0001217160-14-000144.txt : 20140714 0001217160-14-000144.hdr.sgml : 20140714 20140714170118 ACCESSION NUMBER: 0001217160-14-000144 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20140531 FILED AS OF DATE: 20140714 DATE AS OF CHANGE: 20140714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEWETT CAMERON TRADING CO LTD CENTRAL INDEX KEY: 0000885307 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211] IRS NUMBER: 000000000 STATE OF INCORPORATION: OR FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19954 FILM NUMBER: 14974010 BUSINESS ADDRESS: STREET 1: 32275 NW HILLCREST CITY: NORTH PLAINS STATE: OR ZIP: 97133 BUSINESS PHONE: 5036470110 MAIL ADDRESS: STREET 1: P O BOX 1010 CITY: NORTH PLAINS STATE: OR ZIP: 97133 10-Q 1 jcmay_201410q.htm JEWETT CAMERON 10-Q FOR THE PERIOD ENDED MAY 31, 2014 Jewett Cameron Form 10-Q




UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549


FORM 10-Q


(MARK ONE)


x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MAY 31, 2014



¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________.


COMMISSION FILE NUMBER 000-19954


JEWETT-CAMERON TRADING COMPANY LTD.

(Exact Name of Registrant as Specified in its Charter)


BRITISH COLUMBIA

 

NONE

(State or Other Jurisdiction of Incorporation or Organization)

 

(I.R.S. Employer Identification No.)


32275 N.W. Hillcrest, North Plains, Oregon

 

97133

(Address Of Principal Executive Offices)

 

(Zip Code)


(503) 647-0110

(Registrant’s Telephone Number, Including Area Code)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  x Yes    ¨  No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer


Large accelerated filer  ¨

Accelerated filer  ¨

Non-accelerated filer  ¨

Smaller Reporting Company  x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

Yes  ¨     No  x


APPLICABLE ONLY TO CORPORATE ISSUERS:


Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, no par value – 2,749,678 common shares as of July 14, 2014.          








Jewett-Cameron Trading Company Ltd.


Index to Form 10-Q


PART I – FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

3

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations


23

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

27

 

 

 

Item 4.

Controls and Procedures

27

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

28

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

 

 

 

Item 3.

Defaults Upon Senior Securities

29

 

 

 

Item 4.

Mine Safety Disclosures

29

 

 

 

Item 5.

Other Information

29

 

 

 

Item 6.

Exhibits

29



 

- 2 -

 

 

 

 

 

 

 




PART 1 – FINANCIAL INFORMATION


Item 1.

Financial Statements






JEWETT-CAMERON TRADING COMPANY LTD.



CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)



May 31, 2014



 

- 3 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

(Expressed in U.S. Dollars)

 

 

 

(Prepared by Management)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

May 31,

2014

 

August 31,

2013

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

  Cash

$   4,240,397

 

$    8,308,445

  Accounts receivable, net of allowance  

     of $Nil (August 31, 2013 - $Nil)


4,923,144

 


3,344,777

  Inventory, net of allowance

      of $115,426 (August 31, 2013 - $134,259) (note 3)


7,245,395

 


8,520,991

  Note receivable

15,000

 

15,000

  Prepaid expenses

1,326,824

 

587,609

  Prepaid income taxes

317,445

 

270,423

 

 

 

 

  Total current assets

18,068,205

 

21,047,245

 

 

 

 

Property, plant and equipment, net (note 4)

2,177,368

 

2,241,950


Intangible assets, net (note 5)


314,133

 


368,662

 

 

 

 

Total assets

$  20,559,706

 

$  23,657,857

 

 

 

 


- Continued -


The accompanying notes are an integral part of these consolidated financial statements.



 

- 4 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

(Expressed in U.S. Dollars)

 

 

 

(Prepared by Management)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

May 31,

2014

 

August 31,

2013

 

 

 

 

Continued

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

  Accounts payable

$    962,733

 

$  1,715,458

  Litigation reserve (note 13(a))

124,121

 

144,103

  Accrued liabilities

1,127,861

 

1,149,882

 

 

 

 

  Total current liabilities

2,214,715

 

3,009,443

 

 

 

 

Deferred tax liability (note 6)

44,382

 

50,393

 

 

 

 

Total liabilities

2,259,097

 

3,059,836

 

 

 

 

Contingent liabilities and commitments (note 13)

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

  Capital stock (note 8)

 

 

 

     Authorized

 

 

 

      21,567,564 common shares, without par value

 

 

 

      10,000,000 preferred shares, without par value

 

 

 

    Issued

 

 

 

      2,749,678 common shares  (August 31, 2013 - 3,134,936)

1,297,457

 

1,479,246

  Additional paid-in capital

600,804

 

600,804

  Retained earnings

16,402,348

 

18,517,971

  

 

 

 

  Total stockholders’ equity

18,300,609

 

20,598,021

  

 

 

 

  Total liabilities and stockholders’ equity

$  20,559,706

 

$  23,657,857

  

 

 

 


The accompanying notes are an integral part of these consolidated financial statements.


 

- 5 -

 

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 

 

Three Month

Period Ended

May 31,

 

Nine Month

Period Ended

 May 31,

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

SALES

$  15,335,570

 

$  15,051,509

 

$ 33,074,500

 

$ 38,575,738

 

 

 

 

 

 

 

 

COST OF SALES

12,384,976

 

12,021,388

 

26,516,458

 

31,114,942

 

 

 

 

 

 

 

 

GROSS PROFIT

2,950,594

 

3,030,121

 

6,558,042

 

7,460,796

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

  Selling, general and administrative expenses

402,013

 

372,191

 

1,240,800

 

1,176,173

  Depreciation and amortization

73,145

 

66,735

 

212,694

 

188,431

  Wages and employee benefits

922,899

 

904,687

 

2,599,270

 

2,658,240

 

 

 

 

 

 

 

 

 

1,398,057

 

1,343,613

 

4,052,764

 

4,022,844

 

 

 

 

 

 

 

 

Income from operations

1,552,537

 

1,686,508

 

2,505,278

 

3,437,952

 

 

 

 

 

 

 

 

OTHER ITEMS

 

 

 

 

 

 

 

   Gain on sale of property, plant and equipment

-

 

-

 

4,109

 

353,852

   Interest and other income

6,734

 

6,734

 

20,008

 

30,049

   Interest expense

-

 

-

 

-

 

(400)

 

6,734

 

6,734

 

24,117

 

383,501

 

 

 

 

 

 

 

 

Income before income taxes

1,559,271

 

1,693,242

 

2,529,395

 

3,821,453

 

 

 

 

 

 

 

 

Income tax expense

(622,942)

 

(674,678)

 

(1,023,089)

 

(1,531,512)

 

 

 

 

 

 

 

 

Net income

$     936,329

 

$    1,018,564

 

$  1,506,306

 

$  2,289,941

 

 

 

 

 

 

 

 

Basic earnings per common share

$           0.33

 

$             0.32

 

$           0.50

 

$           0.73

 

 

 

 

 

 

 

 

Diluted earnings per common share

$           0.33

 

$             0.32

 

$           0.50

 

$           0.73

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

  Basic

2,866,273

 

3,135,128

 

3,042,692

 

3,135,641

  Diluted

2,866,273

 

3,135,128

 

3,042,692

 

3,135,641

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


 

- 6 -

 

 

 

 

 

 

 




JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 

 

Capital Stock

 

 

 





Number of  Shares




Amount


Additional paid-in capital



Retained earnings




Total

 

 

 

 

 

 

August 31, 2011

3,816,914

$  1,801,043

$  600,804

$  15,086,971

$  17,488,818

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(680,972)

(321,322)

-

(2,754,237)

(3,075,559)

Net income

-

-

-

3,059,931

3,059,931

 

 

 

 

 

 

August 31, 2012

3,135,942

1,479,721

600,804

15,392,665

17,473,190

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(1,006)

(475)

-

(6,713)

(7,188)

Net income

-

-

-

3,132,019

3,132,019

 

 

 

 

 

 

August 31, 2013

3,134,936

1,479,246

600,804

18,517,971

20,598,021

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(385,258)

(181,789)

 

(3,621,929)

(3,803,718)

Net income

-

-

-

1,506,306

1,506,306

 

 

 

 

 

 

May 31, 2014

2,749,678

$  1,297,457

$  600,804

$  16,402,348

$  18,300,609



The accompanying notes are an integral part of these consolidated financial statements.


 

- 7 -

 

 

 

 

 

 

 




JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 

 

Three Month

Period Ended

May 31,

 

Nine Month

Period Ended

May 31,

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

$    936,329

 

$  1,018,564

 

$  1,506,306

 

$  2,289,941

Items not involving an outlay of cash:

 

 

 

 

 

 

 

  Depreciation and amortization

73,145

 

66,735

 

212,694

 

188,431

  (Gain) loss on sale of property, plant and equipment

-

 

-

 

(4,109)

 

(353,852)

  Deferred income tax expense (recovery)

2,355

 

594

 

(6,011)

 

152,017

  Interest income on litigation

(6,734)

 

(6,734)

 

(19,982)

 

(19,982)

 

 

 

 

 

 

 

 

Changes in non-cash working capital items:

 

 

 

 

 

 

 

  (Increase) decrease in accounts receivable

(666,858)

 

2,474,524

 

(1,578,367)

 

(1,727,858)

  Decrease in inventory

283,331

 

1,017,381

 

1,275,596

 

2,410,477

  (Increase) decrease in note receivable

(15,000)

 

(15,000)

 

-

 

5,000

  (Increase) decrease in prepaid expenses

762,010

 

(459,525)

 

(739,215)

 

(1,501,480)

  (Increase) decrease in prepaid income taxes

174,587

 

128,084

 

(47,022)

 

(125,868)

  Increase (decrease) in accounts payable and

  accrued liabilities


133,976

 


(835,443)

 


(774,746)

 


(1,131,569)

  Decrease in accrued income taxes

-

 

-

 

-

 

(37,203)

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,677,141

 

3,389,180

 

(174,856)

 

148,054

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

  Purchase of property, plant and equipment

(18,899)

 

(52,889)

 

(94,274)

 

(183,679)

  Proceeds from sale of property, plant and

  equipment


-

 


-

 


4,800

 


410,000

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

(18,899)

 

(52,889)

 

(89,474)

 

226,321

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

  Redemption of common stock

(3,234,699)

 

-

 

(3,803,718)

 

(4,884)

 

 

 

 

 

 

 

 

Net cash used in financing activities

(3,234,699)

 

-

 

(3,803,718)

 

(4,884)

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

(1,576,457)

 

3,336,291

 

(4,068,048)

 

369,491

 

 

 

 

 

 

 

 

Cash, beginning of period

5,816,854

 

4,342,588

 

8,308,445

 

7,309,388

 

 

 

 

 

 

 

 

Cash, end of period

$  4,240,397

 

$  7,678,879

 

$  4,240,397

 

$  7,678,879

 

Supplemental disclosure with respect to cash flows (note 16)


The accompanying notes are an integral part of these consolidated financial statements.


 

- 8 -

 

 

 

 

 

 

 




JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)


1.

NATURE OF OPERATIONS


Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (“JCLC”), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLC’s name was changed to JC USA Inc. (“JC USA”), and a new subsidiary, Jewett-Cameron Company (“JCC”), was incorporated.  


JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (“MSI”), incorporated April 1996, Jewett-Cameron Seed Company, (“JCSC”), incorporated October 2000, Greenwood Products, Inc. (“Greenwood”), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the “Company”) have no significant assets in Canada.


The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCC’s business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.


These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2014 and August 31, 2013 and its results of operations and cash flows for the three and nine month periods ended May 31, 2014 and May 31, 2013 in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”). Operating results for the three and nine month periods ended May 31, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2014.


2.

SIGNIFICANT ACCOUNTING POLICIES


Generally accepted accounting principles


These consolidated financial statements have been prepared in conformity with U.S. GAAP.  


Principles of consolidation


These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.


All inter-company balances and transactions have been eliminated upon consolidation.


 

- 9 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Estimates


The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates incorporated into the Company’s consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims.  Actual results could differ from those estimates.


Cash and cash equivalents


The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.  At May 31, 2014, cash was $4,240,397 compared to $8,308,445 at August 31, 2013.  At May 31, 2014 and August 31, 2013, there were no cash equivalents.


Accounts receivable


Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers.  The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue.  


The Company extends credit to domestic customers and offers discounts for early payment.  When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit.


Inventory


Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market.  Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components.


Property, plant and equipment


Property, plant and equipment are recorded at cost less accumulated depreciation.  The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods:


 

Office equipment

5-7 years

 

Warehouse equipment

2-10 years

 

Buildings

5-30 years


Intangibles


The Company’s intangible assets have a finite life and are recorded at cost.  The most significant intangible assets are two patents related to gate support systems.  Amortization is calculated using the straight-line method over the remaining lives of 45 months and 57 months, respectively, and are reviewed annually for impairment.


 

- 10 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Asset retirement obligations


The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets.  The Company also records a corresponding asset which is amortized over the life of the asset.  Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost).  The Company does not have any significant asset retirement obligations.


Impairment of long-lived assets and long-lived assets to be disposed of


Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.


Currency and foreign exchange


These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.


The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.  Any income statement transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation.  Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations.


Earnings per share


Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.


 

- 11 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Earnings per share (cont’d…)


The earnings per share data for the three and nine month period ended May 31, 2014 and May 31, 2013 are as follows:


 

 

Three Month Periods

Ended May 31,

 

Nine Month Periods

Ended May 31,

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

Net income

$     936,329

 

$ 1,018,564

 

$ 1,506,306

 

$ 2,289,941

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of

       common shares outstanding


2,866,273

 


3,135,128

 


3,042,692

 


3,135,641

 

 

 

 

 

 

 

 

 

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

Stock options

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number

      of common shares outstanding


2,866,273

 


3,135,128

 


3,042,692

 


3,135,641


Comprehensive income


The Company has no items of other comprehensive income in any period presented.  Therefore, net income presented in the consolidated statements of operations equals comprehensive income.


Stock-based compensation


All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award.


No options were granted during the nine month period ended May 31, 2014, and there were no options outstanding on May 31, 2014.


Financial instruments


The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:


Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts.


Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability.


Notes receivable - the carrying amounts approximate fair value due to the short-term nature of the amount.


 

- 12 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Financial instruments (cont’d…)


Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations.


The estimated fair values of the Company's financial instruments as of May 31, 2014 and August 31, 2013 follows:


 

 

May 31,

2014

 

August 31,

2013

 

 

Carrying

Fair

 

Carrying

Fair

 

 

Amount

Value

 

Amount

Value

 

Cash

$4,240,397

$4,240,397

 

$8,308,445

$8,308,445

 

Accounts receivable, net of allowance

4,923,144

4,923,144

 

3,344,777

3,344,777

 

Note receivable

15,000

15,000

 

15,000

15,000

 

Accounts payable and accrued liabilities

2,090,594

2,090,594

 

2,865,340

2,865,340


The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

 

 

 

 

May 31,

2014

 

Quoted Prices
in Active
Markets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

4,240,397

 

$

4,240,397

 

$

 

$


The fair values of cash are determined through market, observable and corroborated sources.


Income taxes


A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards.  Deferred tax expense (benefit) results from the net change during the period of deferred tax assets and liabilities.


Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.


 

- 13 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Shipping and handling costs


The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as revenue in the consolidated statement of operations.


Revenue recognition


The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured.  Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products.  Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.


Reclassifications


Certain reclassifications have been made to prior years’ financial statements to conform to the classifications used in the current period.  These reclassifications include adjustments to reflect the reorganization of the corporate structure and reporting segments effective September 1, 2013.


Recent Accounting Pronouncements


Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.


3.

INVENTORY


A summary of inventory is as follows:


 

 

May 31,

2014

 

August 31,

2013

 

 

 

 

 

 

 

 

 

 

 

Wood products and metal products

$  6,362,171

 

$  7,984,678

 

Industrial tools

548,166

 

482,949

 

Agricultural seed products

335,058

 

53,364

 

 

 

 

 

 

 

$  7,245,395

 

$  8,520,991


 

- 14 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



4.

PROPERTY, PLANT AND EQUIPMENT


A summary of property, plant, and equipment is as follows:


 

 

May 31,

2014

 

August 31,

2013

 

 

 

 

 

 

Office equipment

$      562,656

 

$      565,575

 

Warehouse equipment

1,465,993

 

1,431,707

 

Buildings

2,688,616

 

2,681,989

 

Land

761,924

 

761,924

 

 

5,479,189

 

5,441,195

 

 

 

 

 

 

Accumulated depreciation

(3,301,821)

 

(3,199,245)

 

 

 

 

 

 

Net book value

$   2,177,368

 

$   2,241,950


In the event that facts and circumstances indicate that the carrying amount of an asset may not be recoverable and an estimate of future discounted cash flows is less than the carrying amount of the asset, an impairment loss will be recognized. Management's estimates of revenues, operating expenses, and operating capital are subject to certain risks and uncertainties which may affect the recoverability of the Company's investments in its assets. Although management has made its best estimate of these factors based on current conditions, it is possible that changes could occur which could adversely affect management's estimate of the net cash flow expected to be generated from its operations.


5.

INTANGIBLE ASSETS


A summary of intangible assets is as follows:


 

 

May 31,

2014

 

August 31,

2013

 

Patent

$  850,000

 

$  850,000

 

Other

43,655

 

43,655

 

 

893,655

 

893,655

 

Accumulated amortization

(579,522)

 

(524,993)

 

 

 

 

 

 

Net book value

$  314,133

 

$  368,662


6.

DEFERRED INCOME TAXES


Deferred income tax liability as of May 31, 2014 of $44,382 (August 31, 2013 – $50,393) reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.


7.

BANK INDEBTEDNESS


There was no bank indebtedness under the Company’s line of credit as of May 31, 2014 or August 31, 2013.  At August 31, 2013, the line of credit borrowing limit was $5,000,000.  In March 2014, the Company voluntarily elected to reduce the line of credit borrowing limit to $1,000,000.


Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 175 basis points.


 

- 15 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



8.

CAPITAL STOCK


Common Stock


Holders of common stock are entitled to one vote for each share held.  There are no restrictions that limit the Company's ability to pay dividends on its common stock.  The Company has not declared any dividends since incorporation.


Common Stock Split


The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.


9.

CANCELLATION OF CAPITAL STOCK

 

Treasury stock may be kept based on an acceptable inventory method such as the average cost basis.  Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value.


During the 3rd quarter of fiscal 2014 ended May 31, 2014, the Company repurchased and cancelled a total of 327,078 common shares under a 10b5-1 share repurchase plan. The total cost was $3,234,699 at an average price of $9.89 per share. The premium paid to acquire these shares over their per share book value in the amount of $3,080,365 was recorded as a decrease to retained earnings.


During the 2nd quarter of fiscal 2014 ended February 28, 2014, the Company repurchased and cancelled a total of 58,180 common shares under a 10b5-1 share repurchase plan. The total cost was $569,019 at an average price of $9.78 per share. The premium paid to acquire these shares over their per share book value in the amount of $541,564 was recorded as a decrease to retained earnings.


During the 4th quarter of fiscal 2013 ended August 31, 2013, the Company repurchased and cancelled a total of 192 common shares under a 10b5-1 share repurchase plan. The total cost was $2,304 at an average price of $12.00 per share. The premium paid to acquire these shares over their per share book value in the amount of $2,213 was recorded as a decrease to retained earnings.


During the 2nd quarter of fiscal 2013 ended February 28, 2013, the Company repurchased and cancelled a total of 814 common shares common shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $4,884 at an average price of $6.00 per share. The premium paid to acquire these shares over their per share book value in the amount of $4,500 was recorded as a decrease to retained earnings.


During the 3rd quarter of fiscal 2012 ended May 31, 2012, the Company repurchased and cancelled a total of 83,798 common shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $382,510 at an average price of $4.56 per share. The premium paid to acquire these shares over their per share book value in the amount of $342,969 was recorded as a decrease to retained earnings.


 

- 16 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



9.

CANCELLATION OF CAPITAL STOCK (cont’d…)


During the 2nd quarter of fiscal 2012 ended February 29, 2012, the Company repurchased and cancelled a total of 497,174 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $2,238,929 at an average share price of $4.50 per share. The premium paid to acquire these shares over their per share book value in the amount of $2,004,334 was recorded as a decrease to retained earnings.


During the 1st quarter of fiscal 2012 ended November 30, 2011, the Company repurchased and cancelled a total of 100,000 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $454,120 at an average share price of $4.54 per share. The premium paid to acquire these shares over their per share book value in the amount of $406,934 was recorded as a decrease to retained earnings.


10.

STOCK OPTIONS


The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission.


Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares.  No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee.  Generally, no option can be for a term of more than 10 years from the date of the grant.


The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant.  Options vest at the discretion of the Board of Directors.


The Company had no stock options outstanding as of May 31, 2014 and August 31, 2013.


11.

EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)


The Company sponsors an ESOP that covers all U.S. employees who are employed by the Company on August 31 of each year and who have at least one thousand hours with the Company in the twelve months preceding that date.  The ESOP formerly held common shares of the Company and granted to participants in the plan certain ownership rights in, but not possession of, or voting control of, any common stock of the Company held by the Trustee of the Plan.  Shares of common stock were allocated annually to participants in the ESOP pursuant to a prescribed formula. The Company records compensation expense based on the market price of the Company's shares when they were allocated.  Any dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Beginning in fiscal 2010, the ESOP began its investment in diversified mutual funds. During fiscal 2011 and 2012, all of the Company’s shares held by the ESOP were sold, with the majority repurchased by the Company and cancelled under the 10b5-1 share repurchase plans. Effective June 30, 2012, the ESOP was terminated, subject to the approval of the Internal Revenue Service. No further contributions shall be made to the ESOP. On October 18, 2013, the Internal Revenue Service issued a favorable determination letter for the termination of the ESOP, and the Plan has distributed the remaining assets to participants.


ESOP compensation expense was $Nil and $Nil for the fiscal years ended August 31, 2013 and 2012, respectively, and is included in wages and employee benefits.  No shares were owned by the ESOP at August 31, 2013 or 2012.


 

- 17 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



12.

