0001217160-18-000010.txt : 20180116 0001217160-18-000010.hdr.sgml : 20180116 20180116163458 ACCESSION NUMBER: 0001217160-18-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 81 CONFORMED PERIOD OF REPORT: 20171130 FILED AS OF DATE: 20180116 DATE AS OF CHANGE: 20180116 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: 18528936 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 jewettcameronq1_201810q.htm JEWETT CAMERON 10-Q FOR THE PERIOD ENDED NOVEMBER 30, 2017 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 NOVEMBER 30, 2017



¨

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 – 2,234,494 common shares as of January 16, 2018.


 

 

 

 

 

 

 

 

 


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

25

 

 

 

Item 4.

Controls and Procedures

25

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

25

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

 

 

 

Item 3.

Defaults Upon Senior Securities

25

 

 

 

Item 4.

Mine Safety Disclosures

25

 

 

 

Item 5.

Other Information

25

 

 

 

Item 6.

Exhibits

26


 

- 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)



NOVEMBER 30, 2017


 

- 3 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


 

November 30,

2017

 

August 31,

2017

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

  Cash

$  5,560,066

 

$   5,912,250

  Accounts receivable, net of allowance  

     of $Nil (August 31, 2017 - $1,725)


3,363,541

 


3,565,055

  Inventory, net of allowance

      of $186,713 (August 31, 2017 - $156,713) (note 3)


9,120,135

 


8,807,545

  Prepaid expenses

1,040,558

 

595,776

 

 

 

 

  Total current assets

19,084,300

 

18,880,626

 

 

 

 

Property, plant and equipment, net (note 4)

3,201,768

 

3,222,572

 

 

 

 

Intangible assets, net (note 5)

60,323

 

77,837

 

 

 

 

Deferred income taxes (note 6)

10,221

 

-

 

 

 

 

Total assets

$  22,356,612

 

$  22,181,035

 

 

 

 


- 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)


 

November 30,

2017

 

August 31,

2017

 

 

 

 

Continued

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

  Accounts payable

$     544,736

 

$    638,128

  Accrued liabilities

1,765,072

 

1,807,192

 

 

 

 

  Total current liabilities

2,309,808

 

2,445,320

 

 

 

 

Deferred tax liability (note 6)

-

 

11,344

 

 

 

 

Total liabilities

2,309,808

 

2,456,664

 

 

 

 

Stockholders’ equity

 

 

 

  Capital stock (note 8, 9)

 

 

 

     Authorized

 

 

 

      21,567,564 common shares, without par value

 

 

 

      10,000,000 preferred shares, without par value

 

 

 

    Issued

 

 

 

      2,234,494 common shares (August 31, 2017 – 2,234,494)

1,054,316

 

1,054,316

  Additional paid-in capital

600,804

 

600,804

  Retained earnings

18,391,684

 

18,069,251

  

 

 

 

  Total stockholders’ equity

20,046,804

 

19,724,371

  

 

 

 

  Total liabilities and stockholders’ equity

$  22,356,612

 

$  22,181,035

  

 

 

 


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 Months Ended

November 30,

 

2017

 

2016

 

 

 

 

SALES

$   9,413,970

 

$  10,421,804

 

 

 

 

COST OF SALES

7,227,222

 

8,027,362

 

 

 

 

GROSS PROFIT

2,186,748

 

2,394,442

 

 

 

 

OPERATING EXPENSES

 

 

 

  Selling, general and administrative expenses

445,877

 

551,048

  Depreciation and amortization

72,665

 

68,640

  Wages and employee benefits

1,097,904

 

982,249

 

 

 

 

 

1,616,446

 

1,601,937

 

 

 

 

Income from operations

570,302

 

792,505

 

 

 

 

OTHER ITEMS

 

 

 

  Loss on sale of property, plant and equipment

(27,552)

 

-

Interest and other income

2,690

 

1,820

 

(24,862)

 

1,820

 

 

 

 

Income before income taxes

545,440

 

794,325

 

 

 

 

Income tax expense

(223,007)

 

(308,405)

 

 

 

 

Net income

$      322,433

 

$      485,920

 

 

 

 

Basic earnings per common share

$            0.14

 

$            0.21

 

 

 

 

Diluted earnings per common share

$            0.14

 

$            0.21

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

  Basic

2,234,494

 

2,286,294

  Diluted

2,234,494

 

2,286,294


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, 2016

2,286,294

$  1,078,759

$  600,804

$  15,845,092

$  17,524,655

 

 

 

 

 

 

Shares repurchased and cancelled (note 9)

(51,800)

(24,443)

-

(502,498)

(526,941)

Net income

-

-

-

2,726,657

2,726,657

 

 

 

 

 

 

August 31, 2017

2,234,494

$  1,054,316

$  600,804

$  18,069,251

$  19,724,371

 

 

 

 

 

 

Net income

-

-

-

322,433

322,433

 

 

 

 

 

 

November 30, 2017

2,234,494

$  1,054,316

$  600,804

$  18,391,684

$  20,046,804


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 Months Ended

November 30,

 

2017

 

2016

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net income

$     322,433

 

$     485,920

Items not involving an outlay of cash:

 

 

 

  Depreciation and amortization

72,665

 

68,640

  Loss on sale of property, plant and equipment

27,552

 

-

  Deferred income taxes

(21,565)

 

(3,165)

 

 

 

 

Changes in non-cash working capital items:

 

 

 

  Decrease (increase) in accounts receivable

201,514

 

(44,185)

  (Increase) decrease in inventory

(312,590)

 

380,408

  Decrease in prepaid income taxes

-

 

596

  (Increase) in prepaid expenses

(444,782)

 

(29,223)

  Decrease in accounts payable and accrued liabilities

(135,512)

 

(564,903)

  Increase in income taxes payable

-

 

310,974

 

 

 

 

Net cash provided by (used by) operating activities

(290,285)

 

605,062

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

  Purchase of property, plant and equipment

(61,899)

 

(225,622)

 

 

 

 

Net cash used in investing activities

(61,899)

 

(225,622)

 

 

 

 

Net increase (decrease) in cash

(352,184)

 

379,440

 

 

 

 

Cash, beginning of period

5,912,250

 

4,519,922

 

 

 

 

Cash, end of period

$    5,560,066

 

$    4,899,362


Supplemental disclosure with respect to cash flows (note 14)


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)

November 30, 2017

(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 November 30, 2017 and August 31, 2017 and its results of operations and cash flows for the three month periods ended November 30, 2017 and 2016 in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”). Operating results for the three month period ended November 30, 2017 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2018.


