0001217160-16-000602.txt : 20160714 0001217160-16-000602.hdr.sgml : 20160714 20160714163431 ACCESSION NUMBER: 0001217160-16-000602 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 87 CONFORMED PERIOD OF REPORT: 20160531 FILED AS OF DATE: 20160714 DATE AS OF CHANGE: 20160714 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: 161767706 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 jewettcameronq3_201610q.htm JEWETT CAMERON Q3 10-Q 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, 2016



¨

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 – 2,370,704 common shares as of July 14, 2016.


 

 

 

 

 

 

 

 

 



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


21

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

26

 

 

 

Item 4.

Controls and Procedures

26

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

26

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

28

 

 

 

Item 3.

Defaults Upon Senior Securities

28

 

 

 

Item 4.

Mine Safety Disclosures

28

 

 

 

Item 5.

Other Information

28

 

 

 

Item 6.

Exhibits

28


 

- 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, 2016



 

- 3 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


 

May 31,

2016

 

August 31,

2015

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

  Cash

$   6,285,575

 

$   4,416,297

  Accounts receivable, net of allowance  

     of $Nil (August 31, 2015 - $Nil)


4,382,438

 


3,688,247

  Inventory, net of allowance

      of $189,761 (August 31, 2015 - $120,824) (note 3)


7,297,894

 


8,351,575

  Note receivable

-

 

1,310

  Prepaid expenses

780,708

 

719,459

  Prepaid income taxes

-

 

26,570

 

 

 

 

  Total current assets

18,746,615

 

17,203,458

 

 

 

 

Property, plant and equipment, net (note 4)

2,138,800

 

2,231,711

 

 

 

 

Intangible assets, net (note 5)

168,720

 

223,250

 

 

 

 

Total assets

$  21,054,135

 

$  19,658,419

 

 

 

 



- 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,

2016

 

August 31,

2015

 

 

 

 

Continued

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

  Accounts payable

$   1,304,549

 

$     984,955

  Litigation reserve (note 12(a))

-

 

90,671

  Accrued liabilities

1,394,191

 

1,024,358

 

 

 

 

  Total current liabilities

2,698,740

 

2,099,984

 

 

 

 

Deferred tax liability (note 6)

4,203

 

34,300

 

 

 

 

Total liabilities

2,702,943

 

2,134,284

 

 

 

 

Contingent liabilities and commitments (note 12)

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

  Capital stock (note 8)

 

 

 

     Authorized

 

 

 

      21,567,564 common shares, without par value

 

 

 

      10,000,000 preferred shares, without par value

 

 

 

    Issued

 

 

 

      2,413,446 common shares (August 31, 2015 – 2,476,832)

1,138,590

 

1,168,712

  Additional paid-in capital

600,804

 

600,804

  Retained earnings

16,611,798

 

15,754,619

  

 

 

 

  Total stockholders’ equity

18,351,192

 

17,524,135

  

 

 

 

  Total liabilities and stockholders’ equity

$  21,054,135

 

$  19,658,419

  

 

 

 


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,

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

SALES

$  14,458,713

 

$  13,289,408

 

$  37,588,354

 

$  30,755,429

 

 

 

 

 

 

 

 

COST OF SALES

11,281,973

 

11,047,607

 

29,996,180

 

24,741,485

 

 

 

 

 

 

 

 

GROSS PROFIT

3,176,740

 

2,241,801

 

7,592,174

 

6,013,944

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

  Selling, general and administrative expenses

542,581

 

465,864

 

1,616,796

 

1,438,687

  Depreciation and amortization

82,978

 

71,211

 

226,961

 

210,894

  Wages and employee benefits

1,046,229

 

925,386

 

3,017,643

 

2,588,420

 

 

 

 

 

 

 

 

 

(1,671,788)

 

(1,462,461)

 

(4,861,400)

 

(4,238,001)

 

 

 

 

 

 

 

 

Income from operations

1,504,952

 

779,340

 

2,730,774

 

1,775,943

 

 

 

 

 

 

 

 

OTHER ITEMS

 

 

 

 

 

 

 

   Gain on sale of property, plant and equipment

-

 

-

 

5,600

 

-

   Interest and other income

2,978

 

8,534

 

13,538

 

22,617

   Interest expense

-

 

(658)

 

(27)

 

(658)

   Litigation expense (Note 12(a))

-

 

-

 

(115,990)

-

 

 

2,978

 

7,876

 

(96,879)

 

21,959

 

 

 

 

 

 

 

 

Income before income taxes

1,507,930

 

787,216

 

2,633,895

 

1,797,902

 

 

 

 

 

 

 

 

Income tax expense

(599,200)

 

(326,116)

 

(1,060,960)

 

(725,455)

 

 

 

 

 

 

 

 

Net income

$      908,730

 

$     461,100

 

$  1,572,935

 

$  1,072,447

 

 

 

 

 

 

 

 

Basic earnings per common share

$            0.37

 

$           0.18

 

$           0.64

 

$           0.41

 

 

 

 

 

 

 

 

Diluted earnings per common share

$            0.37

 

$           0.18

 

$           0.64

 

$           0.41

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

  Basic

2,458,170

 

2,561,702

 

2,470,566

 

2,612,199

  Diluted

2,458,170

 

2,561,702

 

2,470,566

 

2,612,199

 

 

 

 

 

 

 

 


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, 2013

3,134,936

$  1,479,246

$  600,804

$  18,517,971

$  20,598,021

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(430,306)

(203,045)

-

(4,054,723)

(4,257,768)

Net income

-

-

-

1,858,453

1,858,453

 

 

 

 

 

 

August 31, 2014

2,704,630

  1,276,201

  600,804

  16,321,701

  18,198,706

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(227,798)

(107,489)

-

(2,341,053)

(2,448,542)

Net income

-

-

-

1,773,971

1,773,971

 

 

 

 

 

 

August 31, 2015

2,476,832

1,168,712

600,804

15,754,619

17,524,135

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(63,386)

(30,122)

 

(715,756)

(745,878)

Net income

-

-

-

1,572,935

1,572,935

 

 

 

 

 

 

May 31, 2016

2,413,446

$  1,138,590

$  600,804

$  16,611,798

$  18,351,192



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,

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

$    908,730

 

$     461,100

 

$  1,572,935

 

$   1,072,447

Items not involving an outlay of cash:

 

 

 

 

 

 

 

  Depreciation and amortization

82,978

 

71,211

 

226,961

 

210,894

  Gain on sale of property, plant and equipment

-

 

-

 

(5,600)

 

-

  Deferred income tax expense (recovery)

(33,601)

 

(2,163)

 

(30,097)

 

(4,872)

  Interest income on litigation

-

 

(6,734)

 

(6,661)

 

(19,983)

  Decrease in litigation reserve

-

 

-

 

(84,010)

 

-

 

 

 

 

 

 

 

 

Changes in non-cash working capital items:

 

 

 

 

 

 

 

  (Increase) decrease in accounts receivable

(597,843)

 

107,980

 

(694,191)

 

(2,483,168)

  Decrease in inventory

213,122

 

2,485,712

 

1,053,681

 

536,845

  (Increase) decrease in note receivable

-

 

275

 

1,310

 

13,575

  (Increase) decrease in prepaid expenses

(271,860)

 

104,098

 

(61,249)

 

41,194

  (Increase) decrease in prepaid income taxes

159,031

 

19,133

 

26,570

 

350,863

  Increase (decrease) in accounts payable and

  accrued liabilities


974,527

 


631,547

 


689,427

 


270,805

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,435,084

 

3,872,159

 

2,689,076

 

(11,400)

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

  Purchase of property, plant and equipment

(31,618)

 

(70,543)

 

(79,520)

 

(85,240)

  Proceeds from sale of property, plant and

  equipment


-

 


-

 


5,600

 


-

 

 

 

 

 

 

 

 

Net cash used in investing activities

(31,618)

 

(70,543)

 

(73,920)

 

(85,240)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

  Proceeds from bank indebtedness

-

 

-

 

-

 

875,386

  Repayment of bank indebtedness

-

 

(875,386)

 

-

 

(875,386)

  Redemption of common stock

(745,878)

 

(1,101,574)

 

(745,878)

 

(2,394,051)

 

 

 

 

 

 

 

 

Net cash used in financing activities

(745,878)

 

(1,976,960)

 

(745,878)

 

(2,394,051)

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

$    657,588

 

 $  1,824,656

 

$  1,869,278

 

$  (2,490,691)

 

 

 

 

 

 

 

 

Cash, beginning of period

$ 5,627,987

 

$       12,193

 

$  4,416,297

 

$   4,327,540

 

 

 

 

 

 

 

 

Cash, end of period

$ 6,285,575

 

$  1,836,849

 

$  6,285,575

 

$   1,836,849


Supplemental disclosure with respect to cash flows (note 15)



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, 2016

(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, 2016 and August 31, 2015 and its results of operations and cash flows for the three and nine month periods ended May 31, 2016 and May 31, 2015 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, 2016 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2016.


