|
Note 6 - Related Party Transactions
|
9 Months Ended |
|---|---|
|
May 31, 2012
|
|
| Related Party Transactions Disclosure [Text Block] |
NOTE
6 – RELATED PARTY TRANSACTIONS
In
1995, the Company extended a loan to the District, a related
party. The loan provided for borrowings of up to $250,000, is
unsecured, bears interest based on the prevailing prime rate
plus 2% (5.25% at May 31, 2012) and matures on December 31,
2012. The Company intends to extend the maturity
date of the note, and accordingly the note has been
classified as non-current. The $540,900 balance of the note
receivable at May 31, 2012 includes borrowings of $229,300
and accrued interest of $311,600. The $531,900
balance of the note receivable at August 31, 2011 includes
borrowings of $229,300 and accrued interest of
$302,600.
HP
A&M paid the Company $10,500 and $31,600 during each of
the three and nine months in the periods ended May 31, 2012
and 2011, respectively. This is to reimburse the
Company for 50% of the salary and expenses of a Company
employee that performs various farm management duties which
are for the benefit of HP A&M since HP A&M manages
the farm leases as described in Note 4 above.
|