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)

November 30, 2017

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


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 November 30, 2017, cash was $5,560,066 compared to $5,912,250 at August 31, 2017.  At November 30, 2017 and August 31, 2017, 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 3 months and 15 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)

November 30, 2017

(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 significant 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)

November 30, 2017

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Earnings per share (cont’d…)


The earnings per share data for the three month periods ended November 30, 2017 and 2016 are as follows:


 

 

Three Month Periods

ended November 30,

 

 

 

 

 

 

 

2017

 

2016

 

 

 

 

 

 

Net income

$     322,433

 

$      485,920

 

 

 

 

 

 

Basic weighted average number of

       common shares outstanding


2,234,494

 


2,286,294

 

 

 

 

 

 

Effect of dilutive securities

 

 

 

 

Stock options

-

 

-

 

 

 

 

 

 

Diluted weighted average number

      of common shares outstanding


2,234,494

 


2,286,294


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 three month period ended November 30, 2017, and there were no options outstanding on November 30, 2017.


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.


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)

November 30, 2017

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Financial instruments (cont’d…)


The estimated fair values of the Company's financial instruments as of November 30, 2017 and August 31, 2017 follows:


 

 

November 30,

2017

 

August 31,

2017

 

 

Carrying

Fair

 

Carrying

Fair

 

 

Amount

Value

 

Amount

Value

 

Cash

$5,560,066

$5,560,066

 

$5,912,250

$5,912,250

 

Accounts receivable, net of allowance

3,363,541

3,363,541

 

3,565,055

3,565,055

 

Accounts payable and accrued liabilities

2,309,808

2,309,808

 

2,445,320

2,445,320


The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2017, 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:

 

 

 

 

November 30,

2017

 

Quoted Prices
in Active
Markets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

5,560,066

 

$

5,560,066

 

$

 

$


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 sales in the consolidated statement of operations.


 

- 13 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(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


In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted this ASU on April 1, 2017, prospectively.  There was no material impact on the Company’s financial statements on adoption.


In November 2015, an ASU was issued to simplify the presentation of deferred income taxes.  The amendments in this ASU require that deferred tax liabilities and assets be classified as non-current on the balance sheet as compared to the current requirements to separate deferred tax liabilities and assets into current and non-current amounts.  This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted.  This ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.  The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company’s financial statements on adoption.


In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases.  The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.  The accounting applied by a lessor is largely unchanged from that applied under previous GAAP.  Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied.  Earlier application is permitted.  The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements.


In July 2015, Topic 330, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method (RIM) are not impacted by the new guidance. The new standard is being issued as part of the simplification initiative. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). This necessitated obtaining three data points to determine market value. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Further, this change will more closely align U.S. GAAP and IFRS. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those years and is to be prospectively applied. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company’s financial statements on adoption.


 

- 14 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(Unaudited)


2.

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)


Recent Accounting Pronouncements (cont’d…)


In November 2016, Topic 230, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.  The Company is currently assessing this ASU’s impacts on the Company’s consolidated results of operations and financial condition.


3.

INVENTORY


A summary of inventory is as follows:


 

 

November 30,

2017

 

August 31,

2017

 

 

 

 

 

 

Wood products and metal products

$     8,464,819

 

$     8,184,921

 

Industrial tools

434,598

 

434,871

 

Agricultural seed products

220,718

 

187,753

 

 

 

 

 

 

 

$     9,120,135

 

$     8,807,545


4.

PROPERTY, PLANT AND EQUIPMENT


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


 

 

November 30,

2017

 

August 31,

2017

 

 

 

 

 

 

Office equipment

$       569,750

 

$       561,090

 

Warehouse equipment

1,302,838

 

1,290,838

 

Buildings

4,090,527

 

4,097,438

 

Land

761,924

 

761,924

 

 

6,725,039

 

6,711,290

 

 

 

 

 

 

Accumulated depreciation

(3,523,271)

 

(3,488,718)

 

 

 

 

 

 

Net book value

$    3,201,768

 

$     3,222,572


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.


 

- 15 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(Unaudited)


5.

INTANGIBLE ASSETS


A summary of intangible assets is as follows:


 

 

November 30,

2017

 

August 31,

2017

 

Patent

$      850,000

 

$       850,000

 

Other

43,655

 

43,655

 

 

893,655

 

893,655

 

Accumulated amortization

(833,332)

 

(815,818)

 

 

 

 

 

 

Net book value

$        60,323

 

$         77,837


6.

DEFERRED INCOME TAXES


Deferred income tax assets as of November 30, 2017 of $10,221, and deferred tax liabilities as of August 31, 2017 of $11,344 reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.


7.

BANK INDEBTEDNESS


There was no bank indebtedness under the Company’s $3,000,000 line of credit as of November 30, 2017 or August 31, 2017.


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.


 

- 16 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(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 4th quarter of fiscal 2017 ended August 31, 2017, the Company repurchased and cancelled a total of 41,800 common shares under a 10b5-1 share repurchase plan. The total cost was $526,941 at an average price of $12.61 per share. The premium paid to acquire these shares over their per share book value in the amount of $507,217 was recorded as a decrease to retained earnings.


Donald Boone, Chairman and former President and CEO of the Company, voluntarily returned 10,000 common shares to treasury for cancellation during the fiscal year ended August 31, 2017. The Company paid no consideration for the shares. Capital stock was reduced by the book value of the shares in the amount of $4,719, with a corresponding increase to retained earnings of $4,719.


