Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Aug. 31, 2014
Income Taxes Tables  
Schedule of deferred tax assets

Significant components of the Company’s deferred tax assets as of August 31 are as follows:

 

    For the Fiscal Years Ended August 31,  
    2014     2013  
Deferred tax assets:            
  Net operating loss carryforwards   $ 7,279,900     $ 6,227,200  
  Imputed interest on Tap Participation Fee     10,609,600       10,074,200  
  Deferred revenue     768,400       494,600  
  Impairment Charges     2,360,200       2,408,800  
  Depreciation and depletion     4,695,900       4,899,800  
  Other     26,700       43,600  
  Valuation allowance     (25,740,700 )     (24,148,200 )
  Net deferred tax asset   $ -     $ -  

Schedule of income tax reconciliation

Income taxes computed using the federal statutory income tax rate differs from our effective tax rate primarily due to the following for the fiscal years ended August 31:

 

    For the Fiscal Years Ended August 31,  
    2014     2013     2012  
Expected benefit from federal taxes at statutory rate of 34%   $ (105,900 )   $ (1,411,200 )   $ (5,922,300 )
State taxes, net of federal benefit     (10,300 )     (137,000 )     (574,800 )
Expiration of net operating losses     89,400       147,400       90,000  
Permanent and other differences     4,175,300       27,400       25,800  
Change in valuation allowance     (4,148,500 )     1,373,400       6,381,300  
Total income tax expense / benefit   $ -     $ -     $ -