Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Aug. 31, 2017
Aug. 31, 2016
Aug. 31, 2015
Cash flows from operating activities      
Net loss $ (1,710,868) $ (1,310,607) $ (23,127,947)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Share-based compensation expense 233,245 219,886 239,986
Depreciation, depletion and other non-cash items 734,324 420,104 347,263
Investment in Well Enhancement Recovery Systems, LLC 10,488 10,675 4,577
Interest income and other non-cash items (14,647) (41,114) (419)
Interest added to receivable from related parties (34,755) (29,099) (15,493)
Changes in operating assets and liabilities:      
Trade accounts receivable (482,756) (23,161) 918,252
Prepaid expenses (152,281) (122,733) 43,472
Note receivable - related parties (156,743) (31,633) (105,208)
Accounts payable and accrued liabilities 477,538 (269,428) (848,669)
Income taxes 0 (292,729) 292,729
Deferred revenue (55,803) (55,802) (64,226)
Deferred income - oil and gas lease (19,000) (360,765) (645,720)
Net cash used in operating activities from continuing operations (1,171,258) (1,886,406) (22,961,403)
Net cash provided by operating activities from discontinued operations 118,379 1,615,677 21,987,337
Net cash used in operating activities (1,052,879) (270,729) (974,066)
Cash flows from investing activities:      
Investments in water, water systems and land (2,486,403) (1,209,416) (2,101,253)
Investments in Sky Ranch pipeline (4,368,196) 0 0
Investments in Sky Ranch land development (902,600) 0 0
Sales and maturities of marketable securities 9,786,406 2,840,000 0
Purchase of short-term investments 0 (25,970,721) 0
Purchase of long-term investments 0 (6,855,189) 0
Purchase of property and equipment (95,385) (472,310) (17,186)
Net cash provided by (used in) investing activities from continuing operations 1,933,822 (31,667,636) (2,118,439)
Net cash provided by (used in) investing activities from discontinued operations 0 (451,347) 44,650,149
Net cash provided by (used in) investing activities 1,933,822 (32,118,983) 42,531,710
Cash flows from financing activities      
Proceeds from exercise of options 0 0 48,825
Payment to contingent liability holders (2,408) (2,041) (8,621)
Net cash (used in) provided by financing activities from continuing operations (2,408) (2,041) 40,204
Net cash used in financing activities from discontinued operations 0 0 (6,258,365)
Net cash used in financing activities (2,408) (2,041) (6,218,161)
Net change in cash and cash equivalents 878,535 (32,391,753) 35,339,483
Cash and cash equivalents - beginning of year 4,697,288 37,089,041 1,749,558
Cash and cash equivalents - end of year 5,575,823 4,697,288 37,089,041
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES      
Retirement of collateral stock 0 1,407,000 0
Reduction in Tap Participation Fee liability, HP A&M receivable, collateral stock, and mineral interests received as a result of settlement of the Arkansas River Agreement 0 0 1,894,203
Assets acquired through WISE funding obligation $ 0 $ 0 $ 1,381,004