6-K 1 intbar6kdec122005.htm INTERNATIONAL BARRIER TECHNOLOGY INC FORM 6K Converted by EDGARwiz




     OMB APPROVAL

OMB Number: 3235-0116

Expires: July 31, 2008

Estimated average burden

hours per response 6.20


UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 6-K


REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 AND 15d-16

UNDER THESECURITIES EXCHANGE ACT OF 1934


For the month of:

August 2005


INTERNATIONAL BARRIER TECHNOLOGY INC.

(Translation of Registrants name into English)


750 West Pender Street, #604, Vancouver, British Columbia  V6C 2T7

(Address of principal executive offices)


1.  Press Release: 8/29/2005; 9/6/2005; 10/4/2005; 10/6/2005; 12/1/2005; 12/5//2005; and 12/14/2005; 1/9/2006


2.  First Fiscal Quarter Ended 9/30/2005 Interim Financial Statements

     Form 52-109FT2: CEO Certification of Interim Filings During Transition Period

     Form 52-109FT2: CFO Certification of Interim Filings During Transition Period

     First Fiscal Quarter Financial Statements: Management’s Discussion and Analysis






Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.  

Form 20- F..XXX...   Form 40-F.


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____


Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____


Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a  press  release,  is  not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.


Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ..... No ..XXX...


If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ___


SEC 1815 (09-05)  Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the  form displays a currently valid OMB control number.






[intbar6kdec122005002.gif]






[intbar6kdec122005004.gif]






[intbar6kdec122005006.gif]







[intbar6kdec122005008.gif]






[intbar6kdec122005010.gif]






[intbar6kdec122005012.gif]






[intbar6kdec122005014.gif]







[intbar6kdec122005016.gif]



HomebuilderStocks.com Presents an Online Audio Interview with International Barrier Technology’s President Dr. Michael Huddy, Discussing Record Breaking Sales and Growth for Fire Resistant Products


Opportunities for growth through expanded manufacturing capabilities, government regulatory compliance, partnerships and licensing.



POINT ROBERTS, Wash., December 01, 2005 - www.HomebuilderStocks.com, a global investment research portal for the homebuilder industry presents an online audio interview with Dr. Michael Huddy, the President and Director of International Barrier Technology Inc. (OTCBB: IBTGF), a manufacturer of proprietary fire resistant building materials.  During the interview Dr. Huddy discusses Barrier’s increased sales volume for 2005, as well as the first quarter of 2006, and his projections for the coming year.  Dr. Huddy also talks about opportunities for future growth including the Company’s new manufacturing facility, which will contribute to improved distribution and expansion; receiving the International Code Congress Evaluation Services Report for its Pyrotite-based Blazeguard products; and plans for licensing and partnerships.


“Our sales volume has continued to increase as we have gone from quarter to quarter,” said Dr. Huddy in the interview.  “The quarter ending September 30th was an all time record for us with 1,651,000 square feet being shipped. We anticipate that the second quarter will continue along this trend.”


Barrier is close to completion on a new 15,000 square foot expansion to their manufacturing facility.  The expansion is expected to contribute to the company’s growth through reductions in material and labor costs while expanding capacity by up to three times the current levels.  “The new production line will enable us to continue to build a market and have existing capacity to fill it,” said Dr. Huddy.


For Access to the Online Audio Interview in Full Click Here:

http://www.HomebuilderStocks.com/Companies/IntlBarrier/audio/nov05/default.asp





1385 Gulf Road, Suite 102, Pt. Roberts, WA 98281

Toll Free: 800-665-0411

HomebuilderStocks.com

www.InvestorIdeas.com








Featured Company: (HBS is compensated by IBH as disclosed in disclaimer.)


International Barrier Technology Inc. (IBTGF: OTCBB; IBH: TSXV) develops, manufactures, and markets proprietary fire resistant building materials branded as Blazeguard®. Barrier’s award-winning Blazeguard® wood panels use a patented, non-toxic, non-combustible coating with an extraordinary capability: it releases water in the heat of fire.  The panels exceed “model” building code requirements in every targeted fire test and application, and are unique in combining properties that increase panel strength and minimize environmental and human impact.  Blazeguard® provides Barrier’s customers a premium material choice meeting an increasingly challenging combination of requirements in residential and commercial building construction.  Blazeguard® customers include four of the five top homebuilders!

www.intlbarrier.com


For our list of companies participating in the Home Building industry included within our HomebuilderStocks.com portal, click here:

http://www.homebuilderstocks.com/Companies/HomebuilderStocks/HomebuilderStockList.asp


Read the exclusive InvestorIdeas.com feature “The Insiders Corner”, a weekly report by well-known financial writer and author Michael Brush. http://investorideas.com/insiderscorner/


InvestorIdeas.com’s free “Investor Incite” Newsletter consists of company and industry updates, investment research and developing trends in key areas such as Homeland Security, Renewable Energy, Nanotechnology, Homebuilder Stocks and more.

