | 11,983,870 | 11,615,208 |
| Basic earnings per share | $0.12 | $0.07 |
| Weighted average number of common shares outstanding | 11,983,870 | 11,615,208 |
| Assumed exercise of outstanding dilutive options | 200,000 | 412,300 |
| Shares purchased from proceeds of assumed exercise of options | (155,876) | (95,492) |
| Weighted average number of common shares outstanding– dilutive | 12,027,994 | 11,932,016 |
| Fully diluted earnings per share | $0.12 | $0.07 |
Basic net income per common share is determined using the weighted-average number of common shares outstanding during the respective year. The treasury stock method is used to compute the dilutive effect of options.
13. FINANCIAL INSTRUMENTS
a) Fair value
The carrying value of the Company’s financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximates fair value due to their immediate or short-term maturity. The carrying value of the long-term debt approximates fair value as it bears interest at market rate.
b) Credit risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, accounts receivable and long-term debt. Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and therefore bear minimal credit risk. Credit risk on accounts receivable is minimized as a result of the constant review and evaluation of the account balances.
c) Interest rate risk
The Company is exposed to fluctuations in interest rates in regard to the revolving term loans, which are on a prime plus basis.
(d) Foreign currency risk
The Company’s activities involve purchases denominated in foreign currencies. These activities result in exposure to fluctuations in foreign currency rates. At statement date, the Company had net liabilities denominated in U.S. currency of approximately $864,000 (2005 - $545,000).
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Testimonials
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One morning I left home earlier than planned and forgot to turn the alarm off the home setting. When I returned I saw that a representative of AlarmForce had visited our home to ensure there had been no break in, by leaving a notice in our mail box.
-Cheryl H. - Edmonton, AB -
No difficulties for the past four years, thank you. I enjoy the 2-way communication and also enjoy the calls prior to dispatching of emergency services. Avoids extra cost due to false alarms.
-Ken, ON -
I was impressed with the level of attention to the installation. I have an older house and the back door had to be reset three times to get it right. I was not charged for these visits, which happened over a week's time (they came out right away to make adjustments). It was all included in the base price. You cannot beat the monthly monitoring rate. Most importantly, the monitoring system works as advertised.
-Kimberly, MN -
Installation was excellent and very knowledgeable about questions and options.
-William, OH -
I am extremely pleased with your service. When I did not notify you that I would be on holiday, you called my son to inform him that I had not turned my alarm off after day 2 and that he should check on me. As a senior, I really appreciate what I refer to as service beyond the call of duty. Thank you.
-Lanadale, ON -
Everyone was courteous and professional. Will recommend your services.
-Diane, OH -
My wife & I are always confident when we leave the house either for a couple of hours or for a month that our home is safe and secure while we are gone. We know that Alarm Force is always on the job protecting it.
-R.W - Gahanna, OH -
I was sceptical at first but I am relieved to have this system in my home. I feel safe when I'm away that you're on the job. I feel safe when at home alone and any boo boo I make you're right there. No matter how stupid I've been the person that comes through the box is my life line and is always professional. I highly recommend this to everyone I talk to.
-Denise, AB
