Blackberry 1998 Annual Report Download - page 26

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24
4. Amounts Receivable
Amounts receivable are comprised as follows:
February 28, 1998 1997
Trade receivables $ 11,237,367 $ 5,744,270
Accounts receivable – other (a) 1,839,059 3,187,259
Investment tax credits (b) 1,800,000 2,050,000
Due from shareholders 78,000 63,550
$ 14,954,426 $ 11,045,079
(a) The accounts receivable – other primarily consists of amounts owing from the Ontario Technology Fund
and Technology Partnerships Canada. Agreements have been signed which provide the company with
government assistance equal to 50% of current and capital research and development expenditures with
respect to the Ontario Technology Fund and 30% with respect to Technology Partnerships Canada.
(b) Investment tax credits recoverable are subject to review by Revenue Canada. The amount recorded is
management’s best estimate of the current value of the claim as filed and represents the refundable portion
of investment tax credits. The actual amount could be materially different from the amount accrued.
The company in the normal course of business, monitors the financial condition of its customers and
reviews the credit history of each new customer. The company establishes an allowance for doubtful
accounts that corresponds to the specific credit risk of its customers, historical trends and economic
circumstances. The company has long-term contracts or supply agreements with most of its major
customers. While the company sells to a variety of customers, at February 28, 1998 six customers comprise
87% of trade receivables (1997 – 2 customers, 77%). Over 90% of sales are to customers outside Canada.
5. Inventory
Inventory is comprised as follows:
February 28, 1998 1997
Raw materials $ 12,586,417 $ 13,702,092
Work in process 2,811,613 2,140,861
$ 15,398,030 $ 15,842,953
6. Capital Assets
Capital assets are comprised as follows:
Accumulated Net book
February 28, 1998 Cost amortization value
Furniture, fixtures, tooling
and equipment $ 11,151,030 $ 1,663,008 $ 9,488,022
Computer equipment 4,024,615 1,166,549 2,858,066
Patents 708,000 77,682 630,318
Leasehold improvements 641,310 99,412 541,898
Pre-production costs 280,000 65,374 214,626
$ 16,804,955 $ 3,072,025 $ 13,732,930