To sign up click here: www.InvestorIdeas.com/Resources/Newsletter.asp






[intbar6kdec122005018.gif]


News Release

For Immediate Release:

December 5, 2005


Fire Resistant Building Materials Company Reports Record Sales Volume

for First Quarter Fiscal Year 2006

Sales volume increase of 122% over same period previous year – growth due to commercial modular building market success



Watkins, MN; Vancouver, BC December 5, 2005 - International Barrier Technology Inc. (“Barrier”) (IBTGF: OTCBB; IBH: TSXV), a manufacturer of proprietary fire resistant building materials, is pleased to report a net income of $35,761 for the three-month period ending September 30, 2005.


Record sales volume of $1,615,865 and 1,651,400 sq. ft. for this period were reported in October 2005. Sales to commercial modular markets were up to 869,100 sq.ft, a 122% increase over the same period in the previous year.


“Barrier is extremely pleased with the strong start to fiscal year 2006,” said Michael Huddy, Ph.D., International Barrier’s President and CEO. Success in the commercial modular building market is the primary force behind growth in this period.  Roof deck markets continue to be strong in existing east coast multifamily residential markets.  Market introductions for Blazeguard have begun in Southern California and in the upper mid-west, where Barrier has hired an experienced sales manager.


“Our focus for the year remains the successful start-up of the new production line in Watkins, MN and on continued growth in sales of Blazeguard,” reports Dr. Huddy.  Expanding Blazeguard sales into the priority geographies of the mid-west, California, and Texas, has been facilitated by the publication of the International Code Congress Evaluation Services Report which sanctions the use of Blazeguard wherever the International Building Code is used.


“The new production line, anticipated to be producing commercially early in 2006, will not only increase capacity threefold, it will create product features better suited for a variety of new products and market applications,” explains Dr. Huddy.  ”The new line and production technology it represents will provide an appropriate prototype for potential licensing partners who may be interested in pursuing manufacturing opportunities for the Pyrotite technology.” Barrier expects to successfully introduce new products and market applications in 2006, following the example and success of the MuleHide Products partnership in commercial modular sales which began in 2004.


To see full financial statements, please download the following document:

http://www.intlbarrier.com/pdf/Q2006.pdf








About International Barrier Technology Inc.

International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials.  Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire.  Barrier's awardwinning Blazeguard wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard customers include Mule-Hide Products Co Inc., Centex Homes (CTX: NYSE), Beazer Homes, Inc, (BZH: NYSE) D.R. Horton (DHI: NYSE), KB Home (KBH: NYSE), and Lennar (LEN: NYSE). Stock Building Supply, Inc., Builders First Source, Inc., 84 Lumber, Inc., the Contractor Yard, Inc. and., ABC Supply, Inc. are all stocking Blazeguard distributors.  Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene.


Barrier is part of the DJ Building Materials Index (US).




INTERNATIONAL BARRIER TECHNOLOGY INC.

Per: “David J. Corcoran”

David J. Corcoran

Director



THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.



For more information please visit:

www.intlbarrier.com or www.investorideas.com


Toll free 1.866.735.3519

Peter Kletas, ECON Investor Relations, Inc.

ir@intlbarrier.com



Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales.  In each case actual results may differ materially from such forward-looking statements.  The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.









[intbar6kdec122005020.gif]


News Release

For Immediate Release:

December 14, 2005


Fire Resistant Building Materials Company Reports Record Monthly Sales

Volume for November, 2005

November Sales at "all time high" of US$625,458


Watkins, MN; Vancouver, BC December 14, 2005 - International Barrier Technology Inc. (“Barrier”) (IBTGF: OTCBB; IBH: TSXV), a manufacturer of proprietary fire resistant building materials, is pleased to report a record for monthly sales on shipments completed in November 2005.  Six hundred eighty seven thousand, five hundred sq. ft. (687,500) of Blazeguard products were shipped in the month of November.  The previous record of 606,800 sq.ft. was attained in June 2004.  November 2005 sales volumes were 34 percent higher than November 2004 sales of 513,200 sq.ft.  Year-to-date fiscal year (July 1st through November 30, 2005), sales volume has increased to 2,777,900 sq.ft. from 1,983,500 sq.ft. in 2004, an improvement of 40 percent.