2.

SIGNIFICANT ACCOUNTING POLICIES


Generally accepted accounting principles


These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America.  


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, 2016

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Estimates


The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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, 2016, cash was $6,285,575 compared to $4,416,297 at August 31, 2015.  At May 31, 2016 and August 31, 2015, 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

3-7 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 21 months and 33 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, 2016

(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 statement of operations 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, 2016

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Earnings per share (cont’d…)


The earnings per share data for the three and nine month periods ended May 31, 2016 and 2015 are as follows:


 

 

Three Month Period

Ended May 31,

 

Nine Month Period

Ended May 31,

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

Net income

$   908,730

 

$  461,100

 

$ 1,572,935

 

$ 1,072,447

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of

       common shares outstanding


2,458,170

 


2,561,702

 


2,470,566

 


2,612,199

 

 

 

 

 

 

 

 

 

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

Stock options

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number

      of common shares outstanding


2,458,170

 


2,561,702

 


2,470,566

 


2,612,199


Comprehensive income


The Company has no items of other comprehensive income in any year 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, 2016, and there were no options outstanding on May 31, 2016.


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.


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


 

- 12 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Financial instruments (cont’d…)


The estimated fair values of the Company's financial instruments as of May 31, 2016 and August 31, 2015 follows:


 

 

May 31,

2016

 

August 31,

2015

 

 

Carrying

Fair

 

Carrying

Fair

 

 

Amount

Value

 

Amount

Value

 

Cash

$6,285,575

$6,285,575

 

$4,416,297

$4,416,297

 

Accounts receivable, net of allowance

4,382,438

4,382,438

 

3,688,247

3,688,247

 

Note receivable

-

-

 

1,310

1,310

 

Accounts payable and accrued liabilities

2,698,740

2,698,740

 

2,009,313

2,009,313


The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2016, 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,

2016

 

Quoted Prices
in Active
Markets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

6,285,575

 

$

6,285,575

 

$

 

$


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 year 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.


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.


 

- 13 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


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.


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,

2016

 

August 31,

2015

 

 

 

 

 

 

Wood products and metal products

$ 6,621,744

 

$  7,376,505

 

Industrial tools

394,937

 

525,667

 

Agricultural seed products

281,213

 

449,403

 

 

 

 

 

 

 

$ 7,297,894

 

$  8,351,575


4.

PROPERTY, PLANT AND EQUIPMENT


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


 

 

May 31,

2016

 

August 31,

2015

 

 

 

 

 

 

Office equipment

600,805

 

$     591,124

 

Warehouse equipment

1,484,512

 

1,520,724

 

Buildings

2,878,849

 

2,878,849

 

Land

761,924

 

761,924

 

 

5,726,090

 

5,752,621

 

 

 

 

 

 

Accumulated depreciation

(3,587,290)

 

(3,520,910)

 

 

 

 

 

 

Net book value

$  2,138,800

 

$  2,231,711


 

- 14 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


4.

PROPERTY, PLANT AND EQUIPMENT (cont’d…)


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,

2016

 

August 31,

2015

 

Patent

$  850,000

 

$  850,000

 

Other

43,655

 

43,655

 

 

893,655

 

893,655

 

Accumulated amortization

(724,935)

 

(670,405)

 

 

 

 

 

 

Net book value

$  168,720

 

$  223,250


6.

DEFERRED INCOME TAXES


Deferred income tax liability as of May 31, 2016 of $4,203 (August 31, 2015 – $34,300) reflects 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 $3,000,000 line of credit as of May 31, 2016 or August 31, 2015.


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.


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.


 

- 15 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


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 2016 ended May 31, 2016, the Company repurchased and cancelled a total of 63,386 common shares under a 10b5-1 share repurchase plan. The total cost was $745,878 at an average price of $11.77 per share. The premium paid to acquire these shares over their per share book value in the amount of $715,756 was recorded as a decrease to retained earnings.


During the 4th quarter of fiscal 2015 ended August 31, 2015, the Company repurchased and cancelled a total of 4,778 common shares under a 10b5-1 share repurchase plan. The total cost was $54,491 at an average price of $11.41 per share. The premium paid to acquire these shares over their per share book value in the amount of $52,236 was recorded as a decrease to retained earnings. In addition to the shares repurchased under the 10b5-1 repurchase plan, Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. The Company paid no consideration for the shares. Capital stock was reduced by the book value of the shares in the amount of $7,077.


During the 3rd quarter of fiscal 2015 ended May 31, 2015, the Company repurchased and cancelled a total of 89,051 common shares under a 10b5-1 share repurchase plan. The total cost was $1,101,574 at an average price of $12.37 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,059,554 was recorded as a decrease to retained earnings.


During the 1st quarter of fiscal 2015 ended November 30, 2014, the Company repurchased and cancelled a total of 118,969 common shares under a 10b5-1 share repurchase plan. The total cost was $1,292,477 at an average price of $10.86 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,236,340 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, 2016 and August 31, 2015.



 

- 16 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


11.

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 monthly enrollment time.  The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. During the second quarter of fiscal 2016 ended February 29, 2016, the Company made an additional 10% contribution for all eligible employees as a one-time compensation bonus. For the nine month periods ended May 31, 2016 and 2015, the 401(k) compensation expense was $360,275 and $186,345, respectively.


12.

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 attorney’s 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 attorney’s fees.  The judgment against plaintiffs was for $1,187,137.  On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In September 2015, the Oregon Supreme Court ruled on the Company’s petition and has reversed the decision of the Oregon Court of Appeals and remanded the case to back to the Court of Appeals for further proceedings. The Court also denied the defendants’ request for a new trial.


During the year ended August 31, 2015, 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, 2016, the Company recorded $6,661 of interest income.


 

- 17 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


12.

CONTINGENT LIABILITIES AND COMMITMENTS (cont’d…)


During the quarter ended February 29, 2016, the Company and Greenwood Forest Products, Inc., settled all litigation between the two companies. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation (the “Settlement Payment”). The litigation expense of $115,990 represents the difference between the Settlement Payment, and the litigation reserve balance on the date of settlement of $84,010 which is net of interest income recognized for the period.


A summary of the litigation reserve is as follows:


 

 

May 31,

2016

 

August 31,

 2015

 

 

 

 

 

 

Litigation expense (1)

$     (84,010)

 

$                  -

 

Litigation reserve

84,010

 

117,387

 

Interest expense

-

 

-

 

Interest income

-

 

(26,716)

 

Total

$                -

 

$        90,671


(1)

The litigation reserve was reversed in full upon the settlement reached during the nine month period ended May 31, 2016.


b)

At May 31, 2016 and August 31, 2015 the Company had an un-utilized line-of-credit of $3,000,000 (note 7).  The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.


13.

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.


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


 

 

2016

 

2015

 

 

 

 

 

 

 

 

Sales to unaffiliated customers:

 

 

 

 

 

 

Industrial wood products

$

3,810,183

 

$

3,183,802

 

Lawn, garden, pet and other

 

30,313,357

 

 

24,164,127

 

Seed processing and sales

 

2,587,373

 

 

2,103,553

 

Industrial tools and clamps

 

877,441

 

 

1,303,947

 

 

$

37,588,354

 

$

30,755,429

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

Industrial wood products

$

36,714

 

$

 60,543

 

Lawn, garden, pet and other

 

2,417,382

 

 

1,058,352

 

Seed processing and sales

 

(95,840)

 

 

50,753

 

Industrial tools and clamps

 

(83,839)

 

 

68,227

 

Corporate and administrative

 

359,478

 

 

560,026

 

 

$

2,633,895

 

$

1,797,901


 

- 18 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


13.

SEGMENT INFORMATION (cont’d…)


 

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

Industrial wood products

$

1,074,934

 

$

1,242,471

 

Lawn, garden, pet and other

 

10,215,128

 

 

11,342,373

 

Seed processing and sales

 

364,294

 

 

552,280

 

Industrial tools and clamps

 

504,628

 

 

747,022

 

Corporate and administrative

 

8,895,151

 

 

4,762,020

 

 

$

21,054,135

 

$

18,616,166

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

Industrial wood products

$

573

 

$

735

 

Lawn, garden, pet and other

 

49,318

 

 

43,537

 

Seed processing and sales

 

7,943

 

 

8,209

 

Industrial tools and clamps

 

1,528

 

 

2,067

 

Corporate and administrative

 

167,599

 

 

156,346

 

 

$

226,961

 

$

210,894

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

Industrial wood products

$

-

 

$

-

 

Lawn, garden, pet and other

 

-

 

 

-

 

Seed processing and sales

 

-

 

 

-

 

Industrial tools and clamps

 

-

 

 

-

 

Corporate and administrative

 

79,521

 

 

85,240

 

 

$

79,521

 

$

85,240

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

Lawn, garden, pet and other

$

658

 

$

658


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, 2016 and 2015:


 

 

2016

 

2015

 

 

 

 

 

 

Sales

$            18,108,481

 

$          13,426,962


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, 2016 and 2015:


 

 

2016

 

2015

 

 

 

 

 

 

 

 

United States

$

34,666,374

 

$

29,044,754

 

Canada

 

1,051,116

 

 

919,603

 

Mexico / Latin America

 

1,774,158

 

 

744,775

 

Middle East

 

11,686

 

 

12,164

 

Africa

 

-

 

 

2,960

 

Asia/Pacific

 

85,020

 

 

31,173

 

 

$

37,588,354

 

$

30,755,429


All of the Company’s significant identifiable assets were located in the United States as of May 31, 2016 and 2015.