During the 4th quarter of fiscal 2016 ended August 31, 2016, the Company repurchased and cancelled a total of 112,152 common shares under a 10b5-1 share repurchase plan. The total cost was $1,378,701 at an average price of $12.29 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,325,994 was recorded as a decrease to retained earnings. In addition to the shares repurchased under the 10b5-1 repurchase plan, Donald Boone 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 $7,124, with a corresponding increase to retained earnings of $7,124.


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.


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 November 30, 2017 and August 31, 2017.


 

- 17 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(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 $45,000 of eligible compensation, which was decreased from the prior $50,000 during the second quarter of fiscal 2018 and from $60,000 of eligible compensation during the second quarter of fiscal 2017. 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 three months ended November 30, 2017 and 2016 the 401(k) compensation expense was $46,962 and $53,570, respectively.


12.

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 three month periods ended November 30, 2017 and 2016:


 

 

2017

 

2016

 

 

 

 

 

 

 

 

Sales to unaffiliated customers:

 

 

 

 

 

 

Industrial wood products

$

662,454

 

$

959,616

 

Lawn, garden, pet and other

 

7,984,745

 

 

8,419,027

 

Seed processing and sales

 

468,575

 

 

479,111

 

Industrial tools and clamps

 

298,196

 

 

564,050

 

 

$

9,413,970

 

$

10,421,804

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

Industrial wood products

$

(42,760)

 

$

(28,462)

 

Lawn, garden, pet and other

 

300,872

 

 

527,220

 

Seed processing and sales

 

63,462

 

 

36,811

 

Industrial tools and clamps

 

10,621

 

 

40,407

 

Corporate and administrative

 

213,245

 

 

218,349

 

 

$

545,440

 

$

794,325

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

Industrial wood products

$

861,542

 

$

1,187,525

 

Lawn, garden, pet and other

 

11,569,466

 

 

9,579,500

 

Seed processing and sales

 

351,176

 

 

452,678

 

Industrial tools and clamps

 

525,356

 

 

532,897

 

Corporate and administrative

 

9,049,072

 

 

8,345,998

 

 

$

22,356,612

 

$

20,098,598


 

- 18 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(Unaudited)


12.

SEGMENT INFORMATION (cont’d…)



 

Depreciation and amortization:

 

 

 

 

 

 

Industrial wood products

$

83

 

$

83

 

Lawn, garden, pet and other

 

8,560

 

 

10,715

 

Seed processing and sales

 

2,450

 

 

3,174

 

Industrial tools and clamps

 

328

 

 

328

 

Corporate and administrative

 

61,244

 

 

54,340

 

 

$

72,665

 

$

68,640

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

Industrial wood products

$

-

 

$

-

 

Lawn, garden, pet and other

 

-

 

 

-

 

Seed processing and sales

 

-

 

 

-

 

Industrial tools and clamps

 

-

 

 

-

 

Corporate and administrative

 

61,899

 

 

225,622

 

 

$

61,899

 

$

225,622

 

 

 

 

 

 

 

 

Interest expense:

$

-

 

$

-


The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the three months ended November 30, 2017 and 2016:


 

 

2017

 

2016

 

 

 

 

 

 

Sales

$           5,773,104   

 

$          5,524,416


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 three months ended November 30, 2017 and 2016:


 

 

2017

 

2016

 

 

 

 

 

 

United States

$            8,899,759

 

$          9,881,253

 

Canada

364,173

 

268,062

 

Europe

5,073

 

12,408

 

Mexico/Latin America

79,958

 

233,594

 

Middle East

12,209

 

-

 

Asia/Pacific

52,798

 

26,487


All of the Company’s significant identifiable assets were located in the United States as of November 30, 2017 and 2016.


 

- 19 -

 

 

 

 

 

 

 


JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2017

(Unaudited)


13.

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 November 30, 2017, three customers accounted for accounts receivable greater than 10% of total accounts receivable at 72%. At August 31, 2017, three customers accounted for accounts receivable greater than 10% of total accounts receivable for a total of 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 three months ended November 30, 2017, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $3,923,827. For the three months ended November 30, 2016, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $3,180,581.


14.

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS


Certain cash payments for the three months ended November 30 are summarized as follows:


 

 

2017

 

2016

 

 

 

 

 

 

 

 

Cash paid during the periods for:

 

 

 

 

 

 

  Interest

$

-

 

$

-

 

  Income taxes

$

-

 

$

-


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


 

- 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 November 30, 2017 and August 31, 2017 and its results of operations and cash flows for the three month periods ended November 30, 2017 and November 30, 2016 in accordance with U.S. GAAP.  Operating results for the three month period ended November 30, 2017 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2018.


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


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 primarily to the transportation industry.


The lawn, garden, pet and other segment reflects the business of Jewett-Cameron Company (JCC), which is a wholesaler of wood products and a manufacturer and distributor of specialty metal products.  Wood products are primarily fencing, while metal products include pet enclosures and kennels, proprietary gate support systems, perimeter fencing, greenhouses, canopies and umbrellas. Examples of the Company’s brands include Lucky Dog, Animal House and AKC (used under license from the American Kennel Club) for pet enclosures and kennels; Adjust-A-Gate, Fit-Right, and Perimeter Patrol for gates and fencing; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies.  JCC uses contract manufacturers to make the specialty metal products.  Some of the products that JCC distributes flow through the Company’s facility 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, saw blades, digital calipers, and laser guides.  MSI brands include MSI-Pro, Avenger, and ProMax.


RESULTS OF OPERATIONS


Three Months Ended November 30, 2017 and November 30, 2016


For the three months ended November 30, 2017, sales decreased by $1,007,834, or 9.7% to $9,413,970 from $10,421,804 for the three months ended November 30, 2016.


Sales at Greenwood were $662,454 for the three months ended November 30, 2017 compared to sales of $959,616 for the three months ended November 30, 2016, which was a decrease of $297,162, or 31%. Overall, demand remains weak in this sector. Historically, a large portion of Greenwood’s sales were in the marine industry, but the Company sold its excess marine industry inventory in fiscal 2014. The Company will maintain a readiness to participate in the marine segment when the market rebounds. For the quarter, Greenwood had an operating loss of ($42,760) compared to an operating loss of ($28,462) in the three months ended November 30, 2016.


