**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-KSB**

(Mark One)
| x | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------|

For the fiscal year ended December 31, 2006
| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

For the transition period from o to o

Commission file number 000-27387
| **VOICE MOBILITY INTERNATIONAL, INC.**         |
|------------------------------------------------|
| (Name of small business issuer in its charter) |

 
| **NEVADA**                                                     |   | **33-0777819**                       |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

 
| **100 - 4190 Lougheed Highway****Burnaby, British Columbia, Canada** |   | **V5C 6A8** |
|----------------------------------------------------------------------|--------|-------------|
| (Address of principal executive offices)                             |   | (Zip Code)  |

Issuer's telephone number  (**604**) **482-0000**

Securities registered under Section 12(b) of the Exchange Act:
| Title of each classNil |   | Name of each exchange on which registeredNil |
|------------------------|--------|----------------------------------------------|

Securities registered under Section 12(g) of the Exchange Act:
| **Common Shares, par value $0.001**(Title of class) |  
 

Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.      o

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes  x  

No o

 

 

 

 

- 2 -

 

 

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.

o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2) of the Exchange Act).

 

Yes  o  

No x

State issuer's revenues for its most recent fiscal year.  **$94,000**

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked prices of such common equity, as of a specified date within 60 days (See definition of affiliate in Rule 12B-2 of the Exchange Act.)

**54,930,072 common shares @ $0.38(1) = $20,873,427**

(1)  Closing price as quoted on the OTC Bulletin Board on March 1, 2007.

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date.

**56,405,696 common shares issued and outstanding as of March 1, 2007.**

**DOCUMENTS INCORPORATED BY REFERENCE**

None

Transitional Small Business Disclosure Format (Check one):  Yes o; No x

 

 

 

 

**VOICE MOBILITY INTERNATIONAL, INC.**

 

**TABLE OF CONTENTS**

 

 

 

 

**Page No.**

**Part I**

 

 

 

 

 

Item 1

Description of Business

2

Item 2

Description of Property

18

Item 3

Legal Proceedings

18

Item 4

Submission of Matters to a Vote of Security Holders

18

 

 

 

**Part II**

 

 

 

 

 

Item 5

Market for Common Equity and Related Stockholder Matters

19

Item 6

Management's Discussions and Analysis or Plan of Operation

20

Item 7

Financial Statements

29

Item 8

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

68

Item 8A

Controls and Procedures

68

Item 8B

Other Information

68

 

 

 

**Part III**

 

 

 

 

 

Item 9

Directors, Executive Officers, Promoters, Control Persons and Corporate Governance; Compliance with Section 16(a) of the Exchange Act

68

Item 10

Executive Compensation

73

Item 11

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

78

Item 12

Certain Relationships and Related Transactions, and Director Independence

79

Item 13

Exhibits

81

Item 14

Principal Accountant Fees and Services

83

 

 

 

 

Signatures

84

 

 

 

 

- 2 -

 

 

**PART I**

**Item 1.**

**Description of Business.**

This annual report contains forward-looking statements as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievementsexpressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States generally accepted accounting principles. 

In this annual report, unless otherwise specified, all dollar amounts are expressed in United States dollars.  All references to "CDN$" refer to Canadian dollars and all references to "common shares" refer to the common shares in our capital stock.

*Corporate Overview*

We were incorporated on October 2, 1997 in the State of Nevada, under the name "Equity Capital Group, Inc.", and we are the successor to the voice service and related messaging business founded by Voice Mobility Inc. in 1993.  On June 24, 1999, we changed our name to "Voice Mobility International, Inc."  We have four wholly-owned subsidiaries:  Voice Mobility Inc., which is a Canadian corporation incorporated on September 15, 1993; Voice Mobility (US) Inc., which is a Nevada corporation incorporated on April 6, 2000; Voice Mobility Canada Limited, which is a Canadian corporation incorporated on May 26, 1999; and VM Sub Limited, which is a Canadian corporation incorporated on May 26, 1999.

Unless otherwise indicated, all references to "we", "us", "our" and "Voice Mobility" means Voice Mobility International, Inc., its predecessor company, Voice Mobility Inc. and its other subsidiaries.

Our principal executive and head offices are located at 100 - 4190 Lougheed Highway, Burnaby, British Columbia, Canada.  Sales and marketing operations are primarily based out of our head office.  Research, development and technical support are based out of our office located at 1001 Wharf Street, 3rd floor, Victoria, British Columbia, Canada.  

*History*

Our subsidiary, Voice Mobility Inc. was incorporated in 1993 under the name "WGT Teleserve Inc.", and was originally focused on providing enhanced telecommunications services such as voice mail, fax handling and Internet access to specific vertical markets.  In the spring of 1997, we decided to shift focus and began developing a comprehensive enhanced messaging product.  Early versions of our messaging products were subsequently released in 1998, 1999 and 2000.

In June 1999, the shareholders of Voice Mobility Inc. completed a reverse acquisition whereby Voice Mobility Inc. became a wholly owned subsidiary of our company.  At that point, we effectively commenced operations as a 

 

 

 

- 3 -

 

 

United States company and our common stock was quoted on the OTC Bulletin Board under the symbol VMII.  Between the period of June 1999 and December 2005, we raised approximately $24 million, mostly from private investors, to fund our development initiatives and operations.

In April 2001, we completed a $8.4 million (CDN$13 million) equity financing and subsequently began trading on the Toronto Stock Exchange in July under the symbol VMY.

*Business Overview*

We are engaged in the enhanced and multimedia messaging area of the telecommunications market.  We market and deploy next generation messaging solutions that provide enhanced messaging features and functionality while ensuring integration with or replacement of existing first generation voicemail messaging systems.  Our enhanced messaging software suite:

- allows telecommunications companies to replace their aging legacy voicemail systems and incorporate incremental offerings such as real time call connect, voicemail to email, fax to email and unified mailbox services;

- can serve as a first generation voice-mail and messaging system for telecommunications companies that do not have an existing voice-mail system, with the added capability of providing incremental offerings such as real time call connect, voicemail to email, fax to email and unified mailbox services; and

- is an ideal solution for telecommunication companies or enterprise customers that have both a large central location and many secondary locations of varied size but wish to put them all under a single umbrella for voice and unified communications.  Whether the remote locations have their own telephone legacy systems****or utilize voice over internet protocol (VOIP) technology, the software solution can ensure that company-wide deployment of voice and unified messaging is uniform, consistent and integrated.

Legacy voicemail systems are systems that use technology that is 15 to 20 years old.  These legacy systems are incapable of being upgraded, or economically upgraded, to offer enhanced messaging services, like real time call connect, voicemail to email, fax to email services and unified mailbox services.  We are focused on the development of technology that takes advantage of the market known as the voice over internet protocol (VoIP) market.  Voice over internet protocol (VoIP) is a general term for technologies that use internet protocol for transmission of packets of data which include voice, video, text, fax, and other forms of information that have traditionally been carried over the dedicated circuit-switched connections of the public switched telephone network (PSTN).  General industry and analyst consensus shows that the voice over internet protocol (VoIP) market is being adopted by the public andgrowing at a considerable rate.

Our family of products are based upon open systems hardware and software to create a solution that has low "per subscriber" fixed costs in the industry.  The solution is designed to be delivered as a messaging software solution only, or as a complete turnkey solution including complete hosting, hardware, system configuration, migration, operating support system integration and billing support system integration.  In addition, customers may license one or more of the incremental services or choose to license our entire enhanced messaging software suite.

With the increased use of personal communication devices, such as cell phones, personal digital assistants (PDAs) and laptops, it has become a considerable challenge to manage the information retrieval process from these various devices.  Users of these multiple communication devices are increasingly demanding a means of easily managing these devices in a time saving manner.  In addition, users are increasingly demanding instant access to voicemails, faxes and emails regardless of which communication device is available to them or their physical location at any point in time.

Our enhanced messaging software suite addresses all of these demands by:

- allowing users to access their voicemail messages, email messages and faxes at anytime, from any location, from a wide variety of devices;

 

 

 

- 4 -

 

 

- providing a speech interface which allows any speech recognition software to interface with our software application;

- allowing users to receive any type of communication regardless of its incoming format or medium (i.e. voicemails and faxes) into one unified mailbox with the ability to control, sort and prioritize all such messages;

- providing instant notification of all messages;

- allowing users to direct faxes to any fax machine;

- providing users a single unified phone number which allows subscribers to merge all their wired and wireless communication devices, including cellular telephone, pager, fax, home and office numbers under that one number;

- providing a fully synchronized message storage area for enterprise so that a user would only have to go to one location to retrieve all types of messages: email, fax and voice mail;

- providing several new revenue options for operating telecommunication companies such as the ability to notify mobile workers that their office or home voice mail has just received a voice mail message from a specific person or number and the ability to forward a fax image to a mobile device for viewing and forwarding; and

- providing highly innovative methodologies to allow telecommunication companies the ability to create new service offerings that takes internet content and forwards that content to a voicemail box (of a mobile handset, like a cell phone) in voice form, thereby allowing a person to access in real time internet content through a spoken interface.

Our product offering is an enhanced messaging software solution through which telecommunications companies:

- can increase their revenues by increasing the services they can offer to their subscribers;

- can offer modern and technologically advanced messaging services to ensure that there is no loss of customers to competitors offering these enhanced services;

- can reduce their costs by replacing their old legacy voicemail systems and eliminating the additional costs of maintaining their existing voice mail systems; and

- can transition their customers from their old legacy voicemail systems to a new voicemail system with no disruption in service.

Telecommunication companies/carriers have been facing downward price pressure on services such as long distance, local telephone service and data service.  To combat this downward price pressure, these telecommunication companies have usually introduced other revenue sources like call answer, call waiting, call display, internet access and packages of local and long distance calling.  Our enhanced messaging software allows these telecommunication companies to create further sets of product/service offerings to allow them to increase or maintain their revenues.

*Components of Our Enhanced Messaging Product Offering*

Our enhanced messaging software suite includes the following core service features: 

- legacy voicemail replacement; 

- one number; 

 

 

 

- 5 -

 

 

- voicemail to email; 

- fax to email; 

- a single unified mailbox;

- find-me and follow-me / real time call connect;

- call announce and call screening;

- message notification; 

- voice based text messaging (allows users to record a voice message and deliver it as a text message);

- tools that allow internet developers to deliver text based internet content to a voicemail box of a mobile handset (like a cell phone) using a spoken interface (human voice), thereby allowing a person to access in real time internet content through a spoken interface;

- storage of messages; and

- speech recognition integration.

Our legacy voicemail replacement feature allows a telecommunication company to replace existing voicemail systems currently being used by telecommunications companies.  The first stage involves installing our enhanced messaging software and migrating any existing voicemail subscribers to our messaging system.  Our messaging software has been designed to allow telecommunication companies to transition their subscribers between the telecommunication company's old system and the new system. We also have the ability to interface with existing "legacy" voice-mail systems, allowing for the transfer of messages between systems.  Finally, we emulate legacy voicemail telephone systems, both in terms of interfaces and features.  Once the legacy voicemail subscribers are transitioned to the new messaging system, the telecommunications company has the option of adding and selling one or more of the enhanced messagingfeatures described below.

Our real time call connect feature allows subscribers to merge all their wired and wireless communication devices, including cellular telephone, pager, fax, home and office numbers, into a single unified phone number where they can be reached.  Subscribers only have to provide this one phone number which lets them receive all their calls, faxes or voice messages, no matter how many different telephone, cell phone or fax numbers they use.

Our voicemail to email feature allows subscribers to receive voicemail messages through the subscriber's one number and have them delivered to one or more email mailboxes.  This service gives the subscriber the ability to choose the method of retrieving voicemail messages, through email, email enabled wireless devices or more traditional retrieval methods (like over the telephone).  Our software is also capable of providing voicemail notifications via pagers, short message service (SMS) devices or other wireless devices.

Our fax to email feature allows subscribers to receive faxes through the subscriber's one number and have them delivered to one or more email mailboxes.  The subscriber then has the power to determine if and where the fax is printed.  Our fax-to-email service converts faxes to email attachments, and allows subscribers to view them on-screen, print, save, or forward them.  This functionality essentially eliminates the need for fax machines and/or dedicated fax lines, and it also minimizes the privacy concerns with respect to communal fax machines.  Our software is also capable of providing fax mail notifications via pagers, short messaging service (SMS) devices or other wireless devices.

Our single unified mailbox feature allows subscribers to retrieve, store and manage all of their messages.  Our service is email neutral (meaning that it does not matter which email software a subscriber actually uses), so any email application on the market today can be configured as the subscriber's unified mailbox.  In addition, subscribers are not forced to change their e-mail addresses.

 

 

 

- 6 -

 

 

Our find-me and follow-me feature allows a subscriber to program our service to locate them at up to five different telephone numbers according to the subscriber's personal preference.  For example, they may divide their working time between the office and home.  To be sure they do not miss any important calls, they could program the find-me and follow-me feature so that any incoming calls are directed first to their office, then to home and finally to their cell phone.  The search numbers can be arranged in any desired order and can be changed as circumstances change.

Voice short messaging service (SMS) and web feeds are new features meant to connect the content of the message mailbox to real-time internet based content. Voice short messaging service (SMS) allows a voice mail to be created for the purpose of a one time single replay to the intended recipient. The short messaging service (SMS) network is used to notify the recipient and then direct him to the location of the message. 

Web feeds is a feature that allows for the real-time "delivery" to a mobile device, like a cell phone, of text and multimedia based internet content that is forwarded to the mobile device when the user requests. The content is delivered based upon user-defined criteria.

Our call-announce and call-screening feature allows subscribers to identify the caller and then decide whether or not to answer a particular call or direct it to their unified mailbox.  Our message notification feature notifies subscribers of new or urgent messages by voicemail, email, pager or any wireless device.  Our speech recognition integration interface allows service providers to select their preferred speech recognition vendor as our enhanced messaging software can interface with all vendors' specifications.

For the year ended December 31, 2006, sales consisted of technical training and support services provided to Avaya and T2MCI.   For the year ended December 31, 2005, sales consisted of technical training and support services and the recognition of deferred revenue from the prior year.  

*Pricing of Our Enhanced Messaging Software*

We have customized pricing structures in place for strategic partners, system integrators and original equipment manufacturer (OEM) distributors that resell our enhanced messaging software to telecommunication companies.

*Target Market for Our Enhanced Messaging Software*

Currently, we are focussing on one primary adopter of our enhanced messaging software: telecommunication companies.

Telecommunication companies represent our target customer opportunity.  "Tier I" telecommunication companies, defined to include providers of messaging services to 100,000 - 35,000,000 end users, in particular tend to have large existing installed bases of voicemail users.  The customer base of many of these telecommunication companies using legacy voicemail systems continues to grow at a rate of between 10% and 30% per year as a result of the growth in the use of wireless telecommunication devices.  Currently, the Tier I telecommunication companies are looking for methods to limit spending in legacy voicemail systems and methods to cost effectively implement enhanced messaging technology.

We believe that Tier I telecommunication companies will no longer be willing to invest in legacy systems which cannot be upgraded to offer enhanced messaging services and will therefore be required to replace such legacy systems.  We also believe that their decision will be driven by the demand from current and potential subscribers that they offer and implement enhanced messaging technology services.  We anticipate that some of these telecommunication companies will install our enhanced messaging software and migrate their current voicemail customers over to our enhanced messaging software without interruption in service.  We then expect that these telecommunication companies would begin to incrementally market the value-added service available as part of our enhanced messaging software, such as our real time call connect, voicemail to email, fax to email and unified mailbox service offerings.  To supportour customers, we have developed significant research that identifies end users' perceptions of enhanced messaging features; their pricing tolerances and willingness to purchase such additional enhanced messaging features.  With our research, we can assist these telecommunication companies in effectively marketing our enhanced messaging services to their current and potential customer base.

 

 

 

- 7 -

 

 

We are also aware of the rapid growth of telephone services provided by companies who provide cable television services, the voice over internet protocol (VOIP) provider and the internet telephony service provider (ITSP).

Among the most unique attributes of our products is the ability for a telecommunication company service provider to offer residential or broadband users as well as mobile users the same software solution for all of these different markets.

The software platform has been designed and engineered to meet the demanding needs for the operating telecommunication company market. It is capable of delivering large scale while running on equipment and technology that is "commercial grade" and not proprietary or custom. The software can deliver functionality that is consistent with the needs of a mobile user, a residential user, a business user and a broadband user (persons who utilize the internet for their telephone needs). This flexibility allows the product to be utilized in all of these different customer markets, thereby increasing the scale of the product and driving the price per subscriber down considerably. 

A telecommunication company does not have to purchase separate systems to serve each of the above customer markets. They can serve all of these customer markets from a single software based product. This lessens the risk of having to purchase additional hardware to run the software, the risk that the software will become obsolete because of new product offerings in any of these customer markets and the risk of being obligated to run the software on a propriety or custom built hardware device or system.

We currently believe that there may be further opportunities for the deployment of our enhanced messaging services through the consolidation presently occurring amongst telecommunications companies.  As such telecommunications companies merge and consolidate, their customer base and technology will need to be consolidated and standardized and therefore we believe that there likely will be further opportunities and demand for our enhanced messaging software.

*Marketing and Distribution Methods*

The complexity of the current voicemail systems used by telecommunication companies requires not only a sound understanding of the systems capabilities but a thorough understanding of where and how these systems can interconnect with other systems.  There are very few companies that have earned the trust of the largest telecommunication companies to deal directly with the systems and technologies that are fundamental to the basic business of a telecommunication company.  These companies include large switch manufacturers and large system integrators and consultants.  We recognize this reality and understand that these relationships have been forged over an extended period of time.  As a result of these established relationships, we anticipate that telecommunication companies will purchase their technology directly from these "trusted" companies.  We are therefore dedicated to building strategicrelationships with these companies or system integrators.  We anticipate that telecommunication companies will purchase our enhanced messaging software directly from these companies or system integrators.  The company or system integrator will assist in installation, maintenance and support of our enhanced messaging software.  We will play a supporting role to these companies, system integrators and original equipment manufacturer distributors.  We intend to limit the number of relationships we enter into with such companies and systems integrators, distribution partners and original equipment manufacturer distributors.  The key in this area of the business is the quality of the partner, not the quantity.  

In June of 2004, we signed a comprehensive agreement with Avaya Inc. This agreement granted Avaya global exclusivity to our core messaging technology. This agreement covers a three-year term and defines specific performance based milestones. The global exclusivity terminated on June 1, 2005.

Overall the relationship is progressing well. Both companies have invested in ongoing development of the product and the combined marketing and sales team are exposing the product to key customers to create interest and awareness.

Avaya has unparalleled brand name in the carrier and enterprise marketplace. We are working together with Avaya to leverage that brand name to create interest and excitement about the offering in the service provider market. With 

 

 

 

- 8 -

 

 

many divisions and several thousand sales people and distribution partners, the greatest challenge lies in exposing our product offering to all potentially interested parties, both inside of Avaya and to its potential customers.

While there is resolute focus on helping Avaya get to market with the offering not only in the United States but also all over the world, we recognize that a broader group of channel partners may be required in order for maximum market penetration to be achieved.

We will also target original equipment manufacturer distributors who wish to include our enhanced messaging software as a component on a messaging system that they manufacture and distribute.  The original equipment manufacturer distributors will be responsible for all selling, distribution, support and maintenance of our enhanced messaging software.  The original equipment manufacturer distributors may sell the product directly to the telecommunication companies utilizing their own sales force and distribution network.

There are some target markets where our company has no specific representation through strategic partners, system integrators and original equipment manufacturer distributors.  In these markets, we intend to sell directly to the customer.  

*Key Strategic Partners*

Avaya: Avaya is a global communication systems, applications services company that generated $5 billion in revenue last year. Avaya offers complete network management for enterprise customers. Avaya provides services to 90% of the FORTUNE 500 companies and to the US government. Avaya is a system integration partner and an original equipment manufacturer distributor of our enhanced messaging product.  Avaya's service provider *Managed Services Division*will also provide a hosted turnkey solution to the market.

NMS Communications:  NMS provides to us communication boards, software interfaces for their hardware solutions, and access to a broad range of resources for sales, marketing and development.

IBM: IBM makes a family of hardware platforms that scale from the very small to the very large. We have had success and acceptance with this hardware platform and intend to continue using this hardware platform as one of our preferred vendors.

Service providers now have the ability to operate our software on Intel processor based hardware made and distributed by commercial-off-the-shelf computer hardware vendors such as IBM, DELL, HP and others.  This provides our strategic partners and system integrators (many have strategic relationships with certain computer hardware vendors) and telecommunication companies with comfort that they can choose their preferred computer hardware on which to operate our enhanced messaging software. 

In summary, our marketing efforts will be spread across multiple addressable markets:

Avaya:  We will continue to invest in the relationship with Avaya as it leverages its market share dominance to continue to provoke the move to the use of voice over internet protocol (VOIP) and to expedite the migration to third generation messaging systems.

OEM:  One primary characteristic of the telecommunication marketplace is that traditional voice technologies are slowly converting to voice over internet protocol (VOIP), that is telephone services being delivered over the internet. This trend is impacting the systems purchased by service providers (network operators) as well as enterprise customers. Our software can reside on virtually any hardware platform and, as a result, can be an easy addition for a manufacturer with a desire to include several "applications" with the sale of a complete (hardware and software) system that allows the customer to provide telephone services over the internet. Our software can run on its own hardware or be embedded into and form part of a larger software solution. We sell on the ability for the solution set to be delivered entirely in software to enhance the overall product offering and to increase margins.

 

 

 

- 9 -

 

 

Channels:  Our product can easily be used in small and large applications because it is easily scalable. Our product uses a series of predefined hardware profiles from the very small (up to 5000 subscribers) to the very large (1 million+ subscribers). Each hardware profile can be incremented to meet the needs of a larger subscriber base. This is attractive as it offers a low price point for entry and does not require the "throw away" of any old hardware or the purchase of additional software as the customer's user base grows. As a result of this flexibility, our product is an excellent solution for large telecommunication companies.  We will be continuing to offer our product through value-added resellers.

International:  Our product is rendered in several languages today and, as such, is attractive to the more mature markets as well as the emerging telephony markets. We will approach each market with caution but we will invest in intelligent opportunities when they arise.

