- 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
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 |