Financial Information
7. SHARE CAPITAL (continued)
The remaining contractual life and exercise price of options outstanding and options exercisable as at October 31, 2008 are as follows:
| Remaining contractual life(Years | Exercise Price $ | Number of options exercisable | |
| Number of options outstanding | |||
| 155,000 | .71 | 3.78 | 155,000 |
Vesting of options:
(i) Outstanding options are subject to vesting provisions under which 25% of the total options granted vest immediately at the date of the grant, and a further 25% after each of the first, second and third anniversaries.
(ii) All options have fully vested.
During the 2008 fiscal year, the Company had no stock compensation expense since the options were fully vested in 2007 (2007 - $12,632). There were no stock options granted in 2008 and 2007.
8. INTEREST EXPENSE
| 2008 $ |
2007 $ |
|
| Interest on long-term debt | 89,745 | 100,165 |
| Other | 386 | 2,093 |
| 90,131 | 102,258 |
9. INCOME TAXES
| 2008 $ |
2007 $ |
|
| Current income tax | 1,952,155 | 1,366,919 |
| Future income tax recovery | (677,000) | (542,000) |
| 1,275,155 | 824,919 |
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:
| 2008 $ |
2007 $ |
|
| Income tax based on combined Federal and Provincial statutory income tax rate of 33.5% in 2008 and 36.12% in 2007 | 1,301,723 | 760,359 |
| Increase /(decrease) in income taxes resulting from: | ||
| Non-deductible expenses | 15,560 | 11,650 |
| Other differences | 11,650 | 52,910 |
| Effective income tax provision | 1,275,155 | 824,919 |
A summary of significant components of future tax assets and liabilities calculated in accordance with Canadian generally accepted accounting principles are as follows:
| 2008 $ |
2007 $ |
|
| Non-current future income tax liabilities: | ||
| Property, plant and equipment | (95,000) | (363,000) |
| Deferred charges | (1,000) | (4,000) |
| Intangible assets | (550,000) | (847,000) |
| (646,000) | (1,214,000) | |
| Non-current future income tax assets | ||
| Deferred revenue | 1,110,000 | 966,000 |
| Share issue costs | - | 35,000 |
| 1,110,000 | 1,001,000 | |
| Net future income tax liability | 464,000 | (213,000) |