 

- 21 -

 

 

 

 

 

 

 


Sales at JCC were $7,984,745 for the three months ended November 30, 2017 compared to sales of $8,419,027 for the three months ended November 30, 2016, which was a decrease of $434,282, or 5%. The decrease in sales in the current period was primarily due to a breakage issue with a specific product. This product was sold to a single retail store customer. After two reported incidents of breakage, the Company and the retailer issued a voluntary safety advisory which included a recall of units sold and a permanent withdrawal from sale of all remaining unsold units. This recall had a significant negative effect on JCC’s sales and income for the quarter, as the Company has provided the retailer with a return allowance for the units and destroyed all remaining inventory of the recalled product.  Operating income for JCC was $300,872 for the three months ended November 30, 2017 compared to operating income of $527,220 for the three months ended November 30, 2016. This represents a decrease of $226,348 which is principally attributable to the product issue discussed above. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year historically being slower than the final two quarters of the fiscal year.


Sales at JCSC were $468,575 for the three months ended November 30, 2017 compared to sales of $479,111 for the three months ended November 30, 2016. This represents a decrease of $10,536, or 2%. Overall demand for grass seed remains high due to the continuing strength in the residential housing market in North America. Operating income for JCSC for the quarter was $63,462 compared to operating income of $36,811 for the quarter ended November 30, 2016.


Sales at MSI were $298,196 for the quarter ended November 30, 2017 compared to sales of $564,050 for the quarter ended November 30, 2016, which was a decrease of $265,854, or 47%. In the prior year’s quarter, the Company received a final large order from a now former customer, while the current quarter’s sales are more consistent with historical results. Operating income for MSI for the three months ended November 30, 2017 was $10,621 compared to operating income of $40,407 for the three months ended November 30, 2016.


Gross margin for the three month period ended November 30, 2017 was 23.2% compared to 23.0% for the three months ended November 30, 2016.


Operating expenses increased by $14,509 to $1,616,446 from $1,601,937 for the three months ended November 30, 2017. Selling, General and Administrative Expenses declined to $445,877 from $551,048. Depreciation and Amortization increased to $72,665 from $68,640. Wages and Employee Benefits increased to $1,097,904 from $982,249 as the Company hired additional personnel including Charles Hopewell as President and CEO.


The Company's income tax expense in the current period was $223,007 compared to $308,405 for the three months ended November 30, 2016. Net income for the three months ended November 30, 2017 was $322,433, or $0.14 per basic and diluted share, compared to $485,920, or $0.21 per basic and diluted share, for the three months ended November 30, 2016.


LIQUIDITY AND CAPITAL RESOURCES


As of November 30, 2017, the Company had working capital of $16,774,492 compared to working capital of $16,435,306 as of August 31, 2017, an increase of $339,186. Cash totaled $5,560,066, a decrease of $352,184. Accounts receivable fell to $3,363,541 from $3,565,055 due to the seasonal cycle of sales to customers and the related timing of cash receipts. Inventory increased by $312,590 and prepaid expenses, which is largely related to down payments for future inventory purchases, increased by $444,782 as the Company has secured additional specialty lumber for certain customers who indicated they would increase their orders for the Spring season. The Company also accelerated certain specialty metal product purchases from China in advance of announced increase in the price of steel. Accounts payable decreased by $93,392 and accrued liabilities decreased by $42,120.


As of November 30, 2017, accounts receivable and inventory represented 65% of current assets and 56% of total assets. For the three months ended November 30, 2017, the accounts receivable collection period, or DSO, was 33 days compared to 30 days for the three months ended November 30, 2016. Inventory turnover to the three months ended November 30, 2017 was 113 days compared to 89 days for the three months ended November 30, 2016.


External sources of liquidity include a line of credit from U.S. Bank of $3,000,000. As of November 30, 2017, 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 November 30, 2017, the one month LIBOR rate plus 175 basis points was 3.11% (1.36% + 1.75%). The line of credit has certain financial covenants.  The Company is in compliance with these covenants.


 

- 22 -

 

 

 

 

 

 

 


The Company has been expanding its infrastructure to support its growth. In May 2016, the Company received its final permits for the construction of a warehouse expansion at its headquarters property in North Plains. The completed building measures 150 feet by 80 feet and has a height of 37 feet. During the second quarter of fiscal 2017, the Company received its conditional occupation permits and began using the new expansion for several new product lines. Additional personnel were also added during fiscal 2017 to support its new product lines and sales initiatives.


Subsequent to the end of the first quarter, the Company received noticed that its application for a patent on its updated Adjust-a-Gate gate system has been granted by the United States Patent and Trademark Office. This new patent will extend the protection on the Adjust-a-Gate products for an additional 15 years.


The Company has been utilizing its cash position by repurchasing common shares under formal repurchase plans in order to increase shareholder value.  During the fiscal years ended August 31, 2017 and 2016, 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 March 7, 2016, the Company announced the Board of Directors had authorized a share repurchase plan to purchase for cancellation up to 250,000 common shares through the facilities of NASDAQ. Transactions may involve Jewett-Cameron insiders or their affiliates executed in compliance with Jewett-Cameron's Insider Trading Policy. The share repurchase plan was 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 plan commenced on March 10, 2016 and terminated on August 25, 2016. Under the Plan, the Company repurchased a total of 175,538 common shares at a cost of $2,124,579 which was an average price of $12.10.


On May 23, 2017, the Company announced the Board of Directors had authorized a new share repurchase plan to purchase for cancellation up to 225,000 common shares through the facilities of NASDAQ under similar terms as the March 2016 repurchase plan. The Plan commenced on June 1, 2017 and terminated automatically on August 31, 2017. Under the Plan, the Company repurchased and cancelled a total of 41,800 common shares at a total cost of $526,941 which was an average price of $12.61 per share.


In addition to the Rule 10b-18 share repurchases, Donald M. Boone, Chairman and former President and CEO, voluntarily returned 15,000 common shares to the Company’s treasury for cancellation in June 2016. In February 2017, Mr. Boone voluntarily returned an additional 10,000 to treasury for cancellation. The Company paid no consideration for these shares.


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.


