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 ($)
 9 Months Ended
May. 31, 2015
May. 31, 2014
Cash flows from operating activities:    
Net income (loss) $ (45,440) $ (1,683,721)
Adjustments to reconcile net loss to net cash used in operating activities:    
Imputed interest on Tap Participation Fee payable to HP A&M 23,816 1,309,085
Depreciation and depletion 258,909 139,139
Investment in Well Enhancement Recover Systems, LLC 1,565 (37,193)
Stock-based compensation expense 186,296 183,090
Interest income and other non-cash items (315) (315)
Interest added to receivable from Rangeview Metropolitan District (10,812) (9,005)
Changes in operating assets and liabilities:    
Trade accounts receivable 1,104,739 (15,595)
Sky Ranch Receivable (83,500) 6,388
Prepaid expenses (285,821) (102,600)
Receivable from HP A&M (63,777) (593,415)
Note receivable - related party: Rangeview Metropolitian District (95,500) 0
Accounts payable and accrued liabilities (940,132) 682,131
Interest accrued on agriculture land promissory notes (46,745) (84,784)
Deferred revenues 25,396 38,517
Deferred oil & gas lease (484,290) 880,000
Net cash (used in) provided by operating activities (455,611) 711,722
Cash flows from investing activities:    
Investments in water, water systems, and land (1,900,267) (915,896)
Purchase of property and equipment (17,186) (2,250)
Proceeds from sale of farm land 699,826 3,919,265
Net cash (used in) provided by investing activities (1,217,627) 3,001,119
Cash flows from financing activities:    
Payments to contingent liability holders (7,642) (4,360)
Proceeds from borrowings on promissory notes payable 2,311,656 0
Payments made on promissory notes payable (1,636,946) (3,280,729)
Net cash provided by (used in) financing activities 667,068 (3,285,089)
Net change in cash and cash equivalents (1,006,170) 427,752
Cash and cash equivalents - beginning of period 1,749,558 2,448,363
Cash and cash equivalents - end of period 743,388 2,876,115
SUPPLEMENTAL DISCLSOURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Net reduction in Tap Participation Fee liability and HP A&M receivable collateral stock and mineral rights received as result of settlement of the Arkansas River Agreement 1,894,203 47,953,580
Assets acquired through WISE funding obligation $ 1,400,000 $ 0