 

- 19 -

 

 

 

 

 

 

 



JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

May 31, 2016

(Unaudited)


14.

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, 2016, one customer accounted for accounts receivable greater than 10% of total accounts receivable at 43%. At May 31, 2015, four customers accounted for accounts receivable greater than 10% of total accounts receivable at 77%. 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, 2016, there were three suppliers that each accounted for 10% of total purchases, and the aggregate purchases amounted to $16,016,162. For the nine months ended May 31, 2015, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $15,064,820.


15.

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS


Certain cash payments for the nine months ended May 31, 2016 and 2015 are summarized as follows:


 

 

2016

 

2015

 

 

 

 

 

 

 

 

Cash paid during the periods for:

 

 

 

 

 

 

  Interest

$

-

 

$

-

 

  Income taxes

$

895,607

 

$

379,234


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


16.

SUBSEQUENT EVENTS


a)

Subsequent to the end of the third quarter, the Company re-purchased and cancelled a total of 42,742 shares of its common stock pursuant to the Company’s 10b5-1 share re-purchase plan, previously announced on March 7, 2016.  The total cost was $489,274 at an average share price of $11.45 per share.


b)

On June 2, 2016, the Company incorporated a new wholly-owned subsidiary in the State of Oregon.


c)

On June 22, 2016, Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. No consideration was paid to Mr. Boone for the shares.


 

- 20 -

 

 

 

 

 

 

 



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, 2016 and August 31, 2015 and its results of operations and cash flows for the three and nine month periods ended May 31, 2016 and May 31, 2015 in accordance with U.S. GAAP.  Operating results for the three and nine month periods ended May 31, 2016 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2016.


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.  A major product category is treated plywood that is sold to boat manufacturers and the transportation industry.  


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, 2016 and May 31, 2015


For the three months ended May 31, 2016, sales increased by $1,169,305, or 9%, to $14,458,713 from sales of $13,289,408 for the three months ended May 31, 2015.


Sales at Greenwood were $951,820 for the three months ended May 31, 2016 compared to sales of $1,063,599 for the three months ended May 31, 2015, which was a decrease of $111,779, or 11%. The Company continues its efforts to obtain new customers and new uses for its products, including its customers internationally. However, overall demand for Greenwood’s products continues to be weak due to the continued weakness in the marine industry. For the three months ended May 31, 2016, Greenwood had an operating loss of ($7,698), which was a decline of $50,249 from an operating profit of $42,551 for the three months ended May 31, 2015.


Sales at JCC were $12,936,795 for the three months ended May 31, 2016 compared to sales of $11,430,273 for the three months ended May 31, 2015. This represents an increase of $1,506,522, or 13%. Several recently introduced products have continued to be well received by customers, whiles the prior year’s results were negatively affected by prolonged winter weather across the United States and slowdowns and shutdowns at West Coast US ports which impacted the delivery of products to the Company from manufacturers in China. Operating income for the current quarter was $1,368,715 compared to operating income of $1,062,168 for the quarter ended May 31, 2015.


 

- 21 -

 

 

 

 

 

 

 



Sales at JCSC were $238,904 for the three months ended May 31, 2016 compared to sales of $416,416 for the three months ended May 31, 2015. This is a decrease of $177,512, or 43%. The rebound in residential housing in the US resulted earlier shipments to customers during the second quarter of fiscal 2016, while available seed supplies have been restricted by the persistent drought in the Western US which reduced harvested yields in the calendar 2015 growing season. For the quarter, JCSC had an operating loss of ($44,415) compared to an operating loss of ($10,408) for the prior year’s quarter.


Sales at MSI for the three months ended May 31, 2016 were $331,194, which was a decline of $47,926, or 13%, from sales of $379,120 for the three months ended May 31, 2015. The segment has recently become more competitive, and the Company has reduced prices on certain of its products which resulted in lower operating margins. MSI had an operating loss of ($2,577) for the three month period compared to operating income was $21,325 for the three month period ended May 31, 2015.


Gross margin for the three months ended May 31, 2016 was 22.0% compared 16.9% for the three months ended May 31, 2015.


Operating expenses increased by $209,327 to $1,671,788 from $1,462,461 for the three months ended May 31, 2015. Selling, General and Administrative Expenses rose to $542,581 from $465,864. Wages and Employee Benefits increased to $1,046,229 from $925,386, and Depreciation and Amortization rose to $82,978 from $71,211. Interest and other income fell to $2,978 from $8,534, and Interest expense was $Nil compared to ($658) for the three months ended May 31, 2015.


Income tax expense for the three months ended May 31, 2016 was $599,200 compared to $326,116 for the three month period ended May 31, 2015. 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, 2016 was $908,730, or $0.37 per basic and diluted share, compared to net income of $461,100, or $0.18 per basic and diluted share, for the quarter ended May 31, 2015. 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, 2016 and May 31, 2015


For the nine months ended May 31, 2016, sales increased by $6,832,925, or 22%, to $37,588,354 from sales of $30,755,429 in the nine month period ended May 31, 2015.


Sales at Greenwood were $3,810,183 for the nine months ended May 31, 2016 compared to sales of $3,183,802 for the nine months ended May 31, 2015. This represents an increase of $626,381, or 20%. Sales have begun to rebound as the Company has obtained new customers and new uses for its products, but due to the continued weakness in the marine industry, overall demand remains below historical levels. For the nine months ended May 31, 2016, Greenwood had operating income of $36,714 compared to $134,231 for the nine months ended May 31, 2015.


Sales at JCC were $30,313,357 for the nine months ended May 31, 2016 compared to sales of $24,164,127 for the nine months ended May 31, 2015, which was an increase of $6,149,230, or 25%. The increase in sales for the current period was primarily due to the market’s continued acceptance of recently introduced new products and the addition of new small and mid-sized customers. The Company also received and shipped seasonal orders from certain existing customers earlier than in previous years. The results in the prior year’s nine month period were negatively affected by prolonged winter weather across the United States and the West Coast port slowdown which delayed the delivery of product from manufacturers in China. Operating income at JCC was $2,959,076 for the nine months ended May 31, 2016 compared to operating income of $2,179,054 for the nine months ended May 31, 2015, which was an increase of $780,022, or 36%. 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.


Sales at JCSC for the nine months ended May 31, 2016 were $2,587,373, which was an increase of $483,820, or 23%, from sales of $2,103,553 for the nine months ended May 31, 2015. Although grass seed demand has risen in conjunction with the improvement in the US residential housing market, the sales environment for the segment remains challenging due to the decline in seed cleaning services as more growers cleaning in-house. Current supplies have also been restricted by the persistent drought in the Western US which reduced harvested yields in the calendar 2015 growing season. For the nine month period ended May 31, 2016, JCSC had an operating loss of ($69,380) compared to operating income for the nine months ended May 31, 2015 of $249,055.


 

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Sales at MSI were $877,441 for the nine months ended May 31, 2016 compared to sales of $1,303,947 for the nine months ended May 31, 2015, which was a decrease of $426,506, or 33%. The segment has recently become more competitive, and the Company has reduced prices on certain of its products which reduced operating margins. For the nine months ended May 31, 2016, MSI had an operating loss of ($64,896) compared to operating income of $74,252 for the nine months ended May 31, 2015.


Gross margin for the nine month period ended May 31, 2016 was 20.2% compared to 19.6% for the nine months ended May 31, 2015.


Operating expenses rose by $623,339 to $4,861,400 from operating expenses of $4,238,001 in the nine month period ended May 31, 2015. Selling, general and administrative expenses rose to $1,616,796 from $1,438,687, an increase of $178,109. Wages and employee benefits increased to $3,017,643 from $2,588,420 as the Company made an additional 10% contribution to each eligible employee’s 401(k) plan as a one-time compensation bonus in the current period. Depreciation and amortization increased to $226,961 from $210,894.


Other items in the current nine month period ended May 31, 2016 were gain on sale of property, plant and equipment of $5,600 and interest and other income of $13,538. Interest expense was a ($27). Litigation loss of ($115,990) was related to the settlement of the litigation between the Company and Greenwood Forest Products, Inc. In the nine months ended May 31, 2015, other items were interest and other income of $22,617 and interest expense of ($658).


Income tax expense in the current nine month period was $1,060,960 compared to $725,455 for the nine months ended May 31, 2015. 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, 2016 was $1,572,935, or $0.64 per basic and diluted share, compared to net income of $1,072,477, or $0.41 per basic and diluted share, for the nine months ended May 31, 2015. The net income in the current nine month period was positively affected by the buyback of common shares which resulted in a lower weighted average number of common shares.