 

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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 2,565 shares for the three months ended November 30, 2017. 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 three months ended November 30, 2017, our top ten customers represented 92% 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.


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, 2017.  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.


 

- 24 -

 

 

 

 

 

 

 


Item 3.

Quantitative and Qualitative Disclosures about Market Risk


Interest Rate Risk


The Company does not have any derivative financial instruments as of November 30, 2017. 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 currently conducted in currencies other than U.S. dollars, and the Company may experience an increase in foreign exchange risk as they expand their international sales.  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


The Company does not know of any 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.


Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

---No Disclosure Required---


Item 3.

Defaults Upon Senior Securities

---No Disclosure Required---       


Item 4.  Mine Safety Disclosures

---No Disclosure Required---       


Item 5.

Other Information

---No Disclosure Required---


 

- 25 -

 

 

 

 

 

 

 


Item 6.

Exhibits


3.1

Notice of Change of Articles

-= 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

Rule 13a-14a/15d-14(a) Certifications

32.1

Section 1350 Certifications



 

- 26 -

 

 

 

 

 

 

 


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)


January 16, 2018

 

/s/  “Charles Hopewell”

 

 

Charles Hopewell,

President/CEO/CFO


 

- 27 -

 

 

 

 

 

 

 


EX-31.1 2 ceocertificationnov2017.htm CERTIFICATION CEO Certification

CERTIFICATIONS


I, Charles Hopewell, 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 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:

January 16, 2018




By:

/s/  “Charles Hopewell”

Charles Hopewell,

Chief Executive Officer and President,

and Principal Financial Officer



EX-32.1 3 cfocertificationnov2017.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 November 30, 2017 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:  January 16, 2018

Signed: /s/  “Charles Hopewell”

 

