Transactions with the Newport Funds

3 Months Ended

May 31, 2013

Related Party Transactions [Abstract]

Transactions with the Newport Funds

Transactions with the Newport Funds

In 2007, NGOF received on behalf of (but did not remit to) the Company $5,118,172 of interest on the Mortgage Bonds and $61,600 of preferred dividends which amounts are reflected in the accompanying balance sheets as due from the Newport Funds. There is no formal agreement outlining the settlement of this receivable (and the payable discussed in the following paragraph) and, accordingly, the receivable is reflected as a non-current asset.

At May 31, 2013 and February 28, 2013, the Company owed $3,263,543 and $3,233,115, respectively, to the Newport Funds for expenses paid on the Company’s behalf since inception of the Company. There have been no repayments of such amounts advanced on behalf of the Company and there is no formal agreement outlining the settlement of the receivable and payable between the Newport Funds and the Company. Accordingly, the receivable and payable are reflected as a non-current asset and a non-current liability, respectively, at May 31, 2013 and February 28, 2013.