LIQUIDITY AND CAPITAL RESOURCES


As of May 31, 2016, the Company had working capital of $16,047,875 compared to working capital of $15,103,474 as of August 31, 2015, an increase of $944,401. Cash totaled $6,285,575, an increase of $1,869,278. Accounts receivable rose to $4,382,438 from $3,688,247 which is consistent with the seasonal nature of the Company’s sales cycle. Inventory decreased by $1,053,681 and prepaid expenses, which are largely related to down payments for future inventory purchases, increased by $61,249. Note receivable declined by $1,310 as the entire remaining balance of the note was repaid during the period. Prepaid income taxes decreased by $26,570.


Accounts payable increased by $319,594 and accrued liabilities increased by $369,833. Litigation reserve declined by $90,671 to $Nil as the Company settled its outstanding litigation during the period and the entire amount was applied against the amount of the settlement.


In May 2016, the Company received its final permits for the construction of a warehouse expansion at its headquarters property in North Plains. Construction commenced immediately upon receipt of the required permits, and will measure 150 feet by 80 feet and a height of 37 feet. The Company anticipates using the new warehouse for several new product lines.


As of May 31, 2016, accounts receivable and inventory represented 62% of current assets and 55% of total assets. For the three months ended May 31, 2016, the accounts receivable collection period, or DSO, was 28 compared to 34 for the three months ended May 31, 2015. For the nine month period ended May 31, 2016, the DSO was 32 compared to 44 for the nine months ended May 31, 2015. Inventory turnover for the three months ended May 31, 2016 was 60 days compared to 82 days for the three months ended May 31, 2015. For the nine months ended May 31, 2016, inventory turnover was 71 days compared to 98 days for the nine months ended May 31, 2015.


External sources of liquidity include a line of credit from U.S. Bank of $3,000,000. As of May 31, 2016, the Company had no borrowing balance leaving the entire amount available.  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, 2016 the one month LIBOR rate plus 175 basis points was 2.21% (0.46% + 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 formal repurchase plans in order to increase shareholder value.  The Company has repurchased common shares through share repurchase plans approved by the Board of Directors in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934.


On January 13, 2014, the Company announced the Board of Directors had authorized a share repurchase plan to purchase for cancellation up to 313,493 common shares through the facilities of NASDAQ Stock Market ("NASDAQ"). Transactions may involve Jewett-Cameron insiders or their affiliates executed in compliance with Jewett-Cameron's Insider Trading Policy. The share repurchase plan will be effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, which contains restrictions on the number of shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes ("ADTV") of Jewett-Cameron's shares on NASDAQ. Purchases shall be limited to one “Block” purchase per week in lieu of the 25% of ADTV limitation for compliance with Rule 10b-18(b)(4). A “block” as defined under Rule 10b-18(a)(5) means a quantity of stock that, among other things, is at least 5,000 shares and has a purchase price of at least US$50,000. The share repurchase plan commenced on January 20, 2014 and terminated on March 24, 2014. A total of 313,493 common shares were repurchased under this plan. The total cost of the shares acquired was $3,055,591 at an average price of $9.75 per share.


On April 9, 2014, the Company announced the Board of Directors had authorized a share repurchase plan to purchase for cancellation up to 300,000 common shares through the facilities of NASDAQ under similar terms as the January 13, 2014 repurchase plan. This share repurchase plan commenced on April 14, 2014 and terminated on November 14, 2014. Under the Plan, the Company repurchased a total of 235,782 common shares at a cost of $2,494,654 which is an average price of $10.58 per share.


On February 11, 2015, the Company announced the Board of Directors had authorized a new share repurchase plan to purchase for cancellation up to 300,000 common shares through the facilities of NASDAQ under similar terms to the January 13, 2014 repurchase plan. The plan commenced on February 17, 2015 and was terminated by the Board on July 17, 2015. Under the Plan, the Company repurchased a total of 93,829 common shares at a cost of $1,156,066 which is an average price of $12.32.


On March 7, 2016, the Company announced the Board of Directors approved a new share purchase plan to purchase for cancellation up to 250,000 common shares through the facilities of NASDAQ. The terms of the plan are similar to the January 13, 2014 repurchase plan. The plan commenced on March 10, 2016 and remains in place until August 25, 2016, but may be limited or terminated at any time without prior notice. During the 3rd quarter of fiscal 2016 ended May 31, 2016, the Company repurchased and cancelled 63,386 common shares at a cost of $745,878 which is an average price of $11.77. Subsequent to the end of the period, the Company repurchased and cancelled an additional 42,742 common shares at a cost of $489,274 which is an average price of $11.45 per share.


In addition to the Rule 10b-18 share repurchases, Donald M. Boone, CEO, President and Director, voluntarily returned 15,000 common shares to the Company’s treasury for cancellation in August 2015. In June 2016, Mr. Boone voluntarily returned an additional 15,000 to treasury for cancellation. The Company paid no consideration for these shares.


 

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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 average daily trading volume of our common stock on NASDAQ was 2,180 shares for the nine months ended May 31, 2016. 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.


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


For the nine months ended May 31, 2016, our top ten customers represented 80% 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 retail home improvement industry.  


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 $3,000,000, of which $3,000,000 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.


 

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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, 2015.  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, 2016. 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.


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 Company’s Principal Executive and 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 Principal Executive and Financial Officer has 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 Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.


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)

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).  


 

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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 and an award of contested intellectual property rights of 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 the defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorney’s fees.  The judgment against the plaintiffs was 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 attorney’s fees.  The judgment against plaintiffs was for $1,187,137.  On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In September 2015, the Oregon Supreme Court ruled on the Company’s petition and has reversed the decision of the Oregon Court of Appeals and remanded the case to back to the Court of Appeals for further proceedings. The Court also denied the defendants’ request for a new trial.


During the year ended August 31, 2015, 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, 2016, the Company recorded $6,661 of interest income.


During the period ended February 29, 2016, the Company and Greenwood Forest Products, Inc., settled all litigation between the two companies. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation (the “Settlement Payment”). The litigation expense of $115,990 represents the difference between the Settlement Payment, and the litigation reserve balance on the date of settlement of $84,010 which is net of interest income recognized for the period.


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


The following table details the Company’s repurchase of its common shares during the quarter ended May 31, 2016.


 

 

 

 

 

Period

Total Number of

Shares purchased

Average Price

Paid per

Share

Total number of

shares purchased

as part of publicly

announced plans or programs (1)

Maximum Number

of shares that may

yet be purchased under the plans or programs

 

 

 

 

 

March

4,246

$  11.20

4,246

245,754

 

 

 

 

 

April

13,654

$  11.62

17,900

232,100

 

 

 

 

 

May

45,486

$  11.87

63,386

186,614

 

 

 

 

 

Total

63,386

$  11.77

63,386

186,614


(1) The Company announced a 10b-18 share repurchase plan on March 7, 2016. The Plan allowed for the repurchase of up to 250,000 common shares commencing March 10, 2016 and remains in place until August 25, 2016, but may be limited or terminated at any time without prior notice.


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


3.1

Amended and Restated Articles of Incorporation of Jewett-Cameron Lumber Corporation

-= Filed as an exhibit to the 10-Q Quarterly Report filed on January 13, 2014 =-

3.2

Articles of Incorporation of Jewett-Cameron Company.

-= Filed as an exhibit to the 10-Q Quarterly Report filed on January 13, 2014 =-

31.1

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

32.1

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


 

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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, 2016

 

/s/  “Donald M. Boone”

 

 

Donald M. Boone,

President/CEO/Treasurer/Director/CFO



 

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EX-31.1 2 ceo302certificationsoleoffic.htm CERTIFICATION 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. 

I am 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 principles;


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. 

