Financial Information
Dividend policy
The Company does not currently have a policy of declaring or paying dividends on its common shares and intends to retain future earnings for use in its business and does not anticipate paying dividends in the foreseeable future. Any determination to pay any future dividends will remain at the discretion of the board of directors of the Company and will be made based on the financial condition and other factors deemed relevant by the board of the directors. The Company has not paid any dividends since its incorporation. The existing cash reserves, cash from operations and credit facilities are believed to be adequate to finance growth as well as operating requirements in the foreseeable future. Debt and equity components for the years 2004-2006 are summarized below.
| Long-term debt | 2006 | 2005 | 2004 |
| $ | $ | $ | |
| Building Loan | 970,834 | ||
| Revolving term loans | 285,228 | 945,721 | 2,216,601 |
| Total long-term debt | 1,256,062 | 945,721 | 2,216,601 |
| Equity (capital stock, paid in capital and retained earnings) |
15,521,703 | 13,678,912 | 12,782,338 |
| Ratio of Net debt to Equity | 0.08 | 0.07 | 0.17 |
Commitments and contractual obligations
The Company is committed to long-term debt repayment as above and operating leases for premises and equipment expiring at various dates up to June 30, 2011. Approximate future minimum 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 |
| 2010 | - | - | 8,853 | 8,853 |
| 2011 | - | - | 4,060 | 4,060 |
| Total | 87,928 | 69,508 | 68,792 | 226,228 |
9. OFF- BALANCE SHEET FINANCING
The Company did not have any off-balance sheet arrangements or obligations other than the operating leases disclosed above.
10. RELATED PARTY TRANSACTIONS
The Company did not have any related party transactions as defi ned in the CICA recommendations.
11. CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates are based on management’s historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments that are not readily apparent from other sources.
Management believes that the accounting policies that require estimation of the useful lives of long-lived assets, the recoverable values of the assets and measurement of impairment of the assets, are most affected by judgments and estimates used in the preparation of the financial statements. For a detailed description of these and other accounting policies, please refer to the Company’s 2006 annual financial statements.
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Testimonials
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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 -
We really appreciated how they added us urgently to their schedule for installation because of our distress. Great team.
-Francois, AB -
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 -
I like the live voice feature. It does exactly as advertised. Like most people we did not get an alarm system until there were some break-ins in our neighborhood. The alarm force personal were very good. Particularly when we had an issue with the code. It turned out our neighbor who also installed the same system chose the same code as we did. The Alarm Force people figured it out.
-J.H - Columbus, OH -
I am very satisfied with the prompt appointment and quick, easy installation. Simple to use - it even talks.. something that I think should be put on the website that it gives voice prompts. I accidentally set off the system somehow and all of a sudden I hear Attention this is the AlarmForce central station, identify yourself. I was just sitting on the couch playing with the phone features, so not sure what I did. It was so simple that I didn’t get a phone call, I just talked directly to the voice that came on. My old system that I had after the system went off or an silent alarm went off it could take up to 10 minutes to get a phone call. This was within 2 minutes that someone was there. I felt safe in my home but now I feel a lot safer and the installer put the motion detector up right the first time (I have a 60 lb dog and it took 3 trips for my old system before they got it right. Thanks AlarmForce and the best thing is the basic system is free so you only pay for the month of service and any extras that you need. That was a huge relief in the time of need. being tight on money with all the rising costs. The cost for my other system came to $52 a month and now I only pay $26 – another great thing with such a powerful alarm.
-Dustin, OH -
We are in all ways satisfied with the service and deportment of the representatives.
-Gordon, BC -
Everyone was courteous and professional. Will recommend your services.
-Diane, OH -
Installation representative was very helpful and professional.
-Doris, NC