Charles Hopewell,

Chief Executive Officer and President,

and Principal Financial Officer





EX-101.INS 4 jctcf-20171130.xml 0 0 10000000 10000000 0 0 0 0 0 0 21567564 21567564 2234494 2234494 2234494 2234494 0 1725 186713 156713 -21565 -3165 201514 -44185 -312590 380408 596 -444782 -29223 -135512 -564903 310974 -290285 605062 -61899 -225622 -61899 -225622 -352184 379440 4519922 4899362 1078759 600804 15845092 17524655 2286294 -24443 -502498 -526941 -51800 2726657 2726657 1054316 600804 18069251 19724371 2234494 322433 322433 1054316 600804 18391684 20046804 2234494 10-Q 2017-11-30 false Jewett Cameron Trading Co LTD. 0000885307 jctcf --08-31 2234494 Smaller Reporting Company Yes No No 2018 Q1 1040558 595776 19084300 18880626 60323 77837 22356612 22181035 544736 638128 1765072 1807192 2309808 2445320 11344 2309808 2456664 1054316 1054316 600804 600804 18391684 18069251 20046804 19724371 22356612 22181035 7227222 8027362 2186748 2394442 445877 551048 1097904 982249 1616446 1601937 570302 792505 -27552 2690 1820 -24862 1820 545440 794325 -223007 -308405 0.14 0.21 0.14 0.21 2234494 2286294 <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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. 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Operating results for the three month period ended November 30, 2017 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2018.</p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Principles of consolidation</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">All inter-company balances and transactions have been eliminated upon consolidation.</font></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Estimates</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Cash and cash equivalents</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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 November 30, 2017, cash was $</font><font lang="EN-GB">5,560,066</font><font lang="EN-GB"> compared to $</font>5,912,250<font lang="EN-GB"> </font><font lang="EN-GB">at August 31, 2017.&#160; At November 30, 2017 and August 31, 2017, there were no cash equivalents.</font></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Accounts receivable</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Property, plant and equipment</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'>&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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b>Intangibles</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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 3 months and 15 months, respectively, and are reviewed annually for impairment.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Asset retirement obligations</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Currency and foreign exchange</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">The Company does not have significant 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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Earnings per share</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The earnings per share data for the three month periods ended November 30, 2017 and 2016 are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="624" style='width:468.15pt;border-collapse:collapse'> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">ended November 30,</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2017</font></p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2016</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;322,433</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;485,920</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Basic weighted average number of &#160;common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-top:0in;margin-right:3.7pt;margin-bottom:0in;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number &#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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Comprehensive income</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Stock-based compensation</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>No options were granted during the three month period ended November 30, 2017, and there were no options outstanding on November 30, 2017.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Financial instruments </font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The estimated fair values of the Company's financial instruments as of November 30, 2017 and August 31, 2017 follows:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:3.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">November 30,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> </tr> <tr style='height:10.35pt'> <td width="312" valign="top" style='width:3.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 November 30, 2017, 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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0'> <p align="center" style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>November 30,</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2017</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.94%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:-63.0pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>The fair values of cash are determined through market, observable and corroborated sources.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Income taxes</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Shipping and handling costs<u> </u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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 sales in the consolidated statement of operations.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Revenue recognition</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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. 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:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Recent Accounting Pronouncements </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In May 2014, the FASB issued ASU No. 2014-09, <i>Revenue from Contracts with Customers</i>. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted this ASU on April 1, 2017, prospectively.&#160; There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In November 2015, an ASU was issued to simplify the presentation of deferred income taxes.&#160; The amendments in this ASU require that deferred tax liabilities and assets be classified as non-current on the balance sheet as compared to the current requirements to separate deferred tax liabilities and assets into current and non-current amounts.&#160; This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted.&#160; This ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.&#160; The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In February 2016, Topic 842, <i>Leases</i> was issued to replace the leases requirements in Topic 840, <i>Leases</i>.&#160; The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.&#160; The accounting applied by a lessor is largely unchanged from that applied under previous GAAP.&#160; Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied.&#160; Earlier application is permitted.&#160; The adoption of this new guidance is not expected to have a material impact on the Company&#146;s consolidated financial statements.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In July 2015, Topic 330, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method (RIM) are not impacted by the new guidance. The new standard is being issued as part of the simplification initiative. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). This necessitated obtaining three data points to determine market value. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Further, this change will more closely align U.S. GAAP and IFRS. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those years and is to be prospectively applied. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>In November 2016, Topic 230, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASB&#146;s Emerging Issues Task Force (the &#147;Task Force&#148;). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.&#160; The Company is currently assessing this ASU&#146;s impacts on the Company&#146;s consolidated results of operations and financial condition.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-left:.5in;text-align:justify;text-indent:-.5in'><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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">A summary of inventory is as follows:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="641" style='width:480.95pt;border-collapse:collapse'> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="24" valign="top" style='width:.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;8,464,819</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; 8,184,921</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">434,598</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">434,871</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">220,718</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">187,753</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ &#160;&#160;9,120,135</p> </td> <td width="24" valign="top" style='width:.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$&#160; 8,807,545</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="642" style='width:481.5pt;border-collapse:collapse'> <tr align="left"> <td width="408" valign="top" style='width:4.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="25" valign="top" style='width:18.85pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;569,750</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; 561,090</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,302,838</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,290,838</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">4,090,527</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">4,097,438</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">6,725,039</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">6,711,290</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,523,271)</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,488,718)</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>$&#160; &#160;3,201,768</p> </td> <td width="25" valign="top" style='width:18.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;</font><font lang="EN-GB">3,222,572</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:-27.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">A summary of intangible assets is as follows:</font></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr style='height:8.85pt'> <td width="405" valign="top" style='width:304.0pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="22" valign="top" style='width:16.3pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr style='height:12.6pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Patent</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;850,000</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Other</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;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="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;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="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Accumulated amortization</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(833,332)</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(815,818)</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.6pt'> <td width="405" valign="top" style='width:304.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Net book value</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; &#160;&#160;&#160;60,323</font></p> </td> <td width="22" valign="top" style='width:16.3pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;77,837</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-49.5pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Deferred income tax assets as of November 30, 2017 of $</font><font lang="EN-GB">10,221</font><font lang="EN-GB">, and deferred tax liabilities as of August 31, 2017 of $</font><font lang="EN-GB">11,344</font><font lang="EN-GB"> reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.</font></p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">There was no bank indebtedness under the Company&#146;s $3,000,000 line of credit as of November 30, 2017 or August 31, 2017.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Common Stock</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Holders of common stock are entitled to one vote for each share held.&#160; There are no restrictions that limit the Company's ability to pay dividends on its common stock.&#160; The Company has not declared any dividends since incorporation.</font></p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the 4<sup>th</sup> quarter of fiscal 2017 ended August 31, 2017, the Company repurchased and cancelled a total of 41,800 common shares under a 10b5-1 share repurchase plan. The total cost was $526,941 at an average price of $12.61<font lang="EN-GB"> </font>per share. The premium paid to acquire these shares over their per share book value in the amount of $507,217 was recorded as a decrease to retained earnings. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Donald Boone, Chairman and former President and CEO of the Company, voluntarily returned 10,000 common shares to treasury for cancellation during the fiscal year ended August 31, 2017. The Company paid no consideration for the shares. Capital stock was reduced by the book value of the shares in the amount of $4,719, with a corresponding increase to retained earnings of $4,719.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the 4<sup>th</sup> quarter of fiscal 2016 ended August 31, 2016, the Company repurchased and cancelled a total of 112,152 common shares under a 10b5-1 share repurchase plan. The total cost was $1,378,701 at an average price of $12.29. The premium paid to acquire these shares over their per share book value in the amount of $1,325,994 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 $7,124, with a corresponding increase to retained earnings of $7,124.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company had no stock options outstanding as of November 30, 2017 and August 31, 2017.</font></p> <!--egx--><p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 $45,000 of eligible compensation, which was decreased from the prior $50,000 during the second quarter of fiscal 2018 and from $60,000 of eligible compensation during the second quarter of fiscal 2017. 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 three months ended November 30, 2017 and 2016 the 401(k) compensation expense was $</font><font lang="EN-GB">46,962</font><font lang="EN-GB"> and $</font><font lang="EN-GB">53,570</font><font lang="EN-GB">, respectively.