PENSION AND PROFIT-SHARING PLANS


The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a semi-annual enrolment time.  The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. For the nine month periods ended May 31, 2014 and 2013, the 401(k) compensation expense was $147,685 and $166,224, respectively.


13.

CONTINGENT LIABILITIES AND COMMITMENTS


a)

A subsidiary was a plaintiff in a lawsuit filed in Portland, Oregon, entitled, Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court).  


During fiscal 2002 the Company entered into a purchase agreement to acquire inventory over a 15 month period with an initial estimated value of $7,000,000 from Greenwood Forest Products, Inc. During the year ended August 31, 2003, the Company completed the final phase of the inventory acquisition. As partial consideration for the purchase of the inventory the Company issued two promissory notes, based on its understanding of the value of the inventory purchased. The Company believes it overpaid the obligation by approximately $820,000. The holder counterclaimed for approximately $2,400,000.


Litigation was completed on March 5, 2007, with the court’s general judgment and money award. The net effect was money judgment in favor of Greenwood Forest Products, Inc. for $242,604. The Company accrued reserves to cover the money judgment related to this dispute. Both parties filed appeals for review of the court’s opinion.


During the 1st quarter of fiscal 2011, the Oregon Court of Appeals ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of the defendants should stand. The judgment in favor of the Company was for $819,000 plus attorneys fees. The judgment against the plaintiffs is for $1,187,137. The Company appealed the decision to the Oregon Supreme Court. During the 1st quarter of fiscal 2011, the Company recorded a litigation loss of $962,137 and interest of $391,988 in addition to the existing litigation reserve of $225,000. Additional interest of $48,790 was recorded during the remainder of fiscal 2011. During the 1st quarter of fiscal 2012 ended November 30, 2011, additional interest of $16,204 was accrued.


In February 2012, the Company received the decision from the Oregon Supreme Court which was favorable to Jewett Cameron as plaintiff. As a result, the Company has reversed $1,459,832 of the litigation reserve and accrued interest during the 2nd quarter of fiscal 2012 ended February 29, 2012. The reversal was treated as a one-time gain during the quarter.


In July 2014, upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial, and, as a consequence, ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorneys fees.  The judgment against plaintiffs was for $1,187,137.  The Company is currently assessing the impact of this new ruling, and is evaluating potential next steps.  As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million (Note 17).


 

- 18 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



13.

CONTINGENT LIABILITIES AND COMMITMENTS (cont’d…)


During the year ended August 31, 2013, the Company recorded $26,716 of interest income due to the favorable difference in interest rates between the judgments. During the nine months ended May 31, 2014, the Company recorded $19,982 of interest income.


A summary of the litigation reserve is as follows:


 

 

May 31,

2014

 

August 31,

2013

 

 

 

 

 

 

Litigation loss

$                  -

 

$                  -

 

Litigation reserve

144,103

 

170,819

 

Interest expense

-

 

-

 

Interest income

(19,982)

 

(26,716)

 

Total

$      124,121

 

$      144,103


b)

At May 31, 2014 and August 31, 2013 the Company had an un-utilized line-of-credit (note 7).  The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.


14.

SEGMENT INFORMATION


The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered.  Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.  


The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes.  The following tables show the operations of the Company's reportable segments.


Effective September 1, 2013, the Company reorganized certain of its subsidiaries. The majority of fixed and intangible assets, and certain Corporate and administrative functions which were formerly contained within the “Lawn, garden, pet and other” reporting segment are now classified as “Corporate and administrative.” The segment information for the nine months ended May 31, 2013 has been restated for comparability purposes.


Following is a summary of segmented information for the nine month periods ended May 31:


 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

Sales to unaffiliated customers:

 

 

 

 

 

 

 

Industrial wood products

$

4,439,588

 

$

5,935,267

 

 

Lawn, garden, pet and other

 

25,472,054

 

 

26,742,571

 

 

Seed processing and sales

 

2,045,763

 

 

4,193,249

 

 

Industrial tools and clamps

 

1,117,095

 

 

1,704,651

 

 

 

$

33,074,500

 

$

38,575,738

 


 

- 19 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



14.

SEGMENT INFORMATION (cont’d…)


 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

Industrial wood products

$

(41,110)

 

$

 (10,469)

 

 

Lawn, garden, pet and other

 

1,863,335

 

 

2,801,768

 

 

Seed processing and sales

 

48,170

 

 

121,749

 

 

Industrial tools and clamps

 

63,137

 

 

110,654

 

 

Corporate and administrative

 

595,863

 

 

443,899

*

 

 

$

2,529,395

 

$

3,467,601

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

Industrial wood products

$

1,056,139

 

$

1,659,045

 

 

Lawn, garden, pet and other

 

11,037,069

 

 

8,785,144

 

 

Seed processing and sales

 

435,798

 

 

111,381

 

 

Industrial tools and clamps

 

715,657

 

 

602,305

 

 

Corporate and administrative

 

7,315,043

 

 

10,428,333

 

 

 

$

20,559,706

 

$

21,586,208

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

Industrial wood products

$

735

 

$

634

 

 

Lawn, garden, pet and other

 

36,507

 

 

18,901

 

 

Seed processing and sales

 

9,565

 

 

11,549

 

 

Industrial tools and clamps

 

3,628

 

 

4,723

 

 

Corporate and administrative

 

162,259

 

 

152,624

 

 

 

$

212,694

 

$

188,431

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

Industrial wood products

$

-

 

$

3,602

 

 

Lawn, garden, pet and other

 

-

 

 

-

 

 

Seed processing and sales

 

-

 

 

1,476

 

 

Industrial tools and clamps

 

1,300

 

 

7,379

 

 

Corporate and administrative

 

92,974

 

 

171,222

 

 

 

$

94,274

 

$

183,679

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

Lawn, garden, pet and other

$

-

 

$

400

 


* For comparability purposes, the 2013 amount excludes gain on sale of property, plant and equipment of $353,852.


 

- 20 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



14.

SEGMENT INFORMATION (cont’d…)


The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2014 and 2013:


 

 

2014

 

2013

 

 

 

 

 

 

Sales

$   16,443,767

 

$    12,475,035


The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine months ended May 31, 2014 and 2013:


 

 

2014

 

2013

 

 

 

 

 

 

 

 

United States

$

30,761,104

 

$

34,320,602

 

Canada

 

686,530

 

 

1,889,696

 

Mexico / Latin America

 

1,318,436

 

 

2,256,420

 

Europe

 

183,753

 

 

54,615

 

Asia/Pacific

 

124,677

 

 

54,405

 

 

$

33,074,500

 

$

38,575,738


All of the Company’s significant identifiable assets were located in the United States as of May 31, 2014 and 2013.


15.

CONCENTRATIONS


Credit risk


Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with a high quality financial institution.  The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At May 31, 2014, three customers accounted for accounts receivable greater than 10% of total accounts receivable at 66%. At May 31, 2013, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 64%. The Company controls credit risk through credit approvals, credit limits, credit insurance and monitoring procedures.  The Company performs credit evaluations of its commercial customers but generally does not require collateral to support accounts receivable.


Volume of business


The Company has concentrations in the volume of purchases it conducts with its suppliers. For the nine months ended May 31, 2014, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $12,850,844. For the nine months ended May 31, 2013, there were two suppliers that accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $12,622,276.


 

- 21 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2014

(Unaudited)



16.

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS


Certain cash payments for the three and nine months ended May 31, 2014 and 2013 are summarized as follows:


 

 

Three Month Periods

Ended May 31

 

Nine Month Periods

Ended May 31

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the periods for:

 

 

 

 

 

 

 

 

 

 

 

 

  Interest

$

-

 

$

-

 

$

-

 

$

400

 

  Income taxes

$

446,000

 

$

546,000

 

$

1,075,824

 

$

1,530,812


There were no non-cash investing or financing activities during the periods presented.


17.

SUBSEQUENT EVENTS


The Company received notice in July 2014 in the lawsuit Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court) which involves a Company subsidiary as plaintiff (note 13). Upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial. As a consequence, the Court ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorneys fees.  The judgment against plaintiffs was for $1,187,137.  The Company is currently assessing the impact of this new ruling, and is evaluating potential next steps.  As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million.


 

- 22 -

 

 

 

 

 

 

 



Item 2.  

Management’s Discussion and Analysis of Financial Condition and Results of Operations.


These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying consolidated financial statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2014 and August 31, 2013 and its results of operations and cash flows for the three and nine month periods ended May 31, 2014 and May 31, 2013 in accordance with U.S. GAAP.  Operating results for the three and nine month periods ended May 31, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2014.


The Company’s operations are classified into four reportable segments, which were determined based on the nature of the products offered along with the markets being served.  The segments are as follows:

·

Industrial wood products

·

Lawn, garden, pet and other

·

Seed processing and sales

·

Industrial tools


Effective September 1, 2013, the Company reorganized certain of its subsidiaries. Jewett-Cameron Lumber Corporation (JCLC) was changed to JC USA Inc. (JC USA), which has the following four wholly-owned subsidiaries.  


The industrial wood products segment reflects the business conducted by Greenwood Products, Inc. (Greenwood),  Greenwood is a processor and distributor of industrial wood products used in a variety of markets and applications, including the marine and transportation markets.


The lawn, garden, pet and other segment reflects the business of the newly incorporated Jewett-Cameron Company (JCC), which is a manufacturer and distributor of specialty metal products and a wholesaler of wood products formerly conducted by JCLC. Wood products include fencing and landscape timbers, while metal products include dog kennels, proprietary gate support systems, perimeter fencing, and greenhouses.  JCC uses contract manufacturers to make the specialty metal products.  Some of the products that JCC distributes flow through the Company’s distribution center located in North Plains, Oregon, and some are shipped direct to the customer from the manufacturer.  Primary customers are home centers and other retailers.  


The seed processing and sales segment reflects the business of Jewett-Cameron Seed Company (JCSC).  JCSC processes and distributes agricultural seed.  Most of this segment’s sales come from selling seed to distributors with a lesser amount of sales derived from cleaning seed.


The industrial tools segment reflects the business of MSI-PRO (MSI).  MSI imports and distributes products including pneumatic air tools, industrial clamps, and saw blades; that are primarily sold to retailers that in turn sell to contractors and end users.  


RESULTS OF OPERATIONS


Three Months Ended May 31, 2014 and May 31, 2013


For the three months ended May 31, 2014, sales increased by $284,061 to $15,335,570 from sales of $15,051,509 for the three months ended May 31, 2013. This represents an increase of 2%.


Sales at Greenwood were $1,034,638 for the three months ended May 31, 2014 compared to sales of $1,862,740 for the three months ended May 31, 2013, which was a decrease of $828,102, or 44%. Demand for Greenwood’s products remained weak, as sales to boat manufactures continue to be severely affected by the downturn in the economy. Boat manufacturers continue to work down excess inventory accumulated over the several years. In February 2014, the Company sold its excess inventory related to the marine industry in an arm’s length transaction. The Company does not anticipate a significant marine industry recovery in the near future. Nevertheless, the Company will maintain a readiness to participate in the marine segment when, and if, the market rebounds. Greenwood is continuing to develop new customer relationships and establish additional uses for its products. For the three months ended May 31, 2014, Greenwood had an operating loss of ($8,761), which was an improvement of $12,034 compared to the operating loss of ($20,795) for the three months ended May 31, 2013.


