Blackberry 1998 Annual Report Download - page 27

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Accumulated Net book
February 28, 1997 Cost amortization value
Furniture, fixtures, tooling
and equipment $ 5,855,342 $ 345,951 $ 5,509,391
Computer equipment 2,076,651 482,321 1,594,330
Patents 350,000 36,027 313,973
Leasehold improvements 210,788 7,026 203,762
Pre-production costs 280,000 9,372 270,628
$ 8,772,781 $ 880,697 $ 7,892,084
7. Loans Payable
Loans payable as at February 28, 1997 consisted of a term loan, a US revolving loan and contract financing
with an aggregate balance of $1,480,364. These loans bore interest rates ranging from prime to prime plus
1.5% per annum. A general security agreement and the assignment of inventory and specific contracts were
pledged against the term and revolving loans. Specific contracts were pledged and assigned to the bank as
security for the contract financing.
8. Income Taxes
The company has non-refundable investment tax credit carry-forwards which total $2,544,000 as at February
28, 1998. These investment tax credits are available to offset future federal income taxes payable. Also, the
company has an unclaimed Scientific Research and Experimental Development (“SRED”) tax pool of
$4,783,000 which is available to offset future taxable income. In addition, the company has loss
carry-forwards of $9,987,000 for Ontario tax purposes which have arisen primarily as a result of the
provincial super-allowance on the company’s research and development expenditures and $125,000 for
federal tax purposes. These carry-forwards expire as follows:
Investment Ontario Federal SRED
tax credits tax losses tax losses pool
In the year ending
February 28, 2000 $ ___ $ 1,688,000 $ ___ $ ___
2001 ___ 2,055,000 ___ ___
2002 ___ 223,000 ___ ___
2003 65,000 1,869,000 125,000 ___
2004 292,000 2,825,000 ___ ___
2005 51,000 1,327,000 ___ ___
2006 359,000 ___ ___ ___
2007 817,000 ___ ___ ___
2008 960,000 ___ ___ ___
Indefinite carryforward ___ ___ ___ 4,783,000
$ 2,544,000 $ 9,987,000 $ 125,000 $ 4,783,000
In addition the company will claim further tax deductions in future years for its share issue costs. These
costs are deductible at the rate of approximately $2,048,000 per annum for each of the years ending
February 28, 1999 to 2001, $1,597,000 for the year ending February 28, 2002 and $995,000 for the year ending
February 28, 2003.
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RESEARCH IN MOTION Incorporated Under the Laws of Ontario