Real Estate Properties

6 Months Ended

Feb. 28, 2013

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

Note 7.    Real Estate Properties

On January 10, 2013, the Company entered into an agreement to sell the restaurant property in Deland, Florida (“Deland Property”) for $1,100,000.  The Company received $750,000 in cash and issued a two year note receivable at 7% interest payable in 24 installments on the remaining $350,000.  This transaction closed on January 25, 2013.  The sale of this property resulted in a net gain of approximately $540,000.

In August 2012, the Company entered into an agreement with the tenant of the Brooksville Property to sell that property to the tenant for $1,825,000. The transaction is scheduled to close in April 2013. The carrying value of the property consisting of land, building and improvements at February 28, 2013 was approximately $1,521,000. As such, the associated land, buildings and improvements were reclassified as assets held for sale on the accompanying consolidated balance sheets of February 28, 2013 and August 31, 2012.  The associated mortgage to Zion’s Bank was reclassified to Liabilities of Assets Held for Sale at February 28, 2013 and August 31, 2012.

The Company has received multiple offers to purchase the property located in Orange Park, Florida. The property is actively listed and management has committed to sell the property. The carrying value of the property consisting of land, building and improvements at February 28, 2013 was approximately $339,000. The associated land, building and improvements were reclassified as assets held for sale on the accompanying consolidated balance sheets as of February 28, 2013 and August 31, 2012. The associated mortgage to GE Capital was reclassified to liabilities of assets held for sale at February 28, 2013 and August 31, 2012.