*International Markets*

We believe international markets should offer us opportunities in the long-term.  Mature markets are seeking replacement technologies to enhance and replace legacy voicemail systems that are reaching the end of their useful lives. Emerging markets are being fuelled by the very basic need for high performance and low cost telecommunications infrastructure.

We perceive a specific opportunity with telecommunications companies that are either introducing messaging services to their markets for the first time, or are seeking to supplant incumbent, aging, or manufacturer discontinued platforms with next generation technology that creates new revenue opportunities through the delivery of enhanced features and functionality.  

We are targeting both incumbent and emerging telecommunications companies.  We intend on forming relationships with original equipment manufacturers and systems integration partners in these international markets as a means to further expand and facilitate market penetration and the acquisition of market share.  Key attributes of our enhanced messaging software that facilitate this expansion are the user-friendly interfaces, our multi-language support, and our broad support for many variants of telephony connectivity.

In 2005, we experienced interest from our international markets.  As we continue to offer telecommunication companies seeking to cost-effectively replace legacy messaging systems with the opportunity to enhance and expand existing systems with the deployment of our enhanced messaging system, and by delivering an enhanced messaging system to companies initiating their first deployment of messaging services, we believe our presence in, and revenues from, non-North American markets will expand in the coming years.

See Note 4 to our audited consolidated financial statements included elsewhere in this filing for financial information by geographic area.

*Competition*

Well-established suppliers such as Lucent and Comverse currently dominate the Tier I telecommunication company messaging market.  These competitors have provided voice mail services to both wired and wireless telecommunication companies since the early 1980's.  In evaluating the competitive landscape, we believe our closest competitors are companies offering voicemail and enhanced messaging systems built to satisfy the high capacity and high resiliency needs of the telecommunications company environment.  Lucent and Comverse are also developing legacy voicemail replacement products.  In this segment, we have identified three primary competitors:  Lucent, Comverse and IP Unity.

-  Lucent is a well-entrenched supplier of voicemail systems to the Tier I telecommunications company market. Existing products include the Lucent Sierra and the Lucent IMA-CA. These products currently service 50% of the North American voicemail market. Its replacement product is the Lucent Anypath, a product built for the evolution from voicemail to unified messaging. Lucent is a large company headquartered in Murray Hills, New Jersey with 33,000 employees. The company has a portfolio stretching from switching, data networking, optical equipment and software, next-generation third generation (3G) 

 

 

 

- 10 -

 

 

mobility solutions, a network services organization - designing, engineering, installing, managing, monitoring and repairing some of the most sophisticated networks in the world, and the world-renowned Bell Labs.

-  Comverse Technologies Inc. is a supplier of software and systems enabling enhanced communications services for telecommunication companies.  Comverse is based in the United States with research and development facilities in Israel.   Its customer base includes wireless and wired telecommunications companies worldwide.  The company employs over 5000 employees, including 2000 dedicated to research and development.  In 2001, the company announced unified messaging deals with several wireless service providers such as AT&T Wireless (US), T-Mobile (Germany), and Vodaphone (Portugal).

-  IP Unity is a relatively new player to the unified messaging market. They offer a solution targeted at the internet providers / broadband providers in the market. Their strength lies in their ability to integrate and interface with voice-over IP networks. IP Unity is a private company and does not report its financials or company details. In December 2006, IP Unity acquired all of the assets of Glenayre Technology, Inc.'s integrated messaging division. Glenayre has some excellent historical relationship in the North American market and we will continue to watch their growth and strategic decisions.

All of our primary competitors and some of our other competitors have significantly greater financial, technical, manufacturing, sales, marketing and other resources than us and have achieved greater name recognition for their existing products and technologies than we have.  We cannot guarantee that we will be able to successfully develop or, once developed, increase our market penetration or our overall share of the basic voicemail and enhanced messaging marketplace.  Our results of operations could be adversely impacted if we are unable to effectively develop and, once developed, increase our share of this market. 

Our success depends in large part upon the rate at which Tier I telecommunication companies incorporate our products into their systems.  If we are not successful in having our products used by the leading Tier I telecommunication companies, there will be a material adverse effect on our business, financial condition and results of operations.

No assurance can be given that our competitors will not develop new technologies or enhancements to existing products or introduce new products that will offer superior price or performance features.  We expect our competitors to offer new and existing products at prices necessary to gain or retain market share.  Certain of our competitors have substantial financial resources, which may enable them to withstand sustained price competition or a market downturn better than us.  There can be no assurance that we will be able to compete successfully in the pricing of our products, or otherwise, in the future.

*Competitive Advantages*

We compete on the basis of price and product completeness/performance.  We believe we have a number of competitive advantages over our competitors as follows:

- our business and pricing models are designed to set a new expectation in the market for price and flexibility;

- our enhanced messaging software provides the same features and functionality as current voicemail solutions but offers additional value-added messaging features;

- our system provides a lower cost of ownership to the telecommunication companies as they no longer have to make a substantial investment in maintaining, upgrading or replacing their legacy voicemail systems;

- we have developed a series of migration options designed to migrate large blocks of mailboxes from legacy voicemail systems while ensuring that our software can also emulate features and interfaces of the legacy voicemail systems;

 

 

 

- 11 -

 

 

- our solutions have the unique ability to be placed with the telecommunication companies environment or physically installed in the customer's premises;

- we have developed a highly available, scale-able, hosted solution that can be separated to provide functionality for multiple end user segments such as residential, wireless, enterprise and broadband; and

- our enhanced messaging software platform is designed to accommodate and support more users while also satisfying the stringent availability requirements of the telecommunication companies. 

Our enhanced messaging software provides all of the following features:

- legacy voicemail replacement;

- one number;

- voicemail to email;

- fax to email;

- a single unified mailbox;

- find-me and follow-me / real-time call connect;

- call announcement and call screening;

- message notification;

- voice short messaging service (SMS);

- storage of messages;

- web feeds; and

- speech recognition integration.

We are not aware of any competitor that has developed a messaging solution that provides all of these features, that incorporates the ability to emulate existing voicemail technology, provides advanced unified communications features and capabilities and provides migration options from legacy voicemail systems at a lower total cost of ownership.

*Industry Description*

The telecommunication industry is slowly realizing that it is currently utilizing aging technology to provide voice-messaging services.  This technology dates back to older voicemail systems developed in the 1980s and is in need of replacement.  We believe that the telecommunications companies realize that these older systems require replacement and are currently looking for next generation messaging platforms and solutions that will allow them to bring to market new product offerings that are being demanded by the marketplace.  In particular, Tier 1 telecommunications companies, incumbent telephone companies, are moving towards decisions regarding replacement of legacy voice mail systems.  Part of the reason for this is the current and expected demands of businesses and individuals to better manage their various communications devices.  Market drivers include subscriber demand for new services,telecommunications companies demand for lower priced technology and manufacturer discontinuances of existing voice messaging technology.

Currently, the market is being serviced by legacy voicemail systems, and with a small number of carriers offering enhanced messaging features and functionality.  These telecommunications companies who are offering these 

 

 

 

- 12 -

 

 

features are having limited success in deployment and penetration.  There are very few telecommunications companies offering new features to date despite all such companies expressing interest in offering such enhanced features.  The largest barrier is the migration of voicemail subscribers from the aging legacy voicemail technology to new enhanced messaging technology.  Being able to complete this migration in a cost effective and non-disruptive manner to existing customers is of top priority for the entire telecommunications industry.

Operating telecommunications companies are extremely protective of current revenue streams. They are also reluctant to move to newer technology until the value of doing so can be proven. While newer technologies have proven to be less costly from an operations perspective, the inertia of these legacy voicemail systems will not fully be overcome until:

- it is abundantly clear that new features have considerable end user demand;

- it has been proven that the new features can command an attractive price point;

- vendors can demonstrate that they can build platforms which allow access to new revenue without disrupting current revenue; and

- it is clear that IP based initiatives such as VoIP (voice over internet protocol) will require equipment changes.

All of these prerequisites are in place now in many telecommunications companies to a lesser or greater degree. The overall expenditures for voice messaging systems in the next several years are expected to increase. This expected increase in spending is partly due to the lack of investment over the last several years and partly due to the fact that many telecommunications companies are evolving their networks to VoIP (voice over internet protocol) and other relevant next generation technology infrastructure.

*Significant Customers*

In order to broaden and diversify our potential customer base, we have been seeking out strategic partners to assist with the sales and marketing of our products.  We have been in contact with several potential strategic partners and have entered into a system integration agreement, and an OEM (original equipment manufacturer) sales agreement with Avaya Inc.

Sales for the fiscal year ended December 31, 2006 were from technical training and support services provided to Avaya and T2MCI.   Sales to these two customers comprised 100% of revenue for the fiscal year ended December 31, 2006.  Sales for the fiscal year ended December 31, 2005 were from recognition of deferred revenue related to One1Voice Solutions Inc. of $11,755 and technical training and support services provided to Avaya, our channel partner of $22,589.  Sales to these two customers comprised 100% of revenue for the fiscal year ended December 31, 2005.

*Research and Development*

Our research and development team is primarily located in our facility located in Victoria, British Columbia, Canada.  Our research and development team designs, develops, tests, documents, and localizes our enhanced messaging product.  The research and development team's feature and release direction is governed by all strategic product stakeholders.  Each feature is detailed in written business requirements created by our business requirements team.  A change control board also directs the lower level problems and enhancements for all other development work.  Releases are coordinated with our marketing, sales, and system integration/partner support departments to ensure timely delivery of the grouped features to our partners, clients, and ultimately our target market.  Appropriate technology is chosen for all work after performing a technical analysis of each requested feature and also ensuring amatch for that release's system requirements.  All development work is carried out with reviews and decision gates as part of an overall product development process.  The research and development team follows industry best practices for software engineering and encourages continuous process improvement.  Research and development expenses for the years ended December 31, 2006 and 2005 were $921,518 and $774,686 respectively.

 

 

 

- 13 -

 

 

*Intellectual Property*

We rely on trade secrets to protect our intellectual property. We do not have any registered patents, trademarks, or copyrights.  We execute confidentiality and non-disclosure agreements with our employees and limit access to and distribution of our proprietary information.  We do not have and do not intend to apply for patents on our products.  Management believes that the patent application process in many countries in which we intend to sell products would be time-consuming and expensive and any patent protection may be out of date by the time the patent is granted.  

The departure of any of our management or significant technical personnel, the breach of their confidentiality and non-disclosure obligations, or the failure to achieve our intellectual property objectives may have a material adverse effect on our business, financial condition and results of operations. We believe our success depends upon the knowledge and experience of our management and technical personnel and our ability to market our existing products and to develop new products. We do not have non-compete agreements with our employees who are employed on an "at-will" basis.  While we believe that we have adequately protected our proprietary technology, and we will take all appropriate and reasonable legal measures to protect it, the use of our processes by a competitor could have a material adverse effect on our business, financial condition and results of operations.

*Employees*

As of March 1, 2007, we employed 14 people, 3 of who are engaged in marketing and sales, 7 in research, development and support, and 4 in management and administration.  We are not subject to any collective bargaining agreements and we consider relations with our employees to be excellent.

**RISK FACTORS**

Much of the information included in this annual report includes or is based upon estimates, projections or other "forward-looking statements".  Such forward-looking statements include any projections or estimates made by us and our management in connection with our business operations.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested herein.  We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.

Such estimates, projections or other "forward-looking statements" involve various risks and uncertainties as outlined below.  We caution readers of this annual report that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other "forward-looking statements".  In evaluating us, our business and any investment in our business, readers should carefully consider the following factors.

*We have had negative cash flows from operations and if we are not able to obtain further financing our business operations may fail.*

To date, we have had negative cash flows from operations and have depended on sales of our equity securities and debt financing to meet our cash requirements.  We will need to raise additional funds to:

- support our planned rapid growth and carry out our business plan,

- develop new or enhanced services and technologies,

- increase our marketing efforts,

- acquire complementary businesses or technologies,

- respond to regulatory requirements, and

 

 

 

- 14 -

 

 

- respond to competitive pressures or unanticipated requirements.

We may not be able to obtain additional equity or debt financing on acceptable terms when we need it.  Even if financing is available it may not be available on terms that are favorable to us or in sufficient amounts to satisfy our requirements.  If we require, but are unable to obtain, additional financing in the future, we may be unable to implement our business plan and our growth strategies, respond to changing business or economic conditions, withstand adverse operating results, consummate desired acquisitions and compete effectively.  More importantly, if we are unable to raise further financing when required, our continued operations may have to be scaled down or even ceased and our ability to generate revenues would be negatively affected.

*A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our ability to continue our normal operations*.

A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital.  Because a significant portion of our operations have been financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our operations.  Such reductions would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to develop new products and continue our current operations.  If our stock price declines, there can be no assurance that we can raise additional capital or generate funds from operations sufficient to meet our obligations.  If we are unable to raise sufficient capital in the future, we may not be able to have the resources to continue our normal operations.

*We have a history of losses and fluctuating operating results, which raise substantial doubt about our ability to continue as a going concern.*

Since inception through December 31, 2006, we have incurred aggregate net losses of approximately $46.6 million.  Our loss from operations for the fiscal year ended December 31, 2006 was $3.3 million.  We also incurred a loss from operations for each of the years ended December 31, 2005, 2004, 2003 and 2002.  There is no assurance that we will operate profitably or will generate positive cash flow in the future.  In addition, our operating results in the future may be subject to significant fluctuations due to many factors not within our control, such as the unpredictability of when customers will order products, the size of customers' orders, the demand for our products, and the level of competition and general economic conditions. 

Although we anticipate that we will earn revenues, we expect to continue to incur development costs and operating costs.  Consequently, we expect to incur operating losses and negative cash flow until our products gain market acceptance sufficient to generate a commercially viable and sustainable level of sales, and/or additional products are developed and commercially released and sales of such products made so that we are operating in a profitable manner.  These circumstances raise substantial doubt about our ability to continue as a going concern, as described in the explanatory paragraph in our independent registered public accounting firm's report on the December 31, 2006 consolidated financial statements.  Our audited consolidated financial statements do not include any adjustments that might result from the outcome of that uncertainty.

*If we elect to pay fees to Innovatia in common stock then our shareholders will be subject to further, and maybe significant, dilution.*

On December 28, 2001, we issued to Innovatia a promissory note in the amount of $1,707,989 (Cdn$2,720,142) of which $2,672,501 (Cdn$3,114,532) of principal and accrued interest is outstanding at December 31, 2006.  The promissory note is repayable each quarter at the lesser of $194,507 (Cdn$226,678) and 40% of the net aggregate amount of invoices issued by us to Aliant in the quarter. After December 31, 2004, any current or future amounts due in accordance with the quarterly repayment schedule are only payable in common shares and the number of common shares payable, if any, is determined by dividing the amount payable by Cdn$1.56.  As at December 31, 2006, the current portion due on the promissory note is $395,273 (Cdn$460,651) and this amount is payable only by the issuance of 295,289 common shares.  Notwithstanding, we have the option at any time and from time to time to prepay in cash, common shares ora combination thereof, the whole or any portion of the remaining non-current balance. If we elected to prepay by common shares, then 500,000 of the common shares will be valued at the lesser 

 

 

 

- 15 -

 

 

of the market price of the our common shares on the Toronto Stock Exchange and Cdn$0.75 per share, and the value of the balance of any other common shares issuable to repay the debt is determined by the weighted average trading price of our common shares on the Toronto Stock Exchange over the ten trading days immediately prior to the date on which the common shares are to be issued.  As at December 31, 2006, the non-current portion of the promissory note eligible for prepayment is $2,277,228 (Cdn$2,653,881) and if we elected to prepay this amount with the issuance of common shares then this would result in the issuance of 5,646,555 common shares. As at December 31, 2006, if we made the election to settle the entire principal and interest outstanding with the issuance of common shares, this would result in the issuance of 5,941,844 shares of common stock.

*We could lose our competitive advantages if we are not able to protect any proprietary technology and intellectual property rights against infringement, and any related litigation could be time-consuming and costly*.

Our success and ability to compete depends to a significant degree on our proprietary technology.  If any of our competitors copies or otherwise gains access to our proprietary technology or develops similar software independently, we would not be able to compete as effectively.  The measures we take to protect our proprietary technology and other intellectual property rights are currently based upon a combination of copyright, trade secret and trademark laws, but may not be adequate to prevent their unauthorized use.  Further, the laws of foreign countries may provide inadequate protection of such intellectual property rights.  We may need to bring legal claims to enforce or protect such intellectual property rights.  Any litigation, whether successful or unsuccessful, could result in substantial costs and diversions of resources. In addition, notwithstanding the rights we have secured in our intellectualproperty, other persons may bring claims against us that we have infringed on their intellectual property rights, including claims based upon the content we license from third parties or claims that our intellectual property right interests are not valid.  Any claims against us, with or without merit, could be time consuming and costly to defend or litigate, divert our attention and resources, result in the loss of goodwill associated with our service marks or require us to make changes to our websites or other of our technologies.

*We hold no patents on our proprietary technology and may not be able to protect our proprietary technology*.

We do not have and do not intend to apply for patents on our software products.  We currently rely on copyright, trade secrets and trademark laws to protect our proprietary intellectual property.  Management believes that the patent application process in many countries in which we intend to sell products would be time-consuming and expensive and any patent protection might be out of date by the time the patent were to be granted.

The departure of any of our management or significant technical personnel, the breach of their confidentiality and non-disclosure obligations, or the failure to achieve our intellectual property objectives may have a material adverse effect on our business, financial condition and results of operations. We believe our success depends upon the knowledge and experience of our management and technical personnel and our ability to market our existing products and to develop new products. Employees may and have left us to go to work for a competitor. While we believe that we have adequately protected our proprietary technology, and we will take all appropriate and reasonable legal measures to protect it, the use of our processes by a competitor could have a material adverse effect on our business, financial condition and results of operations. Our ability to compete successfully and achieve future revenuegrowth will depend, in part, on our ability to protect our proprietary technology and operate without infringing upon the rights of others. We may not be able to successfully protect our proprietary technology, and our proprietary technology may otherwise become known or be independently developed by competitors.  Competitors' products may add features, increase performance or sell at lower prices. We cannot predict whether our products will continue to compete successfully with such existing rival architectures or whether new architectures will establish or gain market acceptance or provide increased competition with our products.

*Substantially all of our assets, a majority of our directors and all of our officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers.*

Substantially all of our assets are located outside the United States and we do not currently maintain a permanent place of business within the United States.  In addition, a majority of our directors and all of our officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons' assets are located outside the United States.  As a result, it may be difficult for investors to enforce within the United 

 

 

 

- 16 -

 

 

States any judgments obtained against us or our officers or directors, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof.  Consequently, you may be effectively prevented from pursuing remedies under U.S. federal securities laws against them.

*We are currently dependent on one channel partner for the sale of our products and if we are unable to expand our channel partner relationships or if our channel partner is unable to generate significant sales of our products, then our revenues may not increase significantly.*

We shifted our sales model from a direct sales model to a channel partner model.  A channel partner is a party who will purchase our product for resale to telecommunication companies.  This fundamentally shifted the way our company was structured.  Instead of selling and supporting the customer directly, we will utilize the channel partner to conduct the sales and support activities for our enhanced messaging software.  Instead of being dependent on a small number of customers for the sales of our products (as we were in our three previous fiscal years), we are currently dependent on our sole channel partner, Avaya Inc., for sales of our products.  If Avaya is unable to generate significant sales of our products or we are unable to expand the number of channel partner relationships, our business, financial condition and results of operations would be materially and adversely affected.

*We operate in a highly competitive industry and our failure to compete effectively may adversely affect our ability to generate revenue*.

The market for unified messaging software is highly competitive and subject to frequent product introductions with improved price and/or performance characteristics.  Even if we are able to introduce products which meet evolving customer requirements in a timely manner, there can be no assurance that our new products will gain market acceptance.  Many companies, including Lucent, Comverse and IP Unity and others have greater financial, technical, sales and marketing resources, better name recognition and a larger customer base than ours.  In addition, many of our large competitors may offer customers a broader product line, which may provide a more comprehensive solution than our current solutions.  Increased competition in the unified messaging industry could result in significant price competition, reduced profit margins or loss of market share, any of which could have a material adverse effect on ourability to generate revenues and successfully operate our business.

*Rapid technological changes in our industry could render our products non-competitive or obsolete and consequently affect our ability to generate revenues.*

The telecommunications industry is characterized by rapidly changing technology and evolving industry standards. We believe that our success will depend on our ability to continuously develop our products, to enhance our current products and to introduce them promptly into the market.  We can make no assurance that our technology or systems will not become obsolete due to the introduction of alternative technologies.  If we are unable to continue to develop and introduce new products to meet technology changes and changes in market demands, our business and operating results, including our ability to generate revenues, could be adversely affected.

*If we fail to effectively manage our growth our future business results could be harmed and our managerial and operational resources may be strained.*

As we proceed with the development of our technology, we expect to experience significant and rapid growth in the scope and complexity of our business.  We will need to add staff to market our services, manage operations, handle sales and marketing efforts and perform finance and accounting functions.  We will be required to hire a broad range of additional personnel in order to successfully advance our operations.  This growth is likely to place a strain on our management and operational resources.  The failure to develop and implement effective systems, or to hire and retain sufficient personnel for the performance of all of the functions necessary to effectively service and manage our potential business, or the failure to manage growth effectively, could have a materially adverse effect on our business and financial condition.  

 

 

 

- 17 -

 

 

*Our future growth and our ability to generate revenues may be materially and adversely affected by continued reductions in spending on telecommunications infrastructure by our potential customers.*

Any slow down in capital spending by telecommunication service providers may affect our future revenues more than we currently expect. Moreover, the significant slowdown in capital spending by telecommunication service providers has created uncertainty as to market demand for the type of products we produce.  As a result, revenues and operating results for a particular period can be difficult to predict.  In addition, there can be no certainty as to the severity or duration of the current industry adjustment. As a result of the recent changes in industry and market conditions, many of our potential customers have reduced their capital spending on telecommunications infrastructure. Our revenues and operating results are expected to continue to be affected by the continued reductions in capital spending on telecommunications infrastructure by our potential customers.