I have disclosed, based on my 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, 2016



By:

/s/  “Donald M. Boone”

Donald M. Boone,

Chief Executive Officer, President and Treasurer

and Principal Financial Officer



EX-32.1 3 ceo906certificationsoleoffic.htm 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, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned officer 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, 2016

Signed: “Donald M. Boone”

 

Donald M. Boone,

Chief Executive Officer, President and Treasurer and Principal Financial Officer





EX-101.INS 4 jctcf-20160531.xml 0 0 10000000 10000000 0 0 0 0 0 0 21567564 21567564 2413446 2476832 2413446 2476832 0 0 189761 120824 14458713 13289408 11281973 11047607 29996180 24741485 3176740 2241801 7592174 6013944 542581 465864 1616796 1438687 1046229 925386 3017643 2588420 -1671788 -1462461 -4861400 -4238001 1504952 779340 2730774 1775943 2978 8534 13538 22617 -658 -27 -658 -115990 2978 7876 -96879 21959 1507930 787216 2633895 1797902 -599200 -326116 -1060960 -725455 0.37 0.18 0.64 0.41 0.37 0.18 0.64 0.41 2458170 2561702 2470566 2612199 4382438 3688247 780708 719459 26570 18746615 17203458 168720 223250 21054135 19658419 1304549 984955 90671 1394191 1024358 2698740 2099984 4203 34300 2702943 2134284 0 0 1138590 1168712 600804 600804 16611798 15754619 18351192 17524135 21054135 19658419 <!--egx--><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">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, 2016 and August 31, 2015 and its results of operations and cash flows for the three and nine month periods ended May 31, 2016 and May 31, 2015 in accordance with <font lang="EN-GB">generally accepted accounting principles of the United States of America</font><font lang="EN-GB"> </font>(&#147;U.S. GAAP&#148;). Operating results for the three and nine month periods ended May 31, 2016 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2016.</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;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</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 consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America.&#160; </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">Principles of consolidation</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 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'>&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;text-align:justify'><font lang="EN-GB">The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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. 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, 2016, cash was $</font><font lang="EN-GB">6,285,575</font><font lang="EN-GB"> compared to $</font><font lang="EN-GB">4,416,297</font><font lang="EN-GB"> at August 31, 2015.&#160; At May 31, 2016 and August 31, 2015, 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'>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. &#160;</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 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.</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:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>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:</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="560" style='width:419.7pt;border-collapse:collapse'> <tr align="left"> <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'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Maximum</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">7</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">10</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <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'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'><b>Intangibles</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 21 months and 33 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'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0pt;margin-bottom:.0001pt'>&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.&#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 does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.&#160; Any statement of operations 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 periods ended May 31, 2016 and 2015 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" width="630" style='width:472.2pt;border-collapse:collapse'> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="192" colspan="3" valign="top" style='width:144.15pt;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 Period</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="19" valign="top" style='width:14.4pt;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="190" colspan="3" valign="top" style='width:142.65pt;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;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Period</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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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="87" valign="top" style='width:65.05pt;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'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">2016</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">2015</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">2016</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">2015</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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:65.05pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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; </font><font lang="EN-GB">908,730</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;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">$&#160; </font><font lang="EN-GB">461,100</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,572,935</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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">1,072,447</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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">Basic weighted average number of </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160; common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.7pt;margin-bottom:0pt;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-42.1pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">-</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">-</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">-</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">-</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160; of common shares outstanding </font></p> </td> <td width="88" valign="top" style='width:65.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</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'><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 year 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, 2016, and there were no options outstanding on May 31, 2016.</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, 2016 and August 31, 2015 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="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <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">2016</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">2015</font></b></p> </td> </tr> <tr align="left"> <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="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="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">$6,285,575</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">$6,285,575</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">$4,416,297</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">$4,416,297</font></p> </td> </tr> <tr align="left"> <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">4,382,438</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">4,382,438</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">3,688,247</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">3,688,247</font></p> </td> </tr> <tr align="left"> <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">-</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></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">1,310</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">1,310</font></p> </td> </tr> <tr align="left"> <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">2,698,740</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">2,698,740</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">2,009,313</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">2,009,313</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'>The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2016, 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="633" style='width:475.1pt;border-collapse:collapse'> <tr align="left"> <td width="37%" valign="bottom" style='width:37.1%;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="1%" valign="bottom" style='width:1.98%;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>2016</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:3.98%;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:3.98%;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="37%" valign="top" style='width:37.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;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:10.94%;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:3.94%;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:1.98%;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:10.94%;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:3.98%;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="2%" valign="bottom" style='width:2.06%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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> <td width="3%" valign="bottom" style='width:3.98%;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:1.98%;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:10.9%;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="37%" valign="top" style='width:37.1%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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:3.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;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'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Income taxes</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 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 year 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>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="634" style='width:475.85pt;border-collapse:collapse'> <tr align="left"> <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">2016</font></b></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="101" valign="top" style='width:75.9pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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="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="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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="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">$ </font><font lang="EN-GB">6,621,744</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="101" valign="top" style='width:75.9pt;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">7,376,505</font></p> </td> </tr> <tr align="left"> <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">394,937</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="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">525,667</font></p> </td> </tr> <tr align="left"> <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">281,213</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="101" valign="top" style='width:75.9pt;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">449,403</font></p> </td> </tr> <tr align="left"> <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="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="101" valign="top" style='width:75.9pt;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="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'>$ 7,297,894</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;text-align:right'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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; 8,351,575</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="634" style='width:475.4pt;border-collapse:collapse'> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">2016</font></b></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="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">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2015</font></b></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="24" valign="top" style='width:18.0pt;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> </tr> <tr style='height:12.15pt'> <td width="406" valign="top" style='width:304.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <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;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">600,805</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; </font><font lang="EN-GB">591,124</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">1,484,512</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:2.9pt;text-align:right'>&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'><font lang="EN-GB">1,520,724</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">2,878,849</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:2.9pt;text-align:right'>&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'><font lang="EN-GB">2,878,849</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&nbsp;</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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">5,726,090</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:2.9pt;text-align:right'>&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">5,752,621</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">(3,587,290)</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="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">(3,520,910)</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">$&#160; </font><font lang="EN-GB">2,138,800</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">2,231,711</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">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" style='border-collapse:collapse'> <tr style='height:8.85pt'> <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">2016</font></b></p> </td> <td width="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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">2015</font></b></p> </td> </tr> <tr style='height:12.6pt'> <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">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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">(724,935)</font></p> </td> <td width="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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">(670,405)</font></p> </td> </tr> <tr style='height:11.95pt'> <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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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">$&#160; </font><font lang="EN-GB">168,720</font></p> </td> <td width="18" valign="top" style='width:13.35pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">223,250</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, 2016 of $</font><font lang="EN-GB">4,203</font><font lang="EN-GB"> (August 31, 2015 &#150; $</font><font lang="EN-GB">34,300</font><font lang="EN-GB">) reflects 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 $</font><font lang="EN-GB">3,000,000</font><font lang="EN-GB"> line of credit as of May 31, 2016 or August 31, 2015.</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. I</font>nterest is calculated solely on the one month LIBOR rate plus 175 basis points.</p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</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'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Common Stock</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">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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'>&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 3<sup>rd</sup> quarter of fiscal 2016 ended May 31, 2016, the Company repurchased and cancelled a total of 63,386 common shares under a 10b5-1 share repurchase plan. The total cost was $745,878 at an average price of $11.77 per share. The premium paid to acquire these shares over their per share book value in the amount of $715,756 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 4<sup>th</sup> quarter of fiscal 2015 ended August 31, 2015, the Company repurchased and cancelled a total of 4,778 common shares under a 10b5-1 share repurchase plan. The total cost was $54,491 at an average price of $11.41 per share. The premium paid to acquire these shares over their per share book value in the amount of $52,236 was recorded as a decrease to retained earnings. In addition to the shares repurchased under the 10b5-1 repurchase plan, Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. The Company paid no consideration for the shares. Capital stock was reduced by the book value of the shares in the amount of $7,077.</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 3<sup>rd</sup> quarter of fiscal 2015 ended May 31, 2015, the Company repurchased and cancelled a total of 89,051 common shares under a 10b5-1 share repurchase plan. The total cost was $1,101,574 at an average price of $12.37 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,059,554 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 1<sup>st</sup> quarter of fiscal 2015 ended November 30, 2014, the Company repurchased and cancelled a total of 118,969 common shares under a 10b5-1 share repurchase plan. The total cost was $1,292,477 at an average price of $10.86 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,236,340 was recorded as a decrease to retained earnings.</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">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, 2016 and August 31, 2015.</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">11.&#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 monthly enrollment time.&#160; The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. During the second quarter of fiscal 2016 ended February 29, 2016, the Company made an additional 10% contribution for all eligible employees as a one-time compensation bonus. For the nine month periods ended May 31, 2016 and 2015, the 401(k) compensation expense was $</font><font lang="EN-GB">360,275</font><font lang="EN-GB"> and $</font><font lang="EN-GB">186,345</font><font lang="EN-GB">, respectively.</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; 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'>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.&#160; During the year ended August 31, 2003, the Company completed the final phase of the inventory acquisition.&#160; 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.&#160; The Company believes it overpaid the obligation by approximately $820,000.&#160; The holder counterclaimed for approximately $2,400,000. </p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>Litigation was completed on March 5, 2007, with the court&#146;s general judgment and money award.