Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
 12 Months Ended
Aug. 31, 2014
Aug. 31, 2013
Aug. 31, 2012
Revenues:      
Metered water usage $ 1,879,495 $ 502,668 $ 182,802
Wastewater treatment fees 45,400 41,697 45,778
Special facility funding recognized 41,508 41,508 41,508
Water tap fees recognized 14,294 14,294 14,296
Farm operations 1,068,026 1,241,882   
Other income 42,417 15,413   
Total revenues 3,091,140 1,857,462 284,384
Expenses:      
Water service operations (547,562) (188,309) (78,144)
Wastewater service operations (38,426) (16,958) (19,269)
Farm operations (88,105) (96,337)   
Other (39,421) (1,199) (1,995)
Depletion and depreciation (149,757) (90,468) (88,576)
Total cost of revenues (863,271) (393,271) (187,984)
Gross margin 2,227,869 1,464,191 96,400
General and administrative expenses (3,356,863) (2,333,126) (2,374,106)
Impairment of land and water rights held for sale (402,657)   (6,457,760)
Impairment of water assets       (5,544,022)
Depreciation (46,807) (220,834) (220,657)
Operating loss (1,578,458) (1,089,769) (14,500,145)
Other income (expense):      
Oil and gas lease income, net 525,438 416,048 422,999
Farm income, net       71,101
Interest income 26,858 34,583 53,339
Interest expense (239,200) (245,503)   
Other 160,004 9,574 3,552
Gain on sale of land and water assets 1,407,326    1,016
Gain on extinguishment of contingent obligations and debt 832,097    
Interest imputed on the Tap Participation Fees payable to HP A&M (1,445,509) (3,275,378) (3,470,523)
Net loss $ (311,444) $ (4,150,445) $ (17,418,661)
Net loss per common share - basic and diluted $ (0.01) $ (0.17) $ (0.72)
Weighted average common shares outstanding - basic and diluted 24,037,598 24,037,598 24,037,598