*Our Articles of Incorporation and Bylaws and Nevada law contain provisions that could delay or prevent a change of control and could limit the market price of our common stock.*

Our authorized capital stock consists of 100,000,000 shares of common stock and 1,000,000 shares of preferred stock.  To date, 1 share of Series A preferred stock has been designated and is issued and outstanding and, 666,667 shares of Series B preferred stock have been designated, of which nil are issued and outstanding.  Our board of directors, without any action by stockholders, is authorized to designate and issue shares of preferred stock in any class or series as it deems appropriate and to establish the rights, preferences and privileges of these shares, including dividends, liquidation and voting rights.  The rights of holders of shares of preferred stock that may be issued may be superior to the rights granted to the holders of existing shares of our common stock.  Further, the ability of our board of directors to designate and issue such undesignated shares could impede or deter an unsolicitedtender offer or takeover proposal and the issuance of additional shares having preferential rights could adversely affect the voting power and other rights of holders of our common stock.

*Trading of our stock may be restricted by the SEC's penny stock regulations, which may limit a stockholder's ability to buy and sell our stock.*

The Securities and Exchange Commission has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors".  The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC,which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction.  Thesedisclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.  We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

*NASD sales practice requirements may also limit a stockholder's ability to buy and sell our stock.*

In addition to the "penny stock" rules described above, the National Association of Securities Dealers (NASD) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low 

 

 

 

- 18 -

 

 

priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information.  Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

*Our common stock is illiquid and the price of our common stock may be negatively impacted by factors which are unrelated to our operations*.

Our common stock currently trades on a limited basis on the OTC Bulletin Board and the Toronto Stock Exchange.  The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other telecommunication companies, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our competitors or us.  In addition, the stock market is subject to extreme price and volume fluctuations.  This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.

**Item 2.**

**Description of Property.**

Our principal executive offices are located at 100 - 4190 Lougheed Highway, Burnaby, British Columbia, Canada, V5C 6A8.  We lease the office facility, which is approximately 2,000 square feet in size, at a basic rate of $21,830 (Cdn$25,441) per year plus expenses.  This lease expires on June 30, 2008.  

We also lease an engineering facility located at 3rd floor - 1001 Wharf Street, Victoria, British Columbia, Canada, V8W 1T6.  The space is 4,050 square feet in size, and is leased at a basic rate of $38,837 (Cdn$45,261) per year plus expenses.  This lease expires on December 31, 2008.

We believe that our existing facilities are adequate for our needs through the end of the year ended December 31, 2007.  Should we require additional space at that time, or prior thereto, we believe that such space can be secured on commercially reasonable terms.

**Item 3.**

**Legal Proceedings.**

On April 28, 2006, Aliant Telecom Inc. / Telecommunciations Aliant Inc. filed a Notice of Action with Statement of Claim with the Court of Queen's Bench of New Brunswick, Trial Division, Judicial District of Saint John claiming breach of several agreements between Innovatia /Aliant and our company. The aggregate amount of the claim sought is approximately Cdn$3,786,611. We believe that there is no substantive merit to the claim and management intends to vigorously defend the action. Our company has additional disclosure regarding the Innovatia / Aliant relationship in note 7 to the audited consolidated financial statements. We have made no additional provision in the financial statements on the belief that the probability of a loss is remote.

Other than as set out above, and to our knowledge, we are not a party to any other litigation as at March 1, 2007.  We anticipate that, from time to time, we periodically may become subject to other legal proceedings in the ordinary course of our business.  We are unable to ascertain the ultimate aggregate amount of monetary liability or financial impact of the above matters which seek damages of material or indeterminate amounts, and therefore cannot determine whether these actions, suits, claims or proceedings will, individually or collectively, have a material adverse effect on our business, results of operations, and financial condition.  We intend to vigorously defend these actions, suits, claims and proceedings.

**Item 4.**

**Submissions of Matters to a Vote of Security Holders.**

There were no matters submitted to a vote of our security holders either through solicitation of proxies or otherwise in the fourth quarter of the fiscal year ended December 31, 2006.

 

 

 

- 19 -

 

 

**PART II**

**Item 5.**

**Market for Common Equity and Related Stockholder Matters.**

Our common stock was listed and commenced trading on the OTC Bulletin Board on June 30, 1999 under the symbol "VMII" and on the Toronto Stock Exchange on July 16, 2001 under the symbol "VMY".  Since June 30, 1999, trading in our common stock has been limited and sporadic.  The following table sets forth, for the periods indicated, the high and low sales prices for our common stock on the OTC Bulletin Board and the Toronto Stock Exchange:

 

**OTC Bulletin Board (1)**

**Toronto Stock Exchange (2)**

**Quarter Ended**

**High**

**Low**

**Quarter Ended**

**High****(CDN$)**

**Low****(CDN$)**

December 31, 2006

$0.55

$0.36

December 31, 2006

$0.57

$0.42

September 30, 2006

$0.65

$0.36

September 30, 2006

$0.70

$0.44

June 30, 2006

$0.73

$0.50

June 30, 2006

$0.81

$0.57

March 31, 2006

$0.76

$0.59

March 31, 2006

$0.86

$0.66

December 31, 2005

$0.84

$0.60

December 31, 2005

$1.00

$0.70

September 30, 2005

$0.85

$0.75

September 30, 2005

$1.04

$0.90

June 30, 2005

$0.90

$0.55

June 30, 2005

$1.10

$0.66

March 31, 2005

$0.80

$0.48

March 31, 2005

$0.94

$0.61

(1)           These prices were taken from Bloomberg L.P.  Such over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark down or commission and may not necessarily represent actual transactions.

(2)           These prices were taken from Bloomberg L.P.

Our common shares are issued in registered form.  Computershare Trust Company of Canada, 401 - 510 Burrard Street, Vancouver, British Columbia, Canada, V6C 3B9 (telephone: (604) 661-0271; facsimile (604) 685-3694) is the registrar and transfer agent for our common shares.

On March 1, 2007, the shareholders' list for our common stock showed 187 registered stockholders and 56,405,696 shares issued and outstanding.  The closing sale price for our common stock on March 1, 2007, as reported on the OTC Bulletin Board, was $0.38.   

*Dividend Policy*

During the years ended December 31, 2006 and 2005, we did not pay any cash dividends to any holders of our equity securities.

We have not paid any cash dividends on our common stock and have no present intention of paying any dividends on the shares of our common stock.  Our current policy is to retain earnings, if any, for use in our operations and in the development of our business.  Our future dividend policy will be determined from time to time by our board of directors.

*Recent sales of unregistered securities*

The following sets forth certain information concerning securities which were sold or issued by us during the year ended December 31, 2006 without the registration of the securities under the Securities Act of 1933 in reliance on exemptions from such registration requirements, and that have not otherwise been disclosed in a quarterly report on Form 10-QSB or in a quarterly report on Form 8-K.

 

 

 

- 20 -

 

 

On November 23, 2006, in connection with the exercise of options, we issued an aggregate of 20,000 shares of our common stock for gross proceeds of $4,904 (Cdn$5,600) to one non-U.S. person in an offshore transaction relying on Section 3(a)(9), Regulation S and/or Section 4(2) of the Securities Act of 1933.

*Equity Compensation Plan Information*

We adopted our current stock option plan, entitled the Second Amended and Restated Stock Option Plan on April 25, 2001 and the plan was approved by our shareholders on June 14, 2001.  The following table provides a summary of the number of options granted under our stock option plan, the weighted average exercise price and the number of options remaining available for issuance all as at December 31, 2006.

 

 

Number of securities to be issued upon  exercise of outstanding options

Weighted-Average exercise price  of outstanding options, warrants and rights

Number of securities remaining  available for future issuance under equity compensation plans(1)

Equity compensation plans approved by security holders

7,564,045

$0.64

2,311,928

Equity compensation plans not approved by security holders

N/A

N/A

N/A

**Total**

7,564,045

$0.64

2,311,928

(1)           The maximum number of options issuable under our stock option plan is 12,000,000, less 9,688,072 options that have been granted and exercised under the plan and less 500,000 options, which the Toronto Stock Exchange required that we remove from the plan in connection with a transaction with Aliant Inc. in December 2001.

*Purchases of Equity Securities by the Issuer and Affiliated Purchasers*

We did not purchase any of our shares of common stock or other securities during the year ended December 31, 2006.

**Item 6.**

**Management's Discussions and Analysis or Plan of Operation.**

OVERVIEW

You should read the following discussion of our financial condition and results of operations together with the consolidated audited financial statements and the notes to the consolidated audited financial statements included elsewhere in this filing.  This discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those anticipated in these forward-looking statements.

We are engaged in the development and sales and marketing of unified voice messaging software through our wholly-owned operating subsidiaries, Voice Mobility Inc. and Voice Mobility (US) Inc.  Our enhanced messaging software suite allows for legacy voice-mail replacement and incremental offerings such as real time call connect, voice-mail to e-mail, and fax to e-mail services.  These unified communication services are facilitated by the creation of a single personal digital mailbox that can receive any type of communication regardless of its incoming format or medium.

During the year ended December 31, 2006, we continued the shift of our sales model from a direct sales model to a channel partner model.  A channel partner is a party who will purchase our product for resale to telecommunication companies.  This fundamentally shifted the way our company was structured.  Instead of selling and supporting the customer directly, we will utilize the channel partner to conduct the sales and support activities for our enhanced 

 

 

 

- 21 -

 

 

messaging software.  This shift in our structure allowed us to reduce expenses in the areas of support and training.  This allowed us to stretch the funds we received through equity and debt financing to execute on our business plan.

**Results of Operations for the fiscal years ended December 31, 2006 and December 31, 2005**

*Sales*

Sales for the fiscal year ended December 31, 2006 were $94,000 compared to sales of $34,344 for the fiscal year ended December 31, 2005, representing a 174% increase.  Sales for the fiscal year ended December 31, 2006 were from technical training and support services provided to Avaya and T2MCI.   Sales to these two customers comprised 100% of revenue for the fiscal year ended December 31, 2006.  Sales for the fiscal year ended December 31, 2005 were from recognition of deferred revenue related to One1Voice Solutions Inc. of $11,755 and technical training and support services provided to Avaya, our channel partner of $22,589.  Sales to these two customers comprised 100% of revenue for the fiscal year ended December 31, 2005.  For the fiscal year ended December 31, 2006, we derived 100% of our sales from our Canadian operations (100% for the fiscal year ended December 31, 2005).

During the fiscal year ended December 31, 2006, we generated sales through technical training and support services provided to Avaya and T2MCI.  We have shifted our sales approach from direct sales to sales through channel partners.  During the fiscal year ended December 31, 2006, our focus was to establish and develop a relationship with a channel partner that would provide us with opportunities for sales to Tier I telecommunication companies.  We have not generated any product sales through channel partners to date.

*Cost of sales*

Cost of sales were $26,195 and $4,151 for the fiscal years ended December 31, 2006 and 2005 respectively.  Cost of sales for the fiscal year ended December 31, 2006 was related to costs incurred while providing technical support and support services to Avaya and T2MCI.  Cost of sales for the fiscal year ended December 31, 2005 was related to personnel, travel and accommodation expenses incurred while providing technical training and support services to Avaya.  

*Operating Expenses*

Total operating costs for the year ended December 31, 2006 were $2,593,748 compared to $2,348,550 for the previous year.  The increase in total costs of $245,198, or 10%, was primarily attributable to an increase in stock-based compensation expense recognized from the adoption of FAS 123(R) of $648,350.  There were also decreases in payroll costs of approximately $203,000, consulting fees of approximately $10,000, professional fees of $157,000 and travel costs of approximately $46,000.

*Sales & Marketing*

Our sales and marketing costs consist primarily of stock-based compensation, personnel, advertising, promotions, public relations and business development.  Total costs were $364,590 and $371,282 for the fiscal years ended December 31, 2006 and December 31, 2005, respectively, representing a decrease of 2% in sales and marketing costs.

The decrease was primarily due to decreases in salaries of approximately $52,000, travel costs of approximately $28,000 and telecommunication costs of approximately $9,000.  There was also a $90,504 increase in stock-based compensation expenses recognized as sales and marketing expenses from the adoption of FAS 123(R).

*Research and Development*

Our research and development costs consist primarily of stock-based compensation, personnel, data and voice transmission, and related facility costs.  Our research and development costs were $921,518 and $774,686 for the fiscal years ended December 31, 2006 and 2005, respectively, representing an increase of $146,832 or 19%.  The 

 

 

 

- 22 -

 

 

increase was primarily attributed to a $156,974 increase in stock-based compensation expenses recognized as research and development expenses from the adoption of FAS 123(R).

*General and Administrative*

Our general and administrative costs consist primarily of stock-based compensation, personnel costs, professional and legal costs, consulting fees, travel, and the lease of office space. General and administrative costs were $1,307,640 and $1,202,582 for the fiscal years ended December 31, 2006 and 2005 respectively, representing an increase of $105,058 or 9% in our general and administrative costs.  The increase was primarily attributed to $400,872 in stock-based compensation expenses recognized as general and administrative expenses from the adoption of FAS 123(R).  There were also decreases in salaries of approximately $103,000, professional and legal costs of approximately $158,000, amortization of property and equipment of approximately $34,000 and travel costs of approximately $9,000.

*Interest Expense*

Our interest expense was $820,899 and $745,727 for the fiscal years ended December 31, 2006 and 2005 respectively.  The interest expense for the fiscal year ended December 31, 2006 includes the amortization of the debt discount on the Series C and D notes of $11,161 (Cdn$12,645), the amortization of the 15% repayment premium of the Series D note of $1,731 (Cdn$1,961) issued in September 2003 and the amortization of the deferred charges relating to our debt restructuring transaction in September 2005 of $185,561 (Cdn$210,235).  The interest expense for the fiscal year ended December 31, 2005 includes the amortization of the debt discount on the Series C and D notes of $134,422 (Cdn$164,390), the amortization of the 15% repayment premium of the Series D note of $20,843 (Cdn$25,490) issued in September 2003 and the amortization of the deferred charges relating to our debt restructuring transaction inSeptember 2005 of $44,800 (Cdn$52,559).  The remaining interest expense for the fiscal years ended December 31, 2006 and 2005 consist of the stated interest rate on the principal amount of the then outstanding notes.

*Income Taxes*

At December 31, 2006, we had $4,994,000 United States tax net operating losses that will expire in the years 2019 through to 2025.  As at December 31, 2006, we had Canadian tax non-capital losses of approximately $21,848,000 that will expire in the years 2007 through 2026.   Pursuant to Section 382 of the Internal Revenue Code, use of our net operating loss carry forwards may be limited if we experience a cumulative change in ownership of greater than 50% in a moving three year period.  Ownership changes could impact our ability to utilize net operating losses and credit carry forwards remaining at the ownership change date.  The limitation will be determined by the fair market value of common stock outstanding prior to the ownership change, multiplied by the applicable federal rate.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  For fiscal years ended December 31, 2006 and 2005 respectively, we recognized a valuation allowance equal to deferred tax assets for which realization is uncertain.

*Net Loss*

Our net loss was $3,304,275 and $3,030,925 for the fiscal years ended December 31, 2006 and 2005 respectively.  The increase in net loss of $273,350, or 9%, was primarily attributable to an increase of $648,350 in stock-based compensation expenses recognized from the adoption of FAS 123(R).  There were also decreases in payroll costs of approximately $203,000, consulting fees of approximately $9,000, professional fees of $158,000 and travel costs of approximately $46,000.

Since inception through December 31, 2006, we incurred aggregate net losses of $46.6 million.  The losses were primarily incurred as a result of our focus on the development and testing of our product and the marketing of our product.  We have moved our focus from the development of our product and we are now in a position to focus on the sales of our product and we believe that we will continue to incur losses until we generate sufficient revenues to 

 

 

 

- 23 -

 

 

cover all of our operating expenses.  Because we are uncertain as to the rate at which telecommunications companies will replace their legacy voicemail systems with technology like our enhanced messaging product, we cannot accurately predict when we will be able to generate revenues which will exceed our ongoing operating expenses.

**Results of Operations for the fiscal years ended December 31, 2005 and December 31, 2004**

*Sales*

Sales for the fiscal year ended December 31, 2005 were $34,344 compared to sales of $12,981 for the fiscal year ended December 31, 2004, representing a 165% increase.  Sales for the fiscal year ended December 31, 2005 were from recognition of deferred revenue related to One1Voice Solutions Inc. of $11,755 and technical training and support services provided to Avaya, our channel partner of $22,589.  Sales to these two customers comprised 100% of revenue for the fiscal year ended December 31, 2005.  Sales for the fiscal year ended December 31, 2004 were from technical training and support services provided to Avaya.  For the fiscal year ended December 31, 2005, we derived 100% of our sales from our Canadian operations (100% for the fiscal year ended December 31, 2004).

During the fiscal year ended December 31, 2005, we generated sales through technical training and support services and from recognition of deferred revenue related to One1Voice Solutions Inc.  We have shifted our sales approach from direct sales to sales through channel partners.  During the fiscal year ended December 31, 2005, our focus was to establish and develop a relationship with a channel partner that would provide us with opportunities for sales to Tier I telecommunication companies.  We have not generated any product sales through channel partners to date.

*Cost of sales*

Cost of sales were $4,151 and $5,683 for the fiscal years ended December 31, 2005 and 2004 respectively.  Cost of sales for the fiscal year ended December 31, 2005 was related to personnel, travel and accommodation expenses incurred while providing technical training and support services to Avaya.  Cost of sales for the fiscal year ended December 31, 2004 was related to travel and accommodation expenses incurred while providing technical training and support services to Avaya.

*Operating Expenses*

Total operating costs for the year ended December 31, 2005 were $2,348,550 compared to $3,539,439 for the previous year.  The decrease in total costs of $1,190,889, or 34%, was primarily attributable to the issuance of Class V Warrants to Avaya in June 2004.  During the fiscal year ended December 31, 2004, we recorded $1,169,591 in sales and marketing expenses for the fair value of the exercisable Class V warrants issued to Avaya.  The remaining decreases in total costs were attributable to decreases of amortization of property and equipment, professional fees and facility costs.

*Sales & Marketing*

Our sales and marketing costs consist primarily of personnel, advertising, promotions, public relations and business development.  Total costs were $371,282 and $1,652,303 for the fiscal years ended December 31, 2005 and December 31, 2004, respectively, representing a decrease of 78% in sales and marketing costs.

The decrease of $1,281,021 in sales and marketing expense was primarily attributed to the issuance of Class V warrants to Avaya in June 2004.  During the fiscal year ended December 31, 2004, we recorded $1,169,591 in sales and marketing expenses for the fair value of the exercisable Class V warrants issued to Avaya.  The remaining decrease in sales and marketing expenses were attributable to decreases in personnel costs.

*Research and Development*

Our research and development costs consist primarily of personnel, data and voice transmission, and related facility costs.  Our research and development costs were $774,686 and $760,810 for the fiscal years ended December 31, 

 

 

 

- 24 -

 

 

2005 and 2004, respectively, representing an increase of $13,876 or 2%.  The increase of $13,876 is primarily a result of an increase in data and voice transmission and related facility costs.

*General and Administrative*

Our general and administrative costs consist primarily of personnel costs, professional and legal costs, consulting fees, travel, and the lease of office space. General and administrative costs were $1,202,582 and $1,126,326 for the fiscal years ended December 31, 2005 and 2004, respectively, representing an increase of $76,256 or 7% in our general and administrative costs.  These costs reflect employee stock option compensation cost of $nil and $14,061 for the fiscal years ended December 31, 2005 and 2004 respectively.

*Interest Expense*

Our interest expense was $745,727 and $706,176 for the fiscal years ended December 31, 2005 and 2004 respectively.  The interest expense for the fiscal year ended December 31, 2005 includes the amortization of the debt discount on the Series C and D notes of $134,422 (CDN$164,390), the amortization of the 15% repayment premium of the Series D note of $20,843 (CDN$25,490) issued in September 2003 and the amortization of the deferred charges relating to our debt restructuring transaction in September 2005 of $44,800 (CDN$52,559).  The interest expense for the fiscal year ended December 31, 2004 includes the amortization of the debt discount on the Series C and D notes of $166,077 (CDN$214,971), the embedded beneficial conversion feature of $32,000 related to the Series F convertible note and the amortization of the 15% repayment premium of the Series D note of $25,752 (CDN$33,333) issued in September 2003.The remaining interest expense for the fiscal years ended December 31, 2005 and 2004 consist of the stated interest rate on the principal amount of the then outstanding notes.

*Income Taxes*

At December 31, 2005, we had $5,452,000 United States tax net operating losses that will expire in the years 2019 through to 2024.  As at December 31, 2005, we had Canadian tax non-capital losses of approximately $21,679,000 that will expire in the years 2006 through 2015.   Pursuant to Section 382 of the Internal Revenue Code, use of our net operating loss carry forwards may be limited if the we experience a cumulative change in ownership of greater than 50% in a moving three year period.  Ownership changes could impact our ability to utilize net operating losses and credit carry forwards remaining at the ownership change date.  The limitation will be determined by the fair market value of common stock outstanding prior to the ownership change, multiplied by the applicable federal rate.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  For fiscal years ended December 31, 2005 and 2004, respectively, we recognized a valuation allowance equal to deferred tax assets for which realization is uncertain.

*Net Loss*

Our net loss was $3,030,925 and $4,235,958 for the fiscal years ended December 31, 2005 and 2004 respectively.  The primary reason for the decrease in net loss is due to the issuance of Class V Warrants to Avaya in June 2004.  During the fiscal year ended December 31, 2004, we recorded $1,169,591 in sales and marketing expenses for the fair value of the exercisable Class V warrants issued to Avaya.  The remaining decrease was attributable to decreases in amortization of property and equipment, personnel costs and in legal and professional fees.

 

 

 

- 25 -

 

 

Since inception through December 31, 2005, we incurred aggregate net losses of $43.3 million.  The losses were primarily incurred as a result of our focus on the development and testing of our product and the marketing of our product.  We have moved our focus from the development of our product and we are now in a position to focus on the sales of our product and we believe that we will continue to incur losses until we generate sufficient revenues to cover all of our operating expenses.  Because we are uncertain as to the rate at which telecommunications companies will replace their legacy voicemail systems with technology like our enhanced messaging product, we cannot accurately predict when we will be able to generate revenues which will exceed our ongoing operating expenses.

**Liquidity and Capital Resources**

As of December 31, 2006, we had $3,160,476 in cash and cash equivalents and working capital of $2,459,898 and as of December 31, 2005, we had $2,130,714 in cash and cash equivalents and working capital of $1,393,348.

