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Related Party Transactions
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9 Months Ended |
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May 31, 2013
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
NOTE 6 – RELATED PARTY TRANSACTIONS
On
December 16, 2009, the Company entered into a Participation Agreement with the District, whereby the Company agreed to provide
funding to the District in connection with the District joining the South Metro Water Supply Authority (“SMWSA”).
During the three months ended May 31, 2013 and 2012, the Company provided $50,000 and $7,000 of funding to the District pursuant
to the Participation Agreement, respectively. During the nine months ended May 31, 2013 and 2012, the Company provided $89,500
and $39,700 of funding to the District pursuant to the Participation Agreement, respectively. These amounts were expensed
at the time of funding.
In 1995, the Company extended a loan to the District, a related party. The loan provided for borrowings of up to $250,000, is unsecured, bears interest based on the prevailing prime rate plus 2% (5.25% at May 31, 2013) and matures on December 31, 2013. The Company intends to extend the maturity date of the loan to December 31, 2014. The $552,900 balance of the note receivable at May 31, 2013, includes borrowings of $229,300 and accrued interest of $323,600.
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