| Discontinued operations |
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Discontinued Operations Statements of Operations |
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Fiscal years ended August 31, |
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2017 |
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2016 |
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2015 |
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| Farm revenues |
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$ |
6,800 |
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$ |
267,500 |
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|
$ |
1,127,200 |
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| Farm expenses |
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(1,300 |
) |
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(77,100 |
) |
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(126,300 |
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| Gross profit |
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|
5,500 |
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190,400 |
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|
1,000,900 |
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| General and administrative expenses |
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(46,900 |
) |
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(313,400 |
) |
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(760,200 |
) |
| Operating (loss) profit |
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(41,400 |
) |
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(123,000 |
) |
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240,700 |
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| Finance charges |
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|
9,400 |
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38,400 |
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21,700 |
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| (Loss) gain on sale of farm assets |
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- |
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4,300 |
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(22,108,200 |
) |
| Interest expense (1) |
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- |
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- |
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(390,500 |
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| Interest imputed on the Tap Participation |
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| Fee payable to HP A&M (2) |
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- |
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- |
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(23,800 |
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| Taxes |
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(292,700 |
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| Loss from discontinued operations, net of taxes |
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$ |
(32,000 |
) |
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$ |
(80,300 |
) |
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$ |
(22,552,800 |
) |
| (1) |
Interest
expense represents interest accrued related to notes the Company had on its farm assets prior to the sale. All notes associated
with the farms have been paid off, and thus the Company no longer incurs interest on such notes. |
| (2) |
Imputed interest represents an estimate of the interest accrued on the Tap Participation Fee payable to High Plains A&M, LLC (“HP A&M”), which was eliminated as a result of the settlement with HP A&M during the three months ended February 28, 2015. As a result, the Company no longer accrues interest related to the Tap Participation Fee. |
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Discontinued Operations Balance Sheets |
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August 31, |
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2017 |
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2016 |
| Assets: |
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| Trade accounts receivable |
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$ |
110,700 |
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$ |
227,100 |
| Land held for sale (1) |
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450,600 |
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|
450,300 |
| Prepaid expenses |
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- |
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2,900 |
| Total assets |
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$ |
561,300 |
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$ |
680,300 |
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| Liabilities: |
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| Accrued liabilities |
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11,200 |
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|
4,400 |
| Total liabilities |
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$ |
11,200 |
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$ |
4,400 |
| (1) |
Land Held for Sale. During the fiscal quarter ended November 30, 2015, the Company purchased three farms totaling 700 acres for approximately $451,000. The farms were acquired to correct dry-up covenant issues related to water only farms to obtain the release of the escrow funds related to the Company’s farm sale to Arkansas River Farms, LLC. The Company intends to sell the farms in due course and has classified the farms as long-term assets. |
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