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 2008 were as follows:
| Number of shares | Value $ | |
| Balance, October 31, 2007 | 12,098,788 | 12,183,385 |
| Issued during the period | 35,000 | 132,300 |
| Balance, Oct. 31, 2008 and Jan. 16, 2009 | 12,133,788 | 12,315,685 |
The Company is committed to issuing 155,000 common shares under options that were outstanding at the end of the 2008 fiscal year (190,000 at the end of the 2007 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 | 155,000 | .71 | $3.78 |
Dividend policy
The Company does not currently have a policy of declaring or paying dividends on the Common Shares and intends to retain future earnings for use in its business and does not anticipate paying dividends on its Common Shares in the foreseeable future. Any determination to pay any future dividends will remain at the discretion of the Board of Directors of the Company (the “Board”) and will be made based on the Company’s earnings and financial requirements, covenant restrictions and other prevailing conditions. There are currently no restrictions which prevent the Company from paying dividends. The Company has not paid any dividends since its inception.
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 2006-2008 are summarized below.
Long-term debt
| 2008 | 2007 | 2006 | |
| $ | $ | $ | |
| Building Loan | 920,834 | 920,834 | 970,834 |
| Revolving term loans | 838,535 | 838,535 | 285,228 |
| Total long-term debt | 1,759,369 | 1,759,369 | 1,256,062 |
| Equity (capital stock and retained earnings) | 16,839,675 | 16,839,675 | 15,521,703 |
| Ratio of Net debt to Equity | 0.07 | 0.10 | 0.08 |
The following are the details of the above loans:
1. Fixed rate term loan in the amount of $1,000,000 was acquired in 2006 to finance the acquisition of property consisting of land and building. The loan is repayable (principal and interest) in monthly repayments of $4,167 bearing an interest rate of 5.58% per annum. The loan is due March 2016.
2. Revolving term loan in the amount of $1,000,000 was acquired in March 2007 to finance the purchase of franchise rights. The loan is repayable (principal and interest) in monthly instalments of $20,833 over a period of 48 months at a bank rate of prime rate plus 0.25% per annum. The prime rate was 4.25% as at October 31, 2008. 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 has total credit facilities in the amount of approximately $5,800,000, of which $5,200,000 is available (2007 - $4,900,000). The Company is in compliance with all loan covenants as at October 31,2008.
Ask a Question
Testimonials
-
I just changed my batteries for the first time and I had to call the customer care department to make sure everything was ok and they were very helpful.
-Paula, BC -
My name is Adey and we have been AlarmForce customers for 3 years and counting. As an Army wife my husband is constantly away on course or exercise so security is a huge issue in our house. While my husband was in Afghanistan it was AlarmForce that kept our house and children safe. Whenever I start to get nervous I just remember that I'm not alone and that someone else is helping to keep watch too. Thank you AlarmForce for being there for us when my husband can't!
-Adey R. - Wainwright AB -
The installer (BJ) was very knowledgeable and courteous. I appreciate that very much.
-Randy, OH -
I tell people all the time that everything in the radio ad is absoutely true! Amazing. The system gives my 96 year old mother peace of mind.
-John, GA -
AlarmForce gives me a no-nonsense protection that is not matched by other competitors. While cars outside our home have been tampered with and had contents stolen, no one has ever touched our home. Perhaps it is the name, perhaps it is the consistent reminders on your commercials, but the crooks seem to leave us alone now that we have AlarmForce.
-Art V. - Calgary, AB -
I don't know why anyone would use a different company - excellent product, excellent customer service, excellent price!
-Frank, BC -
I'm almost blind and yet I was successful in installing the unit. Even a totally blind person, who lives too far away for a service person to come, could do it. The keypad is also one which a blind client could use. Some alarm systems have LCD displays that are hard for visually impaired folks to read and impossible for the blind to use. My testimony would encourage blind folks and loved ones of them to use Alarmforce for their protection. It also would give blind clients the feeling of accomplishment if they can set up and operate their own system, rather than having to beg a sighted friend for help.
-Brue A. - AB -
Kenneth was professional, polite, patient. verbally skilled, helpful, i.e. excellent in every aspect.
-Caroly, Charlotte, NC