Sales at JCC were $13,542,198 for the three months ended May 31, 2014 compared to sales of $11,737,628 for the three months ended May 31, 2013. This represents an increase of $1,804,570, or 15%. A portion of the increase was due to the shipment of orders that were delayed in the prior quarter by manufacturing constraints. Operating income for current quarter was $1,583,787 compared to operating income of $1,721,414 for quarter ended May 31, 2013. The decrease in income is due to higher raw material prices as well as increases in overall market competitiveness.


 

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Sales at JCSC were $366,902 for the three months ended May 31, 2014 compared to sales of $692,239 for the three months ended May 31, 2013, which was a decrease of $325,337, or 47%. Product seed sales decreased primarily due to the departure of our lead salesman during 2013. Seed cleaning service revenue has declined as more growers have begun to clean in-house. There has also been an overall reduction in grass seed acreage as higher grain prices have encouraged growers to shift acreage to higher margin food crops. Operating loss at JCSC for the quarter was ($56,050) compared to an operating loss of ($49,638) for the prior year’s quarter. The higher operating loss was consistent with the decline in sales.


Sales at MSI for the three months ended May 31, 2014 were $391,833, which was a decline of $367,070, or 48%, from sales of $758,903 for the three months ended May 31, 2013. The Company has wound down certain sales programs of its lower margin products and has concentrated on selling its more profitable products. Operating income was $25,149 for the current three month period, which was a decrease of $29,262, or 54%, compared to operating income of $54,411 for the quarter ended May 31, 2013.


Gross margin for the three months ended May 31, 2014 was 19.2% compared to 20.1% for the three months ended May 31, 2013.


Operating expenses increased by $54,444 to $1,398,057 from $1,343,613 for the three months ended May 31, 2013, which was largely due to the higher level of sales for the current quarter. Selling, General and Administrative Expenses rose to $402,013 from $372,191. Wages and Employee Benefits increased to $922,899 from $904,687, and Depreciation and Amortization rose to $73,145 from $66,735.


Income tax expense for the three months ended May 31, 2014 was $622,942 compared to $674,678 for the three month period ended May 31, 2013. The Company estimates income tax expense for the quarter based on combined federal and state rates that are currently in effect.  


Net income for the quarter ended May 31, 2014 was $936,329, or $0.33 per basic and diluted share, compared to $1,018,564, or $0.32 per basic and diluted share, for the quarter ended May 31, 2013. The current quarter’s earnings per share was positively affected by the repurchase of common shares and lower weighted average number of common shares outstanding.


Nine Months Ended May 31, 2014 and May 31, 2013


For the nine months ended May 31, 2014, sales decreased by $5,501,238, or 14.3%, to $33,074,500 from sales of $38,575,738 in the nine month period ended May 31, 2013.


Sales at Greenwood were $4,439,588 for the nine months ended May 31, 2014 compared to sales of $5,935,268 for the nine months ended May 31, 2013. This represents a decrease of $1,495,680, or 25%. Demand for Greenwood’s products remained weak, as sales to boat manufactures continue to be severely affected by the downturn in the economy. Boat manufacturers continue to work down excess inventory accumulated over the several years. In February 2014, the Company sold its excess inventory related to the marine industry in an arm’s length transaction. The Company does not anticipate a significant marine industry recovery in the near future.  Nevertheless, the Company will maintain a readiness to participate in the marine segment when, and if, the market rebounds. Greenwood is continuing to develop new customer relationships and establish additional uses for its products. The operating loss for Greenwood for the nine months ended May 31, 2014 was ($41,110) compared to an operating loss of ($10,469) for the nine months ended May 31, 2013.


Sales at JCC were $25,472,054 for the nine months ended May 31, 2014 compared to sales of $26,742,571 for the nine months ended May 31, 2013, which was a decrease of $1,270,517, or 5%. Operating income at JCC was $2,480,573 compared to $3,217,884 for the nine months ended May 31, 2013, which was a decrease of $737,311, or 23%. The decline in sales and operating income was due to several factors, including an increase in overall market competitiveness. Raw material prices have risen, resulting in lower margins. Selling expenses have increased in efforts to obtain new business, including trade shows, travel and the addition of one salesman, as the Company has focused its attention on the addition of small and mid-sized customers. The Company has also offered new customers sales incentives including introductory pricing. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year being much slower than the final two quarters of the fiscal year.


 

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Sales at JCSC for the nine months ended May 31, 2014 were $2,045,763, which was a decrease of $2,147,486, or 51% from sales of $4,193,249 for the nine months ended May 31, 2013. Product seed sales decreased primarily due to the departure of our lead salesman during 2013. Seed cleaning service revenue has declined as more growers have begun to clean in-house. There has also been an overall reduction in grass seed acreage as higher grain prices have encouraged growers to shift acreage to higher margin food crops. Operating income was $60,984 for the nine months ended May 31, 2014 compared to income of $142,663 for the nine months ended May 31, 2013. The decline in the segment’s operating income is consistent with the lower level of sales.


Sales at MSI were $1,117,095 for the nine months ended May 31, 2014, which was a decrease of $587,556, or 34%, from sales of $1,704,651 for the nine months ended May 31, 2013. The Company has wound down certain sales programs of its lower margin products and has concentrated on selling more profitable products. Operating income was $83,336 for the current nine month period compared to operating income of $129,774 for the nine months ended May 31, 2013.


Gross margin for the nine month period ended May 31, 2014 was 19.8% compared to 19.3% for the nine months ended May 31, 2013.


Operating expenses rose slightly by $29,920 to $4,052,764 from operating expenses of $4,022,844 in the nine month period ended May 31, 2013. Selling, General and Administrative Expenses rose to $1,240,800 from $1,176,173. The increase of $64,627 was primarily due to the Company’s new sales initiatives and adding small and mid-sized customers at JCC. Wages and Employee Benefits declined by $58,970 to $2,599,270 from $2,658,240, and Depreciation and Amortization rose to $212,694 from $188,431, an increase of $24,263.


Other items in the current nine month period ended May 31, 2014 included the gain on sale of property, plant and equipment of $4,109. During the nine months ended May 31, 2013, results included the one-time gain of $353,852 from the sale of approximately 1.64 acres of land to the State of Oregon.


Income tax expense in the current nine month period was $1,023,089 compared to $1,531,512 for the nine months ended May 31, 2013. The Company estimates income tax expense for the period based on combined federal and state rates that are currently in effect.


Net income for the nine months ended May 31, 2014 was $1,506,306, or $0.50 per basic and diluted share, compared to net income of $2,289,941, or $0.73 per basic and diluted share, for the nine months ended May 31, 2013. The net income in the current period was positively affected by the buyback of common shares which resulted in a lower weighted average number of common shares. The prior year’s period was positively affected by the one-time gain of $353,852 from the sale of property.


LIQUIDITY AND CAPITAL RESOURCES


As of May 31, 2014, the Company had working capital of $15,853,490 compared to working capital of $18,037,802 as of August 31, 2013, a decrease of $2,184,312. The decrease was largely due to the repurchase of 385,258 common shares at a cost of $3,803,718, which was partially offset by the net income during the nine month period of $1,506,306. Cash declined to $4,240,397 from $8,308,445, primarily due to the cash expenditures for repurchase of common shares. Accounts receivable rose to $4,923,144 from $3,344,777 due to the seasonal cycle of sales to customers and the related timing of cash receipts. Inventory decreased by $1,275,596 to $7,245,395 and prepaid expenses, which are largely related to down payments for future inventory purchases, increased by $739,215 to $1,326,824. Prepaid income taxes increased to $317,445 from $270,423. Accounts payable declined by $752,725 due to the seasonal cycle of payments to inventory suppliers. Accrued liabilities declined by $22,021. Litigation reserve declined by $19,982 as differences in interest rates resulted in a reduction in the amount reserved.


As at May 31, 2014, accounts receivable and inventory represented 67% of current assets and 59% of total assets. For the three months ended May 31, 2014, the accounts receivable collection period, or DSO, was 30 days compared to 29 days for the three months ended May 31, 2013. For the nine month period ended May 31, 2014, the DSO was 41 days compared to 34 days for the nine months ended May 31, 2013. Inventory turnover for the three months ended May 31, 2014 was 55 days compared to 40 days for the three months ended May 31, 2013. For the nine months ended May 31, 2014, inventory turnover was 81 compared to 52 days for the nine months ended May 31, 2013.


External sources of liquidity include a line of credit from U.S. Bank of $1,000,000 of which the Company had not borrowed against at May 31, 2014. Borrowing under the line of credit is secured by an assignment of accounts receivable and inventory.  The interest rate is calculated solely on the one month LIBOR rate plus 175 basis points.  As of May 31, 2014, the one month LIBOR rate plus 175 basis points was 1.90% (0.15% + 1.75%). The line of credit has certain financial covenants.  The Company is in compliance with these covenants.


 

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The Company has been utilizing its cash position by repurchasing common shares under 10b5-1 plans in order to increase shareholder value. During the nine months ended May 31, 2014, the Company repurchased and cancelled 385,258 common shares at a total cost of $3,803,718, which represents an average price of $9.87. A new 10b5-1 share repurchase plan (the “new Plan”) was approved by the Board of Directors and became effective on April 14, 2014. This new plan allows for the repurchase of up to 300,000 common shares through the facilities of the NASDAQ Stock Market (“NASDAQ”). The Plan will remain in place until November 14, 2014 but may be limited or terminated at any time without prior notice. As of July 14, 2014, a total of 71,765 common shares have been repurchased under the new Plan.


Business Risks


This quarterly report includes “forward–looking statements” as that term is defined in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates,” or “hopeful,” or the negative of those terms or other comparable terminology, or by discussions of strategy, plans or intentions. For example, this section contains numerous forward-looking statements.  All forward-looking statements in this report are made based on management’s current expectations and estimates, which involve risks and uncertainties, including those described in the following paragraphs.


Risks Related to Our Common Stock


We may decide to acquire assets or enter into business combinations, which could be paid for, either wholly or partially with our common stock and if we decide to do this our current shareholders would experience dilution in their percentage of ownership.


Our Articles of Incorporation give our Board of Directors the right to enter into any contract without the approval of our shareholders.  Therefore, our management could decide to make an investment (buy shares, loan money, etc.) without shareholder approval.  If we acquire an asset or enter into a business combination, this could include exchanging a large amount of our common stock, which could dilute the ownership interest of present stockholders.


Future stock distributions could be structured in such a way as to be 1) diluting to our current shareholders or 2) could cause a change in control to new investors.


If we raise additional funds by selling more of our stock, the new stock may have rights, preferences or privileges senior to those of the rights of our existing stock.  If common stock is issued in return for additional funds, the price per share could be lower than that paid by our current stockholders.  The result of this would be a lessening of each present stockholder’s relative percentage interest in our company.


Our shareholders could experience significant dilution if we issue our authorized 10,000,000 preferred shares.


The Company’s common shares currently trade within the NASDAQ Capital Market in the United States. The common shares also formerly traded on the Toronto Stock Exchange (“TSX”) in Canada until the Company voluntarily delisted from the TSX on October 11, 2012. The average daily trading volume of our common stock on NASDAQ was 8,890 shares for the nine months ended May 31, 2014. With this limited trading volume, investors could find it difficult to purchase or sell our common stock.


