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 $)
 6 Months Ended
Feb. 28, 2014
Feb. 28, 2013
Cash flows from operating activities:    
Net loss $ (1,302,477) $ (1,992,133)
Adjustments to reconcile net loss to net cash used for operating activities:    
Imputed interest on Tap Participation Fee payable to HP A&M 1,060,238 1,544,755
Depreciation, depletion and other non-cash items 56,235 156,070
Interest accrued on agriculture land promissory notes 20,826 102,389
Stock-based compensation expense 114,264 23,050
Interest added to receivable from Rangeview Metropolitan District (5,970) (5,970)
Interest added to construction proceeds receivable    (8,179)
Changes in operating assets and liabilities:    
Trade accounts receivable (79,846) (168,560)
Receivables held in escrow related to foreclosure proceedings (2,225,200)   
Sky Ranch Receivable 8,988   
Prepaid expenses (87,866) (31,405)
Receivable from HP A&M (346,647) (313,597)
Accounts payable and accrued liabilities 232,716 116,720
Deferred revenues (32,692) (32,692)
Deferred oil & gas lease 1,029,930 (207,240)
Net cash used by operating activities (1,557,501) (816,792)
Cash flows from investing activities:    
Investments in water, water systems, and land (519,135) (120,293)
Sales and maturities of marketable securities    1,039,311
Purchase of property and equipment (2,250)   
Proceeds from sale of farm land 1,171,505   
Proceeds from sale of collateral stock    3,415,000
Net cash (used in) provided by investing activities 650,120 4,334,018
Cash flows from financing activities:    
Arapahoe County construction proceeds    41,098
Payments to contingent liability holders (4,499) (9,811)
Payments made on promissory notes payable (1,246,892) (806,097)
Net cash (used in) by financing activities (1,251,391) (774,810)
Net change in cash and cash equivalents (2,158,772) 2,742,416
Cash and cash equivalents - beginning of period 2,448,363 1,623,517
Cash and cash equivalents - end of period 289,591 4,365,933
SUPPLEMENTAL DISCLSOURES OF NON-CASH ACTIVITIES    
Reduction in Tap Participation Fee Aliability resulting from remedies under the Arkansas River Agreement 36,235,402  
Accrued interest and penalties related to receivable from HP A&M and related promissory notes   $ 52,672