- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Financial Information
7. SHARE CAPITAL (continued)
The remaining contractual life and exercise price of options outstanding and options exercisable as at October 31, 2007 are as follows:
| Remaining contractual life(Years) |
Exercise Price $ |
Number of options exercisable |
|
| Number of options outstanding | |||
| 190,000 | 1.75 | 3.78 | 190,000 |
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 2007 fiscal year, the Company recognized compensation expense of $12,632 (2006- $29,480) for the stock option awards granted in 2004 fiscal year. There were no stock options granted in 2007 and 2006.
8. INTEREST EXPENSE
| 2007 $ |
2006 $ |
|
| Interest on long-term debt | 100,165 | 71,173 |
| Other | 2,093 | 10,899 |
| 102,258 | 82,072 |
9. INCOME TAXES
| 2007 $ |
2006 $ |
|
| Current income tax | 1,366,919 | 1,083,361 |
| Future income tax recovery | (542,000) | (66,000) |
| 824,919 | 1,017,361 |
9. INCOME TAXES (continued)
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:| 2007 $ |
2006 $ |
|
| Income tax based on combined federal and provincial statutory income tax rate of 36.12% in 2007 and in 2006 | 760,359 | 906,503 |
| Increase /(decrease) in income taxes resulting from: | ||
| Non-deductible expenses | 11,650 | 66,326 |
| Other differences | 52,910 | 44,532 |
| Effective income tax provision | 824,919 | 1,017,361 |
A summary of significant components of future tax liabilities calculated in accordance with Canadian accounting principles at October 31, 2007 and 2006 are as follows:
| Number of Shares | Value $ |
|
| Non-current future income tax liabilities: | ||
| Property, plant and equipment | (363,000) | (500,000) |
| Deferred charges | (4,000) | (7,000) |
| Intangible assets | (847,000) | (1,100,000) |
| (1,214,000) | (1,607,000) | |
| Non-current future income tax assets | ||
| Deferred revenue | 966,000 | 781,000 |
| Share issue costs | 35,000 | 71,000 |
| 1,001,000 | 852,000 | |
| Net future income tax liability | (213,000) | (755,000) |