November sales revenue was also at an all time high of US $625,458.  Fiscal year to date sales revenue has increased to $2,384,440, an increase of 41.5 percent, from 2004.


“Historically, November has not been known as a stellar month for shipments.  Typically, distributors are beginning to prepare for calendar year-end physical inventories and winter weather has already begun to disrupt building in some areas of the US”, reports Michael Huddy, Ph.D., International Barrier’s President and CEO.  “Increased November sales are completely a reflection of increased market share in both the multifamily residential market as well as the commercial modular market we service through MuleHide Products, Inc.  Distributors and builders are continuing to buy because the product is needed for an increased number of projects and applications.  The fact that sales have continued to grow in this time period is a good indication of the potential for continued growth through 2006 and beyond.”


“Our focus for 2006 remains on the successful start-up of the new production line in Watkins, MN and on continued growth in sales of Blazeguard,” explains Dr. Huddy.  Expanding Blazeguard sales into the priority geographies of the mid-west, California, and Texas, has been facilitated by the publication of the International Code Congress Evaluation Services Report which sanctions the use of Blazeguard wherever the International Building Code is used.


“The new production line, anticipated to be producing commercially early in 2006, will not only increase capacity threefold, it will create product features better suited for a variety of new products and market applications,” explains Dr. Huddy.  ”The new line and production technology it represents will provide an appropriate prototype for potential licensing partners who may be interested in pursuing manufacturing opportunities for the Pyrotite technology.”  Barrier







expects to successfully introduce new products and market applications in 2006, following the example and success of the MuleHide Products partnership in commercial modular sales which began in 2004.




About International Barrier Technology Inc.

International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials.  Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire.  Barrier's award winning Blazeguard wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard customers include Mule-Hide Products Co Inc., Beazer Homes, Inc, (BZH: NYSE) D.R. Horton (DHI: NYSE), KB Home (KBH: NYSE), and Lennar (LEN: NYSE). Stock Building Supply, Inc., Builders First Source, Inc., 84 Lumber, Inc., the Contractor Yard, Inc. and., ABC Supply, Inc. are all stocking Blazeguard distributors.  Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene.


Barrier is part of the DJ Building Materials Index (US).




INTERNATIONAL BARRIER TECHNOLOGY INC.

Per: “David J. Corcoran”

David J. Corcoran

Director



THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS

PRESS RELEASE.


For more information please visit:

www.intlbarrier.com or www.investorideas.com


Toll free 1.866.735.3519

John Hurst, ECON Investor Relations, Inc.

jhurst@investorideas.com


Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales.  In each case actual results may differ materially from such forward-looking statements.  The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.







[intbar6kdec122005022.gif]






[intbar6kdec122005024.gif]




















INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited)





















THE ACCOMPANYING FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 HAVE NOT BEEN REVIEWED OR AUDITED BY THE COMPANY’S AUDITORS







INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED BALANCE SHEETS

September 30 and June 30, 2005

(Stated in Canadian Dollars)

(Unaudited)



 

September 30,

June 30

ASSETS

2005

2005

   

Current

  

Cash and term deposits

$

1,165,389

$

1,561,117

Accounts receivable

224,839

308,352

Prepaid expenses and deposits

27,696

20,689

Inventory

269,304

378,800

   
 

1,687,228

2,268,958

Capital assets

3,318,482

2,580,415

Trademark and technology rights – Note 5

1,245,143

1,291,697

   
 

$

6,250,853

$

6,141,070

   

LIABILITIES

   

Current

  

Accounts payable and accrued liabilities

332,714

355,220

Current portion of long-term debts

27,696

23,777

Current portion of obligation under capital leases

56,288

58,033

   
 

416,698

437,030

Long-term debts

10,659

17,971

Obligation under capital leases

638,118

680,382

   
 

1,065,475

1,135,383

   

SHAREHOLDERS’ EQUITY

   

Share capital – Notes 3 and 6

17,955,481

17,745,481

Contributed Surplus

960,855

958,515

Other comprehensive loss

(68,410)

