Financial Information

Innovation And Affordability: Introducing Alarmcare

Since its inception in 1988, AlarmForce has devoted considerable time and resources to strengthening the AlarmForce brand. People throughout Canada and in selected markets in the United States associate the name AlarmForce with state-of-the-art two-way voice security. It is this two-way voice technology that differentiates our products and services from other security providers.

In 2008, AlarmForce introduced its new service, AlarmCare, a natural progression for a company in the business of keeping its clients safe and protected. AlarmCare is designed to help people live independently and with confidence. Although the product is geared towards people of all ages, the elderly and persons with medical conditions or disabilities are particularly drawn to this innovative protection that allows for both comfort and security in one’s own home. And with the downturn in the economy, Alarmcare, with only a low monthly fee, provides an excellent alternative to an assisted living facility.

The AlarmCare system consists of a stylish two-way voice communicator unit and a single waterproof pendant or bracelet. If more than one person in the protected home is interested in using the AlarmCare system, additional pendants are available and each has its own distinct signal. The emergency pendant is lightweight and is worn either around the client’s neck or wrist. Using AlarmForce’s patented two-way voice technology, the Company’s highly trained central station operators can communicate directly with the AlarmCare user, assess the situation occurring inside the house, then contact the appropriate help, if necessary.

AlarmCare users are asked to provide AlarmForce with any pertinent medical information. The information is kept on electronic file so, if necessary, central station operators can immediately access the information and pass it on to medical authorities. Beyond that, AlarmCare’s voice prompts make it easy to use and the best choice for a Personal Emergency Response System.

Unlike other Personal Emergency Response System suppliers, AlarmForce does not outsource services. AlarmCare is manufactured, installed, serviced and monitored by AlarmForce, so users get the peace of mind of knowing they are not alone and that they are being taken care of by a well respected company with over twenty years of experience. Plus, all AlarmCare monitoring personnel are employed by AlarmForce and have undergone background checks and extensive in-house training.

Management’s Report

Management is responsible to the Board of Directors for the preparation of the consolidated financial statements of the Company. These financial statements have been prepared in accordance with Canadian Generally Accepted Accounting Principles (“GAAP”) and include some amounts based on estimates and judgements. Financial information presented elsewhere in the Management’s Discussion and Analysis is consistent with that in the consolidated financial statements.

In order to ensure the accuracy and objectivity of information included in the financial statements, management has designed and implemented a system of internal controls designed to provide reasonable assurance that reliable financial records are maintained. Management believes that these internal controls provide reasonable assurance regarding complete and accurate maintenance of accounting records necessary for the preparation of the financial statements.

The Chief Executive Officer and the Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures as at the end of October 31, 2008. They have concluded that the Company’s disclosure controls and procedures were effective, at a reasonable assurance level, to ensure that material information relating to the Company and its consolidated subsidiary would be made known to them by others within those entities, particularly during the period in which the Management’s Discussion and Analysis and the consolidated financial statements were being prepared.

The Board of Directors have reviewed and approved these consolidated financial statements. The Audit Committee assists the Board in meeting its responsibilities over the Company’s consolidated financial statements. All the members of the Audit Committee are financially literate. The Audit Committee reviews the financial statements and recommends their approval to the Board of Directors.