Financial Information
5. INTANGIBLE ASSETS
Intangible assets include the gross up of the future tax liability pertaining to these assets, and consist of the following:
| 2007 | 2006 | |
| $ | $ | |
| Franchise rights | 7,482,551 | 6,132,549 |
| Less: Accumulated amortization | 3,537,996 | 2,715,228 |
| 3,944,555 | 3,417,321 |
6. LONG-TERM DEBT
| 2007 | 2006 | |
| $ | $ | |
| Fixed rate term loan | 920,834 | 920,834 |
| Revolving term loans | 838,535 | 285,228 |
| 1,759,369 | 1,256,062 | |
| Less: Current portion: | 305,202 | 330,015 |
| 1,454,167 | 926,047 |
The Company has credit facilities in the aggregate amount of approximately $4,800,000 (2006 - $5,800,000). In March 2007, the Company acquired an additional bank loan in the amount of $1,000,000 to finance the purchase of franchise rights, repayable over a period of 48 months in monthly installments of principal and interest. Loans made under the respective facilities are repayable over various terms, in monthly installments of principal plus interest at the prime rate plus 0.75% per annum, pursuant to individual contract periods. In 2006, the Company also obtained a fixed rate term loan in the amount of $1,000,000 to finance the acquisition of property consisting of land and building, and is repayable (principal and interest) in monthly installments, with monthly principal repayments of $4,167 bearing an interest rate of 5.58% per annum, which is due March 2016. A general assignment of book debts, a general security agreement, and an assignment of the proceeds of a $300,000 life insurance policy have been pledged as collateral. The Company is in compliance with all loan covenants as at October 31, 2007.
Future minimum payments are due as follows:
| Tota | |
| $ | |
| 2008 | 305,202 |
| 2009 | 300,000 |
| 2010 | 300,000 |
| 2011 | 133,333 |
| 2012 | 50,000 |
| 2013 onwards | 670,834 |
| 1,759,369 |
7. SHARE CAPITAL
The Company is authorized to issue an unlimited number of common shares.
The changes in the issued common shares of the company during 2007 and 2006 are as follows:
| Number of Shares | Value | |
| $ | $ | |
| Balance, October 31, 2005 | 11,676,488 | 11,795,130 |
| For cash pursuant to option plan | 412,300 | 350,455 |
| Balance, October 31, 2006 | 12,088,788 | 12,145,585 |
| Issued during the year ended October 31, 2007: | ||
| For cash pursuant to stock option plan | 10,000 | 37,800 |
| Balance, October 31, 2006 | 12,088,788 | 12,145,585 |
Stock Option Plan
The Company has an incentive stock option plan in place for its directors, officers and employees. Options may be granted for a period not exceeding five years at an option price not less than the market price of the shares at the time the option is granted. The maximum number of common shares which may be set aside for issue under the plan is 2,250,000, provided that, from time to time, such number may be increased subject to approval of the shareholders of the Company. The maximum number of common shares that may be reserved for issuance to any one person under the plan is 5% of the common shares outstanding at the time of the grant, less the number of shares reserved for issuance to such person.
| Number of Shares | Value | |
| $ | $ | |
| Balance, beginning of period | 200,000 | $3.78 |
| Granted | Nil | |
| Exercised | (10,000) | $3.78 |
| Cancelled | Nil | |
| Balance, end of period (i) | 190,000 | $3.78 |
| Less options not vested (ii) | 0 | 12,145,585 |
| Exercisable, end of period | 190,000 |
Ask a Question
Testimonials
-
I was a bit hesitant about calling Alarmforce as I thought I would get the big sales pitch and have to commit my first born to get a system but I was connected to a salesperson named Terry who sounded more like he could have been my Dad than some high pitched sales guy. He just gave me the facts, told me that I could probably install the system myself and it all went off very well. We are always treated well when we call in for a test or even when we have accidentally set off the system. We feel great about our system, it is very sensitive and makes us feel a whole lot safer. Thanks Alarmforce!
-Ron B. - Sundre, AB -
Excellent service and a very knowledgeable representative. Many thanks.
-Allie, ON -
Every person I have talked to has been very nice and helpful.
-Matthew, OH -
We set the alarm off a couple of times by mistake but haven't had to use it otherwise. I am alone now and it's a good feeling to have the alarm system.
-Helen, AB -
AlarmForce provides the exceptional services. I made a couple mistakes for false alarm. They responded in really professional way. Plus the two way communication technology is great. We feel much safer now when we got AlarmForce.
-Peng Z. - Calgary, AB -
Your technician was very professional. After he was finished, I knew I made the right choice.
-John, OH -
My job requires me to travel quite a bit usually out of the country, and having Alarm Force allows my family to feel safe and gives me peace of mind knowing that they are safe even when I am away. But the best thing about Alarm Force is the fantastic customer service they provide. Setting up the system was quick and easy and they answered all our questions and concerns. They are a great company to have protecting our home and I am glad I switched.
-M.H - Gahanna, OH -
I am more than satisfied with your product, service, technical support staff and feel safe - that is the most important fact.
-Brenda, AB