Risks Related to Our Business


We could experience a decrease in the demand for our products resulting in lower sales volumes.


In the past we have at times experienced decreasing products sales with certain customers. The reasons for this can be generally attributed to: increased competition; general economic conditions; demand for products; and consumer interest rates.  If economic conditions deteriorate or if consumer preferences change, we could experience a significant decrease in profitability.


 

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If our top customers were lost, we could experience lower sales volumes.


For the nine months ended May 31, 2014, our top ten customers represented 77% of our total sales. We would experience a significant decrease in sales and profitability and would have to cut back our operations, if these customers were lost and could not be replaced.  Our top ten customers are in the U.S., Canada and Mexico and are primarily in the home improvement, marine, and agricultural industries.  


We could experience delays in the delivery of our products to our customers causing us to lose business.


We purchase our products from other vendors and a delay in shipment from these vendors to us could cause significant delays in our delivery to our customers.  This could result in a decrease in sales orders to us and we would experience a loss in profitability.


We could lose our credit agreement and could result in our not being able to pay our creditors.


We have a line of credit with U.S. Bank in the amount of $1,000,000, of which $1,000,000 is available.  We are currently in compliance with the requirements of our existing line of credit.  If we lost this credit it could become impossible to pay some of our creditors on a timely basis.


If we fail to maintain an effective system of internal controls, we may not be able to detect fraud or report our financial results accurately, which could harm our business and we could be subject to regulatory scrutiny.


We have completed a management assessment of internal controls as prescribed by Section 404 of the Sarbanes-Oxley Act, which we were required to do in connection with our year ended August 31, 2013.  Based on this process we did not identify any material weaknesses.  Although we believe our internal controls are operating effectively, we cannot guarantee that in the future we will not identify any material weaknesses in connection with this ongoing process.


Item 3.

Quantitative and Qualitative Disclosures about Market Risk


Interest Rate Risk


The Company does not have any derivative financial instruments as of May 31, 2014.  However, the Company is exposed to interest rate risk.


The Company’s interest income and expense are most sensitive to changes in the general level of U.S. interest rates.  In this regard, changes in U.S. interest rates affect the interest earned on the Company’s cash as well as interest paid on debt.


The Company has a line of credit whose interest rate may fluctuate over time based on economic changes in the environment.  The Company is subject to interest rate risk and could be subject to increased interest payments if market interest rates fluctuate.  The Company does not expect any change in the interest rates to have a material adverse effect on the Company’s results from operations.


Foreign Currency Risk


The Company operates primarily in the United States.  However, a relatively small amount of business is conducted in currencies other than U.S. dollars.  Also, to the extent that the Company uses contract manufacturers in China, currency exchange rates can influence the Company’s purchasing costs.


Item 4.

Controls and Procedures


Disclosure Controls and Procedures

Management of the Company, including the Chief Executive Officer and the Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective in ensuring that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.


 

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Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.


Part II – OTHER INFORMATION


Item 1.

Legal Proceedings


a)

One of our subsidiaries was a plaintiff in a lawsuit filed in Portland, Oregon, entitled, Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court).  


During fiscal 2002 the Company entered into a purchase agreement to acquire inventory over a 15 month period with an initial estimated value of $7,000,000 from Greenwood Forest Products, Inc.  During the year ended August 31, 2003, the Company completed the final phase of the inventory acquisition.  As partial consideration for the purchase of the inventory the Company issued two promissory notes, based on its understanding of the value of the inventory purchased.  The Company believes it overpaid the obligation by approximately $820,000.  The holder counterclaimed for approximately $2,400,000.


Litigation was completed on March 5, 2007 with the court’s general judgment and money award.  The net effect was a money judgment in favor of Greenwood Forest Products, Inc. for $242,604 and an award of contested intellectual property rights to the Company.  The Company accrued reserves to cover the money judgment related to this dispute.  Both parties filed appeals for review of the court’s opinion.


During the 1st quarter of fiscal 2011, the Oregon Court of Appeals ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorneys fees.  The judgment against plaintiffs was for $1,187,137.  The Company appealed the ruling to the Oregon Supreme Court. In addition to the previously accrued litigation reserve of $225,000, the Company recorded a litigation loss of $962,137 and interest of $440,778 during the year ended August 31, 2011 related to the judgment. In the first quarter of fiscal 2012 ended November 30, 2011, the Company recorded additional interest of $16,204.


In February 2012, the Company received the decision from the Oregon Supreme Court which was favorable to Jewett Cameron as plaintiff. As a result, the Company has reversed $1,459,832 of the litigation reserve and accrued interest during the 2nd quarter of fiscal 2012 ended February 29, 2012.  The reversal was treated as a one-time gain during the quarter.


During the year ended August 31, 2013, the Company recorded $26,716 of interest income due to the favorable difference in interest rates between the judgments. During the nine months ended May 31, 2014, the Company recorded $19,982 of interest income.


Subsequent to the period ended May 31, 2014, the Company received notice in July 2014 that upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial. As a consequence, the Court ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorneys fees.  The judgment against plaintiffs was for $1,187,137.  The Company is currently assessing the impact of this new ruling, and is evaluating potential next steps.  As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million.


b)

In January 2013, the Company's subsidiary JC USA Inc. (formerly Jewett-Cameron Lumber Corporation) reached a settlement with the State of Oregon Department of Transportation in the Circuit Court of the State of Oregon for Washington County, Case No. C122901CV.  Under the settlement agreement, the Company agreed to sell approximately 1.64 acres of land to the Department of Transportation for $410,000. The land had a cost basis of $56,148, and the Company recorded a gain on sale of property plant and equipment of $353,852 during the fiscal year ended August 31, 2013.


The Company does not know of any other material, active or pending legal proceedings against them; nor is the Company involved as a plaintiff in any other material proceeding or pending litigation.  The Company knows of no other active or pending proceedings against anyone that might materially adversely affect an interest of the Company.


 

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Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

---No Disclosure Required---


Item 3.

Defaults Upon Senior Securities

---No Disclosure Required---       


Item 4.  Mine Safety Disclosures

---No Disclosure Required---       


Item 5.

Other Information

---No Disclosure Required---


Item 6.

Exhibits


31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act, Donald M. Boone

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act, Murray G. Smith.

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C., 1350 (Section 906 of the Sarbanes-Oxley Act), Donald M. Boone

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C., 1350 (Section 906 of the Sarbanes-Oxley Act), Murray G. Smith


 

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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Jewett-Cameron Trading Company Ltd.

(Registrant)



July 14, 2014

/s/  "Donald M. Boone"

Donald M. Boone, President/CEO/Director




July 14, 2014

/s/   "Murray G. Smith"

Murray G. Smith, Chief Financial Officer



 

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EX-31.1 2 f302certificationceo.htm CERTIFICATION OF CEO CEO Certification




CERTIFICATIONS


I, Donald M. Boone, certify that:


1. 

I have reviewed this Quarterly Report on Form 10-Q of Jewett-Cameron Trading Company Ltd;


2. 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4. 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;


c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the end of the period covered by this report based on such evaluation; and


d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date:

July 14, 2014




By:

/s/  “Donald M. Boone”

Donald M. Boone,

Chief Executive Officer



EX-31.2 3 f302certificationcfo.htm CERTIFICATION OF CFO CFO Certification




CERTIFICATIONS


I, Murray G. Smith, certify that:


1. 

I have reviewed this Quarterly Report on Form 10-Q of Jewett-Cameron Trading Company Ltd;


2. 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4. 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;


c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the end of the period covered by this report based on such evaluation; and


d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date:

July 14, 2014




By:

/s/  “Murray G. Smith”

Murray G. Smith,

Chief Financial Officer



EX-32.1 4 f906certificationceo.htm CEO CERTIFICATION CEO Certification




CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,


AS ADOPTED PURSUANT TO


SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002




In connection with the Quarterly Report of Jewett-Cameron Trading Company Ltd. (the “Company”) on Form 10-Q for the period ended May 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, to such officer’s knowledge, that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.




Date: July 14, 2014

Signed:  /s/  “Donald M. Boone”

 


Donald M. Boone,

President and CEO






EX-32.2 5 f906certificationcfo.htm CFO CERTIFICATION CFO Certification




CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,


AS ADOPTED PURSUANT TO


SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002




In connection with the Quarterly Report of Jewett-Cameron Trading Company Ltd. (the “Company”) on Form 10-Q for the period ended May 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, to such officer’s knowledge, that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.




Date:  July 14, 2014

Signed:  /s/  “Murray G. Smith

 