&#160; The net effect was money judgment in favor of Greenwood Forest Products, Inc. for $242,604.&#160; The Company accrued reserves to cover the money judgment related to this dispute.&#160; Both parties filed appeals for review of the court&#146;s opinion.</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 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.&nbsp; The judgment in favor of the Company was for $819,000 plus attorneys fees.&nbsp; The judgment against the plaintiffs is for $1,187,137.&nbsp;&nbsp;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'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>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.&#160; The reversal was treated as a one-time gain during the quarter.</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>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.&nbsp; The judgment in favor of the Company was for $819,000 plus attorney&#146;s fees.&nbsp; The judgment against plaintiffs was for $1,187,137.&#160; On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In September 2015, the Oregon Supreme Court ruled on the Company&#146;s petition and has reversed the decision of the Oregon Court of Appeals and remanded the case to back to the Court of Appeals for further proceedings. The Court also denied the defendants&#146; request for a new trial.</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">During the year ended August 31, 2015, the Company recorded $</font><font lang="EN-GB">26,716</font><font lang="EN-GB"> of interest income due to the favorable difference in interest rates between the judgments. During the nine months ended May 31, 2016, the Company recorded $</font><font lang="EN-GB">6,661</font><font lang="EN-GB"> of interest income.</font></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 quarter ended February 29, 2016, the Company and Greenwood Forest Products, Inc., settled all litigation between the two companies. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation (the &#147;Settlement Payment&#148;). The litigation expense of $115,990 represents the difference between the Settlement Payment, and the litigation reserve balance on the date of settlement of $84,010 which is net of interest income recognized for the period.</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="612" style='width:459.25pt;border-collapse:collapse'> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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">2016</font></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="120" valign="top" style='width:90.25pt;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'> <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">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2015</font></p> </td> </tr> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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 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="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation expense </font><sup><font lang="EN-GB">(1)</font></sup></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;&#160;&#160;&#160; </font><font lang="EN-GB">(84,010)</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;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">84,010</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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">117,387</font></p> </td> </tr> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-7.2pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;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;margin-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-7.2pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</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="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;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;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;-</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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;&#160;&#160; </font><font lang="EN-GB">90,671</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">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The litigation reserve was reversed in full upon the settlement reached during the nine month period ended May 31, 2016.</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">b</font><font lang="EN-GB">)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At May 31, 2016 and August 31, 2015 the Company had an un-utilized line-of-credit of $</font><font lang="EN-GB">3,000,000</font><font lang="EN-GB"> (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> <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">13.&#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'><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;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="632" style='width:474.0pt;border-collapse:collapse'> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="126" colspan="2" valign="top" style='width:94.5pt;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">2016</font></b></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="124" colspan="2" valign="top" style='width:92.8pt;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'><b><font lang="EN-GB">2015</font></b></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">3,810,183</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">3,183,802</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">30,313,357</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">24,164,127</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">2,587,373</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">2,103,553</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">877,441</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,303,947</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">37,588,354</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">30,755,429</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">36,714</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">60,543</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">2,417,382</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,058,352</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(95,840)</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">50,753</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(83,839)</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">68,227</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">359,478</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">560,026</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;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'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">2,633,895</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,797,901</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">1,074,934</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,242,471</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">10,215,128</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">11,342,373</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">364,294</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">552,280</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">504,628</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">747,022</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">8,895,151</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">4,762,020</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">21,054,135</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">18,616,166</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">573</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">735</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">49,318</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">43,537</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">7,943</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">8,209</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">1,528</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">2,067</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">167,599</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">156,346</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">226,961</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">210,894</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">79,521</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">85,240</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">79,521</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">85,240</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;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">658</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">658</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 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, 2016 and 2015:</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="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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">2016</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="120" valign="top" style='width:90.0pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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="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="120" valign="top" style='width:90.0pt;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> </tr> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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">18,108,481</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="120" valign="top" style='width:90.0pt;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">13,426,962</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, 2016 and 2015:</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" style='border-collapse:collapse'> <tr align="left"> <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="126" colspan="2" valign="top" style='width:94.5pt;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">2016</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="120" colspan="2" valign="top" style='width:90.0pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="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-top: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="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="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="102" valign="top" style='width:76.5pt;border:none;border-top: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> </tr> <tr align="left"> <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">United States</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'><font lang="EN-GB">$</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;text-align:right'><font lang="EN-GB">34,666,374</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="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'><font lang="EN-GB">$</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:3.6pt;text-align:right'><font lang="EN-GB">29,044,754</font></p> </td> </tr> <tr align="left"> <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">Canada</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">1,051,116</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">919,603</font></p> </td> </tr> <tr align="left"> <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">Mexico / Latin America</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">1,774,158</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">744,775</font></p> </td> </tr> <tr align="left"> <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">Middle East</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">11,686</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">12,164</font></p> </td> </tr> <tr align="left"> <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">Africa</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">-</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">2,960</font></p> </td> </tr> <tr align="left"> <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">Asia/Pacific</font></p> </td> <td width="18" valign="top" style='width:13.5pt;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'>&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">85,020</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="18" valign="top" style='width:13.5pt;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'>&nbsp;</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:3.6pt;text-align:right'><font lang="EN-GB">31,173</font></p> </td> </tr> <tr align="left"> <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="18" valign="top" style='width:13.5pt;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">$</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;margin-right:-.9pt;text-align:right'><font lang="EN-GB">37,588,354</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="18" valign="top" style='width:13.5pt;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">$</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:3.6pt;text-align:right'><font lang="EN-GB">30,755,429</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">All of the Company&#146;s significant identifiable assets were located in the United States as of May 31, 2016 and 2015.</font></p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b><font lang="EN-GB">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONCENTRATIONS</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'><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, 2016, one customer accounted for accounts receivable greater than 10% of total accounts receivable at </font><font lang="EN-GB">43</font><font lang="EN-GB">%. At May 31, 2015, four customers accounted for accounts receivable greater than 10% of total accounts receivable at </font><font lang="EN-GB">77</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">The Company has concentrations in the volume of purchases it conducts with its suppliers. For the nine months ended May 31, 2016, there were three suppliers that each accounted for 10% of total purchases, and the aggregate purchases amounted to $</font><font lang="EN-GB">16,016,162</font><font lang="EN-GB">. For the nine months ended May 31, 2015, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $</font><font lang="EN-GB">15,064,820</font><font lang="EN-GB">. </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-right:4.5pt;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">15.&#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 nine months ended May 31, 2016 and 2015 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="629" style='width:472.05pt;border-collapse:collapse'> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="116" colspan="2" valign="top" style='width:86.9pt;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">2016</font></b></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="112" colspan="2" valign="top" style='width:83.9pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;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="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="91" valign="top" style='width:68.1pt;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> </tr> <tr style='height:8.1pt'> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <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="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;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="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Income taxes</font></p> </td> <td width="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">895,607</font></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">379,234</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">There were no non-cash investing or financing activities during the periods presented.</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">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SUBSEQUENT EVENTS</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)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsequent to the end of the third quarter, the Company re-purchased and cancelled a total of 42,742 shares of its common stock pursuant to the Company&#146;s 10b5-1 share re-purchase plan, previously announced on March 7, 2016.&#160; The total cost was $489,274 at an average share price of $11.45 per share.</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">b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On June 2, 2016, the Company incorporated a new wholly-owned subsidiary in the State of Oregon.</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">c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On June 22, 2016, </font>Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. No consideration was paid to Mr. Boone for the shares.</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</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 consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America.&#160; </font></p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Principles of consolidation</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 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'>&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> <!--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;text-align:justify'><font lang="EN-GB">The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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. Actual results could differ from those estimates.</font></p> <!--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, 2016, cash was $</font><font lang="EN-GB">6,285,575</font><font lang="EN-GB"> compared to $</font><font lang="EN-GB">4,416,297</font><font lang="EN-GB"> at August 31, 2015.&#160; At May 31, 2016 and August 31, 2015, there were no cash equivalents.</font></p> <!--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'>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. &#160;</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 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.</p> <!--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> <!--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:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>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:</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="560" style='width:419.7pt;border-collapse:collapse'> <tr align="left"> <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'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Maximum</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">7</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">10</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b>Intangibles</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 21 months and 33 months, respectively, and are reviewed annually for impairment.</p> <!--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> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0pt;margin-bottom:.0001pt'>&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> <!--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.&#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 does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.&#160; Any statement of operations 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> <!