-

Deficit

(13,662,548)

(13,698,309)

   
 

5,185,378

5,005,687

   
 

$

6,250,853

$

6,141,070





SEE ACCOMPANYING NOTES








INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

for the three months ended September 30, 2005 and 2004

(Stated in Canadian Dollars)

(Unaudited)



  

Three months ended

 

September 30,

 

2005

2004

   

Sales

$    1,615,865

$

1,400,619

Cost of goods sold

1,193,096

1,042,847

   

Gross profit

422,769

357,772

   

Operating expenses

  

Research and development

14,679

28,411

Amortization – plant and equipment

17,934

20,622

Amortization – trademark and technology costs

46,554

46,554

   
 

79,167

95,587

   

Administrative expenses

  

Accounting and audit fees

2,023

2,867

Consulting

2,709

-

Filing Fees

2,144

12,549

Insurance

7,402

6,455

Interest and bank charges

266

-

Interest on long-term debt

6,589

11,898

Legal fees

10,039

34,907

Office and miscellaneous

8,049

779

Sales, marketing, and investor relations

126,300

71,047

Stock-based compensation

12,090

657,716

Telephone

4,245

2,288

Transfer agent fees

3,000

3,000

Travel, promotion, trade shows

11,438

12,687

Wages and management fees – Note 4

110,792

78,154

   
 

307,086

894,347

   

Income (loss) from operations

36,516

(632,162)

   


SEE ACCOMPANYING NOTES


…/cont’d






 Continued

INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

for the three months ended September 30, 2005 and 2004

(Stated in Canadian Dollars)

(Unaudited)



  

Three months ended

  

September 30,

   

2005

2004

 



  

Other items:



  

Foreign exchange gain (loss)

  

(12,424)

20,751

Other Income

  

11,669

4,946

     
   

(755)

25,697

     

Net income (loss) for the period

  

35,761

(606,465)

     

Deficit, beginning of the period

  

(13,698,309)

(12,260,209)

     

Change in accounting policy

  

-

(44,340)

     

Deficit, end of the period

  

$

(13,662,548)

$

(12,911,014)

     

Basic and diluted loss per share

  

$

(0.00)

$

(0.03)

     

Weighted average number of shares outstanding

27,844,510

24,225,942

     
     
     


SEE ACCOMPANYING NOTES







INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

for the three months ended September 30, 2005 and 2004

(Stated in Canadian Dollars)

(Unaudited)



  

Three months ended

  

September 30,

   

2005

2004

 



  

Operating Activities



  

Net income (loss) for the period

  

$

35,761

$

(606,465)

Changes not involving cash:

    

Amortization

  

64,488

67,176

Stock-based compensation

  

12,090

657,716

     
   

112,339

118,427

Working capital changes:

    

Accounts receivable

  

72,315

275,854

Prepaid expenses

  

(7,618)

(10,004)

Inventory

  

95,899

(80,860)

Accounts payable

  

5,482

(244,079)

     

Cash provided by operations

  

278,417

59,338

     

Investing Activity

    

Purchase of capital assets

  

(832,806)

(64,075)

     

Financing Activities

    

Bank indebtedness

  

-

(134,047)

Long-term debts

  

(1,657)

(17,705)

Capital lease obligations

  

(26,616)

(86,462)

Common shares issued for cash, net

 of share issue costs

  


200,250


1,728,720

     

Cash provided by financing activities

  

171,977

1,490,506

     

Effect of exchange rate changes on cash

  

(13,316)

-

     

Change in cash during period

  

(395,728)

1,485,769

     

Cash and term deposits, beginning

 of the period

  


1,561,117


648,407

     

Cash and term deposits, end of the period

  

$

1,165,389

$

2,134,176

     
     

…/cont’d

SEE ACCOMPANYING NOTES








Continued

INTERNATIONAL BARRIER TECHNOLOGY INC.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

for the three months ended September 30, 2005 and 2004

(Stated in Canadian Dollars)

(Unaudited)



  

Three months ended

  

September 30,

   

2005

2004

 



  

Supplementary cash flow information:



  

Cash paid for:

    

Interest

  

$

6,589

$

11,898

     

Income taxes

  

$

-

$

-



SEE ACCOMPANYING NOTES









INTERNATIONAL BARRIER TECHNOLOGY INC.