Murray G. Smith,

Chief Financial Officer





EX-101.INS 6 jctcf-20140531.xml -353852 -4109 -1727858 -1578367 5000 -1501480 -739215 -125868 -47022 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; NATURE OF OPERATIONS </font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (&#147;JCLC&#148;), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLC&#146;s name was changed to JC USA Inc. (&#147;JC USA&#148;), and a new subsidiary, Jewett-Cameron Company (&#147;JCC&#148;), was incorporated. &#160;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (&#147;MSI&#148;), incorporated April 1996, Jewett-Cameron Seed Company, (&#147;JCSC&#148;), incorporated October 2000, Greenwood Products, Inc. (&#147;Greenwood&#148;), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the &#147;Company&#148;) have no significant assets in Canada.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCC&#146;s business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2014 and August 31, 2013 and its results of operations and cash flows for the three and nine month periods ended May 31, 2014 and May 31, 2013 in accordance with <font lang="EN-GB">generally accepted accounting principles of the United States of America</font> (&#147;U.S. GAAP&#148;). Operating results for the three and nine month periods ended May 31, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2014.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; STOCK OPTIONS</font></b><font lang="EN-GB"> </font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares.&#160; No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee.&#160; Generally, no option can be for a term of more than 10 years from the date of the grant.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant.&#160; Options vest at the discretion of the Board of Directors. </font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company had no stock options outstanding as of May 31, 2014 and August 31, 2013.</font></p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; EMPLOYEE STOCK OWNERSHIP PLAN (&#147;ESOP&#148;)</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company sponsors an ESOP that covers all U.S. employees who are employed by the Company on August 31 of each year and who have at least one thousand hours with the Company in the twelve months preceding that date.&#160; The ESOP formerly held common shares of the Company and granted to participants in the plan certain ownership rights in, but not possession of, or voting control of, any common stock of the Company held by the Trustee of the Plan.&#160; Shares of common stock were allocated annually to participants in the ESOP pursuant to a prescribed formula. The Company records compensation expense based on the market price of the Company's shares when they were allocated.&#160; Any dividends on allocated ESOP shares are recorded as a reduction of retained earnings.&#160; Beginning in fiscal 2010, the ESOP began its investment in diversified mutual funds. During fiscal 2011 and 2012, all of the Company&#146;s shares held by the ESOP were sold, with the majority repurchased by the Company and cancelled under the </font><font lang="X-NONE">10b5-1 share repurchase plans. Effective June 30, 2012, the ESOP was terminated, subject to the approval of the Internal Revenue Service. No further contributions shall be made to the ESOP. On October 18, 2013, the Internal Revenue Service issued a favorable determination letter for the termination of the ESOP, and the Plan </font>has <font lang="X-NONE">distribut</font>ed<font lang="X-NONE"> the remaining assets to participants.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">ESOP compensation expense was $Nil and $Nil for the fiscal years ended August 31, 2013 and 2012, respectively, and is included in wages and employee benefits.&#160; No shares were owned by the ESOP at August 31, 2013 or 2012.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PENSION AND PROFIT-SHARING PLANS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a semi-annual enrolment time.&#160; The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. For the nine month periods ended May 31, 2014 and 2013, the 401(k) compensation expense was $</font><font lang="EN-GB">147,685</font><font lang="EN-GB"> and $</font><font lang="EN-GB">166,224</font><font lang="EN-GB">, respectively.</font></p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONTINGENT LIABILITIES AND COMMITMENTS </font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A subsidiary was a plaintiff in a lawsuit filed in Portland, Oregon, entitled, Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court).&#160; </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>During fiscal 2002 the Company entered into a purchase agreement to acquire inventory over a 15 month period with an initial estimated value of $7,000,000 from Greenwood Forest Products, Inc. During the year ended August 31, 2003, the Company completed the final phase of the inventory acquisition. As partial consideration for the purchase of the inventory the Company issued two promissory notes, based on its understanding of the value of the inventory purchased. The Company believes it overpaid the obligation by approximately $820,000. The holder counterclaimed for approximately $2,400,000.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>Litigation was completed on March 5, 2007, with the court&#146;s general judgment and money award. The net effect was money judgment in favor of Greenwood Forest Products, Inc. for $242,604. The Company accrued reserves to cover the money judgment related to this dispute. Both parties filed appeals for review of the court&#146;s opinion.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>During the 1st quarter of fiscal 2011, the Oregon Court of Appeals ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of the defendants should stand. The judgment in favor of the Company was for $819,000 plus attorneys fees. The judgment against the plaintiffs is for $1,187,137. The Company appealed the decision to the Oregon Supreme Court. During the 1st quarter of fiscal 2011, the Company recorded a litigation loss of $962,137 and interest of $391,988 in addition to the existing litigation reserve of $225,000. Additional interest of $48,790 was recorded during the remainder of fiscal 2011. During the 1st quarter of fiscal 2012 ended November 30, 2011, additional interest of $16,204 was accrued.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>In February 2012, the Company received the decision from the Oregon Supreme Court which was favorable to Jewett Cameron as plaintiff. As a result, the Company has reversed $1,459,832 of the litigation reserve and accrued interest during the 2nd quarter of fiscal 2012 ended February 29, 2012. The reversal was treated as a one-time gain during the quarter.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>In July 2014, upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial, and, as a consequence, ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand. &#160;The judgment in favor of the Company was for $819,000 plus attorneys fees. &#160;The judgment against plaintiffs was for $1,187,137.&#160; The Company is currently assessing the impact of this new ruling, and is evaluating potential next steps.&#160; As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million (Note 17).</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>During the year ended August 31, 2013, the Company recorded $26,716 of interest income due to the favorable difference in interest rates between the judgments. During the nine months ended May 31, 2014, the Company recorded $19,982 of interest income.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A summary of the litigation reserve is as follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="680" style='width:509.7pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">May 31,</font></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">August 31,</font></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation loss</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation reserve</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">144,103</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">170,819</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Interest expense</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Interest income</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(19,982)</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(26,716)</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Total</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">124,121</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">144,103</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">b</font><font lang="EN-GB">)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At May 31, 2014 and August 31, 2013 the Company had an un-utilized line-of-credit (note 7).&#160; The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SEGMENT INFORMATION </font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered.&#160; Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.&#160; </font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes.&#160; The following tables show the operations of the Company's reportable segments.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Effective September 1, 2013, the Company reorganized certain of its subsidiaries. The majority of fixed and intangible assets, and certain Corporate and administrative functions<font lang="EN-GB"> which were formerly contained within the &#147;Lawn, garden, pet and other&#148; reporting segment are now classified as &#147;Corporate and administrative.&#148; The segment information for the nine months ended May 31, 2013 has been restated for comparability purposes.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">Following is a summary of segmented information for the nine month periods ended May 31:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="707" style='width:530.15pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Sales to unaffiliated customers:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; 4,439,588</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; 5,935,267</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">25,472,054</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">26,742,571</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,045,763</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">4,193,249</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,117,095</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,704,651</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">33,074,500</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">38,575,738</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Income (loss) before income taxes:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; (41,110)</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; (10,469)</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,863,335</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,801,768</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">48,170</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">121,749</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">63,137</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">110,654</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">595,863</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:.7pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">443,899</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">*</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; </font><font lang="EN-GB">2,529,395</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160; 3,467,601</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Identifiable assets:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; 1,056,139</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160; 1,659,045</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">11,037,069</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">8,785,144</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">435,798</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">111,381</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">715,657</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">602,305</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">7,315,043</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">10,428,333</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">20,559,706</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">21,586,208</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Depreciation and amortization:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 735</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 634</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">36,507</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">18,901</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">9,565</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">11,549</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,628</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">4,723</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">162,259</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">152,624</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">212,694</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">188,431</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Capital expenditures:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,602</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,476</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,300</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">7,379</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">92,973</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">171,222</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-5.4pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">94,274</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">183,679</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Interest expense:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">400</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">* For comparability purposes, the 2013 amount excludes gain on sale of property, plant and equipment of $353,852.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2014 and 2013:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.5pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Sales</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">16,443,767</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; </font><font lang="EN-GB">12,475,035</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine months ended May 31, 2014 and 2013:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">United States</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">30,761,104</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">34,320,602</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Canada</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">686,530</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,889,696</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mexico</font><font lang="EN-GB"> / Latin America</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">1,318,436</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,256,420</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Europe</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">183,753</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">54,615</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Asia/Pacific</font></p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">124,677</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">54,405</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:-.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">33,074,500</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">38,575,738</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-63.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">All of the Company&#146;s significant identifiable assets were located in the United States as of May 31, 2014 and 2013.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONCENTRATIONS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Credit risk</font></i></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.&#160; The Company places its cash with a high quality financial institution.&#160; The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At May 31, 2014, three customers accounted for accounts receivable greater than 10% of total accounts receivable at </font><font lang="EN-GB">66</font><font lang="EN-GB">%. At May 31, 2013, two customers accounted for accounts receivable greater than 10% of total accounts receivable at </font><font lang="EN-GB">64</font><font lang="EN-GB">%. The Company controls credit risk through credit approvals, credit limits, credit insurance and monitoring procedures.&#160; The Company performs credit evaluations of its commercial customers but generally does not require collateral to support accounts receivable.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Volume of business</font></i></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company has concentrations in the volume of purchases it conducts with its suppliers. For the nine months ended May 31, 2014, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $</font><font lang="EN-GB">12,850,844</font><font lang="EN-GB">. For the nine months ended May 31, 2013, there were two suppliers that accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $</font><font lang="EN-GB">12,622,276</font><font lang="EN-GB">.</font></p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">Certain cash payments for the three and nine months ended May 31, 2014 and 2013 are summarized as follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="679" style='width:509.4pt;border-collapse:collapse'> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="184" colspan="3" valign="top" style='width:137.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Three Month Periods</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Ended May 31</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="185" colspan="3" valign="top" style='width:138.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Nine Month Periods </font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Ended May 31</font></b></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2013</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Cash paid during the periods for:</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; Interest</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;-</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;-</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">400</font></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; Income taxes</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;</font><font lang="EN-GB">446,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">546,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,075,824</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">1,530,812</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">There were no non-cash investing or financing activities during the periods presented.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SUBSEQUENT EVENTS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-indent:-.5pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt;text-autospace:none'>The Company received notice in July 2014 in the lawsuit Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court) which involves a Company subsidiary as plaintiff (note 13). Upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial. As a consequence, the Court ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand. &#160;The judgment in favor of the Company was for $819,000 plus attorneys fees. &#160;The judgment against plaintiffs was for $1,187,137.&#160; The Company is currently assessing the impact of this new ruling, and is evaluating potential next steps.&#160; As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">2.</font></b><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>SIGNIFICANT ACCOUNTING POLICIES</b></font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">These consolidated financial statements have been prepared in conformity with </font>U.S. GAAP<font lang="EN-GB">.&#160; </font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Principles of consolidation</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">All inter-company balances and transactions have been eliminated upon consolidation.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Estimates</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">The preparation of consolidated financial statements in conformity with </font>U.S. GAAP <font lang="EN-GB">requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&#160; Significant estimates incorporated into the Company&#146;s consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims.&#160; Actual results could differ from those estimates.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Cash and cash equivalents</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.&#160; At May 31, 2014, cash was $4,240,397 compared to $8,308,445 at August 31, 2013.&#160; At May 31, 2014 and August 31, 2013, there were no cash equivalents.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Accounts receivable</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="X-NONE">Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers.&#160; The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue.&#160; </font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="X-NONE">The Company extends credit to domestic customers and offers discounts for early payment.&#160; When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market.&#160; Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Property, plant and equipment</font></b></p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt;text-align:justify'><font lang="X-NONE">Property, plant and equipment are recorded at cost less accumulated depreciation.&#160; The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods:</font></p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="445" style='width:333.6pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-7 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">2-10 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-30 years</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Intangibles</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s intangible assets have a finite life and are recorded at cost.&#160; The most significant intangible assets are two patents related to gate support systems.&#160; Amortization is calculated using the straight-line method over the remaining lives of 45 months and 57 months, respectively, and are reviewed annually for impairment.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Asset retirement obligations</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets.&#160; The Company also records a corresponding asset which is amortized over the life of the asset.&#160; Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost).&#160; The Company does not have any significant asset retirement obligations.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160; Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.&#160; If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.