</font></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-left:36.5pt;text-align:justify;text-indent:-36.5pt'><b><font lang="EN-GB">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SEGMENT INFORMATION </font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Following is a summary of segmented information for the three month periods ended November 30, 2017 and 2016:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="91%" style='width:91.52%;margin-left:-.05in;border-collapse:collapse'> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Sales to unaffiliated customers:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 662,454</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 959,616</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">7,984,745</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,419,027</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">468,575</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">479,111</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">298,196</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">564,050</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; </font><font lang="EN-GB">9,413,970</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">10,421,804</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Income (loss) before income taxes:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (42,760)</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (28,462)</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">300,872</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">527,220</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">63,462</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">36,811</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">10,621</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">40,407</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">213,245</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">218,349</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">545,440</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">794,325</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Identifiable assets:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 861,542</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;1,187,525</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">11,569,466</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">9,579,500</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">351,176</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">452,678</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">525,356</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">532,897</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">9,049,072</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,345,998</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">22,356,612</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">20,098,598</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Depreciation and amortization:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 83</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 83</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,560</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">10,715</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,450</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">3,174</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">328</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">328</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">61,244</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">54,340</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">72,665</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">68,640</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Capital expenditures:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#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="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">61,899</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">225,622</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">61,899</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160; &#160;&#160;&#160;&#160;</font><font lang="EN-GB">225,622</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Interest expense</font></b><b><font lang="EN-GB">:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0</font></p> </td> </tr> <tr align="left"> <td width="412" style='border:none'></td> <td width="1" style='border:none'></td> <td width="130" style='border:none'></td> <td width="22" style='border:none'></td> <td width="120" style='border:none'></td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 three months ended November 30, 2017 and 2016:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.25in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Sales</font></p> </td> <td width="120" valign="top" style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">5,773,104</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">5,524,416</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 three months ended November 30, 2017 and 2016:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='width:90.98%;border-collapse:collapse'> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.75pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.45pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">United States</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;8,899,759</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;9,881,253</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Canada</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">364,173</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">268,062</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Europe</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">5,073</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">12,408</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mexico/Latin America</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">79,958</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">233,594</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Middle East</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">12,209</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Asia/Pacific</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">52,798</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">26,487</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 November 30, 2017 and 2016.</font></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONCENTRATIONS</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Credit risk</font></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 November 30, 2017, three customers accounted for accounts receivable greater than 10% of total accounts receivable at </font><font lang="EN-GB">72</font><font lang="EN-GB">%. At August 31, 2017, three customers accounted for accounts receivable greater than 10% of total accounts receivable for a total of </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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><i><font lang="EN-GB">Volume of business</font></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 three months ended November 30, 2017, 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">3,923,827</font><font lang="EN-GB">. For the three months ended November 30, 2016, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $</font><font lang="EN-GB">3,180,581</font><font lang="EN-GB">. </font></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><font lang="EN-GB">Certain cash payments for the three months ended November 30 are summarized as follows:</font></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="92%" style='width:92.92%;border-collapse:collapse'> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="117" colspan="2" valign="top" style='width:88.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="113" colspan="2" valign="top" style='width:85.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="96" valign="top" style='width:71.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="92" valign="top" style='width:69.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Cash paid during the periods for:</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="92" valign="top" style='width:69.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Interest</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="92" valign="top" style='width:69.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Income taxes</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="92" valign="top" style='width:69.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Generally accepted accounting principles</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Principles of consolidation</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">All inter-company balances and transactions have been eliminated upon consolidation.</font></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'><b><font lang="EN-GB">Estimates</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Cash and cash equivalents</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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 November 30, 2017, cash was $</font><font lang="EN-GB">5,560,066</font><font lang="EN-GB"> compared to $</font>5,912,250<font lang="EN-GB"> </font><font lang="EN-GB">at August 31, 2017.&#160; At November 30, 2017 and August 31, 2017, there were no cash equivalents.</font></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Accounts receivable</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Property, plant and equipment</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'>&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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>Intangibles</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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 3 months and 15 months, respectively, and are reviewed annually for impairment.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Asset retirement obligations</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt'><b>Impairment of long-lived assets and long-lived assets to be disposed of</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Currency and foreign exchange</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">The Company does not have significant 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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Earnings per share</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The earnings per share data for the three month periods ended November 30, 2017 and 2016 are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="624" style='width:468.15pt;border-collapse:collapse'> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">ended November 30,</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2017</font></p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2016</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;322,433</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;485,920</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Basic weighted average number of &#160;common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-top:0in;margin-right:3.7pt;margin-bottom:0in;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number &#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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Comprehensive income</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Stock-based compensation</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>No options were granted during the three month period ended November 30, 2017, and there were no options outstanding on November 30, 2017.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Financial instruments </font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The estimated fair values of the Company's financial instruments as of November 30, 2017 and August 31, 2017 follows:</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:3.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">November 30,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> </tr> <tr style='height:10.35pt'> <td width="312" valign="top" style='width:3.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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 November 30, 2017, 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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0'> <p align="center" style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>November 30,</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2017</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.94%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:-63.0pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>The fair values of cash are determined through market, observable and corroborated sources.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Income taxes</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;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:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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:0in;margin-bottom:.0001pt;text-align:justify'><b>Shipping and handling costs<u> </u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>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 sales in the consolidated statement of operations.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Revenue recognition</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><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. 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:0in;margin-bottom:.0001pt;text-align:justify'><b>Recent Accounting Pronouncements </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In May 2014, the FASB issued ASU No. 2014-09, <i>Revenue from Contracts with Customers</i>. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted this ASU on April 1, 2017, prospectively.&#160; There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In November 2015, an ASU was issued to simplify the presentation of deferred income taxes.&#160; The amendments in this ASU require that deferred tax liabilities and assets be classified as non-current on the balance sheet as compared to the current requirements to separate deferred tax liabilities and assets into current and non-current amounts.&#160; This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted.&#160; This ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.&#160; The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In February 2016, Topic 842, <i>Leases</i> was issued to replace the leases requirements in Topic 840, <i>Leases</i>.&#160; The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.&#160; The accounting applied by a lessor is largely unchanged from that applied under previous GAAP.&#160; Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied.&#160; Earlier application is permitted.&#160; The adoption of this new guidance is not expected to have a material impact on the Company&#146;s consolidated financial statements.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In July 2015, Topic 330, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method (RIM) are not impacted by the new guidance. The new standard is being issued as part of the simplification initiative. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). This necessitated obtaining three data points to determine market value. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Further, this change will more closely align U.S. GAAP and IFRS. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those years and is to be prospectively applied. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Company&#146;s financial statements on adoption. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>In November 2016, Topic 230, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASB&#146;s Emerging Issues Task Force (the &#147;Task Force&#148;). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.&#160; The Company is currently assessing this ASU&#146;s impacts on the Company&#146;s consolidated results of operations and financial condition.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'>&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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font style='display:none'>Minimum</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">3</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">2</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">5</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">30</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="624" style='width:468.15pt;border-collapse:collapse'> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">Three Month Periods</font></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><font lang="EN-GB">ended November 30,</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2017</font></p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2016</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;322,433</font></p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;485,920</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Basic weighted average number of &#160;common shares outstanding</font></p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-top:0in;margin-right:3.7pt;margin-bottom:0in;margin-left:-27.9pt;margin-bottom:.0001pt;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'>&nbsp;</p> </td> <td width="88" valign="top" style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="432" valign="top" style='width:4.5in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:40.5pt;text-indent:-40.5pt'><font lang="EN-GB">Diluted weighted average number &#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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>2,234,494</p> </td> <td width="18" valign="top" style='width:13.