*Operating Activities*

Our operating activities resulted in net cash outflows of $1.8 million and $2.2 million for the fiscal years ended December 31, 2006 and 2005 respectively.  The operating cash outflows for these periods resulted from investments in research and development and sales and marketing, which led to operating losses in all periods.

*Investing Activities*

Investing activities resulted in net cash outflows of $7,545 for the fiscal year ended December 31, 2006.  During the fiscal year ended 2006, we received proceeds of $342 from the sale of property and equipment and spent $7,887 on property and equipment purchased during the period.  Investing activities resulted in net cash outflows of $4,683 for the fiscal year ended December 31, 2005.  The investing activities in fiscal 2006 and 2005 were limited due to our cash conservation plans.  At December 31, 2006, we did not have any material commitments for future capital expenditures.

*Financing Activities*

Financing activities resulted in net cash inflows of $2.8 million for the fiscal year ended December 31, 2006 from the issuance of common shares and share purchase warrants in a private placement transaction and the exercise of stock options.  

Financing activities resulted in net cash inflows of $3.6 million for the fiscal year ended December 31, 2005 from the issuance of common shares and share purchase warrants in several private placement transactions, the issuance of Series H notes in April and May 2005 and the exercise of certain outstanding share purchase warrants and options.

*Debt Obligations*

As at December 31, 2006, we have $10,142,481 in debt obligations and accrued interest with maturity dates as follows:

 
 

Amount outstandingas at December 31, 2006

MaturityDate

 
Series C notes payable

$4,756,438

December 31, 2009 (1)

Series D notes payable

571,535

December 31, 2009 (1)

Series E notes payable

695,210

December 31, 2009 (1)

Series F convertible note payable

154,573

December 31, 2009 (1)

Series G notes payable

411,989

December 31, 2009 (1)

Series H notes payable

438,204

December 31, 2009 (1)

Innovatia Inc. promissory note payable

2,672,501

as discussed below

 
 

9,700,450

 

 
 

 

 

 

- 26 -

 

 

(1)  On September 19, 2005, we extended the maturity date of the Series C, D, E, F, G and H notes to December 31, 2009 and included a provision which provides for the scheduled repayment of these debts based upon a certain percentage of our earnings before interest, tax, depreciation and amortization.  See note 6 to the consolidated financial statements included elsewhere in this filing.

*Innovatia Inc. Promissory Note Payable*

On December 28, 2001, we issued to Innovatia a promissory note in the amount of $1,707,989 (Cdn$2,720,142) of which $2,672,501 (Cdn$3,114,532) of principal and accrued interest is outstanding at December 31, 2006.  The promissory note bears interest at prime plus 1% (prime rate at December 31, 2006 was 6%) and is repayable in quarterly instalments until repaid in full. The amount payable each quarter is the lesser of $194,507 (Cdn$226,678) and 40% of the net aggregate amount of invoices issued by our company to Aliant and its subsidiaries in the quarter.

After December 31, 2004, any current or future amounts due in accordance with the quarterly repayment schedule are only payable in common shares and the number of common shares payable, if any, is determined by dividing the amount payable by Cdn$1.56.  As at December 31, 2006, the current portion due on the promissory note is $395,273 (Cdn$460,651) and this amount is payable only by the issuance of 295,289 common shares. Notwithstanding, we have the option at any time and from time to time to prepay in cash, common shares or a combination thereof, the whole or any portion of the remaining non-current balance. If we elected to prepay by common shares, then 500,000 of the common shares will be valued at the lesser of the market price of our common shares on the Toronto Stock Exchange and Cdn$0.75 per share, and the value of the balance of any other common shares payable is determined by the weighted averagetrading price of our common shares on the Toronto Stock Exchange over the ten trading days immediately prior to the date on which the common shares are to be issued. As at December 31, 2006, the non-current portion of the promissory note eligible for prepayment is $2,277,228 (Cdn$2,653,881) and if we elected to prepay this amount with the issuance of common shares then this would result in the issuance of 5,646,555 common shares.

As at December 31, 2006, if we made the election to settle the entire principal and interest outstanding with the issuance of common shares, this would result in the issuance of 5,941,844 shares of our common stock. We are required to obtain shareholder and regulatory approval to issue common shares to settle the promissory note.  We have obtained shareholder and regulatory approval to issue up to 2,000,000 shares of common stock to settle all or a portion of the promissory note.  If the 2,000,000 shares of common stock is not sufficient to settle the promissory note, we will need to obtain further shareholder and regulatory approval to issue common shares to settle the remaining balance of the promissory note.  In the event such shareholder and regulatory approval is not obtained, the promissory note will be payable only in cash.

On April 28, 2006, Aliant Telecom Inc. / Telecommunciations Aliant Inc. filed a Notice of Action with Statement of Claim with the Court of Queen's Bench of New Brunswick, Trial Division, Judicial District of Saint John claiming breach of several agreements between Innovatia /Aliant and our company. The aggregate amount of the claim sought is approximately Cdn$3,786,611. 

We believe Innovatia has not complied with the terms of its development and license agreements that gave rise to the promissory note debt obligation and as a result we have corresponded with Innovatia to resolve the matter.

We continue to accrue interest; however, there has been no activity in terms of repayment of the promissory note since March 2002. 

*Trends and Uncertainties*

Our ability to generate revenues in the future is dependent on when telecommunication companies will replace their legacy voicemail systems and implement new technology, like our enhanced messaging software.  We cannot predict when telecommunication companies will adopt such technology and this causes some uncertainty with respect to the growth of and our ability to generate ongoing revenues.

 

 

 

- 27 -

 

 

The continued downturn in the telecommunications industry is causing some telecommunications companies to delay making any capital expenditures in connection with replacing their legacy voicemail systems.  If telecommunication companies delay their capital expenditures, then the growth of our revenues could also be delayed.

*Future Operations*

Presently, our revenues are not sufficient to meet operating and capital expenses and we have incurred operating losses since inception, which are likely to continue for the foreseeable future.  We anticipate that we will have negative cash flows during the year ended December 31, 2007.  Management projects that we may require an additional $0.5 million to fund our ongoing operating expenses and working capital requirements for the next twelve months.  However, if conditions change outside of management's expectations, we will need to raise additional capital.  We would raise the capital required to satisfy our needs primarily through the sale of our equity securities or debt.

We currently anticipate that we will generate revenues in the long-term as we increase our sales and marketing activities and gain acceptance of our software from Tier 1 telecommunications companies.  We have implemented significant cost reductions and expect to keep our operating costs to a minimum until cash is available through financing or operating activities.  Based on current projections, we anticipate revenues from Tier I telecommunications providers in 2007 generated through the replacement of legacy voicemail systems or new deployments by such providers.

Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on the annual consolidated financial statements for the year ended December 31, 2006, our independent registered public accounting firm included an explanatory paragraph regarding concerns about our ability to continue as a going concern in their audit report.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further financing, successful and sufficient market acceptance of our current products and any new products that we may introduce, the continuing successful development of our products and related technologies, and, finally, achieving a profitable level of operations.  The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders.  Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further funds required for our continued operations.  We are pursuing various financing alternatives to meet our immediate and long-term financial requirements.  There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms.  If we are not able to obtain the additional financing on a timely basis, we will be forced to scale down or perhaps even cease the operation of our business.

*Off-Balance Sheet Arrangements*

As of December 31, 2006, our company had no off-balance sheet arrangements, including any outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts.  Our company does not engage in trading activities involving non-exchange traded contracts.

APPLICATION OF CRITICAL ACCOUNTING POLICIES 

Our consolidated financial statements and accompanying notes are prepared in accordance with United States generally accepted accounting principles.  Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies.  We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our operating results and financial position.

 

 

 

- 28 -

 

 

*Revenue Recognition*

Revenues are derived from sales of software licenses, hardware and maintenance and training services.  We sell software licenses with maintenance and training services, hardware on a stand-alone basis and bundled arrangements including software, hardware and maintenance and training services.  We generally license our software to customers for an indefinite period of time.

We recognize revenue in accordance with Statement of Position 97-2 "Software Revenue Recognition" and Staff Accounting Bulletin 104 "Revenue Recognition ".

SOP 97-2 requires that the total arrangement fee from software arrangements that include rights to multiple software products, post contract customer support and/or other services be allocated to each element of the arrangement based on their relative fair values.  Under SOP 97-2, the determination of fair value is based on vendor specific objective evidence.

Software revenue is recognized under SOP 97-2 when persuasive evidence of an arrangement exists, when all elements essential to the functionality of the software including installation and training are delivered in accordance with the terms and conditions of the customer contracts, when the fee is fixed or determinable, and when collection is reasonably assured.  Fees are considered fixed or determinable if the contracts are similar to others for which we have a standard business practice and a history of successful collection under the original payment terms.

For software arrangements involving multiple elements, we allocate revenue to each element based on vendor specific objective evidence of relative fair values, which are derived by allocating a value to each element that is based upon the prices charged when the element is sold separately.  Our product and services are generally sold as part of a contract involving software, hardware, maintenance and training.  Vendor specific objective evidence is used to determine the relative fair values of these various elements in each of the contracts.

Revenue for hardware sold separately is recognized under Staff Accounting Bulletin 104.  Hardware revenue, net of trade discounts, is recognized upon shipment or when all elements essential to functionality are complete and when all significant contractual obligations have been satisfied and collection is reasonably assured.  When contracts contain specific contingencies, we defer revenue recognition until such time as the contingencies are resolved.

Revenues from maintenance are recognized rateably over the term of the arrangement, generally one year, and revenues from training are generally recognized as the services are performed.

*Software Development Costs*

Costs incurred internally to develop computer software products and the costs to acquire externally developed software products (which have no alternative future use) to be sold, leased or otherwise marketed are charged to expense until the technological feasibility of the product has been established.  After technological feasibility is established and until the product is available for general release, software development, product enhancements and acquisition costs will be capitalized and amortized on a product-by-product basis.

*Stock Based Compensation*

During the first quarter of 2006, we implemented the following new critical accounting policy related to our stock-based compensation. Beginning on January 1, 2006, we began accounting for stock options under the provisions of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payment" (FAS 123(R)), which requires the recognition of the fair value of stock-based compensation. Under the fair value recognition provisions for FAS 123(R), stock-based compensation cost is estimated at the grant date based on the fair value of the awards expected to vest and is recognized as expense ratably over the requisite service period of the award. We have used the Black-Scholes valuation model to estimate fair value of our stock-based awards which requires various judgmental assumptions including estimating stock price volatility and expected life. Our computation of expectedvolatility is based on a combination of historical and market-based implied volatility. In addition, we consider many factors when estimating expected life, including types of awards and historical experience. If any of the assumptions 

 

 

 

- 29 -

 

 

used in the Black-Scholes valuation model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. 

We adopted FAS 123(R) using the modified-prospective method which requires the application of the accounting standard as of January 1, 2006. Our consolidated financial statements as of and for the year ended 2006 reflect the impact of FAS 123(R). In accordance with the modified-prospective method, the consolidated financial statements for prior periods have not been restated to reflect, and do not include, the impact of FAS 123(R).

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

In July 2006, the Financial Accounting Standards Board issued FIN 48 “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109”.  This interpretation provides guidance on the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  FIN 48 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  We do not believe that the adoption of this standard will have a material impact on our consolidated results of operations, cash flows or financial position upon adoption; however, we have not yet completed our evaluation of the impact of FIN 48.

 

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard 157, Fair Value Measurements ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles ("GAAP"), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, the application of this Statement will change current practice, effective December 1, 2007. We do not believe that the adoption of this standard will have a material impact on our consolidated results of operations, cash flows or financial position upon adoption;however, we have not yet completed our evaluation of the impact of SFAS No. 157.

 

In February 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 159 “The Fair Value Option for Financial Assets and Financial Liabilities – including an amendment of FASB Statement No. 115” (“SFAS No. 159”) which permits entities to choose to measure many financial instruments and certain other items at fair value.  This statement is effective for fiscal periods beginning after November 15, 2007.  We do not believe that the adoption of this standard will have a material impact on our consolidated results of operations, cash flows or financial position upon adoption; however, we have not yet completed our evaluation of the impact of SFAS No. 159.

**Item 7.**

**Financial Statements.**

*Financial Statements filed as part of this Annual Report on Form 10-KSB*

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

Report of Independent Registered Public Accounting Firm.

Consolidated Balance Sheets at December 31, 2006 and 2005.

Consolidated Statements of Operations for the years ended December 31, 2006 and 2005.

Consolidated Statements of Stockholders' Deficiency for the years ended December 31, 2006 and 2005.

Consolidated Statements of Cash Flows for the years ended December 31, 2006 and 2005.

Notes to the Consolidated Financial Statements.

 

 

 

- 30 -

 

 

 

Consolidated Financial Statements

 

**Voice Mobility International, Inc.**

December 31, 2006 and 2005

 

 

 

- 31 -

 

 

**REPORT OF INDEPENDENT REGISTERED**

**PUBLIC ACCOUNTING FIRM**

 

 

 

To the Board of Directors and Stockholders of

**Voice Mobility International, Inc.**

 

We have audited the accompanying consolidated balance sheets of **Voice Mobility International, Inc.** as of December 31, 2006 and 2005 and the related consolidated statements of operations, stockholders' deficiency and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting.  Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimatesmade by management, and evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Voice Mobility International, Inc. at December 31, 2006 and 2005, and the consolidated results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

 

As discussed in Note 1 to the financial statements, the Company's recurring net losses and shareholders' deficiency raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

As discussed in Note 2 to the consolidated financial statements, during 2006, the Company changed its policy for accounting for share based compensation.

 

Vancouver, Canada,March 2, 2007

/s/ Ernst & Young LLPChartered Accountants

 

 

 

 

- 32 -

 

 

**Voice Mobility International, Inc.**

 

**CONSOLIDATED BALANCE SHEETS**

[See Note 1 - Basis of Presentation]

 

As at December 31

(expressed in U.S. dollars)

 

 

2006

2005

 

$

$

ASSETS [note 6]

 

 

Current

 

 

Cash and cash equivalents

**3,160,476**

2,130,714

Accounts receivable [note 3]

**32,000**

5,000

Other receivables

**13,909**

8,599

Prepaid expenses

**42,718**

34,457

Total current assets

**3,249,103**

2,178,770

 

 

 

Deferred contract costs [note 7]

**81,631**

81,631

Deferred finance costs [note 6]

**546,239**

729,823

Property and equipment, net [note 5]

**22,492**

47,432

Total assets

**3,899,465**

3,037,656

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

 

 

Current

 

 

Accounts payable [note 7]

**184,976**

150,867

Accrued liabilities [note 7]

**149,281**

173,177

Employee related payables

**59,675**

65,290

Current portion of promissory note payable [note 7]

**395,273**

396,088

Total current liabilities

**789,205**

785,422

 

 

 

Deferred revenue [note 7]

**333,068**

333,756

Notes payable [note 6]

**7,027,949**

6,568,113

Promissory note payable [note 7]

**2,277,228**

2,140,115

Total liabilities

**10,427,450**

9,827,406

Commitments and contingencies [note 11]

 

 

 

 

 

Stockholders' deficiency [note 9]

 

 

Common stock, $0.001 par value, authorized 100,000,000

 

 

55,739,134 outstanding [2005 – 48,368,134]

**55,739**

48,368

Preferred stock, $0.001 par value, authorized 1,000,000

 

 

Series A Preferred stock, 1 outstanding

**1**

1

Additional paid-in capital

**41,502,645**

38,012,541

Accumulated deficit

**(46,582,298)**

(43,278,023)

Other accumulated comprehensive loss

**(1,504,072)**

(1,572,637)

Total stockholders' deficiency

**(6,527,985)**

(6,789,750)

Total liabilities and stockholders' deficiency

**3,899,465**

3,037,656

*See accompanying notes*****

 

 

 

- 33 -

 

 

**Voice Mobility International, Inc.**

 

**CONSOLIDATED STATEMENTS OF OPERATIONS**

 

 

Year ended December 31

(expressed in U.S. dollars)

 

 

 

 

2006

2005

 

$

$

 

 

 

Sales [note 4]

**94,000**

34,344

Cost of sales

**26,195**

4,151

Gross profit

**67,805**

30,193

 

 

 

Operating expenses [note 9[c]]

 

 

Sales and marketing 

**364,590**

371,282

Research and development

**921,518**

774,686

General and administrative

**1,307,640**

1,202,582

 

**2,593,748**

2,348,550

Loss from operations

**2,525,943**

2,318,357

Interest income

**(42,567)**

(33,159)

Interest expense

**820,899**

745,727

Net loss

**3,304,275**

3,030,925

 

 

 

Basic and diluted loss per share [note 8]

**(0.07)**

(0.06)

 

*See accompanying notes*

 

 

 

- 34 -

 

 

 

**Voice Mobility International, Inc.**

 

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY**

 

Year ended December 31

(expressed in U.S. dollars)

 

 

 

 

 

 

 

 

Other

 

 

Common Stock

Series A Preferred Stock

Additional

 

Accumulated

 

 

Number

 

Number

 

Paid-in

Accumulated

Comprehensive

 

 

of Shares

Amount

of Shares

Amount

Capital

Deficit

Loss

Total

 

#

$

#

$

$

$

$

$

 

 

 

 

 

 

 

 

 

Balance, December 31, 2004

41,288,491

41,288

1

1

33,880,606

(40,247,098)

(1,376,598)

(7,701,801)

Common stock issued pursuant to private placement,   net of share issue costs of $265,378

4,267,120

4,267

-

-

3,177,071

-

-

3,181,338

Common stock issued pursuant to exercise of stock options

135,023

135

-

-

40,667

-

-

40,802

Common stock issued pursuant to exercise of common stock warrants

250,000

250

-

-

62,250

-

-

62,500

Common stock issued on exchange of exchangeable shares

2,427,500

2,428

-

-

(2,428)

-

-

-

Warrants issued pursuant to amendment agreement of notes   payable

-

-

-

-

743,972

-

-

743,972

Extension of conversion feature of Series  F convertible note payable

-

-

-

-

20,096

-

-

20,096

Stock based compensation

-

-

-

-

90,307

-

-

90,307

Components of comprehensive loss:

 

 

 

 

 

 

 

 

Net loss

-

-

-

-

-

(3,030,925)

-

(3,030,925)

Foreign currency translation loss

-

-

-

-

-

-

(196,039)

(196,039)

Total comprehensive loss

 

 

 

 

 

 

 

(3,226,964)

Balance, December 31, 2005

48,368,134

48,368

1

1

38,012,541

(43,278,023)

(1,572,637)

(6,789,750)

Common stock issued pursuant to private placement,   net of share issue costs of $124.530

6,931,000

6,931

-

-

2,832,287

-

-

2,839,218

Common stock issued pursuant to exercise of stock options

40,000

40

-

-

9,867

-

-

9,907

Common stock issued on exchange of exchangeable shares

400,000

400

-

-

(400)

-

-

-

Stock based compensation

-

-

-

-

648,350

-

-

648,350

Components of comprehensive loss:

 

 

 

 

 

 

 

 

Net loss

-

-

-

-

-

(3,304,275)

-

(3,304,275)

Foreign currency translation loss

-

-

-

-

-

-

68,565

68,565

Total comprehensive loss

 

 

 

 

 

 

 

(3,235,710)

Balance, December 31, 2006

55,739,134

55,739

1

1

41,502,645

(46,582,298)

(1,504,072)

(6,527,985)

 

*See accompanying notes*

 

 

 

- 35 -

 

 

 

**Voice Mobility International, Inc.**

 

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

 

 

Year ended December 31

(expressed in U.S. dollars)

 

 

 

2006

2005

 

$

$

 

 

 

OPERATING ACTIVITIES

 

 

Net loss

**(3,304,275)**

(3,030,925)

Non-cash items included in net loss

 

 

Amortization of property and equipment

**33,441**

63,060

Amortization of deferred finance costs

**187,292**

65,643

Accretion of unamortized debt discount

**-**

134,422

Non-cash interest expense

**11,161**

-

Stock based compensation

**648,350**

90,307

Gain on disposal of property and equipment

**(342)**

-

Net change in operating assets and liabilities [note 12]

**585,931**

465,400

Cash used in operating activities

**(1,838,442)**

(2,212,093)

 

 

 

INVESTING ACTIVITIES

 

 

Purchase of property and equipment

**(7,887)**

(4,683)

Proceeds on sale of property and equipment

**342**

-

Cash used in investing activities

**(7,545)**

(4,683)

 

 

 

FINANCING ACTIVITIES

 

 

Proceeds from Series H notes payable

**-**

364,257

Proceeds from issuance of common stock, net of share issue cost

**2,839,218**

3,181,338

Proceeds on exercise of stock options

**9,907**

40,802

Proceeds on exercise of common stock warrants

**-**

62,500

Cash provided by financing activities

**2,849,125**

3,648,897

 

 

 

Effect of change in foreign exchange rate on cash     and cash equivalents

**26,624**

132,339

 

 

 

Increase in cash and cash equivalents

**1,029,762**

1,564,460

Cash and cash equivalents, beginning of year

**2,130,714**

566,254

Cash and cash equivalents, end of year

**3,160,476**

2,130,714

*See accompanying notes*

 

 

 

- 36 -

 

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

 

**1. NATURE OF BUSINESS AND BASIS OF PRESENTATION**

 

**Nature of business**

 

Voice Mobility International, Inc., (the "Company") is a Nevada corporation engaged in the development and sales and marketing of enhanced messaging software through its wholly owned operating subsidiaries, Voice Mobility Inc. and Voice Mobility (US) Inc.  The Company's enhanced messaging software suite will allow for legacy voice-mail replacement and incremental offerings such as real time call connect, voice-mail to e-mail, and fax to e-mail services. These unified communication services are facilitated by the creation of a single personal digital mailbox that can receive any type of communication regardless of its incoming format or medium. The Company's principal geographic markets include North America, Europe and Asia.

 

**Basis of presentation**

 

The financial statements have been prepared by management in accordance with United States generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

The Company incurred a net loss of $3,304,275 for the year ended December 31, 2006 [2005 - $3,030,925] and has a total shareholders' deficiency of $6,527,985 [2005 - $6,789,750] that raises substantial doubt about its ability to continue as a going concern. Management has been able, thus far, to finance the operations through a series of equity and debt financings. In fiscal 2006, the Company received net proceeds of $2.8 million in connection with equity financing and the exercise of outstanding options.  Management plans to continue to seek other sources of financing on favorable terms; however, there are no assurances that any such financing can be obtained on favorable terms, if at all. Management believes it has implemented significant cost reductions and expects to keep its operating costs to a minimum until cash is available through financing or operating activities. There are no assurances that theCompany will be successful in achieving these goals.

