Note 7 - Subsequent Events

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 7 – SUBSEQUENT EVENTS

On October 2, 2015, the Company became aware of a letter from the Director of the California Office of the U. S. Bureau of Land Management (“BLM”) that would later be sent to the Company finding that the Water Project pipeline is outside the scope of the Arizona California Railroad right-of-way and would therefore require a new federal right-of-way permit prior to construction.

The Company is currently taking steps further outlined in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations to respond and/or comply with this requirement.

As a result of the BLM communication, on October 5, 2015, the Company’s closing stock price fell significantly and continues to trade generally between $2.92 and $3.94 per share. If the Company was to assess its goodwill impairment using these lower stock prices, the Company would likely recognize a goodwill impairment charge equal to the carrying value of its goodwill. If the Company’s stock price does not increase in the near term, then it is likely that it will be recognizing a goodwill impairment charge in the fourth quarter of this year.