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

for the period ended September 30, 2005

(Stated in Canadian Dollars)


 

Common Stock

 

Other

  
 

Issued

 

Contributed

Comprehensive

  
 

Shares

Amount

Surplus

Loss

Deficit

Total

 


     

Balance, June 30, 2004

22,974,855

$

14,388,228

$

56,840

$

-

$

(12,260,209)

$

2,184,859

Issued for cash pursuant to a private placement

– at $0.59

2,400,000

1,416,000

-

-

-

1,416,000

– at $1.11

1,470,000

1,629,848

-

-

-

1,629,848

Less: issue costs

-

(31,360)

-

-

-

(31,360)

Issued for cash pursuant to the exercise of share purchase options

– at $0.10


510,000


51,000


-


-


-


51,000

– at $0.26

225,000

58,500

-

-

-

58,500

– at $0.80

10,000

8,000

-

-

-

8,000

Issued for cash pursuant to the exercise of share purchase

 warrants

– at $0.80


180,000


144,000


-


-


-


144,000

Cancellation of escrow shares

(124,580)

-

-

-

-

-

Stock-based compensation charges

-

-

938,600

-

-

938,600

Reclassification of stock-based compensation charges upon

 exercise of share purchase options


-


81,265


(81,265)


-


-


-

Reclassification as a result of a change in accounting policy

-

-

44,340

-

(44,340)

-

Net loss for the year

-

-

-

-

(1,393,760)

(1,393,760)

       

Balance, June 30, 2005

27,645,325

17,745,481

958,515

-

(13,698,309)

5,005,687

Issued for cash pursuant to the exercise of share purchase options   

- at $0.51


25,000


12,750


-


-


-


12,750

Issued for cash pursuant to the exercise of share purchase warrants

- at $0.75


250,000


187,500


-


-


-


187,500

Amount reclassified from contributed surplus upon exercise of stock options


-


 9,750


(9,750)


-


-


-

Stock – based compensation charge

-

-

12,090

-

-

12,090

Foreign currency translation adjustment

-

-

-

(68,410)

-

(68,410)

Net income for the period

-

-

-

-

35,761

35,761

       

Balance September 30, 2005

27,920,325

$

17,955,481

$

960,855

$

(68,410)

$

(13,662,548)

$

5,185,378



SEE ACCOMPANYING NOTES







INTERNATIONAL BARRIER TECHNOLOGY INC.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited)



Note 1

Interim Reporting


The unaudited interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles for interim financial information and follow the same accounting policies and methods of their application as the Company’s most recent annual financial statements except as disclosed below.  These interim financial statements do not include all of the disclosure included in the annual financial statements, and accordingly, they should be read in conjunction with the annual financial statements for the year ended June 30, 2005.  In the opinion of management, all adjustments considered necessary for fair presentation have been included in these financial statements.


Note 2

Change in Accounting Policy


In January 2005, the CICA released new Handbook Section 1530, Comprehensive Income, and Section 3251, Equity, effective for annual and interim periods beginning on or after October 1, 2006.  However, earlier adoption of these pronouncements was encouraged, and therefore, the Company has adopted the new Handbook Sections effective July 1, 2005.  Section 1530 establishes standards for reporting and display of comprehensive income.  It defines other comprehensive income to include revenues, expenses, gains and losses that, in accordance with primary sources of GAAP, are recognized in comprehensive income, but excluded from net income.  The section does not address issues of recognition or measurement for comprehensive income and its components.  Section 3251 establishes standards for the presentation of equity and changes in equity during the reporting period.  The requirements in this section are in addition to Section 1530 and recommends that an enterprise should present separately the following components of equity:  retained earnings, accumulated other comprehensive income, the total for retained earnings and accumulated other comprehensive income, contributed surplus, share capital and reserves.


The effect of adopting these new pronouncements during the three months ended September 30, 2005 was to increase net income for the period by $68,410 and increase other comprehensive loss, a separate component of shareholders’ equity, by the same amount.








International Barrier Technology Inc.

Notes to the Interim Consolidated Financial Statements

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited) – Page 2



Note 3

Share Capital


Authorized: 100,000,000 common shares without par value


Escrow:


At September 30, 2005, there are 48,922 shares are held in escrow by the Company’s transfer agent. The release of these shares is subject to the direction or determination of the relevant regulatory bodies.


Commitments:


Stock-based Compensation Plan


At September 30, 2005, the Company has granted directors, officers and consultants the option to purchase 1,993,500 common shares of the Company.