 

 

 

 

- 37 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**1. NATURE OF BUSINESS AND BASIS OF PRESENTATION (cont'd.)**

 

In view of these conditions, the ability of the Company to continue as a going concern is in substantial doubt and dependent upon achieving a profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.

 

**2. SIGNIFICANT ACCOUNTING POLICIES**

 

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements:

 

**Principles of consolidation**

 

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Voice Mobility Inc., Voice Mobility (US), Inc., Voice Mobility Canada Limited, an inactive company and VM Sub Limited, also an inactive company. All intercompany balances and transactions have been eliminated on consolidation.

 

**Use of estimates**

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

 

**Revenue recognition**

 

Revenues are derived from sales of software licenses, hardware, maintenance, training services and language localization services. The Company has sold software licenses with maintenance and training services, hardware on a stand-alone basis and bundled arrangements including software, hardware and maintenance and training services.  The Company generally licenses software to customers for an indefinite period of time.

 

 

 

 

- 38 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**2. SIGNIFICANT ACCOUNTING POLICIES (cont'd.)**

 

The Company recognizes revenue in accordance with Statement of Position 97-2, "Software Revenue Recognition" ("SOP 97-2") and Staff Accounting Bulletin No. 104, "Revenue Recognition" ("SAB 104").

 

SOP 97-2 requires that the total arrangement fee from software arrangements that include rights to multiple software products, post contract customer support and/or other services be allocated to each element of the arrangement based on their relative fair values.  Under SOP 97-2, the determination of fair value is based on vendor specific objective evidence.

 

Software revenue is recognized under SOP 97-2 when persuasive evidence of an arrangement exists, when all elements essential to the functionality of the software including installation and training are delivered in accordance with the terms and conditions of the customer contract, when the fee is fixed or determinable, and when collection is reasonably assured. Fees are considered fixed or determinable if the contracts are similar to others for which the Company has a standard business practice and a history of successful collection under the original payment terms.

 

For software arrangements involving multiple elements, the Company allocates revenue to each element based on vendor specific objective evidence of relative fair values, which are derived by allocating a value to each element that is based upon the prices charged when the element is sold separately. The Company's product and services are generally sold as part of a contract involving software, hardware, maintenance and training.  Vendor specific objective evidence is used to determine the relative fair values of these various elements in each of the contracts.

 

Revenue for hardware sold separately is recognized under SAB 104. Hardware revenue, net of trade discounts is recognized upon shipment or when all elements essential to functionality are complete and when all significant contractual obligations have been satisfied and collection is reasonably assured.  When contracts contain specific contingencies, the Company defers revenue recognition until such time as the contingencies are resolved.

 

Revenues from maintenance are recognized ratably over the term of the arrangement, generally one year, and revenues from training are generally recognized as the services are performed.

 

**Foreign currency**

 

These consolidated financial statements have been presented in United States dollars. The functional currency of the Company is the Canadian dollar. The functional currency of the Company's Canadian subsidiary is the Canadian dollar.  Accordingly, all assets and liabilities of the Canadian subsidiary which are denominated in Canadian dollars are translated at the year-end exchange rate and revenues and expenses are translated using a weighted average exchange rate for the applicable period. Any resulting exchange gains and losses are presented as cumulative foreign currency translation gains (losses) within other accumulated comprehensive loss.

 

Transactions denominated in foreign currencies are translated at the exchange rate in effect on the respective transaction dates and gains and losses are reflected in the consolidated statements of operations.

 

 

 

 

- 39 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**2. SIGNIFICANT ACCOUNTING POLICIES (cont'd.)**

 

**Financial instruments**

 

The Company's financial instruments consists of cash and cash equivalents, accounts receivable, other receivables, accounts payable, employee related payables, notes payable, and promissory notes payable.  Unless otherwise stated the fair value of the financial instruments approximates their carrying value. The Company has not entered into foreign exchange derivative contracts.

 

**Cash and cash equivalents**

 

Cash and cash equivalents consist of cash and short term deposits with original maturities of ninety days or less and are recorded at amortized cost.

 

**Property and equipment**

 

Property and equipment are carried at cost. Amortization is provided using the straight-line method over the assets estimated useful lives as follows:

 

Computer equipment

3 years

Computer software

2 years

Office equipment and furniture

5 years

Leasehold improvements

Term of the lease

 

**Software development costs**

 

Costs incurred internally to develop computer software products and the costs to acquire externally developed software products (which have no alternative future use) to be sold, leased or otherwise marketed are charged to expense until the technological feasibility of the product has been established. After technological feasibility is established and until the product is available for general release, software development, product enhancements and acquisition costs are capitalized and amortized on a product-by-product basis.

 

 

 

 

- 40 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**2. SIGNIFICANT ACCOUNTING POLICIES (cont'd.)**

 

**Stock based compensation**

 

During the first quarter of 2006, the Company implemented the following new critical accounting policy related to our stock-based compensation. Beginning on January 1, 2006, the Company began accounting for stock options under the provisions of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (FAS 123(R)), which requires the recognition of the fair value of stock-based compensation. Under the fair value recognition provisions for FAS 123(R), stock-based compensation cost is estimated at the grant date based on the fair value of the awards expected to vest and recognized as expense ratably over the requisite service period of the award. The Company has used the Black-Scholes valuation model to estimate fair value of its stock-based awards which requires various judgmental assumptions including estimating stock price volatility and expected life. TheCompany’s computation of expected volatility is based on a combination of historical and market-based volatility. In addition, the Company considers many factors when estimating expected life, including types of awards and historical experience. If any of the assumptions used in the Black-Scholes valuation model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. 

The Company adopted FAS 123(R) using the modified-prospective method which requires the application of the accounting standard as of January 1, 2006. The Company’s consolidated financial statements as of and for the year ended 2006 reflect the impact of FAS 123(R). In accordance with the modified-prospective method, the consolidated financial statements for prior periods have not been restated to reflect, and do not include, the impact of FAS 123(R).

 

**Income taxes**

 

The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect for the year in which the differences are expected to reverse.

 

**Loss per share**

 

Basic loss per share is computed by dividing loss available to common stockholders by the weighted average number of common stock and exchangeable shares outstanding for the period. Diluted loss per share reflects the dilutive potential of outstanding securities using the treasury stock method.

 

**Comprehensive loss**

 

Comprehensive loss includes all changes in equity except those resulting from investments by owners and distributions to owners. Other accumulated comprehensive loss consists only of accumulated foreign currency translation adjustments for all years presented.

 

 

 

 

- 41 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**2. SIGNIFICANT ACCOUNTING POLICIES (cont'd.)**

 

**Recent Accounting Pronouncements**

 

In July 2006, the Financial Accounting Standards Board issued FIN 48 “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109”.  This interpretation provides guidance on the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  FIN 48 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  The Company does not believe that the adoption of this standard will have a material impact on its consolidated results of operations, cash flows or financial position upon adoption; however, the Company has not yet completed its evaluation of the impact of FIN 48.

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard 157, Fair Value Measurements (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, the application of this Statement will change current practice, effective December 1, 2007. The Company does not believe that the adoption of this standard will have a material impact on its consolidated results of operations, cash flows orfinancial position upon adoption; however, the Company has not yet completed its evaluation of the impact of SFAS No. 157.

In February 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 159 “The Fair Value Option for Financial Assets and Financial Liabilities – including an amendment of FASB Statement No. 115” (“SFAS No. 159”) which permits entities to choose to measure many financial instruments and certain other items at fair value.  This statement is effective for fiscal periods beginning after November 15, 2007.  The Company does not believe that the adoption of this standard will have a material impact on its consolidated results of operations, cash flows or financial position upon adoption; however, the Company has not yet completed our evaluation of the impact of SFAS No. 159.

 

**3. CONCENTRATION OF CREDIT RISK**

 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivables and the other receivables. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses which, when realized, have been within the range of management's expectations.

 

Amounts owing from one customer comprised 100% of the gross accounts receivable balance at December 31, 2006. Amounts owing from one customer comprised 100% of the gross accounts receivable balance at December 31, 2005. 

 

 

 

- 42 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**4. SEGMENTED INFORMATION AND ECONOMIC DEPENDENCE**

 

The Company operates in one major line of business, the development, manufacture and marketing of enhanced messaging software systems.

 

Revenue from external customers, by location of customer, is as follows:

 

 

Canada

US

Other

Total

 

 

 

 

 

2006

**-**

**62,000**

**32,000**

**94,000**

2005

**11,755**

**22,589**

**-**

**34,344**

 

Sales from technical training and support services to two customers comprised 100% of revenue in 2006.  Sales from technical training and support services to one customer comprised 66% of revenue and recognition of deferred revenue from one customer comprised 34% of revenues in 2005.

 

The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

 

**5. PROPERTY AND EQUIPMENT**

 

 

 

Accumulated

Net Book

 

Cost

Amortization

Value

 

$

$

$

 

 

 

 

2006

 

 

 

Computer equipment

**2,356,362**

**2,350,354**

**6,008**

Computer software

**565,313**

**564,781**

**532**

Office equipment and furniture

**185,095**

**178,662**

**6,433**

Leasehold improvements

**31,153**

**21,634**

**9,519**

 

**3,137,923**

**3,115,431**

**22,492**

 

 

 

 

2005

 

 

 

Computer equipment

2,371,248

2,357,933

13,315

Computer software

566,082

548,264

17,818

Office equipment and furniture

179,751

175,777

3,974

Leasehold improvements

29,572

17,247

12,325

 

3,146,653

3,099,221

47,432

 

 

 

 

- 43 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Series C notes payable

**4,756,438**

**5,543,153**

 

4,438,983

5,162,537

Series D notes payable

**571,535**

**666,067**

 

535,713

623,034

Series E notes payable

**695,210**

**810,198**

 

655,372

762,198

Series F convertible note payable

**154,573**

**180,139**

 

144,568

168,133

Series G notes payable

**411,989**

**480,132**

 

385,324

448,132

Series H notes payable

**438,204**

**510,683**

 

408,153

474,682

 

**7,027,949**

**8,190,372**

 

6,568,113

7,638,716

The outstanding Series C, D, E, F, G and H notes payable bear interest at 8% per annum and are due on December 31, 2009.  All scheduled principal repayments and interest payments are based upon tiered percentages of the Company’s earnings before interest, tax, depreciation and amortization, calculated and repayable quarterly. The immediate repayment of all amounts due is required upon the occurrence of a qualified triggering event such as a change of control, merger, amalgamation, acquisition or liquidation.

The Series F note is convertible at the option of the holder at any time before December 31, 2009 into units at a price of $0.99 (Cdn$1.15) per unit.  Each unit will consist of one common share and one non-transferable common share purchase warrant.  Each warrant entitles the holder, upon giving 61 days notice to the Company, to purchase one common share of the Company at a price of $0.99 (Cdn$1.15) per share at any time before December 31, 2009.

 

All of the outstanding notes payable are denominated in Canadian dollars and include accrued and unpaid interest. Repayment of all series of notes payable have been guaranteed by the Company and are collateralized by the assets of the Company's subsidiary, Voice Mobility Inc.

 

 

 

- 44 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont’d)**

 

 

**SERIES C NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**3,979,343**

**4,637,526**

 

3,987,555

4,637,526

Unamortized debt discount

**(24,745)**

**(28,838)**

 

(33,062)

(38,451)

 

**3,954,598**

**4,608,688**

 

3,954,493

4,599,075

Accrued interest

**801,840**

**934,465**

 

484,490

563,462

 

**4,756,438**

**5,543,153**

 

4,438,983

5,162,537

 

On September 9, 2003, the Company completed a restructuring arrangement whereby certain existing debt and convertible preferred stock were settled in full in exchange for the issuance of Series C notes, common stock and Class T share purchase warrants.  The Class T share purchase warrants are exercisable for a period of five years at an exercise price of $0.36 (Cdn$0.425) per share.  The gross proceeds have been allocated to the notes and the warrants based on the relative fair value of each security at the time of issuance. Accordingly, $3,300,127 (Cdn$4,454,841) was allocated to the notes and $272,379 (Cdn$367,685) was allocated to the warrants in aggregate. The fair value of the warrants was estimated using the Black-Scholes option-pricing model.  The discount on the notes as a result of the warrants was subject to accretion over the 27-month term to maturity ofthe notes and recorded as interest expense.

 

On September 19, 2005, the Company amended the maturity date and repayment provision in exchange for the issuance of 980,137 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $502,894 (Cdn$588,082) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense.  The remaining balance of the discount on the notes is subject to accretion over the 51-month term to the amended date of maturity of December 31, 2009.

 

The Series C notes bear interest at 8% per annum and are payable based upon a tiered percentage of the Company's earnings before interest, tax, depreciation and amortization.  68% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

 

 

 

- 45 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont'd.)**

 

**SERIES D NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**429,037**

**500,000**

 

429,923

500,000

Repayment premium

**64,356**

**75,000**

 

64,488

75,000

Unamortized debt discount

**(7,807)**

**(9,098)**

 

(10,431)

(12,131)

 

**485,586**

**565,902**

 

483,980

562,869

Accrued interest

**85,949**

**100,165**

 

51,733

60,165

 

**571,535**

**666,067**

 

535,713

623,034

 

On September 9, 2003, the Company issued an aggregate of $366,838 (Cdn$500,000) Series D notes and 574,999 Class R share purchase warrants to four shareholders, one of whom was a director of the Company.  The warrants are exercisable for a period of five years at an exercise price of $0.36 (Cdn$0.425) per share.  The warrants also include a call feature at the option of the Company that is described in Note 9[d].

 

The notes are subject to a repayment premium equal to 15% of the outstanding principal balance.  The repayment premium of $64,356 (Cdn$75,000) was recorded as an increase to the notes balance and as a deferred financing cost.  The deferred financing cost was being amortized to interest expense over the 27-month term to maturity.  The gross proceeds have been allocated to the notes and the warrants based on the relative fair value of each security at the time of issuance. Accordingly, $284,466 (Cdn$384,000) was allocated to the notes and $85,932 (Cdn$116,000) was allocated to the warrants in aggregate. The fair value of the warrants was estimated using the Black-Scholes option-pricing model.  The discount on the notes as a result of the warrants was subject to accretion over the 27-month term to maturity of the notes and recorded as interest expense.

 

On September 19, 2005, the Company amended the maturity date and repayment provision in exchange for the issuance of 120,221 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $61,683 (Cdn$72,133) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense. The remaining balance of the deferred financing cost and discount on the notes is subject to accretion over the 51-month term to the amended date of maturity of December 31, 2009.

 

The Series D notes bear interest at 8% per annum and are payable based upon a tiered percentage of the Company’s earnings before interest, tax, depreciation and amortization.  8% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

 

 

 

- 46 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont'd.)**

 

**SERIES E NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**514,845**

**600,000**

 

515,907

600,000

Repayment premium

**77,227**

**90,000**

 

77,386

90,000

 

**592,072**

**690,000**

 

593,293

690,000

Accrued interest

**103,138**

**120,198**

 

62,079

72,198

 

**695,210**

**810,198**

 

655,372

762,198

 

During the months of November and December 2003, the Company issued an aggregate of $457,754 (Cdn$600,000) Series E notes to two shareholders.  The notes are subject to a repayment premium equal to 15% of the outstanding principal balance.  The repayment premium of $69,418 (Cdn$90,000) was recorded as an increase to the notes balance and expensed immediately as interest since the notes were due on demand.

 

On September 19, 2005, the Company amended the maturity date and repayment provision in exchange for the issuance of 144,266 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $74,021 (Cdn$86,560) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense.

 

The Series E notes bear interest at 8% per annum and are payable based upon a tiered percentage of the Company’s earnings before interest, tax, depreciation and amortization.  10% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

 

 

- 47 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont'd.)**

 

**SERIES F CONVERTIBLE NOTE PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**128,776**

**150,075**

 

129,041

150,075

Accrued interest

**25,797**

**30,064**

 

15,527

18,058

 

**154,573**

**180,139**

 

144,568

168,133

 

On June 17, 2004, the Company issued a $112,517 (Cdn$150,075) Series F convertible note to one shareholder.  The convertible note contains an embedded beneficial conversion feature amounting to $32,000 that was calculated as the difference between the conversion price and the fair value of the units into which the note is convertible multiplied by the number of units.  The $32,000 was expensed immediately as interest since the note was due on demand.

 

On September 19, 2005, the Company amended the maturity date, conversion date and repayment provision in exchange for the issuance of 31,684 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $16,256 (Cdn$19,010) and extension of the conversion feature from June 17, 2006 to December 31, 2009 of $20,096 (Cdn$23,500) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense.

 

The note is convertible at the option of the holder at any time before December 31, 2009 into units at a price of $0.99 (Cdn$1.15) per unit.  Each unit will consist of one common share and one non-transferable common share purchase warrant.  Each warrant entitles the holder, upon giving 61 days notice to the Company, to purchase one common share of the Company at a price of $0.99 (Cdn$1.15) per share at any time before December 31, 2009.

The Series F convertible note bear interest at 8% per annum and is payable based upon a tiered percentage of the Company’s earnings before interest, tax, depreciation and amortization.  2% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

 

 

 

- 48 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont'd.)**

 

**SERIES G NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**343,230**

**400,000**

 

343,938

400,000

Accrued interest

**68,759**

**80,132**

 

41,386

48,132

 

**411,989**

**480,132**

 

385,324

448,132

 

On July 1, 2004, the Company issued an aggregate of $303,882 (Cdn$400,000) Series G notes to two shareholders.  

 

On September 19, 2005, the Company amended the maturity date and repayment provision in exchange for the issuance of 84,448 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $43,329 (Cdn$50,669) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense.

 

The Series G notes bear interest at 8% per annum and are payable based upon a tiered percentage of the Company’s earnings before interest, tax, depreciation and amortization.  6% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

**SERIES H NOTES PAYABLE**

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**386,134**

**450,000**

 

386,930

450,000

Accrued interest

**52,070**

**60,683**

 

21,223

24,682

 

**438,204**

**510,683**

 

408,153

474,682

 

During the months of March and May 2005, the Company issued an aggregate of $367,227 (Cdn$450,000) Series H notes to threeshareholders.  

 

 

 

- 49 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**6. NOTES PAYABLE (cont'd.)**

 

On September 19, 2005, the Company amended the maturity date and repayment provision in exchange for the issuance of 89,244 Class Z share purchase warrants.  The Class Z share purchase warrants are exercisable for a period of three years at an exercise price of $0.94 (Cdn$1.10) per share. The warrants also include a call feature at the option of the Company that is described in Note 9[d].  The relative fair value of warrants of $45,789 (Cdn$53,546) were estimated using the Black-Scholes option pricing model and was recorded as a deferred finance charge and is subject to amortization over the 51-month term to maturity of the notes and recorded as interest expense.

 

The Series H notes bear interest at 8% per annum and are payable based upon a tiered percentage of the Company’s earnings before interest, tax, depreciation and amortization.  6% of the aggregate amount payable to service the notes are payable quarterly and mature on December 31, 2009. 

 

**7. PROMISSORY NOTE PAYABLE**

 

The Company believes Innovatia/Aliant has not complied with the terms of the development agreement and the software license agreement that gave rise to the promissory note payable and the other related assets and liabilities as described below. As a result, the Company has corresponded with Aliant to discuss a proposed settlement. Any settlement, which could differ materially from the amounts currently reported, will be recorded in the period it occurs. 

 

Promissory Note Payable (Note 11[b])

 

 

2006

 

2005

 

US$

Cdn$

 

US$

Cdn$

 

 

 

 

 

 

Principal

**2,084,132**

**2,428,847**

 

2,088,433

2,428,847

Accrued interest

**588,369**

**685,685**

 

447,770

520,757

 

**2,672,501**

**3,114,532**

 

2,536,203

2,949,604

Less current portion

**395,273**

**460,651**

 

396,088

460,651

 

**2,277,228**

**2,653,881**

 

2,140,115

2,488,953

 

On December 28, 2001, the Company issued Innovatia Inc. ("Innovatia"), a wholly owned subsidiary of Aliant Inc. ("Aliant"), a promissory note in the amount of $1,707,989 (Cdn$2,720,142) in settlement of development services contracted from Innovatia from February 1, 2001 to December 31, 2001. The promissory note bears interest at prime plus 1% (prime rate at December 31, 2006 was 6%) and is repayable in quarterly installments until repaid in full. The amount payable each quarter is the lesser of $194,507 (Cdn$226,678) and 40% of the net aggregate amount of invoices issued by the Company to Aliant and its subsidiaries in the quarter. 

 

 

 

 

- 50 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

**7. PROMISSORY NOTE PAYABLE (cont’d)**

 

After December 31, 2004, any current or future amounts due in accordance with the quarterly repayment schedule are only payable in common shares and the number of common shares payable, if any, is determined by dividing the amount payable by Cdn$1.56.  As at December 31, 2006, the current portion due on the promissory note is $395,273 (Cdn$460,651) and this amount is payable only by the issuance of 295,289 common shares. Notwithstanding, the Company has the option at any time and from time to time to prepay in cash, common shares or a combination thereof, the whole or any portion of the remaining non-current balance. If the Company elected to prepay by common shares, then 500,000 of the common shares will be valued at the lesser of the market price of the common shares on the Toronto Stock Exchange and Cdn$0.75 per share, and the value of the balance of any other common shares issuable to repay thedebt is determined by the weighted average trading price of the common shares on the Toronto Stock Exchange over the ten trading days immediately prior to the date on which the common shares are to be issued. As at December 31, 2006, the non-current portion of the promissory note eligible for prepayment is $2,277,228 (Cdn$2,653,881) and if the Company elected to prepay this amount with the issuance of common shares then this would result in the issuance of 5,646,555 common shares.

 

As at December 31, 2006, if the Company made the election to settle the entire principal and interest outstanding with the issuance of common shares, this would result in the issuance of 5,941,844 shares of common stock. The Company is required to obtain shareholder and regulatory approval to issue common shares to settle the promissory note. The Company has obtained shareholder and regulatory approval to issue up to 2,000,000 shares of common stock to settle all or a portion of the promissory note. The Company will need to obtain further shareholder and regulatory approval to issue common shares to settle the remaining balance of the promissory note.  In the event such shareholder and regulatory approval is not obtained, the promissory note will be payable only in cash.

