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, 2014
Aug. 31, 2013
Aug. 31, 2012
Cash flows from operating activities      
Net loss $ (311,444) $ (4,150,445) $ (17,418,661)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Share-based compensation expense 251,915 66,812 54,588
Depreciation, depletion and other non-cash items 196,564 313,137 307,507
Investment in Well Enhancement Recovery Systems, LLC (37,193)      
Imputed interest on Tap Participation Fees payable to HP A&M 1,445,509 3,275,378 3,470,523
Impairment of water assets       5,544,022
Impairment of land and water rights held for sale 402,657   6,457,760
Gain on the sale of land and water rights held for sale (1,308,392)      
Interest income and other non-cash items (420)      
Interest added to note receivable - related party Rangeview Metropolitan (12,039) (12,038) (12,072)
Interest added to construction proceeds receivable      (19,241)
Gain on sale of fixed assets       (1,016)
Gain on extinguishment of contingent obligations (832,097)    
Changes in operating assets and liabilities:      
Trade accounts receivable (1,041,288) (449,344) (36,974)
Prepaid expenses (168,795) 125,437 (37,782)
HP A&M Receivable (414,355) (519,934)   
Sky Ranch Receivable 6,388 (57,303)   
Accounts payable and accrued liabilities 1,191,298 120,527 246,034
Interest accrued on agriculture land promissory notes (41,181)    
Deferred revenue (65,385) (65,385) (27,314)
Deferred income - oil and gas lease 790,002 (403,507) (414,480)
Net cash provided by (used in) operating activities 51,744 (1,756,665) (1,887,106)
Cash flows from investing activities:      
Investments in water, water systems and land (3,864,443) (378,008) (132,221)
Purchases of marketable securities       (1,235,857)
Sales and maturities of marketable securities    1,101,367 4,724,847
Proceeds from sale of land and easments 192,851    1,099
Proceeds from sale of farm land 5,811,265      
Proceeds from sale of collateral stock   3,415,000   
Purchase of property and equipment (3,370) (40,300) (3,894)
Net cash provided (used) by investing activities 2,136,303 4,098,059 3,353,974
Cash flows from financing activities      
Arapahoe County construction proceeds    291,662 84,854
Payment to contingent liability holders (6,185) (16,018)   
Payments made on promissory notes payable (2,880,667) (1,792,192)  
Net cash (used in) provided by financing activities (2,886,852) (1,516,548) 84,854
Net change in cash and cash equivalents (698,805) 824,846 1,551,722
Cash and cash equivalents - beginning of year 2,448,363 1,623,517 71,795
Cash and cash equivalents - end of year 1,749,558 2,448,363 1,623,517
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES      
Reduction in Tap Participation Fee liability resulting from remedies under the Arkansas River Agreement 53,317,500 11,737,300   
Mortgage payable and related party receivable recorded upon HP A&M default     9,550,200
Farm revenue allocated against the Tap Participation Fee liability and additional paid in capital thru August 3, 2012     189,700
Supplement Disclosures of non-cash activities, Total $ 53,317,500 $ 11,737,300 $ 9,739,900