&#160; Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Currency and foreign exchange</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.&#160; Any income statement transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation.&#160; Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Earnings per share</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The earnings per share data for the three and nine month period ended May 31, 2014 and May 31, 2013 are as follows:</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="198" colspan="3" valign="bottom" style='width:148.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="187" colspan="3" valign="bottom" style='width:140.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Net income</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; &#160;</font><font lang="EN-GB">936,329</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,018,564</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,506,306</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">2,289,941</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Basic weighted average number of common shares outstanding</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Effect of dilutive securities</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'><font lang="EN-GB">Stock options</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Diluted weighted average number of common shares outstanding </font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Comprehensive income</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company has no items of other comprehensive income in any period presented.&#160; Therefore, net income presented in the consolidated statements of operations equals comprehensive income.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Stock-based compensation</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>No options were granted during the nine month period ended May 31, 2014, and there were no options outstanding on May 31, 2014.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Financial instruments </font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Cash </font></i><font lang="EN-GB">- the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Accounts receivable </font></i><font lang="EN-GB">- the carrying amounts approximate fair value due to the short-term nature and historical collectability.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Notes receivable - </font></i><font lang="EN-GB">the carrying amounts approximate fair value due to the short-term nature of the amount.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Accounts payable and accrued liabilities </font></i><font lang="EN-GB">- the carrying amount approximates fair value due to the short-term nature of the obligations.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The estimated fair values of the Company's financial instruments as of May 31, 2014 and August 31, 2013 follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.65pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">May 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">4,240,397</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$4,240,397</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">8,308,445</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$8,308,445</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts receivable, net of allowance</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Note receivable</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts payable and accrued liabilities</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="675" style='width:506.05pt;border-collapse:collapse'> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="33%" valign="bottom" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>May 31,</b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>2014</b></p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Quoted Prices</b> <b>in Active</b> <b>Markets</b> <b>(Level 1)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Other</b> <b>Observable</b> <b>Inputs</b> <b>(Level 2)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Unobservable</b> <b>Inputs</b> <b>(Level 3)</b></p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>Assets:</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="7%" valign="bottom" style='width:7.74%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.24%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.7%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="7%" valign="bottom" style='width:7.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.24%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:-63.0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>The fair values of cash are determined through market, observable and corroborated sources.</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Income taxes</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards.&#160; Deferred tax expense (benefit) results from the net change during the period of deferred tax assets and liabilities.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.&#160; Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Shipping and handling costs<u> </u></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as revenue in the consolidated statement of operations.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Revenue recognition</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured.&#160; Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products.&#160; Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Reclassifications</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Certain reclassifications have been made to prior years&#146; financial statements to conform to the classifications used in the current period.&#160; These reclassifications include adjustments to reflect the reorganization of the corporate structure and reporting segments effective September 1, 2013. </p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Recent Accounting Pronouncements </b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; INVENTORY</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A summary of inventory is as follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="685" style='width:513.9pt;border-collapse:collapse'> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Wood products and metal products</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">6,362,171</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">7,984,678</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Industrial tools</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">548,166</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">482,949</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Agricultural seed products</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">335,058</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">53,364</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>$&#160; 7,245,395</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>$&#160; 8,520,991</p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PROPERTY, PLANT AND EQUIPMENT</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A summary of property, plant, and equipment is as follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="684" style='width:513.0pt;margin-left:.9pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">562,656</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">565,575</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,465,993</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,431,707</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">2,688,616</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">2,681,989</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Land</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">5,479,189</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">5,441,195</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Accumulated depreciation</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,301,821)</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,199,245)</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net book value</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">2,177,368</font></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">2,241,950</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">In the event that facts and circumstances indicate that the carrying amount of an asset may not be recoverable and an estimate of future discounted cash flows is less than the carrying amount of the asset, an impairment loss will be recognized. Management's estimates of revenues, operating expenses, and operating capital are subject to certain risks and uncertainties which may affect the recoverability of the Company's investments in its assets. Although management has made its best estimate of these factors based on current conditions, it is possible that changes could occur which could adversely affect management's estimate of the net cash flow expected to be generated from its operations.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'><b><font lang="EN-GB">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; INTANGIBLE ASSETS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">A summary of intangible assets is as follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.5pt;margin-left:5.4pt;border-collapse:collapse'> <tr style='height:8.85pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Patent</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Other</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accumulated amortization</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(579,522)</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(524,993)</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Net book value</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">314,133</font></p> </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">368,662</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">6.</font></b><font lang="EN-GB"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>DEFERRED INCOME TAXES</b></font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Deferred income tax liability as of May 31, 2014 of $</font><font lang="EN-GB">44,382</font><font lang="EN-GB"> (August 31, 2013 &#150; $</font><font lang="EN-GB">50,393</font><font lang="EN-GB">) reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.</font></p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt'><b><font lang="EN-GB">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; BANK INDEBTEDNESS</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">There was no bank indebtedness under the Company&#146;s line of credit as of May 31, 2014 or August 31, 2013.&#160; At August 31, 2013, the line of credit borrowing limit was $5,000,000.&#160; In March 2014, the Company voluntarily elected to reduce the line of credit borrowing limit to $1,000,000.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. </font>Interest is calculated solely on the one month LIBOR rate plus 175 basis points.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CAPITAL STOCK</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Common Stock</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Holders of common stock are entitled to one vote for each share held.&#160; There are no restrictions that limit the Company's ability to pay dividends on its common stock.&#160; The Company has not declared any dividends since incorporation.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt'><b><font lang="EN-GB">Common Stock Split</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-.5pt'><font lang="EN-GB">The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CANCELLATION OF CAPITAL STOCK</b></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Treasury stock may be kept based on an acceptable inventory method such as the average cost basis.&nbsp; Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 3rd quarter of fiscal 2014 ended May 31, 2014, the Company repurchased and cancelled a total of 327,078 common shares under a 10b5-1 share repurchase plan. The total cost was $3,234,699 at an average price of $9.89 per share. The premium paid to acquire these shares over their per share book value in the amount of $3,080,365 was recorded as a decrease to retained earnings.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 2nd quarter of fiscal 2014 ended February 28, 2014, the Company repurchased and cancelled a total of 58,180 common shares under a 10b5-1 share repurchase plan. The total cost was $569,019 at an average price of $9.78 per share. The premium paid to acquire these shares over their per share book value in the amount of $541,564 was recorded as a decrease to retained earnings.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 4th quarter of fiscal 2013 ended August 31, 2013, the Company repurchased and cancelled a total of 192 common shares under a 10b5-1 share repurchase plan. The total cost was $2,304 at an average price of $12.00 per share. The premium paid to acquire these shares over their per share book value in the amount of $2,213 was recorded as a decrease to retained earnings.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 2nd quarter of fiscal 2013 ended February 28, 2013, the Company repurchased and cancelled a total of 814 common shares common shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $4,884 at an average price of $6.00 per share. The premium paid to acquire these shares over their per share book value in the amount of $4,500 was recorded as a decrease to retained earnings. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 3rd quarter of fiscal 2012 ended May 31, 2012, the Company repurchased and cancelled a total of 83,798 common shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $382,510 at an average price of $4.56 per share. The premium paid to acquire these shares over their per share book value in the amount of $342,969 was recorded as a decrease to retained earnings. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 2nd quarter of fiscal 2012 ended February 29, 2012, the Company repurchased and cancelled a total of 497,174 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $2,238,929 at an average share price of $4.50 per share. The premium paid to acquire these shares over their per share book value in the amount of $2,004,334 was recorded as a decrease to retained earnings.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>During the 1st quarter of fiscal 2012 ended November 30, 2011, the Company repurchased and cancelled a total of 100,000 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $454,120 at an average share price of $4.54 per share. The premium paid to acquire these shares over their per share book value in the amount of $406,934 was recorded as a decrease to retained earnings.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> 1715458 962733 2865340 2090594 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Accounts receivable</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="X-NONE">Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers.&#160; The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue.&#160; </font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="X-NONE">The Company extends credit to domestic customers and offers discounts for early payment.&#160; When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit.</font></p> 0 0 3344777 4923144 1149882 1127861 -3199245 -3301821 600804 600804 53364 335058 -524993 -579522 54405 124677 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Asset retirement obligations</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets.&#160; The Company also records a corresponding asset which is amortized over the life of the asset.&#160; Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost).&#160; The Company does not have any significant asset retirement obligations.</p> 0.73 0.32 0.50 0.33 600804 1801043 15086971 17488818 600804 1479721 15392665 17473190 600804 1479246 18517971 20598021 600804 1297457 16402348 18300609 2681989 2688616 1889696 686530 1479246 1297457 7309388 7678879 8308445 8308445 4240397 4240397 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Cash and cash equivalents</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.&#160; At May 31, 2014, cash was $4,240,397 compared to $8,308,445 at August 31, 2013.&#160; At May 31, 2014 and August 31, 2013, there were no cash equivalents.</font></p> 0 0 21567564 21567564 3134936 2749678 3134936 2749678 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Comprehensive income</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company has no items of other comprehensive income in any period presented.&#160; Therefore, net income presented in the consolidated statements of operations equals comprehensive income.</font></p> 64 66 12622276 12850844 0 0 31114942 12021388 26516458 12384976 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Currency and foreign exchange</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.&#160; Any income statement transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation.&#160; Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations.</font></p> -37203 2410477 1275596 152017 -6011 50393 44382 50393 44382 188431 66735 212694 73145 0.73 0.32 0.50 0.33 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Earnings per share</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The earnings per share data for the three and nine month period ended May 31, 2014 and May 31, 2013 are as follows:</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="198" colspan="3" valign="bottom" style='width:148.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="187" colspan="3" valign="bottom" style='width:140.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Net income</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; &#160;</font><font lang="EN-GB">936,329</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,018,564</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,506,306</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">2,289,941</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Basic weighted average number of common shares outstanding</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Effect of dilutive securities</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'><font lang="EN-GB">Stock options</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Diluted weighted average number of common shares outstanding </font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Estimates</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">The preparation of consolidated financial statements in conformity with </font>U.S. GAAP <font lang="EN-GB">requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&#160; Significant estimates incorporated into the Company&#146;s consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims.&#160; Actual results could differ from those estimates.</font></p> 54615 183753 <!--egx--><p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="675" style='width:506.05pt;border-collapse:collapse'> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="33%" valign="bottom" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>May 31,</b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>2014</b></p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Quoted Prices</b> <b>in Active</b> <b>Markets</b> <b>(Level 1)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Other</b> <b>Observable</b> <b>Inputs</b> <b>(Level 2)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Unobservable</b> <b>Inputs</b> <b>(Level 3)</b></p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>Assets:</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="7%" valign="bottom" style='width:7.74%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.24%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.7%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="7%" valign="bottom" style='width:7.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.24%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.65pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">May 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">4,240,397</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$4,240,397</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">8,308,445</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$8,308,445</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts receivable, net of allowance</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Note receivable</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts payable and accrued liabilities</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Financial instruments </font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Cash </font></i><font lang="EN-GB">- the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Accounts receivable </font></i><font lang="EN-GB">- the carrying amounts approximate fair value due to the short-term nature and historical collectability.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Notes receivable - </font></i><font lang="EN-GB">the carrying amounts approximate fair value due to the short-term nature of the amount.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Accounts payable and accrued liabilities </font></i><font lang="EN-GB">- the carrying amount approximates fair value due to the short-term nature of the obligations.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The estimated fair values of the Company's financial instruments as of May 31, 2014 and August 31, 2013 follows:</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.65pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">May 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Carrying</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Fair</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Amount</font></b></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">Value</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">4,240,397</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$4,240,397</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font><font lang="EN-GB">8,308,445</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$8,308,445</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts receivable, net of allowance</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">4,923,144</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,344,777</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Note receivable</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">15,000</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accounts payable and accrued liabilities</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,090,594</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,865,340</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="675" style='width:506.05pt;border-collapse:collapse'> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="33%" valign="bottom" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>May 31,</b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>2014</b></p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Quoted Prices</b> <b>in Active</b> <b>Markets</b> <b>(Level 1)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Other</b> <b>Observable</b> <b>Inputs</b> <b>(Level 2)</b></p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:1.