--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 periods ended May 31, 2016 and 2015 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" width="630" style='width:472.2pt;border-collapse:collapse'> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="192" colspan="3" valign="top" style='width:144.15pt;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 Period</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="19" valign="top" style='width:14.4pt;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="190" colspan="3" valign="top" style='width:142.65pt;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;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Period</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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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="87" valign="top" style='width:65.05pt;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'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">2016</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">2015</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">2016</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">2015</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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:65.05pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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; </font><font lang="EN-GB">908,730</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;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">$&#160; </font><font lang="EN-GB">461,100</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,572,935</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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">1,072,447</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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">Basic weighted average number of </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160; common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.7pt;margin-bottom:0pt;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-42.1pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">-</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">-</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">-</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">-</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160; of common shares outstanding </font></p> </td> <td width="88" valign="top" style='width:65.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</font></p> </td> </tr> </table> <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">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 year presented.&#160; Therefore, net income presented in the consolidated statements of operations equals comprehensive income.</font></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, 2016, and there were no options outstanding on May 31, 2016.</p> <!--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, 2016 and August 31, 2015 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="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <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">2016</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">2015</font></b></p> </td> </tr> <tr align="left"> <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="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="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">$6,285,575</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">$6,285,575</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">$4,416,297</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">$4,416,297</font></p> </td> </tr> <tr align="left"> <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">4,382,438</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">4,382,438</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">3,688,247</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">3,688,247</font></p> </td> </tr> <tr align="left"> <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">-</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></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">1,310</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">1,310</font></p> </td> </tr> <tr align="left"> <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">2,698,740</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">2,698,740</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">2,009,313</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">2,009,313</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'>The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2016, 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="633" style='width:475.1pt;border-collapse:collapse'> <tr align="left"> <td width="37%" valign="bottom" style='width:37.1%;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="1%" valign="bottom" style='width:1.98%;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>2016</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:3.98%;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:3.98%;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="37%" valign="top" style='width:37.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;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:10.94%;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:3.94%;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:1.98%;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:10.94%;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:3.98%;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="2%" valign="bottom" style='width:2.06%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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> <td width="3%" valign="bottom" style='width:3.98%;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:1.98%;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:10.9%;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="37%" valign="top" style='width:37.1%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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:3.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;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> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Income taxes</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 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 year 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> <!--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">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> <!--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'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="560" style='width:419.7pt;border-collapse:collapse'> <tr align="left"> <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'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Maximum</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">7</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">10</font></p> </td> </tr> <tr align="left"> <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 align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="center" style='margin:0pt;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <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="630" style='width:472.2pt;border-collapse:collapse'> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="192" colspan="3" valign="top" style='width:144.15pt;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 Period</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="19" valign="top" style='width:14.4pt;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="190" colspan="3" valign="top" style='width:142.65pt;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;margin-right:2.9pt;text-align:center'><font lang="EN-GB">Nine Month Period</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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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="87" valign="top" style='width:65.05pt;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'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">2016</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">2015</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">2016</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">2015</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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:13.25pt;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:65.05pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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; </font><font lang="EN-GB">908,730</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;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">$&#160; </font><font lang="EN-GB">461,100</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="86" valign="top" style='width:64.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$ </font><font lang="EN-GB">1,572,935</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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">1,072,447</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;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">Basic weighted average number of </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160;&#160; common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.7pt;margin-bottom:0pt;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-42.1pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;padding:0pt 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="18" valign="top" style='width:13.25pt;padding:0pt 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="87" valign="top" style='width:65.05pt;padding:0pt 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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;padding:0pt 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="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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">-</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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">-</font></p> </td> <td width="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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'><font lang="EN-GB">-</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.85pt;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">-</font></p> </td> </tr> <tr align="left"> <td width="228" valign="top" style='width:171.0pt;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="88" valign="top" style='width:65.85pt;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="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;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="19" valign="top" style='width:14.4pt;padding:0pt 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="top" style='width:64.8pt;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="19" valign="top" style='width:14.0pt;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="85" valign="top" style='width:63.85pt;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="228" valign="top" style='width:171.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number </font></p> <p style='margin:0pt;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">&#160;&#160;&#160;&#160;&#160; of common shares outstanding </font></p> </td> <td width="88" valign="top" style='width:65.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,458,170</font></p> </td> <td width="18" valign="top" style='width:13.25pt;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="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,561,702</font></p> </td> <td width="19" valign="top" style='width:14.4pt;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="top" style='width:64.8pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,470,566</font></p> </td> <td width="19" valign="top" style='width:14.0pt;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="top" style='width:63.85pt;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> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,612,199</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="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <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">2016</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">2015</font></b></p> </td> </tr> <tr align="left"> <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="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="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">$6,285,575</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">$6,285,575</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">$4,416,297</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">$4,416,297</font></p> </td> </tr> <tr align="left"> <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">4,382,438</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">4,382,438</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">3,688,247</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">3,688,247</font></p> </td> </tr> <tr align="left"> <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">-</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></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">1,310</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">1,310</font></p> </td> </tr> <tr align="left"> <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">2,698,740</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">2,698,740</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">2,009,313</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">2,009,313</font></p> </td> </tr> </table> <!--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="633" style='width:475.1pt;border-collapse:collapse'> <tr align="left"> <td width="37%" valign="bottom" style='width:37.1%;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="1%" valign="bottom" style='width:1.98%;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>2016</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:3.98%;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:3.98%;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="37%" valign="top" style='width:37.1%;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;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:10.94%;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:3.94%;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:1.98%;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:10.94%;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:3.98%;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="2%" valign="bottom" style='width:2.06%;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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> <td width="3%" valign="bottom" style='width:3.98%;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:1.98%;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:10.9%;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="37%" valign="top" style='width:37.1%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.94%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0pt 0pt 0pt 0pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>6,285,575</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin-top:2.0pt;margin-right:0pt;margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;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:3.98%;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:1.98%;background:white;padding:0pt 0pt 0pt 0pt'> <p style='margin:0pt;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;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="634" style='width:475.85pt;border-collapse:collapse'> <tr align="left"> <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">2016</font></b></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="101" valign="top" style='width:75.9pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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="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="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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="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">$ </font><font lang="EN-GB">6,621,744</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="101" valign="top" style='width:75.9pt;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">7,376,505</font></p> </td> </tr> <tr align="left"> <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">394,937</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="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">525,667</font></p> </td> </tr> <tr align="left"> <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">281,213</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="101" valign="top" style='width:75.9pt;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">449,403</font></p> </td> </tr> <tr align="left"> <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="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="101" valign="top" style='width:75.9pt;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="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'>$ 7,297,894</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;text-align:right'>&nbsp;</p> </td> <td width="101" valign="top" style='width:75.9pt;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; 8,351,575</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="634" style='width:475.4pt;border-collapse:collapse'> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">2016</font></b></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="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">August 31,</font></b></p> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2015</font></b></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="24" valign="top" style='width:18.0pt;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> </tr> <tr style='height:12.15pt'> <td width="406" valign="top" style='width:304.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <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;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">600,805</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.15pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; </font><font lang="EN-GB">591,124</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">1,484,512</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:2.9pt;text-align:right'>&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'><font lang="EN-GB">1,520,724</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">2,878,849</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:2.9pt;text-align:right'>&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'><font lang="EN-GB">2,878,849</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&nbsp;</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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">5,726,090</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:2.9pt;text-align:right'>&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">5,752,621</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">(3,587,290)</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="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">(3,520,910)</font></p> </td> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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="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:2.9pt;text-align:right'>&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> </tr> <tr align="left"> <td width="406" valign="top" style='width:304.4pt;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">$&#160; </font><font lang="EN-GB">2,138,800</font></p> </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">2,231,711</font></p> </td> </tr> </table> <!