Financial Information
8. LIQUIDITY AND CAPITAL RESOURCES (continued)
Financing activities
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 were as follows:
| Number of shares | Value $ | |
| Balance, October 31, 2006 | 12,088,788 | $12,145,585 |
| Issued during the period | 10,000 | 37,800 |
| Balance, Oct. 31, 2007 and Jan. 12, 2008 | 12,098,788 | 12,183,385 |
The Company is committed to issuing 190,000 common shares under options that were outstanding at the end of the 2007 fiscal year (200,000 at the end of the 2006 fiscal year). Exercise prices under the options and the remaining life of options are summarized below.
| Expiry Date | Number of shares | Remaining contractual life (years) |
Exercise Price |
| July 17, 2009 | 190,000 | 1.75 | $3.78 |
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 wireless alarm system 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 home alarm security 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 2005-2007 are summarized below.
Long-term debt
| 2007 | 2006 | 2005 | |
| $ | $ | $ | |
| Building Loan | 920,834 | 970,834 | - |
| Revolving term loans | 838,535 | 285,228 | 945,721 |
| Total long-term debt | 1,759,369 | 1,256,062 | 945,721 |
| Equity (capital stock and retained earnings) | 16,839,675 | 15,521,703 | 13,678,912 |
| Ratio of Net debt to Equity | 0.10 | 0.08 | 0.07 |
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Testimonials
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Without intending to, I set off a false alarm and was very satisfied with the quick response received. I sleep peacefully at night confident that my AlarmForce alarm is helping to protect me and my possessions.
-Jill - Mississauga, ON -
I have had the AlarmForce system installed in my home since the company first started. I am really satisfied with the service they provide. If I happen to have any problems with my system malfunctioning or if I have questions regarding my system, the matters are dealt with promptly. I have recommended AlarmForce to my family and friends and they have had the system installed in their homes. They have reported great satisfaction with the system and the company. I will continue to recommend this company as it is very reliable and the system is a great one.
-Dahlia - Scarborough, ON -
I've been with Alarmforce for over 20 yrs. and have never regretted it. I come home feeling safe and I sleep like a baby - knowing my home is "being watched" 24/7. Friendly voices are there immediately if and when we trip up or if someone dares to enter. Keep up the good work. Thank you.
-Debbie - Pickering, ON -
When my mother broken her hip last spring I'm embarrassed to say she was NOT wearing her AlarmForce pendant you can lead a horse to water but she managed to crawl from the bathroom to the bedroom after several hours and get immediate help from the incredibly patient operator on the other end. She has learned her lesson.
-Jill - Port Moody, BC -
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 -
It's good to know that my house is protected when I leave for work in the morning and that my house has not been burglarized when I return home, it is very comforting to have the Alarmforce home security in place. Thanks AlarmForce.
-Campbell- Stony Plain, AB -
We moved into our new home just over five months ago and would not want any other company to protect our home other than AlarmForce. Customer service is excellent and the agent that came to our house to do the installation was very pleasant and courteous. We have recommended AlarmForce to friends and family as we think the two way voice feature is great. That is what sold us.
-Deevon - Niagara Falls ON -
I chose AlarmForce to protect my business knowing that a live voice will be heard by any intruders. Their customer service and response time is the best in the industry. Why go with anyone else when you can go with the best!
-Gary - Brantford, ON