 

The Company continues to accrue for interest; however, there has been no activity in terms of repayment of the promissory note since March 2002. 

 

 

 

- 51 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

**7. PROMISSORY NOTE PAYABLE (cont’d)**

 

Other Related Assets and Liabilities

 

In addition to the promissory note payable, the Company’s financial statements include certain Canadian dollar denominated assets and liabilities. Each balance originated in connection with either the initial development agreement with Innovatia or the three-year software license agreement with Aliant that was signed on June 19, 2002. The Company received an initial payment from Aliant immediately after signing the software license agreement to deliver certain software products and services however, the deployment of the product did not occur as planned. The US dollar equivalent of these assets and liabilities as reported in the Company’s financial statements is as follows:

 

 

2006

2005

 

$

$

Deferred contract costs

**81,631**

81,631

Royalty payable to Aliant, included in accrued liabilities

**59,805**

59,929

Accounts payable to Innovatia for GST and PST on   development services   

**87,509**

87,690

Deferred revenue

**333,068**

333,756

 

 

 

 

- 52 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**8. LOSS PER SHARE**

 

The following table sets forth the computation of loss per share:

 

 

2006

2005

 

$

$

 

 

 

Numerator:

 

 

Net loss attributable to common stockholders

**(3,304,275)**

(3,030,925)

 

 

 

Denominator:

 

 

Weighted average number of common stock outstanding

**48,836,909**

44,977,466

Weighted average number of common stock issuable   on exercise of Exchangeable Shares

**698,801**

1,928,651

Weighted average number of common stock   equivalents outstanding

**49,535,710**

46,906,117

 

 

 

Basic and diluted loss per share

**(0.07)**

(0.06)

 

In connection with the 1999 recapitalization of the Company, Voice Mobility Canada Limited (VM Canada), a wholly-owned subsidiary, issued 6,600,000 VM Canada Exchangeable Shares. Each VM Canada Exchangeable Share is exchangeable for one common share of the Company at any time at the option of the shareholder, and will be exchanged no later than July 1, 2009, and has essentially the same voting, dividend and other rights as one common share. A share of Series A preferred voting stock, which was issued to a trustee in trust for the holders of the VM Canada Exchangeable Shares, provides the mechanism for holders of the VM Canada Exchangeable Shares to have voting rights in the Company. The Company considers each Exchangeable Share as equivalent to one share of its common stock and therefore the Exchangeable Shares are included in the computation of basic loss per share.  During 2006, holders of the Exchangeable Sharesexchanged 400,000 Exchangeable Shares into 400,000 common shares of the Company for no additional consideration.  As at December 31, 2006, 512,500 Exchangeable Shares are outstanding [2005 – 912,500].

 

For the years ending December 31, 2006 and 2005, the Company's common shares issuable upon the exercise of stock options, warrants and other convertible securities were excluded from the determination of diluted loss per share as their effect would be anti-dilutive.

 

 

 

 

- 53 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9.  SHARE CAPITAL**

 

**[a]  Authorized**

 

The Company is authorized to issue up to 100,000,000 shares of common stock, par value $0.001 per share.  The Company is also authorized to issue up to 1,000,000 shares of preferred stock, par value $0.001 per share.

 

**[b]  Common stock**

 

**2006**

 

**Private Placements**

 

On December 19, 2006, the Company issued 6,851,000 units at Cdn$0.50 per unit for net cash proceeds of $2,839,218 (Cdn$3,281,568).  Each unit consists of one share of common stock and one half of one Class A share purchase warrant, entitling the holder to one common share, exercisable at Cdn$0.65 per share at any time up to December 19, 2009.  The Company incurred $20,325 (Cdn$23,492) in professional fees and $104,205 (Cdn$120,440) in financing fees for a total of $124,530 (Cdn$143,932).  The Company also issued 80,000 common shares and 40,000 Class A share purchase warrants to a third party as a financing fee.  The warrantsalso include a call feature at the option of the Company that is described in Note 9[d].

 

**Exchangeable Shares**

 

During 2006, a holder of the Exchangeable Shares exchanged 400,000 Exchangeable Shares into 400,000 common shares of the Company for no additional consideration.

 

**Stock Options**

 

On September 12, 2006, the Company issued 20,000 shares of common stock from the exercise of stock options for gross proceeds of $5,003 (Cdn$5,600).

 

On November 23, 2006, the Company issued 20,000 shares of common stock from the exercise of stock options for gross proceeds of $4,904 (Cdn$5,600).

 

 

 

 

- 54 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9.  SHARE CAPITAL (cont’d)**

 

**2005**

 

**Private Placements**

 

On June 27, 2005, the Company issued 4,100,000 units at Cdn$1.00 per unit for net cash proceeds of $3,082,599 (Cdn$3,794,063).  $2,758,420 of the net cash proceeds was received in June 2005 with the remaining $324,179 collected in July 2005.  Each unit consists of one share of common stock and one half of one Class X share purchase warrant, entitling the holder to one common share, exercisable at Cdn$1.10 per share at any time up to June 26, 2008.  A director and officer of the Company purchased 25,000 units in this private placement for net cash proceeds of Cdn$25,000.  The Company incurred $9,634 (Cdn$11,857) in professional fees and $238,934 (Cdn$294,080) in financing fees for a total of $248,568 (Cdn$305,937).  The Company also issued 27,120 common shares and 13,560 Class X share purchase warrants to a third party as a financing fee.  The warrants also include a call feature at the option of the Company that is described in Note 9[d].

 

On August 19, 2005, the Company issued 140,000 units at Cdn$1.00 per unit for net cash proceeds of $98,739 (Cdn$119,537).  Each unit consists of one share of common stock and one half of one Class Y share purchase warrant, entitling the holder to one common share, exercisable at Cdn$1.10 per share at any time up to August 18, 2008.  The Company incurred $7,566 (Cdn$9,263) in professional fees and paid $9,244 (Cdn$11,200) in cash to a third party as a finders fee.  The warrants also include a call feature at the option of the Company that is described in Note 9[d].

 

**Exchangeable Shares**

 

During 2005, holders of the Exchangeable Shares exchanged 2,427,500 Exchangeable Shares into 2,427,500 common shares of the Company for no additional consideration.

 

 

 

 

- 55 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**[c]  Stock options**

 

**Second Amended and Restated 1999 Stock Option Plan**

 

On June 14, 2001, an amendment to the Amended and Restated 1999 Stock Option Plan was approved to meet the requirements for listing of the Company's securities on The Toronto Stock Exchange.  The Second Amended and Restated 1999 Stock Option Plan ("Plan") authorizes an aggregate amount of 12,000,000 common shares to be issued pursuant to the exercise of stock options.

 

The Plan provides for the granting of options, which either qualify for treatment as incentive stock options or non-statutory stock options, and entitles directors, employees and consultants to purchase common shares of the Company. Options granted are subject to approval of the Board of Directors or the Compensation Committee.

 

Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest based on 3 years of continuous service and have 5-year contractual terms. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the common shares underlying them are returned to the reserve. 

 

Activity under the Plan is as follows:

 

 

 

Options Outstanding

 

 

 

 

Weighted

 

Shares Available

Number

Price

Average

 

for Grant

of Shares

per Share

Exercise Price

 

 

 

 

 

Balance, December 31, 2004

2,379,642

5,671,354

$0.13 – $7.25

$1.07

Options granted

(2,232,772)

2,232,772

$0.56 – $0.88

$0.74

Options expired

630,327

(630,327)

$0.28 – $7.25

$4.17

Options exercised

-

(135,023)

$0.14 – $0.73

$0.31

Balance, December 31, 2005

777,197

7,138,776

$0.14 – $3.29

$0.74

Options granted

(1,269,135)

1,269,135

$0.43 – $0.70

$0.58

Shares authorized

2,000,000

-

-

-

Options expired

803,866

(803,866)

$0.32 – $2.56

$1.38

Options exercised

-

(40,000)

$0.24

$0.24

Balance, December 31, 2006

2,311,928

7,564,045

$0.14 – $1.70

$0.64

 

 

 

 

- 56 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

The weighted average remaining contractual life and weighted average exercise price of options outstanding and of options exercisable as at December 31, 2006 are as follows:

 

 

Options Outstanding

 

Options Exercisable

 

 

 

Weighted

 

 

 

 

Number

Weighted

Average

 

Number

Weighted

Range of

Outstanding at

Average

Remaining

 

Exercisable at

Average

Exercise

December 31,

Exercise

Contractual

 

December 31,

Exercise

Prices

2006

Price

Life (years)

 

2006

Price

 

 

 

 

 

 

 

$0.14 - $0.50

2,137,106

$0.27

1.81

 

1,626,959

$0.22

$0.51 - $1.00

5,401,939

$0.78

3.03

 

3,784,110

$0.81

$1.01 - $1.70

25,000

$1.12

2.11

 

23,611

$1.12

 

7,564,045

$0.64

2.68

 

5,434,680

$0.63

 

As at December 31, 2006, 7,564,045 [2005 - 7,063,776] options outstanding have an exercise price denominated in Canadian dollars with a weighted average exercise price of Cdn$0.74 [2005 – Cdn$0.86].

 

 

 

 

- 57 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**Impact of Adoption of FAS 123(R)**

 

At December 31, 2006, the Company has one stock-based employee compensation plan.  Prior to December 31, 2005, the Company accounted for the plan under the recognition and measurement provisions of APB Opinion No.25, Accounting for Stock Issued to Employees, and related Interpretations, as permitted by FASB Statement No 123, Accounting for Stock-Based Compensation.  No stock-based employee compensation cost was recognized in the Consolidated Statements of Operations for the year ended December 31, 2005, as all options granted under the plan had an exercise price equal to the market value of the underlying common stock on the date of grant.  Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB Statement No. 123(R), Share-Based Payment, using the modified-prospective-transition method.  Under that transition method, compensation cost recognized in the year ended December 31, 2006includes: (a) compensation cost for all share-based payments granted prior to, but not yet vested as of December 31, 2005, based on the grant date fair value estimated in accordance with the original provisions of Statement 123, and (b) compensation cost for all share-based payment granted subsequent to January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of Statement 123(R).  Results for prior periods have not been restated.

 

As FAS123(R) requires that stock-based compensation expense be based on awards that are ultimately expected to vest, stock-based compensation expense for the year ended December 31, 2006 has considerations for estimated forfeitures.  When estimating forfeitures, we consider voluntary termination behavior as well as trends of actual option forfeitures.  

 

As a result of adopting Statement 123(R) on January 1, 2006, the Company’s net loss for the year ended December 31, 2006, is $648,350 higher than if it had continued to account for share-based compensation under Opinion 25.  Basic and diluted loss per share for the year ended December 31, 2006 is $(0.01) higher than if the Company had continued to account for share-based compensation under Opinion 25.

 

Total stock-based compensation for the year ended December 31, 2006 includes stock-based compensation expense related to employees of $630,999 and stock-based-compensation expense related to a consultant of $17,351 reported in the statement of operations as follows:

 

 

 

**2006****$**

2005$

Stock-based compensation

 

 

 

Sales and marketing

 

**90,504**

-

Research and development

 

**156,974**

-

General and administrative

 

**400,872**

-

Total stock-based compensation

 

**648,350**

-

 

 

 

 

- 58 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**Valuation Assumptions**

 

The fair value of the Company's stock-based awards granted to employees for the year ended December 31, 2006 and 2005 was estimated using the Black-Scholes option pricing model. 

 

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table.  Because the Black-Scholes option pricing model incorporates ranges of assumptions for inputs, those ranges are disclosed.  Expected volatilities are based on  historical volatility of the Company's stock, and other factors.  The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding.  The risk-free rate for periods within the expected life of the options is based on the Bank of Canada T-Bill rate in effect at the time of grant.

 

 

 

**2006**

2005

 

 

 

 

Expected life of employee stock options (in years)

 

**3.0**

2.87

Weighted average volatility

 

**97%**

116%

Expected volatility

 

**82% - 106%**

101% - 129%

Risk-free interest rate

 

**3.84% - 4.18%**

2.98% - 3.84%

Dividend yields

 

**0%**

0%

Weighted average fair value of stock options under

employee stock option plans granted during the period

 

 

**$0.36**

 

$0.51

 

 

 

 

- 59 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**Stock-based Payment Award Activity**

 

A summary of option activity under the Plan as of December 31, 2006, and changes during the year ended is presented below:

 

 

 

 

 

Options

 

 

 

Shares

 

WeightedAverageExercise Price$

WeightedAverage Remaining Contractual Term

 

Aggregate Intinsic Value 

$

 

 

 

 

 

Outstanding at January 1, 2006

7,138,776

0.74

 

 

Granted

1,269,135

0.58

 

 

Expired

(803,866)

1.38

 

 

Exercised

(40,000)

0.24

 

 

Outstanding at December 31, 2006

7,564,045

0.64

2.68

256,611

[Vested or expected to vest at    December 31, 2006]

 

7,564,045

 

0.64

 

2.68

 

256,611

Exercisable at December 31, 2006

5,434,680

0.63

2.21

256,611

 

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the 1,520,771 options that were in-the-money at December 31, 2006. The weighted-average grant date fair value of options granted during the year ended December 31, 2006 and 2005 was $0.37 and $0.51, respectively.

 

A summary of the status of the Company’s nonvested shares as of December 31, 2006 and changes during the year ended December 31, 2006, is presented below:

 

**Nonvested Shares**

**Shares**

**Weighted Average**

**Grant-Date Fair Value**

 

 

$

 

 

 

Nonvested at January 1, 2006

1,952,586

0.53

Granted

**1,055,998**

0.35

Vested

**(879,219)**

0.56

Nonvested at December 31, 2006

**2,129,365**

0.43

 

As of December 31, 2006, there was $915,627 of total unrecognized compensation cost related to nonvested share based compensation arrangements granted under the Plan.  That cost is expected to be recognized over a weighted-average period of 2.21 years.  The total fair value of shares vested during the year ended December 31, 2006 was $630,999.

 

 

 

- 60 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**Pro forma Information for Periods Prior to the Adoption of FAS** **123R**

 

Prior to the adoption of FAS No. 123(R), the Company provided the disclosures required under FAS No. 123, as amended by FAS No. 148, "Accounting for Stock-Based Compensation — Transition and Disclosures." Employee stock-based compensation expense recognized under FAS 123(R) was not reflected in the results of operations for the year  ended December 31, 2005 for employee stock option awards as all options were granted with an exercise price equal to the market value of the underlying common stock on the date of grant. Previously reported amounts have not been restated.   The pro forma information for the year  ended December 31, 2005 is as follows: 

 

 

2006

2005

 

$

$

 

 

 

Net loss

**(3,304,275)**

(3,030,925)

Deduct: Total stock-based employee  compensation expense determined under fair  value based method for all awards

**(630,999)**

(488,044)

Pro forma net loss

**(3,935,274)**

(3,518,969)

 

 

 

Basic and diluted loss per share

 

 

As reported

**(0.07)**

(0.06)

Pro forma

**(0.08)**

(0.08)

 

 

 

 

 

- 61 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

**[d]  Warrants**

 

The Company has the following common stock warrants outstanding:

 

 

Outstanding

 

 

Forfeited

Outstanding

Exercise

 

 

at January 1

Issued

Exercised

or Cancelled

at December 31

Price

Expiry

 

#

#

#

#

#

 

Date

 

 

 

 

 

 

 

 

2006

 

 

 

 

 

 

 

Class R warrants

574,999

-

-

-

574,999

Cdn.0.425

Sep. 8/08

Class S warrants

1,176,470

-

-

-

1,176,470

Cdn.0.425

Sep. 8/08

Class T warrants

3,198,350

-

-

-

3,198,350

Cdn.0.425

Sep. 8/08

Class U warrants

466,875

-

-

-

466,875

Cdn.1.36

Mar. 4/07

Class V warrants

2,000,000

-

-

2,000,000

-

Cdn.1.14

May 31/06

Class V warrants

4,000,000

-

-

-

4,000,000

Cdn.1.14

May 31/07

Class W warrants

76,923

-

-

-

76,923

Cdn.1.00

Aug. 26/07

Class W warrants

1,229,450

-

-

-

1,229,450

Cdn.1.00

Sep. 21/07

Class X warrants

2,063,560

 

-

-

2,063,560

Cdn.1.10

Jun. 26/08

Class Y warrants

70,000

 

-

-

70,000

Cdn.1.10

Aug. 18/08

Class Z warrants

1,450,000

 

-

-

1,450,000

Cdn.1.10

Sep. 18/08

Class A warrants

-

3,465,500

-

-

3,465,500

Cdn.0.65

Dec 19/09

 

16,306,627

3,465,500

-

2,000,000

17,772,127

 

 

 

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

Class O warrants

250,000

-

250,000

-

-

0.25

Exercised

Class R warrants

574,999

-

-

-

574,999

Cdn.0.425

Sep. 8/08

Class S warrants

1,176,470

-

-

-

1,176,470

Cdn.0.425

Sep. 8/08

Class T warrants

3,198,350

-

-

-

3,198,350

Cdn.0.425

Sep. 8/08

Class U warrants

466,875

-

-

-

466,875

Cdn.1.36

Mar. 4/07

Class V warrants

2,000,000

-

-

-

2,000,000

Cdn.1.14

May 31/06

Class V warrants

4,000,000

-

-

-

4,000,000

Cdn.1.14

May 31/07

Class W warrants

76,923

-

-

-

76,923

Cdn.1.00

Aug. 26/07

Class W warrants

1,229,450

-

-

-

1,229,450

Cdn.1.00

Sep. 21/07

Class X warrants

-

2,063,560

-

-

2,063,560

Cdn.1.10

Jun. 26/08

Class Y warrants

-

70,000

-

-

70,000

Cdn.1.10

Aug. 18/08

Class Z warrants

-

1,450,000

-

-

1,450,000

Cdn.1.10

Sep. 18/08

 

12,973,067

3,583,560

250,000

-

16,306,627

 

 

 

 

 

 

- 62 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**9. SHARE CAPITAL (cont'd.)**

 

All of the share purchase warrants outstanding have exercise prices denominated in Canadian dollars.

 

The following share purchase warrants have a call feature by which the Company can demand exercise of the share purchase warrants if the common stock trades at a price equal to or greater than a specified Canadian dollar amount on the Toronto Stock Exchange for a period of 30 consecutive days and if the share purchase warrants have not been exercised then such share purchase warrants will terminate on the date that is 120 days from the date such demand is given to the holders. 

 

 

Call Feature

 

$

 

 

Class R, S and T warrants

$1.09 (Cdn. $1.275)

Class U warrants

$2.57 (Cdn. $3.00)

Class W warrants

$1.93 (Cdn. $2.25)

Class X, Y and Z warrants

$1.72 (Cdn. $2.00)

Class A warrants

$1.12 (Cdn. $1.30)

 

3,465,500 Class A warrants have a call feature by which the Company can demand exercise of the share purchase warrants if the common stock trades at a price equal to or greater than Cdn.$1.30 on the Toronto Stock Exchange for a period of 30 consecutive days and the average daily trading volume is greater than 100,000 shares for such 30 consecutive trading day period. If the share purchase warrants have not been exercised then such share purchase warrants will terminate on the date that is 120 days from the date such demand is given to the holders.

 

On September 19, 2005, the Company modified the existing call feature on the Class T share purchase warrants to restrict the amount callable to 20% in each successive 30 day period after the initial call. 

 

On June 1, 2004, the Company amended its Master License Agreement with Avaya Inc. ("Avaya") and in this regard granted 6,000,000 Class V warrants, which allow Avaya, upon the achievement of certain performance based milestones, to acquire up to 6,000,000 common shares of the Company at Cdn.$1.14 per share.  2,000,000 warrants vested immediately and expired on May 31, 2006. The fair value of the 2,000,000 warrants, which vested immediately, was measured using the Black-Scholes option-pricing model and amounted to $1,169,591.  This amount was expensed to sales and marketing in the statements of operations in 2004.  The remaining 4,000,000 Class V warrants will vest based on performance based milestones and will expire on May 31, 2007.  As at December 31, 2006, no additional performance based milestones had been met.

 

 

 

 

- 63 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**10. INCOME TAXES**

 

The Company is subject to United States federal and state income taxes at an approximate rate of 35%. The Company is also subject to Canadian federal and British Columbia provincial taxes in Canada.  The reconciliation of the provision (recovery) for income taxes at the United States federal statutory rate compared to the Company's income tax expense is as follows:

 

 

2006

2005

 

$

$

 

 

 

Tax recovery at U.S. statutory rates

**(1,156,000)**

(1,061,000)

Higher effective income taxes of 

 

 

Canadian subsidiary

**(4,000)**

(4,000)

Change in valuation allowance

**(58,000)**

599,000

Change in tax rate applied in valuation

 

 

allowance

**462,000**

**-**

Imputed interest

**247,000**

224,000

Non-deductible expenses

**509,000**

242,000

Income tax expense (recovery)

**-**

-

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company has recognized a valuation allowance for those deferred tax assets for which realization is not more likely than not to occur. 

 

Significant components of the Company's deferred tax assets as of December 31 are as follows:

 

 

2006

2005

 

$

$

 

 

 

Net operating loss carry forwards

**9,010,000**

9,305,000

Property and equipment

**1,378,000**

1,508,000

Unrealized foreign exchange

**(727,000)**

(842,000)

Debt discount accretion

**99,000**

100,000

Financing fees

**37,000**

82,000

Deferred revenue

**103,000**

**-**

Other

**5,000**

6,000

Total deferred tax assets

**9,905,000**

10,159,000

Valuation allowance

**(9,905,000)**

(10,159,000)

Net deferred tax assets

**-**

-

 

 

 

 

 

- 64 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**10. INCOME TAXES (cont'd.)**

 

The non-capital and net operating loss carry forwards expire as follows:

 

 

$

 

 

Canada

 

2007

3,669,000

2008

7,851,000

2009

2,379,000

2010

1,937,000

2014

2,395,000

2015

1,611,000

2026

2,006,000

Total Canada

21,848,000

U.S.