--egx--><p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:8.85pt'> <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">2016</font></b></p> </td> <td width="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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">2015</font></b></p> </td> </tr> <tr style='height:12.6pt'> <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">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.15pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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">(724,935)</font></p> </td> <td width="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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">(670,405)</font></p> </td> </tr> <tr style='height:11.95pt'> <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="18" valign="top" style='width:13.35pt;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="108" valign="top" style='width:81.15pt;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="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">$&#160; </font><font lang="EN-GB">168,720</font></p> </td> <td width="18" valign="top" style='width:13.35pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">223,250</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="612" style='width:459.25pt;border-collapse:collapse'> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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">2016</font></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="120" valign="top" style='width:90.25pt;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'> <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">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2015</font></p> </td> </tr> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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 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="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Litigation expense </font><sup><font lang="EN-GB">(1)</font></sup></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">$&#160;&#160;&#160;&#160; </font><font lang="EN-GB">(84,010)</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#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="366" valign="top" style='width:274.5pt;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">84,010</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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">117,387</font></p> </td> </tr> <tr align="left"> <td width="366" valign="top" style='width:274.5pt;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-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-7.2pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</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:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;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;margin-top:0pt;margin-right:3.6pt;margin-bottom:0pt;margin-left:-7.2pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</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="120" valign="top" style='width:90.25pt;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="366" valign="top" style='width:274.5pt;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">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;-</font></p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">90,671</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="632" style='width:474.0pt;border-collapse:collapse'> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="126" colspan="2" valign="top" style='width:94.5pt;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">2016</font></b></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="124" colspan="2" valign="top" style='width:92.8pt;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'><b><font lang="EN-GB">2015</font></b></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">3,810,183</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">3,183,802</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">30,313,357</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">24,164,127</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">2,587,373</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">2,103,553</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">877,441</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,303,947</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">37,588,354</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">30,755,429</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">36,714</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">60,543</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">2,417,382</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,058,352</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(95,840)</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">50,753</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(83,839)</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">68,227</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">359,478</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">560,026</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;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'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">2,633,895</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,797,901</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">1,074,934</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">1,242,471</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">10,215,128</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">11,342,373</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">364,294</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">552,280</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">504,628</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">747,022</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">8,895,151</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">4,762,020</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">21,054,135</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">18,616,166</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">573</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">735</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">49,318</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">43,537</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">7,943</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">8,209</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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">1,528</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">2,067</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">167,599</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">156,346</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">226,961</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">210,894</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;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="105" valign="top" style='width:78.7pt;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">79,521</font></p> </td> <td width="23" valign="top" style='width:17.15pt;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:17.7pt;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'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;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">85,240</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">79,521</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">85,240</font></p> </td> </tr> <tr align="left"> <td width="359" valign="top" style='width:269.55pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="105" valign="top" style='width:78.7pt;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="23" valign="top" style='width:17.15pt;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:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="100" valign="top" style='width:75.1pt;padding:0pt 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="359" valign="top" style='width:269.55pt;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="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="105" valign="top" style='width:78.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">658</font></p> </td> <td width="23" valign="top" style='width:17.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:17.7pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="100" valign="top" style='width:75.1pt;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">658</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="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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">2016</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="120" valign="top" style='width:90.0pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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="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="120" valign="top" style='width:90.0pt;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> </tr> <tr align="left"> <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="126" valign="top" style='width:94.5pt;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">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">18,108,481</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'><font lang="EN-GB">$&#160;&#160; &#160;&#160;</font><font lang="EN-GB">13,426,962</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='border-collapse:collapse'> <tr align="left"> <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="126" colspan="2" valign="top" style='width:94.5pt;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">2016</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="120" colspan="2" valign="top" style='width:90.0pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <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="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-top: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="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="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="102" valign="top" style='width:76.5pt;border:none;border-top: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> </tr> <tr align="left"> <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">United States</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'><font lang="EN-GB">$</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">34,666,374</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</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:3.6pt;text-align:right'><font lang="EN-GB">29,044,754</font></p> </td> </tr> <tr align="left"> <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">Canada</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">1,051,116</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">919,603</font></p> </td> </tr> <tr align="left"> <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">Mexico / Latin America</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">1,774,158</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">744,775</font></p> </td> </tr> <tr align="left"> <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">Middle East</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">11,686</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">12,164</font></p> </td> </tr> <tr align="left"> <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">Africa</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">-</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="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="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:3.6pt;text-align:right'><font lang="EN-GB">2,960</font></p> </td> </tr> <tr align="left"> <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">Asia/Pacific</font></p> </td> <td width="18" valign="top" style='width:13.5pt;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'>&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">85,020</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="18" valign="top" style='width:13.5pt;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'>&nbsp;</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:3.6pt;text-align:right'><font lang="EN-GB">31,173</font></p> </td> </tr> <tr align="left"> <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="18" valign="top" style='width:13.5pt;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">$</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:-.9pt;text-align:right'><font lang="EN-GB">37,588,354</font></p> </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;margin-right:3.6pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</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:3.6pt;text-align:right'><font lang="EN-GB">30,755,429</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="629" style='width:472.05pt;border-collapse:collapse'> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="116" colspan="2" valign="top" style='width:86.9pt;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">2016</font></b></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="112" colspan="2" valign="top" style='width:83.9pt;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">2015</font></b></p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;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="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="91" valign="top" style='width:68.1pt;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> </tr> <tr style='height:8.1pt'> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <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="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.1pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;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="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="384" valign="top" style='width:288.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Income taxes</font></p> </td> <td width="21" valign="top" style='width:16.05pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">895,607</font></p> </td> <td width="18" valign="top" style='width:13.15pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="91" valign="top" style='width:68.1pt;padding:0pt 5.4pt 0pt 5.4pt'> <p align="right" style='margin:0pt;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">379,234</font></p> </td> </tr> </table> British Columbia 1987-07-08 3 7 2 10 5 30 2458170 2561702 2470566 2612199 2458170 2561702 2470566 2612199 4382438 3688247 1310 2698740 2009313 6621744 7376505 394937 525667 281213 449403 7297894 8351575 600805 591124 1484512 1520724 2878849 2878849 761924 761924 5726090 5752621 -3587290 -3520910 2138800 2231711 850000 850000 43655 -724935 -670405 168720 223250 4203 34300 360275 186345 -6661 -200000 -115990 -84010 -84010 -117387 26716 -90671 3000000 3810183 3183802 30313357 24164127 2587373 2103553 877441 1303947 37588354 30755429 36714 60543 2417382 1058352 -95840 50753 -83839 68227 359478 560026 2633895 1797901 1074934 1242471 10215128 11342373 364294 552280 504628 747022 8895151 4762020 21054135 18616166 573 735 49318 43537 7943 8209 1528 2067 167599 156346 79521 85240 -658 -658 18108481 13426962 34666374 29044754 1051116 919603 1774158 744775 11686 12164 2960 85020 31173 43 77 16016162 15064820 895607 379234 a) Subsequent to the end of the third quarter, the Company re-purchased and cancelled a total of 42,742 shares of its common stock pursuant to the Company&#146;s 10b5-1 share re-purchase plan, previously announced on March 7, 2016. The total cost was $489,274 at an average share price of $11.45 per share. b) On June 2, 2016, the Company incorporated a new wholly-owned subsidiary in the State of Oregon. c) On June 22, 2016, Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. No consideration was paid to Mr. Boone for the shares. 908730 461100 1572935 1072447 82978 71211 226961 210894 5600 -33601 -2163 -30097 -4872 -6734 -6661 -19983 -84010 -597843 107980 -694191 -2483168 213122 2485712 1053681 536845 275 1310 13575 -271860 104098 -61249 41194 159031 19133 26570 350863 974527 631547 689427 270805 1435084 3872159 2689076 -11400 -31618 -70543 -79520 -85240 5600 -31618 -70543 -73920 -85240 875386 -875386 -875386 -745878 -1101574 -745878 -2394051 -745878 -1976960 -745878 -2394051 657588 1824656 1869278 -2490691 5627987 12193 4416297 4327540 6285575 1836849 10-Q 2016-05-31 false Jewett Cameron Trading Co Ltd 0000885307 jctcf --08-31 2413446 Smaller Reporting Company Yes No No 2016 Q3 1479246 600804 18517971 20598021 3134936 -203045 -4054723 -4257768 -430306 1858453 1858453 1276201 600804 16321701 18198706 2704630 -107489 -2341053 -2448542 -227798 1773971 1773971 1168712 600804 15754619 17524135 2476832 -30122 -715756 -745878 -63386 1572935 1572935 1138590 600804 16611798 18351192 2413446 0000885307 2016-05-31 0000885307 2015-09-01 2016-05-31 0000885307 2015-08-31 0000885307 2016-03-01 2016-05-31 0000885307 2015-03-01 2015-05-31 0000885307 2014-09-01 2015-05-31 0000885307 2016-02-29 0000885307 2015-02-28 0000885307 2014-08-31 0000885307 2015-05-31 0000885307 2014-09-01 2015-08-31 0000885307 us-gaap:MinimumMember 2015-09-01 2016-05-31 0000885307 us-gaap:MaximumMember 2015-09-01 2016-05-31 0000885307 2015-12-01 2016-02-29 0000885307 2013-09-01 2014-08-31 0000885307 us-gaap:CommonStockMember 2013-09-01 2014-08-31 0000885307 us-gaap:RetainedEarningsMember 2013-09-01 2014-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2013-08-31 0000885307 us-gaap:RetainedEarningsMember 2013-08-31 0000885307 2013-08-31 0000885307 us-gaap:CommonStockMember 2013-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2014-08-31 0000885307 us-gaap:RetainedEarningsMember 2014-08-31 0000885307 us-gaap:CommonStockMember 2014-08-31 0000885307 us-gaap:CommonStockMember 2014-09-01 2015-08-31 0000885307 us-gaap:RetainedEarningsMember 2014-09-01 2015-08-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2015-08-31 0000885307 us-gaap:RetainedEarningsMember 2015-08-31 0000885307 us-gaap:CommonStockMember 2015-08-31 0000885307 us-gaap:CommonStockMember 2015-09-01 2016-05-31 0000885307 us-gaap:RetainedEarningsMember 2015-09-01 2016-05-31 0000885307 us-gaap:AdditionalPaidInCapitalMember 2016-05-31 0000885307 us-gaap:RetainedEarningsMember 2016-05-31 0000885307 us-gaap:CommonStockMember 2016-05-31 0000885307 2016-07-14 0000885307 us-gaap:ShareholdersEquityMember 2013-09-01 2014-08-31 0000885307 us-gaap:ShareholdersEquityMember 2013-08-31 0000885307 us-gaap:ShareholdersEquityMember 2014-08-31 0000885307 us-gaap:ShareholdersEquityMember 2014-09-01 2015-08-31 0000885307 us-gaap:ShareholdersEquityMember 2015-08-31 0000885307 us-gaap:ShareholdersEquityMember 2015-09-01 2016-05-31 0000885307 us-gaap:ShareholdersEquityMember 2016-05-31 iso4217:USD shares iso4217:USD shares Note 3 Note 4 Note 5 Note 12 (a) Note 6 Note 12 Note 8 Supplemental disclosure with respect to cash flows, note 15 Note 9 EX-101.SCH 5 jctcf-20160531.xsd 000650 - Disclosure - 11. 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