A summary of the status of company’s stock option plan for the three months ended September 30, 2005 is presented below:


  

Weighted

  

Average

 

Number

Exercise

 

of Shares

Price

 



Outstanding, June 30, 2005

1,868,500

$0.60

Exercised

(25,000)

$0.51

Granted

150,000

$0.77

  


Outstanding, September 30, 2005

1,993,500

$0.62

  


Exercisable, September 30, 2005

1,745,999









International Barrier Technology Inc.

Notes to the Interim Consolidated Financial Statements

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited) – Page 3



Note 3

Share Capital – (cont’d)


Commitments: – (cont’d)


Stock-based Compensation Plan – (cont’d)


The following summarizes information about the stock options outstanding at September 30, 2005:


   

Exercise

Expiry

 

Number

 

Price

Date

 





 

110,000

 

$0.80

January 13, 2006

 

50,000

 

$1.05

April 29, 2006

 

85,000

 

$0.51

May 2, 2007

 

150,000

 

$0.77

July 19, 2007

 

20,000

  

$0.58

February 23, 2008

 

428,500

 

$0.10

March 5, 2008

 

1,150,000

 

$0.76

August 24, 2009

  



 
 

1,993,500





During the three months ended September 30, 2005, a compensation charge associated with the grant of stock options in the amount of $12,090 (2004:  $657,716) was recognized in the financial statements.


All stock-based compensation charges have been determined under the fair value method using the Black-Scholes option-pricing model with the following assumptions:


 

Three months ended

 

September 30,

 

2005

2004

 



Expected dividend yield

0.0%

0.0%

Expected volatility

89.5%

85%

Risk-free interest rate

3.02%

2.00%

Expected terms in years

2 years

5 years








International Barrier Technology Inc.

Notes to the Interim Consolidated Financial Statements

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited) – Page 4



Note 3

Share Capital – (cont’d)


Commitments: – (cont’d)


Stock-based Compensation Plan – (cont’d)


Warrants


At September 30, 2005, the following share purchase warrants were outstanding entitling the holder to purchase one common share for each warrant held as follows:


   

Exercise

Expiry

 

Number

 

Price

Date

 





 

500,000


CDN$0.75

June 1, 2006

 

1,253,000


US$0.92

August 20, 2006

 

217,000


US$0.60

August 20, 2006

 

2,400,000


CDN$0.74

March 22, 2007

  



 
 

4,370,000



 


Note 4

Related Party Transactions


The Company was charged the following by directors of the Company or private companies with common directors during the three months ended September 30, 2005 and 2004:


  

Three months ended

  

September 30,

   

2005

2004

 



  

Interest and bank charges

  

$

-

$

-

Wages and management fees

  

43,206

40,882

     
   

$

43,206

$

40,882


Note 5

Trademark and Technology Rights


  

September 30,

June 30,

  

2005

2005

    

Trademark and technology rights – at cost

$

1,489,771

$

1,489,771

Less:  accumulated amortization

 

(244,628)

(198,074)

    
  

$

1,245,143

$

1,291,697







International Barrier Technology Inc.

Notes to the Interim Consolidated Financial Statements

September 30, 2005

(Stated in Canadian Dollars)

(Unaudited) – Page 5



Note 6

Subsequent Events


Subsequent to September 30, 2005, the Company issued 717,000 common shares at $0.75 and 410,000 common shares at $0.74 pursuant to the exercise of share purchase warrants for total proceeds of $841,150.


Note 7

Canadian and United States of America Accounting Principles


The financial statements have been prepared in accordance with accounting principles generally accepted in Canada, which do not differ with those principles and practices that the Company would have followed had its financial statements been prepared in accordance with accounting principles generally accepted in the United States of America.


Note 8

Comparative Figures


Certain of the comparative figures have been reclassified to conform to the presentation of the current period.









[intbar6kdec122005026.gif]







[intbar6kdec122005028.gif]







[intbar6kdec122005030.gif]






[intbar6kdec122005032.gif]






[intbar6kdec122005034.gif]






[intbar6kdec122005036.gif]






[intbar6kdec122005038.gif]







[intbar6kdec122005040.gif]









SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


International Barrier Technology Inc.;  SEC File No. 000-20412

(Registrant)


Date:  January 12, 2005

\s\ Michael Huddy                                                


Michael Huddy, President/CEO/Director