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="87" valign="top" style='width:65.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,286,294</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;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:3.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">November 30,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">August 31,</font></b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Cash</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,560,066</font></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$5,912,250</font></p> </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3,363,541</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="75" valign="top" style='width:56.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> <td width="76" valign="top" style='width:57.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">3,565,055</font></p> </td> </tr> <tr style='height:10.35pt'> <td width="312" valign="top" style='width:3.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,309,808</font></p> </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">2,445,320</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;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:0'> <p align="center" style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>November 30,</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2017</b></p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'><b>Assets:</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.94%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p align="right" style='margin:0in;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:0'> <p align="right" style='margin:0in;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:0'> <p style='margin:0in;margin-bottom:.0001pt'>Cash</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.94%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.94%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,560,066</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="8%" valign="bottom" style='width:8.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> <td width="3%" valign="bottom" style='width:3.98%;background:white;padding:0'> <p style='margin-top:2.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="10%" valign="bottom" style='width:10.9%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&#151;</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="641" style='width:480.95pt;border-collapse:collapse'> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="24" valign="top" style='width:.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;8,464,819</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160; 8,184,921</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">434,598</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">434,871</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">220,718</font></p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">187,753</font></p> </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ &#160;&#160;9,120,135</p> </td> <td width="24" valign="top" style='width:.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$&#160; 8,807,545</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="642" style='width:481.5pt;border-collapse:collapse'> <tr align="left"> <td width="408" valign="top" style='width:4.25in;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="25" valign="top" style='width:18.85pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">August 31,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;569,750</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; 561,090</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,302,838</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">1,290,838</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">4,090,527</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">4,097,438</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">761,924</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;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="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">6,725,039</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">6,711,290</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,523,271)</font></p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(3,488,718)</font></p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="25" valign="top" style='width:18.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:4.25in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;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:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>$&#160; &#160;3,201,768</p> </td> <td width="25" valign="top" style='width:18.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="107" valign="top" style='width:80.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;</font><font lang="EN-GB">3,222,572</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr style='height:8.85pt'> <td width="405" valign="top" style='width:304.0pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">November 30,</font></b></p> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="22" valign="top" style='width:16.3pt;border:none;border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:8.85pt'> <p align="right" style='margin:0in;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:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> </tr> <tr style='height:12.6pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Patent</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;850,000</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$ &#160;&#160;850,000</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Other</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">43,655</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;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="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">893,655</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;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="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Accumulated amortization</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(833,332)</font></p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">(815,818)</font></p> </td> </tr> <tr style='height:11.95pt'> <td width="405" valign="top" style='width:304.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="22" valign="top" style='width:16.3pt;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.6pt'> <td width="405" valign="top" style='width:304.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Net book value</font></p> </td> <td width="99" valign="top" style='width:74.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160;&#160; &#160;&#160;&#160;60,323</font></p> </td> <td width="22" valign="top" style='width:16.3pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:78.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;77,837</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="91%" style='width:91.52%;margin-left:-.05in;border-collapse:collapse'> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Sales to unaffiliated customers:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 662,454</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 959,616</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">7,984,745</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,419,027</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">468,575</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">479,111</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">298,196</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">564,050</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; </font><font lang="EN-GB">9,413,970</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">10,421,804</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Income (loss) before income taxes:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (42,760)</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (28,462)</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">300,872</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">527,220</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">63,462</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">36,811</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">10,621</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">40,407</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">213,245</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">218,349</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">545,440</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">794,325</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Identifiable assets:</font></b></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160; 861,542</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;1,187,525</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">11,569,466</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">9,579,500</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">351,176</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">452,678</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">525,356</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">532,897</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">9,049,072</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,345,998</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">22,356,612</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; </font><font lang="EN-GB">20,098,598</font></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.75pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="120" colspan="2" valign="top" style='width:89.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Depreciation and amortization:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 83</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 83</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">8,560</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">10,715</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">2,450</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">3,174</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">328</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">328</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">61,244</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">54,340</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">72,665</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">68,640</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Capital expenditures:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial wood products</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#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="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Lawn, garden, pet and other</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Seed processing and sales</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Industrial tools and clamps</font></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">Corporate and administrative</font></p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">61,899</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">225,622</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font lang="EN-GB">61,899</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160; &#160;&#160;&#160;&#160;</font><font lang="EN-GB">225,622</font></p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="379" colspan="2" valign="top" style='width:284.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'><b><font lang="EN-GB">Interest expense</font></b><b><font lang="EN-GB">:</font></b></p> </td> <td width="119" valign="top" style='width:89.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0</font></p> </td> <td width="20" valign="top" style='width:15.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="110" valign="top" style='width:82.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0</font></p> </td> </tr> <tr align="left"> <td width="412" style='border:none'></td> <td width="1" style='border:none'></td> <td width="130" style='border:none'></td> <td width="22" style='border:none'></td> <td width="120" style='border:none'></td> </tr> </table> <!--egx--><p style='margin:0in;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="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.25in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="378" valign="top" style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Sales</font></p> </td> <td width="120" valign="top" style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">5,773,104</font></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-GB">5,524,416</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='width:90.98%;border-collapse:collapse'> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.75pt'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="119" valign="top" style='width:89.45pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">United States</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;8,899,759</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">$ &#160;&#160;&#160;9,881,253</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Canada</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">364,173</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">268,062</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Europe</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">5,073</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">12,408</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mexico/Latin America</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">79,958</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">233,594</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Middle East</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">12,209</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">-</font></p> </td> </tr> <tr align="left"> <td width="374" valign="top" style='width:280.45pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Asia/Pacific</font></p> </td> <td width="119" valign="top" style='width:89.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">52,798</font></p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>&nbsp;</p> </td> <td width="113" valign="top" style='width:85.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">26,487</font></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-right:4.5pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="92%" style='width:92.92%;border-collapse:collapse'> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="117" colspan="2" valign="top" style='width:88.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2017</font></b></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="113" colspan="2" valign="top" style='width:85.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><b><font lang="EN-GB">2016</font></b></p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="96" valign="top" style='width:71.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="92" valign="top" style='width:69.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Cash paid during the periods for:</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="92" valign="top" style='width:69.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:justify'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Interest</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> <td width="18" valign="top" style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="21" valign="top" style='width:16.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="92" valign="top" style='width:69.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'><font lang="EN-GB">0</font></p> </td> </tr> <tr align="left"> <td width="389" valign="top" style='width:291.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">&#160; </font><font lang="EN-GB">Income taxes</font></p> </td> <td width="22" valign="top" style='width:16.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'><font lang="EN-GB">$</font></p> </td> <td width="96" valign="top" style='width:71.8pt;padding:0in 5.4pt 0in 5.4pt'> <p 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