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>Significant</b> <b>Unobservable</b> <b>Inputs</b> <b>(Level 3)</b></p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:18.0pt;margin-bottom:.0001pt;text-indent:-18.0pt'>Assets:</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.7%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.26%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="7%" valign="bottom" style='width:7.74%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="10%" valign="bottom" style='width:10.24%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="7%" valign="top" style='width:7.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="33%" valign="top" style='width:33.8%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.7%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.26%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>4,240,397</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="7%" valign="bottom" style='width:7.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.74%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.86%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.24%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:-63.0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0pt;margin-right:4.5pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-align:justify'>The fair values of cash are determined through market, observable and corroborated sources.</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> 893655 893655 850000 850000 353852 4109 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">These consolidated financial statements have been prepared in conformity with </font>U.S. GAAP<font lang="EN-GB">.&#160; </font></p> 7460796 3030121 6558042 2950594 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160; Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.&#160; If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.&#160; Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.</p> 3821453 1693242 2529395 1559271 3437952 1686508 2505278 1552537 -1531512 -674678 -1023089 -622942 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Income taxes</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards.&#160; Deferred tax expense (benefit) results from the net change during the period of deferred tax assets and liabilities.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.&#160; Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> 1530812 546000 1075824 446000 -1131569 -774746 482949 548166 368662 314133 368662 314133 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Intangibles</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s intangible assets have a finite life and are recorded at cost.&#160; The most significant intangible assets are two patents related to gate support systems.&#160; Amortization is calculated using the straight-line method over the remaining lives of 45 months and 57 months, respectively, and are reviewed annually for impairment.</p> 30049 6734 20008 6734 -400 -26716 -19982 -19982 -19982 400 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market.&#160; Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components.</font></p> 134259 115426 8520991 7245395 761924 761924 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="680" style='width:509.7pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">May 31,</font></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">August 31,</font></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation loss</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation reserve</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">144,103</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">170,819</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Interest expense</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Interest income</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(19,982)</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(26,716)</font></p> </td> </tr> <tr align="left"> <td width="62" valign="top" style='width:46.65pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="364" valign="top" style='width:272.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Total</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">124,121</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">144,103</font></p> </td> </tr> </table> 144103 124121 170819 144103 2256420 1318436 226321 -89474 148054 -174856 -4884 -3803718 3059931 3059931 2289941 2289941 3132019 3132019 1018564 1018564 1506306 1506306 1506306 936329 936329 369491 -4068048 15000 15000 565575 562656 43655 43655 166224 147685 0 0 10000000 10000000 0 0 0 0 587609 1326824 270423 317445 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Principles of consolidation</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.</font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">All inter-company balances and transactions have been eliminated upon consolidation.</font></p> 410000 4800 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Property, plant and equipment</font></b></p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt;text-align:justify'><font lang="X-NONE">Property, plant and equipment are recorded at cost less accumulated depreciation.&#160; The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods:</font></p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="445" style='width:333.6pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-7 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">2-10 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-30 years</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="684" style='width:513.0pt;margin-left:.9pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">562,656</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">565,575</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,465,993</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,431,707</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">2,688,616</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">2,681,989</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Land</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">5,479,189</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">5,441,195</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Accumulated depreciation</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,301,821)</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,199,245)</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="408" valign="top" style='width:306.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net book value</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">2,177,368</font></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">2,241,950</font></p> </td> </tr> </table> <!--egx--><p style='margin-top:0pt;margin-right:0pt;margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;margin-left:0pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="445" style='width:333.6pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-7 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">2-10 years</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="234" valign="top" style='width:175.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-30 years</font></p> </td> </tr> </table> 2241950 2177368 -183679 -94274 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Recent Accounting Pronouncements </b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Reclassifications</b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Certain reclassifications have been made to prior years&#146; financial statements to conform to the classifications used in the current period.&#160; These reclassifications include adjustments to reflect the reorganization of the corporate structure and reporting segments effective September 1, 2013. </p> -4884 -3803718 18517971 16402348 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Revenue recognition</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured.&#160; Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products.&#160; Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.</font></p> 38575738 15051509 33074500 15335570 12475035 16443767 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="679" style='width:509.4pt;border-collapse:collapse'> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="184" colspan="3" valign="top" style='width:137.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Three Month Periods</font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Ended May 31</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="185" colspan="3" valign="top" style='width:138.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Nine Month Periods </font></b></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">Ended May 31</font></b></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2013</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Cash paid during the periods for:</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; Interest</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;-</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;-</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">400</font></p> </td> </tr> <tr align="left"> <td width="55" valign="top" style='width:41.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="240" valign="top" style='width:180.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; Income taxes</font></p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;</font><font lang="EN-GB">446,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">546,000</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,075,824</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.3pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">1,530,812</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="198" colspan="3" valign="bottom" style='width:148.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="187" colspan="3" valign="bottom" style='width:140.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Periods</font></p> <p align="center" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Ended May 31,</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:63.0pt;text-align:justify;text-indent:9.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2014</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2013</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:45.0pt;text-indent:-45.0pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Net income</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; &#160;</font><font lang="EN-GB">936,329</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,018,564</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,506,306</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">2,289,941</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Basic weighted average number of common shares outstanding</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Effect of dilutive securities</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:12.6pt;text-indent:-.9pt'><font lang="EN-GB">Stock options</font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:13.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="34" valign="bottom" style='width:25.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="248" valign="bottom" style='width:186.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:11.1pt;text-indent:-11.1pt'><font lang="EN-GB">Diluted weighted average number of common shares outstanding </font></p> </td> <td width="96" valign="bottom" style='width:72.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,866,273</font></p> </td> <td width="16" valign="bottom" style='width:12.35pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,128</font></p> </td> <td width="17" valign="bottom" style='width:13.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,042,692</font></p> </td> <td width="17" valign="bottom" style='width:12.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="85" valign="bottom" style='width:63.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,135,641</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.5pt;margin-left:5.4pt;border-collapse:collapse'> <tr style='height:8.85pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Patent</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Other</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Accumulated amortization</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(579,522)</font></p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(524,993)</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.6pt'> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="402" valign="top" style='width:301.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Net book value</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">314,133</font></p> </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">368,662</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="685" style='width:513.9pt;border-collapse:collapse'> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">May 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Wood products and metal products</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">6,362,171</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">7,984,678</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Industrial tools</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">548,166</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">482,949</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Agricultural seed products</font></p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">335,058</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">53,364</font></p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="50" valign="top" style='width:37.45pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="407" valign="top" style='width:305.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>$&#160; 7,245,395</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>$&#160; 8,520,991</p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">United States</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">30,761,104</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">34,320,602</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Canada</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">686,530</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,889,696</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mexico</font><font lang="EN-GB"> / Latin America</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">1,318,436</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,256,420</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Europe</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">183,753</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">54,615</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Asia/Pacific</font></p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">124,677</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">54,405</font></p> </td> </tr> <tr align="left"> <td width="46" valign="top" style='width:34.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="362" valign="top" style='width:271.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:-.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">33,074,500</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">38,575,738</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="678" style='width:508.5pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="132" valign="top" style='width:99.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Sales</font></p> </td> <td width="132" valign="top" style='width:99.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160; </font><font lang="EN-GB">16,443,767</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; </font><font lang="EN-GB">12,475,035</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="707" style='width:530.15pt;margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2014</font></b></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2013</font></b></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Sales to unaffiliated customers:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; 4,439,588</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; 5,935,267</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">25,472,054</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">26,742,571</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,045,763</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">4,193,249</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,117,095</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,704,651</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">33,074,500</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">38,575,738</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Income (loss) before income taxes:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; (41,110)</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; (10,469)</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,863,335</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,801,768</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">48,170</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">121,749</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">63,137</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">110,654</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">595,863</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:.7pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">443,899</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">*</font></p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; </font><font lang="EN-GB">2,529,395</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160; 3,467,601</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Identifiable assets:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; 1,056,139</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160; 1,659,045</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">11,037,069</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">8,785,144</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">435,798</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">111,381</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">715,657</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">602,305</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">7,315,043</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">10,428,333</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">20,559,706</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">21,586,208</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Depreciation and amortization:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 735</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 634</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">36,507</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">18,901</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">9,565</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">11,549</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,628</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">4,723</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">162,259</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">152,624</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">212,694</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">188,431</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Capital expenditures:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,602</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,476</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,300</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">7,379</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">92,973</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">171,222</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:-5.4pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">94,274</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">183,679</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">Interest expense:</font></b></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="48" valign="top" style='width:36.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="360" valign="top" style='width:270.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="131" valign="top" style='width:98.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p> </td> <td width="24" valign="top" style='width:17.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">400</font></p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> </tr> </table> 1176173 372191 1240800 402013 0 0 0 0 3816914 3135942 3134936 2749678 -680972 -1006 -385258 0 0 -321322 -2754237 -3075559 0 0 -475 -6713 -7188 -181789 -3621929 -3803718 <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b>Shipping and handling costs<u> </u></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as revenue in the consolidated statement of operations.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Stock-based compensation</font></b></p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>No options were granted during the nine month period ended May 31, 2014, and there were no options outstanding on May 31, 2014.</p> 21586208 23657857 20559706 21047245 18068205 3009443 2214715 3059836 2259097 23657857 20559706 4022844 1343613 4052764 1398057 383501 6734 24117 6734 20598021 18300609 34320602 30761104 2658240 904687 2599270 922899 1431707 1465993 3135641 3135128 3042692 2866273 3135641 3135128 3042692 2866273 3135641 3135128 3042692 2866273 7984678 6362171 10-Q 2014-05-31 false JEWETT CAMERON TRADING CO LTD 0000885307 --08-31 2749678 Smaller Reporting Company Yes No No 2014 Q3 0000885307 2013-09-01 2014-05-31 0000885307 2014-05-31 0000885307 2014-07-14 0000885307 2013-08-31 0000885307 2011-09-01 2012-08-31 0000885307 2012-09-01 2013-08-31 0000885307 us-gaap:CommonStockMember 2011-09-01 2012-08-31 0000885307 fil:CommonStockAmountMember 2011-09-01 2012-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2011-09-01 2012-08-31 0000885307 us-gaap:RetainedEarningsMember 2011-09-01 2012-08-31 0000885307 fil:CommonStockAmountMember 2011-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2011-08-31 0000885307 us-gaap:RetainedEarningsMember 2011-08-31 0000885307 2011-08-31 0000885307 us-gaap:CommonStockMember 2011-08-31 0000885307 fil:CommonStockAmountMember 2012-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2012-08-31 0000885307 us-gaap:RetainedEarningsMember 2012-08-31 0000885307 2012-08-31 0000885307 us-gaap:CommonStockMember 2012-08-31 0000885307 us-gaap:CommonStockMember 2012-09-01 2013-08-31 0000885307 fil:CommonStockAmountMember 2012-09-01 2013-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2012-09-01 2013-08-31 0000885307 us-gaap:RetainedEarningsMember 2012-09-01 2013-08-31 0000885307 fil:CommonStockAmountMember 2013-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2013-08-31 0000885307 us-gaap:RetainedEarningsMember 2013-08-31 0000885307 us-gaap:CommonStockMember 2013-08-31 0000885307 us-gaap:CommonStockMember 2013-09-01 2014-05-31 0000885307 fil:CommonStockAmountMember 2013-09-01 2014-05-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2013-09-01 2014-05-31 0000885307 us-gaap:RetainedEarningsMember 2013-09-01 2014-05-31 0000885307 fil:CommonStockAmountMember 2014-05-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2014-05-31 0000885307 us-gaap:RetainedEarningsMember 2014-05-31 0000885307 us-gaap:CommonStockMember 2014-05-31 0000885307 2014-03-01 2014-05-31 0000885307 2013-03-01 2013-05-31 0000885307 2012-09-01 2013-05-31 0000885307 2013-05-31 iso4217:USD shares iso4217:USD shares