Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 3 Months Ended
Nov. 30, 2013
Nov. 30, 2012
Cash flows from operating activities:    
Net loss $ (846,502) $ (1,333,590)
Adjustments to reconcile net loss to net cash used for operating activities:    
Imputed interest on Tap Participation Fee payable to HP A&M 657,235 894,648
Depreciation, depletion and other non-cash items 48,528 77,795
Interest accrued on agriculture land promissory notes 64,102 29,296
Stock-based compensation expense 54,794 10,633
Interest added to receivable from Rangeview Metropolitan District (3,002) (2,999)
Interest added to construction proceeds receivable    (4,213)
Changes in operating assets and liabilities:    
Trade accounts receivable 118,586 (176,723)
Receivables held in escrow (246,581)   
Sky Ranch Receivable 1,807   
Interest receivable and prepaid expenses 28,015 40,977
Receivable from HP A&M (185,716)  
Accounts payable and accrued liabilities 234,893 135,797
Deferred revenues 59,745 105,112
Deferred oil & gas lease (106,755) (103,620)
Net cash used by operating activities (120,851) (326,887)
Cash flows from investing activities:    
Investments in water, water systems, and land (397,302) (108,205)
Sales and maturities of marketable securities    182,931
Purchase of property and equipment (2,250)   
Proceeds from sale of collateral stock    3,525,000
Net cash (used in) provided by investing activities (399,552) 3,599,726
Cash flows from financing activities:    
Arapahoe County construction proceeds    20,549
Payments to contingent liability holders (1,684) (813)
Payments made on promissory notes payable (445,283) (491,786)
Net cash (used in) by financing activities (446,967) (472,050)
Net change in cash and cash equivalents (967,370) 2,800,789
Cash and cash equivalents - beginning of period 2,448,363 1,623,517
Cash and cash equivalents - end of period 1,480,993 4,424,306
SUPPLEMENTAL DISCLSOURES OF NON-CASH ACTIVITIES    
Reduction in Tap Participation Fee Aliability resulting from remedies under the Arkansas River Agreement 12,031,814  
Accrued interest and penalties related to receivable from HP A&M and related promissory notes   $ 46,000