Annual report pursuant to Section 13 and 15(d)

Note 10 - Income Taxes (Tables)

v2.4.0.6
Note 10 - Income Taxes (Tables)
 12 Months Ended
Aug. 31, 2012
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
   
For the Fiscal Years Ended August 31,
 
   
2012
   
2011
 
Deferred tax assets:
           
Net operating loss carryforwards
  $ 5,948,300     $ 5,259,200  
Imputed interest on Tap Participation Fee
    8,852,500       7,558,000  
Deferred revenue
    560,700       702,000  
Impairment charges
    2,408,800       -  
Depreciation and depletion
    2,425,700       301,600  
Other
    45,000       38,900  
Valuation allowance
    (20,241,000 )     (13,859,700 )
Net deferred tax asset
  $ -     $ -  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
   
For the Fiscal Years Ended August 31,
 
   
2012
   
2011
   
2010
 
Expected benefit from federal taxes at statutory rate of 34%
  $ (5,922,300 )   $ (2,045,500 )   $ (1,833,000 )
State taxes, net of federal benefit
    (574,800 )     (198,500 )     (177,900 )
Expiration of net operating losses
    90,000       121,000       147,900  
Permanent and other differences
    25,800       37,800       (27,100 )
Change in valuation allowance
    6,381,300       2,085,200       1,890,100  
Total income tax expense / benefit
  $ -     $ -     $ -