 

2019

211,000

2020

2,701,000

2021

1,540,000

2022

259,000

2023

-

2024

293,000

2025

-

Total US

4,994,000

 

26,842,000

 

Pursuant to Section 382 of the Internal Revenue Code, use of the Company's net operating loss carry forwards may be limited if the Company experiences a cumulative change in ownership of greater than 50% in a moving three year period.  Ownership changes could impact the Company's ability to utilize net operating losses and credit carry forwards remaining at the ownership change date.  The limitation will be determined by the fair market value of common stock outstanding prior to the ownership change, multiplied by the applicable federal rate.

 

 

 

 

- 65 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**11. COMMITMENTS AND CONTINGENCIES**

 

[a]  The Company leases two premises under operating leases, both of which expire in 2008.  The minimum lease payments are as follows:

 

 

$

 

 

2007

69,614

2008

62,464

 

132,078

 

The rental expense charged to the consolidated statements of operations in 2006 amounted to $147,118 [2005 - $129,344].

 

 

 

 

- 66 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**11. COMMITMENTS AND CONTINGENCIES (cont'd.)**

 

[b]  On April 28, 2006, Aliant Telecom Inc. / Telecommunciations Aliant Inc. filed a Notice of Action with Statement of Claim with the Court of Queen’s Bench of New Brunswick, Trial Division, Judicial District of Saint John claiming breach of several agreements between Innovatia /Aliant and the Company. The aggregate amount of the claim sought is Cdn$3,786,611. The Company believes that there is no substantive merit to the claim and management intends to vigorously defend the action. The Company has additional disclosure regarding the Innovatia / Aliant relationship in note 7 above.  The Company has made no additional provision in the financial statements on the belief that the probability of a loss is remote. Any unaccrued amount the Company may be obligated to pay, if any, in connection with this claim will be recorded in the period the claim is resolved.

 

**12. SUPPLEMENTAL CASH FLOW INFORMATION**

 

Net changes in operating assets and liabilities are as follows:

 

 

2006

2005

 

$

$

 

 

 

Accounts receivable

**(27,000)**

(5,000)

Other receivables

**(5,479)**

2,473

Prepaid expenses

**(8,568)**

(2,232)

Accounts payable

**35,401**

(13,896)

Accrued liabilities

**(24,211)**

(48,642)

Employee related payables

**(5,637)**

(196)

Accrued interest on promissory notes payable

**145,641**

108,634

Accrued interest on notes payable

**475,784**

436,014

Deferred revenue

**-**

(11,755)

 

**585,931**

465,400

 

 

 

 

 

- 67 -

 

 

**Voice Mobility International, Inc.**

 

**NOTES TO CONSOLIDATED**

**FINANCIAL STATEMENTS**

 

December 31, 2006

(expressed in U.S. dollars)

 

 

**13. SUBSEQUENT EVENTS**

 

[a]  As at January 8 , 2007, a holder of VM Canada Exchangeable Shares exchanged 512,500 VM Canada Exchangeable Shares into 512,500 common shares of the Company for no additional consideration.  There are no more Exchangeable Shares outstanding.

 

[b]  During February 2007, the company issued 154,062 shares of common stock from the exercise of stock options for gross proceeds of $35,668 (Cdn$41,450).

 

[c]  On March 4, 2007, 466,875 Class U share purchase warrants expired.

 

 

 

- 68 -

 

 

 

**Item 8.**

**Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.**

Not applicable.

**Item 8A.  Controls and Procedures.**

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by the annual report, being December 31, 2006, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures.  This evaluation was carried out under the supervision and with the participation of our company's management, including our company's President and our company's Chief Executive Officer.  Based upon that evaluation, our company's President and our company's Chief Executive Officer concluded that our company's disclosure controls and procedures are effective as at the end of the period covered by this report.  There have been no significant changes in our internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materiallyaffect our internal controls over financial reporting.

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission's rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management including our president and chief executive officer as appropriate, to allow timely decisions regarding required disclosure.

**Item 8B.  Other Information.**

None.

**PART III**

**Item 9.  Directors, Executive Officers, Promoters, Control Persons and Corporate Governance; Compliance with Section 16(a) of the Exchange Act**

The following table sets forth the names, positions and ages of our executive officers and directors. All our directors serve until the next annual meeting of shareholders or until their successors are elected and qualify. The board of directors elects officers and their terms of office are, except to the extent governed by employment contract, at the discretion of the board of directors.

 

**Name**

**Position Held with the****Company**

**Age**

**Date First Elected****or  Appointed**

*Randy G. Buchamer***

*Chief Executive Officer and Director***

*50***

*August 2001***

*James J. Hutton***

*President and Director***

*41***

*President - August 2001**Director - June 1999***

*Morgan Sturdy(2)(4)***

*Director***

*54***

*April 2000***

*Donald A. Calder(1)(3)***

*Director***

*62***

*Director - February 2002***

*Robert E. Neal(1)(2)***

*Director***

*52***

*September 2003***

 

 

 

 

- 69 -

 

 

 

*Gary Donahee(2)(3)***

*Chairman of the Board of Directors, Director***

*60***

*Chairman of the Board of Directors - June 2006; October 2003***

*David Raffa(3)(4)***

*Director***

*48***

*March 2006***

*Kenneth R.  Miller(1)(4)***

*Director***

*51***

*July 2006***

*Gerry Butters***

*Director***

*63***

*July 2006***

 

(1) Members of our Audit Committee

(2) Members of our Corporate Governance Committee

(3) Members of our Compensation Committee

(4) Members of our Strategic / Finance Planning Committee

*Randy G. Buchamer - Chief Executive Officer and Director*

Mr. Buchamer has been our Chief Executive Officer and a director of our company since August, 2001.  Between August, 2001 and March, 1999, Mr. Buchamer provided management consulting services to various public companies for a consulting company called Rydan Management.  From February, 1998 to March, 1999, Mr. Buchamer served as the Managing Director of Operations for the Jim Pattison Group and was responsible for supporting the $4.5 billion operations of 55 companies owned by the Jim Pattison Group.  Some of the Jim Pattison Group businesses are involved in grocery stores, specialty packaging, advertising, magazine distribution, broadcasting, automotive retailing as well as other business.  From 1996 to 1998, he served as Vice President and Chief Operating Officer of Mohawk Oil Retail Small Business Unit and from 1989 to 1996 as Vice President Corporate Services and Chief Information Officer for Mohawk OilCompany.  Mohawk is a producer and seller of petroleum products.  From 1987 to 1988, he was Retail Market Specialist for Digital Equipment of Canada Limited.  Mr. Buchamer founded and served, from 1981 to 1988, as President of Vartech Systems Corporation and RB Computer Products, an IBM value added reseller and North American software publisher and distributor of retail, distribution and manufacturing software solutions.  He received his Executive MBA from Simon Fraser University's Executive Management Development Program in 1994 and attended the Business Administration program at the University of Illinois.  He also has completed courses at the IBM Canada Business Management School.

Mr. Buchamer is also a director of Bradner Ventures Ltd., a public company with a class of securities registered under the Securities Exchange Act of 1934.

*James J. Hutton - President and Director*

Mr. Hutton previously served as our Chief Executive Officer from April 1998 to August 2001.  He has served as the President of our company since August, 2001.  Mr. Hutton has served as a director of our subsidiary since 1998.  From January 1998 to August 2000, Mr. Hutton served as a director of Acrex Ventures Ltd.  From 1990 to the present, he has also served as director and President of South Sycamore Group Holdings, a family company involved in diversified investments.  From 1995 to 1998, Mr. Hutton served as Canadian Regional Manager for Ascend Communications, a company involved in broadband networking.  From 1989 to 1995, Mr. Hutton served in various capacities for Gandalf Systems, Inc., starting as a sales executive and becoming Western Regional Manager.  Gandalf Systems is a company which distributed networking equipment.  From 1987 to 1989, Mr. Hutton was a Sales Trainee in the AutomotiveElectronics Group of Amp of Canada.  Mr. Hutton attended the University of British Columbia.

*Morgan Sturdy - Director*

Since April, 2000, Morgan Sturdy serves as a director on several Canadian and United States public companies as described below.  From September 1997 to April 2000, Mr. Sturdy was Executive Vice-President and Chief Operating Officer of NICE Systems North America, a computer telephony interface provider of call logging and 

 

 

 

- 70 -

 

 

quality performance products for call centers.  For twelve years prior, he served as President of Dees Communications Engineering Ltd., an innovator in computer telephony solutions, which was then sold to NICE Systems.  From 1997 to 1999, he was Chairman of the Board of Directors of Hothaus Technologies, a leader in DSP solutions for voice over IP, which was subsequently acquired by Broadcom.  He is a current director of several publicly traded companies, including Ignition Point and TIR Systems.  He recently sat on the Board of Creo Inc.'s which was acquired by Kodak Inc. in August 2005.  Creo Inc.'s common shares are registered under the Securities and Exchange Act.  Additionally, he sits on the board of three private technology companies including Discovery Parks and Responsetek Inc.  Mr. Sturdy is the past Chairman of the British Columbia Technology Association, a member of the Board of Governors ofScience World and serves on the Premier's Technology Council.  Mr. Sturdy is a past director of National Wireless Canadian Research Foundation.

*Donald A. Calder - Director*

Mr. Calder was the Vice Chair of the Board and Executive Committee of the Vancouver 2010 Bid Corporation, which won for Vancouver, British Columbia the right to host the Olympic Winter Games and Paralympic Games in 2010.  Mr. Calder has been retired since 1999.  Mr. Calder was Chief Executive Officer of BC Telecom (a telephone company in British Columbia, Canada) from 1997 to 1999 and was previously the Executive Vice President of Network Operations at BC Telecom and Group Vice President of Marketing and Development with Stentor Resource Centre Inc.  While at BC Telecom, Mr. Calder was responsible for negotiating and structuring the merger between BC Telecom and TELUS (a telephone company in British Columbia, Canada).  Among his other community commitments, he was chair of the Vancouver General Hospital and University of British Columbia Hospital Foundation.  Mr. Calder is the Chairman of the board ofdirectors of the United Way of the British Columbia Lower Mainland and was Chairman of the 1999 United Way annual fundraising campaign prior to becoming Chief Executive Officer of the Vancouver 2010 Bid Committee.

*Robert E. Neal - Director*

Robert E. Neal was reappointed to the Board in September 2003.  He is retired now.  Until October 21, 2002 when he was appointed Senior Vice President, Business Development, of Aliant, Inc., he was the President of Innovatia, a company within Aliant Inc.'s emerging business division that focuses on the developing and selling of Internet-based technology.  He was President of Innovatia since 1997.  Mr. Neal was a member of the Board as the nominee of Aliant, pursuant to an understanding with Aliant.  A native of Saint John, New Brunswick, Mr. Neal began his career in the communications industry in 1979 at New Brunswick Telephone (NBTel).  In 1992 he became General Manager of NBTel Mobility.  He was made President of Datacor (Atlantic) Inc. in 1996 and became President of NBTel interActive and General Manager of Export at NBTel in the next year. In 1998, he was appointed Vice President of New Business Development.

*Gary Donahee - Chairman of the Board of Directors and Director*

From 1986 to 2003, Mr. Donahee served in various capacities for Nortel Networks Corporation.  Nortel Networks is a company that supplies communications technology and infrastructure to enable value-added internet protocol, or IP, data, voice and multimedia services that support the Internet and other public and private networks using wireline and wireless technologies whose common shares are registered pursuant to Section 12 of the Securities and Exchange Act of 1934.  From 1986 to 1989, Mr. Donahee was Vice President, Human Resources, from 1989 to 1993, he was Senior Vice President, Corporate Human Resources, from 1993 to 1995, he was Senior Vice President and President Major Accounts, North America, from 1996 to 1998, he was Senior Vice President and President CALA Caribbean and Latin America, from 1998 to 1999, he was Senior Vice President and President Carrier Networks EMEA and from 1999 to 2003, Mr. Donahee wasExecutive Vice President and President the Americas.  Mr. Donahee is also a director of Alaska Communications Systems Group Inc., a public company with a class of securities registered under the Securities Exchange Act of 1934.  Mr. Donahee received his Bachelor of Arts, Education from the University of New Brunswick, completed his graduate studies at the University of Western Ontario and attended the Marketing Management Program at Stanford University.  Mr. Donahee served as a director at various times on a number of the boards including Bell Canada, Advanced Network Systems, the American Heart Association, Alaska Communication Systems and Vantrix Corporation*.*

 

 

 

- 71 -

 

 

*David J. Raffa - Director*

David Raffa is a co-founder of and Fund Manager with Lions Capital Corp., manager of BC Advantage Funds and Lions Liquidity Investment Fund LP, and a founder and principal of Valeo Corporate Finance.  Lions manages two investment funds which invest in early stage life science and technology companies.  Valeo provides corporate finance advice to technology companies on financing, mergers and acquisitions and building and operating boards of directors.  Mr. Raffa began his career as a corporate finance lawyer.  He sold his practice at Catalyst Corporate Finance Lawyers to Fasken Martineau at the end of 2005, and retired from the practice of law.  Mr. Raffa has been a member of the Board of the BC Technology Industries Association, and an advisor to the B.C. Securities Commission and TSX Venture Exchange in respect of issues material to the technology industry.  He also served as Chairman of Science World's EquityCommittee.  He currently serves as a director, officer or advisory board member of a number of public and private technology companies.  Mr. Raffa is Chairman of ActiveState Corporation and a co-founder of Amorfix Life Sciences Ltd., a TSX listed company.  Mr. Raffa has over 20 years experience in advising technology companies.

*Kenneth R. Miller - Director*

Mr. Miller has been a director since July 2006.  Since June 1987, Mr. Miller serves as President and Chief Executive Officer of 535760 B.C. Ltd., a private investment company, specializing in investment and management services. From July 1995 to March 2001, Mr. Miller served in various senior officer positions with MDSI Mobile Data Solutions Inc., a developer of wireless workforce management software.  From December 1998 to March 2001, he served as Chief Executive Officer for MDSI Mobile Data Solutions Inc., a then TSX and NASDAQ listed company. 

*Gerry Butters - Director*

Mr. Butters has been a director since July 2006. Mr. Butters is a communications industry veteran with more than 40 years experience in this sector. His career encompasses senior executive positions at Nortel Networks, AT&T, and Lucent Technologies. These include Chairman of the Board of AGCS (a joint venture of GTE and AT&T), President of NTI (a Nortel Networks US subsidiary). He was President of Global Public Networks at AT&T Network Systems from October 1997 to November 1999, President of the Optical Networks Group at Lucent Technologies from December 1999 to August 2000 and Senior Vice President Marketing and Technology at Lucent Technologies. Mr. Butters retired from Lucent Technologies in August 2000. Since August 2000 through the present time, Mr. Butters has been a board director of Lambda Optical Systems, a privately held company since October 2003, and a technical advisor to severalprivately held technology firms.

Mr. Butters is also a director of Amedia Networks Inc., a public company with a class of securities registered under the Securities Exchange Act of 1934.

*Family Relationships*

There are no family relationships among our directors or officers.

*Involvement In Certain Legal Proceedings*

Our directors, executive officers and control persons have not been involved in any of the following events during the past five years:

(1) any bankruptcy petition filed by or against any business of which such person was an executive officer either at the time of the bankruptcy or within two years prior to that time;

(2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

 

 

- 72 -

 

 

(3) being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and

(4) being found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

*Compliance with Section 16(a) of the Securities Exchange Act of 1934*

Section 16(a) of the Securities Exchange Act of 1934 requires our officers and directors, and persons who own more than ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission.  Officers, directors and greater than 10% shareholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.

Based solely on our review of the copies of such forms received by our company, or written representations from certain reporting persons that no Form 5s were required for those persons, we believe that, during the year ended December 31, 2006, all filing requirements applicable to our officers, directors and greater than ten percent beneficial owners were complied with, with the exception of the following:

 

Name

Number ofLate Reports

Number of Transactions NotReported on a Timely Basis

Failure to FileRequested Forms

Randy G. Buchamer

1(1)

1(1)

Nil

James J. Hutton

1(1)

1(1)

Nil

David J. Raffa

1(1)

1(1)

Nil

(1)            The named officer, director or greater than 10% shareholder, as applicable, filed a late Form 4 - Statement of Change in Beneficial Ownership.

*Code of Ethics*

Effective February 11, 2004, our company's board of directors adopted a Code of Ethics and Business Conduct that applies to, among other persons, our company's Chief Executive Officer (being our principal executive officer and principal financial officer), our company's Controller (being our principal accounting officer), as well as persons performing similar functions.  As adopted, our Code of Ethics and Business Conduct sets forth written standards that are designed to deter wrongdoing and to promote:

(1) honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2) full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us;

(3) compliance with applicable governmental laws, rules and regulations;

(4) the prompt internal reporting of violations of the Code of Ethics and Business Conduct to an appropriate person or persons identified in the Code of Ethics and Business Conduct; and

(5) accountability for adherence to the Code of Ethics and Business Conduct.

Our Code of Ethics and Business Conduct requires, among other things, that all of our company's personnel shall be accorded full access to our Chief Executive Officer or Audit Committee with respect to any matter which may arise 

 

 

 

- 73 -

 

 

relating to the Code of Ethics and Business Conduct.  Further, all of our company's personnel are to be accorded full access to our company's Audit Committee if any such matter involves an alleged breach of the Code of Ethics and Business Conduct by the Chief Executive Officer.

We will provide a copy of the Code of Ethics and Business Conduct to any person without charge, upon request.  Requests can be sent to:  Voice Mobility International, Inc., 100 - 4190 Lougheed Highway, Burnaby, British Columbia, Canada, V5C 6A8 or via email to investors@voicemobility.com.

*Nomination Procedures For Appointment of Directors*

As of March 1, 2007, we did not effect any material changes to the procedures by which our shareholders may recommend nominees to our board of directors that were otherwise disclosed in our proxy statement on Schedule 14A filed with the Securities and Exchange Commission on May 3, 2006.

*Audit Committee*

We have a standing Audit Committee which currently consists of Donald Calder, Robert Neal and Kenneth Miller, all of whom are non-employee directors of our company.  All of the members of the Audit Committee are independent as defined by Nasdaq Marketplace Rule 4200(a)(15).  The Audit Committee was established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934.  The Audit Committee is directed to review the scope, cost and results of the independent audit of our books and records, the results of the annual audit with management and the adequacy of our accounting, financial and operating controls; to recommend annually to the board of directors the selection of the independent registered accountants; to consider proposals made by the independent registered accountants for consulting work; and to report to the board of directors, when so requested, on any accounting orfinancial matters.  The board of directors adopted its charter for the Audit Committee on April 26, 2002 and was formed in February, 2000.

*Audit Committee Financial Expert*

Our board of directors has determined that our company has one audit committee financial expert serving on the audit committee, which person is Kenneth Miller.  Kenneth Miller is a certified general accountant.  Our board of directors has also determined that Kenneth Miller is "independent", as that term is defined by Nasdaq Marketplace Rule 4200(a)(15).

**Item 10.**

**Executive Compensation.**

**Summary Compensation Table**

The particulars of compensation paid to the following persons:

(a)

our principal executive officer;

(b)

each of our two most highly compensated executive officers who were serving as executive officers at the end of the year ended December 31, 2006; and

(c)

up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the year ended December 31, 2006,

who we will collectively refer to as our named executive officers, of our company for the years ended December 31, 2006 and 2005, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officer, whose total compensation does not exceed $100,000 for the respective fiscal year:

 

 

 

 

- 74 -

 

 

 

Name and PrincipalPosition

Year

Salary($)

Bonus($)

Stock  Awards($)

Option  Awards($)(1)

Non-Equity  Incentive Plan Compensa-tion($)

Change in PensionValue and Nonqualified Deferred Compensation  Earnings($)

OtherAnnualCompen-sation ($)(2)

Total($)

Randy BuchamerChief Executive Officer (3)

20062005

$176,320$165,085

N/A$49,525

N/AN/A

$148,644$325,730

NilNil

NilNil

$5,290$4,953

$330,254$545,293

James J. HuttonPresident(4)

20062005

$138,852$130,004

N/A$49,525

N/AN/A

$48,438$190,440

Nil

Nil

$5,290$4,953

$192,580$374,922

(1)  Reflects the grant date fair value calculated in accordance with FAS 123(R).  See "Notes to Financial Statement – Summary of Significant Accounting Policies – Stock Based Compensation" for a discussion of the relevant assumptions used in calculating the grant date fair value pursuant to FAS 123(R).

(2)  Mr. Buchamer and Mr. Hutton "All Other Compensation" consists of car allowance of $441 (Cdn$500) per month..

(3)   Compensation was paid to Mr. Buchamer by VMI, our operating subsidiary.  Mr. Buchamer, Chief Executive Officer of our company and our subsidiary, entered into an indefinite term employment agreement on August 16, 2001.  He receives a salary of $176,320 (Cdn$200,000) per year plus a car allowance of $441 (Cdn$500) per month.

(4)   Compensation was paid to Mr. Hutton by VMI, our operating subsidiary. Mr. Hutton served as our Chief Executive Officer from April 1, 1998 to August 15, 2001.  Mr. Hutton was appointed as our President on June 29, 2001.  He received a salary of $138,852 (Cdn$157,500) for 2006 plus a car allowance of $441 (Cdn$500) per month.

**Stock Option Grants in 2006 to Named Executive Officers**

During 2006, we granted stock option awards to our Chief Executive Officer and President pursuant to our Second Amended and Restated 1999 Stock Option Plan.  Information with respect to each of these stock option awards, including estimates regarding future payouts under each of these awards on a grant by grant basis, is set forth in the table below.

Name

Grant Date

All Other Stock Awards: Number of Shares of Stock or  Units (#)

All Other Option Awards: Number of Securities  Underlying Options (#)

Exercise or Base Price of Option Awards ($/Share)

Grant Date Fair Value of Stock and Option Awards

Randy Buchamer

March 30, 2006August 22, 2006

N/AN/A

108,800400,000

Cdn$0.79Cdn$0.54

$48,438$100,206

James J. Hutton

March 30, 2006

N/A

108,800

Cdn$0.79

$48,438

 

 

 

 

- 75 -

 

 

During 2006, the compensation committee voted to issue a total of 651,535 options to other employees, consultants and directors.  The exercise price was the closing price on the date of grant and ranged from Cdn$0.50 to Cdn$0.82 per share.  The majority of the options will vest over a three-year period with certain of the options vesting over a one-year period from the grant date.  The options were granted to 14 employees.  The grants ranged in size from 13,600 to 75,000 with the average being 35,102.  75,000 options were granted to independent directors and 50,000 options were granted to consultants.

**Outstanding Equity Awards at Fiscal Year End**

The following table summarizes equity awards granted to our Chief Executive Officer and President that were outstanding as of December 31, 2006.

Option  Awards

Stock  Awards

Name 

Number of Securities Underlying Options(#) Exercisable

Number of Securities Underlying Options(#) Unexercisable

Equity Incentive Plan Awards: Number of Securities  Underlying Unexercised Unearned Options(#)

Option Exercise Price($)

Option Expiration Date

Number of Shares of Units of Stock that have not  Vested(#)

Market Value of Shares or Units of Stock that have not  Vested($)

Equity Incentive Plan Awards: Number of Unearned  Shares, Units or Other Rights that have not Vested(#)

Equity Incentive Plan Awards: Market or Payout Value  of Unearned Shares, Units or Other Rights that have not Vested($)

Randy Buchamer (1)

1,530,531

790,769

N/A

0.53 (1)

5 years from grant

N/A

N/A

N/A

N/A

James J. Hutton (2)

440,935

271,087

N/A

0.58 (2)

5 years from grant

N/A

N/A

N/A

N/A

 

(1)  Includes a grant made on February 26, 2002 for 20,000 options at an exercise price of $0.24 (Cdn$0.28) per share; a grant made on September 20, 2002 for 450,000 options at an exercise price of $0.14 (Cdn$0.16) per share; a grant made on February 13, 2003 for 83,000 options at an exercise price of $0.32 (Cdn$0.37) per share; a grant made on March 18, 2004 for 612,473 options at an exercise price of $0.73 (Cdn$0.85) per share; a grant made on February 16, 2005 for 67,863 options at an exercise price of $0.56 (Cdn$0.65) per share; a grant made on August 24, 2005 for 221,917 options at an exercise price of $0.85 (Cdn$0.99) per share; a grant made on March 30, 2006 for 27,424 options at an exercise price of $0.68 (Cdn$0.79) per share and a grant made on August 22, 2006 for 47,854 options at an exercise price of $0.46 (Cdn$0.54) per share.

(2) Includes a grant made on February 26, 2002 for 20,000 options at an exercise price of $0.24 (Cdn$0.28) per share; a grant made on May 16, 2003 for 62,500 options at an exercise price of $0.22 (Cdn$0.26) per share; a grant made on May 20, 2003 for 46,000 options at an exercise price of $0.20 (Cdn$0.23) per share; a grant made on March 18, 2004 for 101,149 options at an exercise price of $0.73 (Cdn$0.85) per share; a grant made on February 16, 2005 for 67,863 options at an exercise price of $0.56 (Cdn$0.65) per share; a grant made on August 24, 2005 for 115,998 options at an exercise price of $0.85 (Cdn$0.99) per share; a grant made on March 30, 2006 for 27,424 options at an exercise price of $0.68 (Cdn$0.79) per share.

 

 

 

- 76 -

 

 

**Aggregate Option Exercises in 2006 by Executive Officers**

The following table provides information as to options exercised, if any, by each of the named executive officers in 2006 and the value of options held by those officers at year-end measured in terms of the last reported sale price for the shares of our common stock on December 31, 2006 ($0.36).

 

Name

SharesAcquired onExercise (#)

ValueRealized

Number of Securities UnderlyingUnexercised Options at December 31, 2006

Value of Unexercised In-the-Money Options at December 31, 2006 (1)

 

 

 

Exercisable

Unexercisable

Exercisable

Unexercisable

Randy Buchamer

Nil

Nil

1,530,531

790,769

$106,142 (2)

$Nil

James J. Hutton

Nil

Nil

440,935

271,087

$18,433 (3)

$Nil

(1) The values for "in-the-money" options are calculated by determining the difference between the fair market value of the securities underlying the options as of December 31, 2006 ($0.36 per share on OTC Bulletin Board) and the exercise price of the individual's options.

(2) Of the exercisable options, 20,000 options have an exercise price of $0.24, 450,000 options have an exercise price of $0.14 and 83,000 options have an exercise price of $0.32.

(3) Of the exercisable options, 20,000 options have an exercise price of $0.24, 62,500 options have an exercise price of $0.22 and 46,000 options have an exercise price of $0.20.

**Compensation of the Company's Directors**

Our non-employee directors are granted incentive stock options.  Employee directors are granted incentive stock options based on their individual employment agreements.  All stock option grants are made pursuant to our Second Amended and Restated 1999 Stock Option Plan.

The following table summarizes compensation paid to all of our non-employee directors:

Name 

Fees Earned or Paid in Cash($)

Stock Awards ($)

Option Awards($)

Non-Qualified Deferred Compensation Earnings($)

Non-Equity Incentive Plan Compensation ($)

All Other Compensation($)

Total($)

Gary Donahee

Nil

Nil

Nil

N/A

N/A

N/A

Nil

Morgan Sturdy

Nil

Nil

$12,526

N/A

N/A

N/A

$12,526

Robert Neal

Nil

Nil

Nil

N/A

N/A

N/A

Nil

David Raffa

Nil

Nil

$6,263

N/A

N/A

N/A

$6,263

Donald A Calder

Nil

Nil

Nil

N/A

N/A

N/A

Nil

Kenneth R Miller

Nil

Nil

Nil

N/A

N/A

N/A

Nil

Gerry Butters

Nil

Nil

Nil

N/A

N/A

N/A

Nil

 

 

 

 

- 77 -

 

 

**Employment Agreement with Our Named Executive Officers**

Randy Buchamer, Chief Executive Officer of our company and our subsidiary, entered into an employment agreement on August 16, 2001.  Except for any accrued salary, Mr. Buchamer is not entitled to any payment following, or in connection with, the resignation, retirement or other termination of Mr. Buchamer's employment as Chief Executive Officer, or in connection with Mr. Buchamer's responsibilities following a change in control.  During the year ended December 31, 2006, Mr. Buchamer received a salary of $176,320 (Cdn$200,000) plus a car allowance of $441 (Cdn$500) per month.

James Hutton, President of our company, entered into an employment agreement on April 1, 2000.  Except for any accrued salary, Mr. Hutton is not entitled to any payment following, or in connection with, the resignation, retirement or other termination of Mr. Hutton's employment as President, or in connection with Mr. Hutton's responsibilities following a change in control.  During the year ended December 31, 2006, Mr. Hutton received a salary of $138,852 (Cdn$157,000) plus a car allowance of $441 (Cdn$500) per month.

 

 

 

- 78 -

 

 

**Item 11.**        **Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.**

We have set forth in the following table certain information regarding our common stock beneficially owned on March 1, 2007 for (i) each shareholder we know to be the beneficial owner of 5% or more of our outstanding common stock, (ii) each of our executive officers and directors, and (iii) all executive officers and directors as a group.  In general, a person is deemed to be a "beneficial owner" of a security if that person has or shares the power to vote or direct the voting of such security, or the power to dispose or to direct the disposition of such security.  A person is also deemed to be a beneficial owner of any securities of which the person has the right to acquire beneficial ownership within 60 days.  As of March 1, 2007, we had outstanding approximately 56,405,696 shares of common stock issues and outstanding.

 

**Name and  Address of Beneficial Owner**

**Amount and Nature of****Beneficial  Ownership**

**Percentage****of Class(1)**

*William H. Laird**2930 13th Ave. S.W.**Salmon Arm, BC  V1E 4N7***

*3,770,543 (2)***

*6.7%***

*William E. Krebs**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*3,598,585 (3)***

*6.3%***

*James J. Hutton**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*1,803,599 (4)***

*3.2%***

*Randy Buchamer**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*1,742,641 (5)***

*3.0%***

*Morgan Sturdy**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*555,769 (6)***

*1.0%***

*Gary Donahee**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*325,000 (7)***

***%***

*Robert Neal**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*325,000 (8)***

***%***

*David Raffa**c/o 100 - 4190 Lougheed Highway**Burnaby, BC  V5C 6A8***

*317,249 (9)***

***%***

*Donald A. Calder**c/o 1400 - 1055 West Hastings Street**Vancouver, BC  V6E 2E9***

*275,000 (10)***

***%***

*Directors and Executive Officers as a Group(7 persons)***

*5,344,258 (11)***

*9.5%***

 

 

 

 

- 79 -

 

 

 

 

**            Less than 1%

(1)            Based on 56,405,696 shares of common stock issued and outstanding as of March 1, 2007.   Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities, including those securities convertible or exercisable within 60 days.  Except as otherwise indicated, we believe that the beneficial owners of the common stock listed above, based on information furnished by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable.

(2)            Includes 339,000 shares, which are owned by Mr. Laird's wife.

(3)            Includes 2,593,131 shares and 431,836 share purchase warrants exercisable within the next 60 days owned by Margit Kristiansen, Mr. Krebs' wife.  Includes 200,000 shares held in a self-directed registered retirement savings plan.  Also includes stock options to acquire an aggregate of 225,000 shares of our common stock exercisable within the next 60 days.

(4)            Includes 36,778 shares, which are owned by Janis Gurney, Mr. Hutton's wife, over which Mr. Hutton disclaims beneficial ownership.  Includes options to acquire an aggregate of 506,821 shares of our common stock exercisable within the next 60 days. Includes 110,000 shares held in a self-directed registered retirement savings plan.

(5)            Includes options to acquire an aggregate of 1,705,141 shares of our common stock and share purchase warrants to acquire an aggregate of 12,500 shares of our common stock exercisable within the next 60 days.

(6)            Includes options to acquire an aggregate of 325,000 shares of our common stock and share purchase warrants to acquire an aggregate of 76,923 shares of our common stock exercisable within the next 60 days.

(7)            Includes options to acquire an aggregate of 325,000 shares of our common stock exercisable within the next 60 days.

(8)            Includes options to acquire an aggregate of 325,000 shares of common stock exercisable within the next 60 days.

(9)            Includes options to acquire an aggregate of 317,249 shares of common stock exercisable within the next 60 days.

(10)          Includes options to acquire an aggregate of 275,000 shares of common stock exercisable within the next 60 days.

(11)          Includes share purchase warrants to acquire an aggregate of 89,423 shares of common stock and options to acquire 3,779,211 shares of our common stock, all exercisable within 60 days.

*Equity Plan Compensation Information*

This information can be found under Item 5 - Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities.

**Item 12.**

**Certain Relationships and Related Transactions, and Director Independence.**

Other than as described under the heading "Executive Compensation", no director, executive officer, principal shareholder holding at least 5% of our common shares, or any family member thereof, had any material interest, direct or indirect, in any transaction, or proposed transactions, during the year ended December 31, 2006, in which the amount involved in the transaction exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for the last three completed fiscal years.

 

 

 

- 80 -

 

 

**Corporate Governance**

We currently act with 9 directors, consisting of Randy Buchamer, James Hutton, Morgan Sturdy, Donald Calder, Robert Neal, Gary Donahee, David Raffa, Kenneth Miller and Gerry Butters.  We have determined that Morgan Sturdy, Donald Calder, Robert Neal, Kenneth Miller, Gary Donahee, David Raffa and Gerry Butters are independent directors as defined by Nasdaq Marketplace Rule 4200(a)(15).

We currently act with a standing audit and compensation committee.  We do not have a standing nominating committee but our entire board of directors acts as our nominating committee.  If any shareholders seeks to nominate a director or bring any other business at any meeting of our shareholders, the shareholder must comply with the procedures contained in our bylaws and the shareholder must notify us in writing and such notice must be delivered to or received by the Secretary in accordance with Rule 14a-8 of the Exchange Act.  A shareholder may write to the Secretary of our company at our principal executive office, 100 - 4190 Lougheed Hwy, Burnaby, British Columbia, Canada V5C 6A8, to deliver the notices discussed above and for a copy of the relevant bylaw provisions regarding the requirements for making stockholder proposals and nominating director candidates.

*Audit Committee*

Our audit committee consists of Donald Calder, Robert Neal and Kenneth Miller, all of whom are non-employee directors of our company.  All of the members of the Audit Committee are independent as defined by Nasdaq Marketplace Rule 4200(a)(15).  The Audit Committee was established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934.  The Audit Committee is directed to review the scope, cost and results of the independent audit of our books and records, the results of the annual audit with management and the adequacy of our accounting, financial and operating controls; to recommend annually to the board of directors the selection of the independent registered accountants; to consider proposals made by the independent registered accountants for consulting work; and to report to the board of directors, when so requested, on any accounting or financial matters.  The Audit Committeeof the board of directors was formed in February 2000 and adopted its charter on April 26, 2002.

*Compensation Committee*

The Compensation Committee currently consists of Donald Calder, Gary Donahee and David Raffa, all of whom are non-employee directors of our company.  All of the members of our Compensation Committee are independent as defined by Nasdaq Marketplace Rule 4200(a)(15).  The Compensation Committee reviews and approves annual salaries, bonuses and other forms and items of compensation for our senior officers and employees.  Except for plans that are, in accordance with their terms or as required by law, administered by the board of directors or another particularly designated group, the Compensation Committee also administers and implements all of our stock option and other stock-based and equity-based benefit plans (including performance-based plans), recommends changes or additions to those plans, and reports to the board of directors on compensation matters.  The Compensation Committee was formed in February2000 and adopted its charter on March 30, 2006.  To the extent required by law, a separate committee of disinterested parties administers the Second Amended and Restated 1999 Stock Option Plan.

*Transactions with Independent Directors*

Other than as set out below or disclosed under the heading "Certain Relationships and Related Transactions, and Director Independence", none of our independent directors entered into any transaction, relationship or arrangement during the year ended December 31, 2006 that was considered by our board of directors in determining whether the director maintained his or her independence in accordance with Nasdaq Marketplace Rule 4200(a)(15).

On August 22, 2006, we issued 50,000 stock options to Morgan Sturdy and 25,000 stock options to David Raffa in consideration for their respective services as directors of our company.  Each option is exercisable at Cdn$0.50 per share and is further disclosed in this annual report under the heading "Compensation of the Company's Directors".  Other than reimbursement for travel expenses incurred in connection with attending our directors' meetings, our company did not pay any other fees to our directors during the year ended December 31, 2006.

 

 

 

- 81 -

 

 

 

**Item 13.**

**Exhibits.**

*Exhibits Required by Item 601 of Regulation S-B*

Exhibit Number/Description

ExhibitNumber

Description

3.1

Articles of Incorporation, dated October 1, 1997 (1)

3.2

Articles of Amendment of Articles of Incorporation, dated June 24, 1999 (1)

3.6

Amended and Restated Bylaws (2)

4.1

Common Stock Certificate (1)

4.2

Form of Warrant (1)

4.3

Certificate of Designation of Series A Preferred Stock (1)

4.4

Certificate of Designation of Series B Preferred Stock, dated December 27, 2000 (3)

4.5

Certificate of Amendment to Certificate of Designation of Series B Preferred Stock (4)

10.1

Amended and Restated 1999 Stock Option Plan (4)

10.2

Employment Agreement between Voice Mobility Inc. and Randy Buchamer, dated August 16, 2001 (4)

10.3

Employment Agreement between Voice Mobility Inc. and James Hutton, datedApril 1, 2000 (4)

10.4

Form of Subscription Agreement in connection with the issuance of the Series H Promissory Notes, dated April 1, 2005, between Voice Mobility Inc. and each of Bearberry Investments and Margit Kristiansen. (6)

10.5

Form of Subscription Agreements in connection with the unit financing dated June 27, 2005 between Voice Mobility International Inc. and each of Doug Johnson, Mike Bennett, BC Advantage Fund (VCC) Ltd., Randy Buchamer, Paul Currie, Michael David, John Herdman, Bernie Hertel, HighTec Venture Capital Inc., Harold Hodgson, Thomas Jaw, Betty Ku, Jeff Lewis, Barbara McKnight, Tan Van Nguyen, Stuart Ostlund, Jamie Robertson, Robert Semple, Sthakwy Fishing Company Ltd., Ian Stuart, Aaron and Carling Sundberg, Bob Tassone, Chris Thomas, John Tognetti, Randall West, James Yii, Stanley Steed, Alpine Atlantic, APAX Consultants Ltd., Arlington Group Ltd., Bank Julius Baer & Co. Ltd., Chartwell Investments, Jan Dekker, J.T. Eberhard, Erich Hofer, James Ladner, Professional Trading Services SA, Bruno Sauter, H.J.M. Schepers and Shalimar Business Services SA. (7)

10.6

Form of Subscription Agreements in connection with the unit financing dated August 19, 2005 between Voice Mobility International Inc. and EMGE Finance SA. (8)

 

 

 

 

- 82 -

 

 

 

10.7

Form of Amendment agreement in connection with the extension of the maturity date of the Series C, D, E, F, G and H promissory notes payable dated September 19, 2005 between Voice Mobility International Inc., Voice Mobility Inc. and each of Bernice Kosiur, Manzanita Investments Ltd., MICAP Holding Inc., Ketty Hughes, Margit Kristiansen, William Laird, William Krebs, L.A. Laird and Bearberry Investments Inc.(8)

10.8

Form of Amendment to Class T warrants dated September 19, 2005 between Voice Mobility International Inc., Voice Mobility Inc. and each of Bernice Kosiur, Manzanita Investments Ltd., MICAP Holding Inc., Ketty Hughes, Margit Kristiansen, William Laird, William Krebs, L.A. Laird and Bearberry Investments Inc. (8)

10.9

Form of Subscription Agreement dated December 19, 2006, between our company and 52 investors who participated in the Cdn$3,425,500 private placement.(9)

10.10

Form of Subscription Agreement dated December 19, 2006, between our company and BC Advantage Funds (VCC) Ltd. (9)

10.11

Finder's Subscription Agreement dated December 19, 2006, between our company and Raymond James Ltd. (9)

10.12

Form of Warrant Certificate dated December 19, 2006. (9)

14.1

Code of Ethics. (5)

31*

Section 302 Certification of Randy Buchamer, dated March 23, 2007

32*

Section 906 Certification of Randy Buchamer, dated March 23, 2007

21.1*

**Subsidiaries of our company**

 

Voice Mobility Inc. (Canadian Corporation)

 

Voice Mobility Canada Limited (Canadian Corporation)

 

VM Sub Limited (Canadian Corporation)

 

Voice Mobility (US) Inc. (Nevada corporation)

23.1*

Consent of Ernst & Young LLP

* Filed herewith.

(1) Previously submitted with our Registration Statement on Form 10-SB, as originally filed on September 17, 1999, and all amendments thereto.

(2) Previously submitted with our Definitive Schedule 14A as filed on May 19, 2000.

(3) Previously submitted with our Form 10-KSB, as filed on April 11, 2001.

(4) Previously submitted with our Form 10-K, as filed on April 1, 2002.

(5) Previously submitted with our Form 10-K, as filed on March 26, 2004.

(6) Previously submitted with our Amendment No. 1 to Form SB-2, as filed on May 13, 2005.

(7) Previously submitted with our Form 10-QSB, as filed on August 15, 2005.

(8) Previously submitted with our Form SB-2, as filed on October 20, 2005.

(9) Previously submitted with our Form 8-K, as filed on December 27, 2006.

 

 

 

- 83 -

 

 

 

**Item 14.**

**Principal Accountant Fees and Services.**

*Audit Fees*

Our independent registered public accounting firm, Ernst & Young LLP, provided audit and other services during the years ended December 31, 2006 and 2005 as follows:

 

**2006**

**2005**

**Audit Fees**

$85,000

$82,500

**Audit Related Fees**

-

-

**Tax Fees**

9,000

6,000

**All Other Fees**

1,000

-

**Total Fees**

$95,000

$88,500

*Audit Fees*.  This category includes the fees for the audit of our consolidated financial statements and the quarterly reviews of interim financial statements.  This category also includes advice on audit and accounting matters that arose during or as a result of the audit or the review of interim financial statements and services in connection with SEC filings.

*Audit Related Fees*.  There were no audited related fees paid to Ernst & Young LLP.

*Tax Fees*.  This category includes the fees for professional services rendered for tax compliance, tax advice and tax planning.

*All Other Fees*.  There were no other fees paid to Ernst & Young LLP.

The Securities and Exchange Commission requires that, before Ernst & Young LLP is engaged by the company or its subsidiaries to render any auditing or permitted non-audit related service, the engagement be:

- approved by the company's audit committee; or

- entered into pursuant to pre-approval policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee's responsibilities to management.

The audit committee requires advance approval of all audit, audit-related, tax, and other services performed by the independent auditor.  Unless the specific service has been previously pre-approved with respect to that year, the audit committee must approve the permitted service before the independent auditor is engaged to perform it.  The audit committee has delegated to the chair of the audit committee authority to approve permitted services provided that the chair reports any decisions to the committee at its next scheduled meeting.

The audit committee has considered the nature and amount of the fees billed by Ernst & Young LLP, and believes that the provision of the services for activities unrelated to the audit is compatible with maintaining Ernst & Young LLP's independence.

 

 

 

 

- 84 -

 

 

**SIGNATURES**

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

**VOICE MOBILITY INTERNATIONAL, INC.**

 

By:  /s/ Randy G. Buchamer

Randy G. Buchamer

Chief Executive Officer and Director

(Principal Executive Officer and

Principal Financial Officer)

 

Date:  March 23, 2007

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

**Signature**

**Title**

**Date**

 

 

 

By: /s/ Randy G. BuchamerRandy G. Buchamer

Chief Executive Officer and Director(Principal Executive Officer andPrincipal Financial Officer)

March 23, 2007

 

 

 

By: /s/ James J. Hutton

President and Director

March 23, 2007

James J. Hutton

 

 

 

 

 

By: /s/ Harry Chan

Controller

March 23, 2007

Harry Chan

(Principal Accounting Officer)

 

 

 

 

By: /s/ Morgan P. Sturdy

Director

March 23, 2007

Morgan P. Sturdy

 

 

 

 

 

By: /s/ Gary R. Donahee

Director

March 23, 2007

Gary R. Donahee

 

 

 

 

 

By: /s/ Donald Calder

Director

March 23, 2007

Donald Calder

 

 

 

 

 

By: /s/ Robert E. Neal

Director

March 23, 2007

Robert E. Neal

 

 

 

 

 

By: /s/ Kenneth R. Miller

Director

March 23, 2007

Kenneth R. Miller

 

 

 

 

 

By: /s/ Gerry Butters

Director

March 23, 2007

Gerry Butters

 

 

 

 

 

 

CW1124473.2

 

  |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|